INTRODUCTION

Hongfa Headquarters

Located in Xiamen, Fujian Province

One of the major relay manufacturers & suppliers worldwide; the leading enterprise in Chinese relay industry.

2015 global relay sales volume: $6.28billion; total production capacity: 13.8billion pcs

2015 Hongfa relay production capacity: 1.2billion pcs; ranked No.1 by occupying 8.6% of the total

production capacity.

2015 Hongfa sales revenue: $710million(¥5.75 billion), ranked No.2 by occupying 11.3% of the global share.

Recognized as the only one in relay industry to be listed in China Top 100 Enterprises of Electronic

Information; one of China’s Top 100 Enterprises of Electronic Components for 22 consecutive years,

currently ranked 9th.

Hongfa Group owns 38 subsidiaries with a total factory area of 530,000 square meters and new factory

buildings of 360,000 square meters in plan.

Hongfa leading product is relay, with an annual production capacity of 1.5 billion pieces. Other products

include low-voltage devices, switchgears, high-precision components and automated equipment.

Overview

One of the first and major hi-tech enterprises for National Torch Plan; National Quality-Benefit

Oriented Advanced Enterprise.

The only Chinese relay enterprise authorized as National Technology Center.

The only Chinese relay enterprise authorized as National Export Base for Automotive

Components.

One of the first model enterprises for national intellectual property.

Director unit for National Relay Standarization Technology Committee, responsible for establishing

national and industry standards.

Member for IEC/TC94 international standards.

Overview

Unit: Mill. USD

Revenue Growth

Scale

Notes:

Overview

1987 to 1998

Start-up

1999 to 2007

Scale-up

1984

Foundation

Pursued independent innovation

and improved on the existing

industrial chain so as to advance

the second stage of strategic

development and to build a

modernized relay system. Positioned itself as a conglomerate with the

corporation to its core, oriented by a

dominant business and driven by market

resources and product development.

Since 2008 Brand Enhancement

Adopted the strategy of product

diversification and accelerated the

pace of structural adjustment of

capital, as a commencement of the

third stage of strategic development.

880

The data for 1987-2007 refers to the revenue of Hongfa Headquarters only,

i.e. before the Stock System Reform, and the data for 2007 onwards refers

to the Hongfa Group. 885

Milestone

发展 第三次创业

1984 Establish

the

company

1987 Define product

& enterprise

positioning:

committed to be

an export-

oriented

enterprise with

relay as the

main product.

2004 Establish the

first postdoctoral

research center

in Chinese relay

industry.

2007 Testing

Center

became

global

partner with

VDE

2008

Achieve

success of

the Stock

System

Reform,

leading to the

establishment

of Hongfa

Electroacousti

c Co. Ltd..

2010 Win the

accolade

of Famous

Trademark

of China

2012

Listed on

Shanghai Stock

Exchange

under the

approval of

the China

Securities

Regulatory

Commission.

2015

Become the

first Chinese

enterprise

passed

American

UL

standards.

1991 Put forward company

tenet:Persevere for

Progress，Strive for

Excellence, which

became Hongfa Spirit

later;

Ranked as the top relay

company in China in

terms of overall economic

index

1995 First recognized

as one of

China’s Top

100 Enterprises

of Electronic

Components.

1999 Implement

enterprise

reform;

Employee stock

ownership.

2014 First recognized

among China Top

100 Enterprises of

Electronic

Information;

30th Anniversary

for Hongfa Group.

2009 Issue

additional

shares to the

managerial

staff, who is

now the

largest

shareholder

of the

company.

2011 Establis

hed the

academi

cian

research

station.

2013

First raised

capital with

success by

public offering;

Among the first

group of national

intellectual

property model

enterprises.

Subsidiaries

Overview

Zhangzhou Hongfa Electrical

Co., Ltd.

Ningbo Jinhai Electronic

Co., Ltd.

Xi'an Hongfa Electrical

Co., Ltd.

Xiamen Hongyuanda Electrical

Co., Ltd.

Xiamen Hongfa Electrical

Safety & Controls Co., Ltd.

Xiamen Hongfa Automotive

Electronics Co., Ltd

Xiamen Hongfa Signal

Electronics Co., Ltd.

Xiamen Hongfa Hermetically

Sealed Relays Co., Ltd. Zhejiang Hongzhou New

Energy Technology Co., Ltd.

