Three factors driving shaft industry rebound. First, in the first five months total vehicle sales rose 15.35 percent, to stimulate car sales pick up bearing demand. Second, the U.S. economic recovery, stimulating our bearings export processing enterprises. Third, technological upgrading of China's bearing applications open more space.
Receipts in advance the company increased quarter by quarter, orders increased rapidly. Company is the domestic bearing industry leading enterprises, industry warming will be the first to benefit. Company Advances received 077 million yuan in 2012, an increase of 79.1%. 2013 Advances from 91.31 million yuan in the first quarter, year on year growth accelerated to 156.9%. Receipts in advance shows rapid growth of total company orders.
Company actively exploring new products, the future market space. Company intends to develop new business, including: high-quality electromagnetic drive unit; generation of passenger car wheel units, etc. In addition, the company recently invested 126 million yuan share placement announcement for an annual output of 500,000 sets of precision bearings production line construction project.
Significant technical advantages, prominent position in the industry. Predecessor company Luoyang Bearing Research Institute is the only large bearings Institute, the domestic high-end product positioning, and contract the domestic space shuttle, military bearing and other services, product positioning will help the company first in the industry to achieve import substitution
High Speed Rail Bearing launched soon. Bearing the company's high-speed rail project is the testing phase, is expected to soon launch next year to start building demonstration production line. High-speed rail bearings are consumables, the average replacement cycle of about 1.5 years, the annual demand of about 15 million.