Xiamen Hongfa Electric Co.,

Ltd.

Xiamen Hongfa Precision

Machining Co.,Ltd

Xiamen Jinghe Electric

Automation Co., Ltd.

Xiamen Hongfa Industrial

Robot Co., Ltd.

Xiamen Jinbo Noble Metal

Product Co., Ltd.

KG Technologies, Inc.

KG Europe GmbH

KG Technologies (Pty)

Ltd

Sichuan Hongfa

Electroacoustic Co., Ltd.

Xiamen Hongfa Electroacoustic Co., Ltd.

Shanghai Hongfa Electroacoustic

Co., Ltd.

Beijing Hongfa Electroacoustic

Relay Co., Ltd.

Sichuan Hongfa Relay Co., Ltd.

Xiamen Jinyue Electric

Appliance Co., Ltd.

Manufacturing

Hongfa Europe GmbH

Hongfa America, Inc.

Hongfa Italy S.R.L

Non-manufacturing

Xiamen Hongfa Power

Electronics Co., Ltd.

Hongfa Electroacoustic

(Hongkong) Co., Ltd.

Hongfa Headquarter’s factory

No.1 Business Division No.2 Business Division No.3 Business Division

Electrification Intelligent Products Business Division

No.5 Business Division No.6 Business Division

Factories

Headquarter factory: 72,300M2

Product: power relay, and hermetically-sealed relay

Donglin factory: 159,000M2

Product: latching relay, automotive relay, low-voltage device and

high-precision components

Xi'an factory: 24,200M2

Product: power relay

Zhongjiang factory: 83,400M2

Product: power relay

Zhejiang Hongzhou factory

Product: HVDC Relay

Ningbo factory: 31,000M2

Product: industrial relay

Huli factory: 12,700M2

Product: automatic equipment

built area：61,400M2

to be built area: 22,000M2

built area: 23,200M2

to be built area: 7800M2

Current factory area of 530,000 square meters and new

factory buildings of 360,000 square meters in plan.

R&D and Manufacturing Sites 9

Overview

Haicang factory: 265,000 M2

Product: electronic relay, signal relay, high and low voltage

complete sets of equipment, automatic equipment

Zhangzhou factory: 189,000 M2

Product: power relay, relay contacts production

built area:55,000M2

under construction area:83,000M2

to be built area:51,000M2

built area: 96,000M2

under construction area: 99,000M2 to be built area: 70,000M2

Factories Overview

Hongfa Shanghai Hongfa Beijing Hongfa Sichuan Xiamen(HQ)

Hongfa Europe Hongfa America Hongfa HK KG America

Global Logistics & Service Center

India Office Korea Office Phillippines

Office

Turkey Office Brazil Office Taiwan Office

Global Service Sales & Logistics Network

Hongfa relays are currently

being exported to over 100

countries and regions,localized

sales and service network are

established among multiple

regions with the capbility of

globlized market operation and

technical support.

2015 Sales Structure

Europe 11.3%

America 9.2%

Asis Pacific 9.2% (excluding Chinese Mainland) Chinese Mainland 70.2%

Xiamen China

Other products include relays, low-voltage devices, switchgears, high-precision components and

automated equipment.

We have 160 series of relays, with up to 40,000 types of specifications; new products grow at the

rate of 60 to 70 series annually; we also offer tailor-made products and accept OEM orders.

Our products are accredited by UL/CUL, VDE, TÜ V, and CQC, CCC.

Products

Products & Applications

信号继电器

Signal Relay

工业继电器

Industrial Relay

密封继电器

Hermetically-sealed

Relay

低压电器

Low-voltage Device

& Switchgears

Revenue

in 2015

29.6%

10.5%

18.8%

Sales added value 5.5% 19.7%

汽车继电器

Automotive Relay

功率继电器

Power Relay

3.1%

5.3%

0.6%

4.7%

Latching Relay Component/Equipment

Widely used in industries of energy,

transportation, information, home

appliance, medical care and national

defense, continuously improving people’s

living quality.

Household Appliance Power and

New Energy

Industrial

Automation

Security;

Fire control

Aviation

Auto application

Internet; Telecommunication

Entertainment

Applications

Products & Applications

Electric power / Meter

GE, IUSA , ITRON , ENEL

Landys & Gyr, Echelon, EDMI,

Sagemcom, EI Sewedy, Elster

Home Appliance

BSH, Philips, Electrolux,

Whirlpool, Indesit, GE, Sharp,

Hitachi, Canon, Sony, Samsung,

LG, Daewoo, Arcelik, Vestel,

Gree, Haier, Midea, Hisense,

Chigo, Aux, Changhong,

Galanz, Supor, Joyoung

GM, Ford, FCA, Delphi,

Leoni, Lear, Bosch, Kostal,

Lukov, Bitron, Hella, Marelli,

Dongfen, SAIC, Chery,

Geely, JMC, BYD,

Great Wall, King Long

Automobile

Industrial Control

ABB, Schneider, Danfoss, APC,

Siemens,Wago,Weidmuller, Carlo

Gavazzi,Theben, AKO, EGO,

Phoenix, Viessmann, Panasonic,

Yaskawa, LS, Delta, SanRex,

Eaton, Emerson, Carel,Vaillant,

Thermowatt

Telecommunication

Asus, Alcatel, ACT,

Intelbras, EMC, HUAWEI,

ZTE Corporation

EMS

Bitron, Vtech, SVI,

Wongsec/WKK,

Computime, Jabil,

Flextronics,

Celestica, Foxconn

Major Clients

Global Service

Top-notch designing and manufacturing capacity in machine

automation for relay production.

Advanced and comprehensive product testing laboratories.

Advanced and complete corporate culture. 1

2

3

4

5

The most competitive human resources in the profession, boasting a

technical and managerial team that is capable of designing and

developing products with independent intellectual property right.

Core Competitiveness

Leading capacity in Chinese relay industry in designing and

manufacturing mold and precision components.

Corporate

Culture

Hongfa Spirit

Core Values

Hongfa Vision

Hongfa

Mission

Operational

Philosophy

Quality

Policy

Persevere for Progress

Strive for Excellence

Promoting teamwork to

ensure sustained business

development for the benefit of

society and the shareholders,

and enhanced benefits for

company employees

Building global recognition

for the Hongfa brand.

To become a first-class

relay supplier in the world.

Focussed on the market

Winning through quality

Pursue impeccable quality to

win customer’s satisfaction of

our products and services.

Honesty, Ethics, Respect,

and Commitment.

Code of

Conduct

Corporate Culture

Advanced and Complete Corporate Culture 1

Core Competitiveness

Preside over or participate in formulating professional or national standards for multiple relays, e.g.

national standards for six signal relays (equivalent to IEC61811-50 to 55), Basic Electro-mechanical

Relays Chapter 1: General Rules and Security Requirements (equivalent to IEC61810-1), Generic

Specifications of Reliability Testing for Electromagnetic Relays and Reliability Testing Methods of

Lower Capacity AC Contactors, ects.

Established the Post-doctoral Research Station in 2004, the first among the profession.

Launched Academician-Enterprise Cooperation Program in 2011.

State-accredited Technical Center.

Hongfa was named the National Innovative Enterprise by the

Ministry of Science and Technology.

Hongfa was recognized as National Intellectual Property

Model entity by the State Intellectual Property Office.

2 The Most Competitive Human Resources in

Chinese Relay Industry.

Design and R&D

Core Competitiveness

CNC optical profile grinder

CNC EDM

Automatic

Molding

Mold Designing and Manufacturing

Core Competitiveness

3 Leading Mold Designing and Manufacturing

in Chinese Relay Industry.

High-precision, High-speed Punch Press

Micro-WEDM

Injection Molding with Central Feeding System Three-coordinate admeasure

Mold Designing and Manufacturing

Core Competitiveness

high-precision

Assembly

Particle Removal

SPC Process Control

OT Calibration

Error proof on

production line

Automated Assembly

automotive relay production line

Top-notch Designing and Manufacturing Capacity

in Machine Automation for Relay Production 4

latching relay production line

Core Competitiveness

low-voltage device production line

power relay production line

Automated Assembly

signal relay production line

hermatically sealed relay production line

Top-notch Designing and Manufacturing Capacity

in Machine Automation for Relay Production 4

Core Competitiveness

Hongfa test lab is

ISO/IEC 17025 certified.

机械环境试验 盐雾试验 temp. rise test endurance test reliability test

Advanced and Comprehensive Testing Laboratories 5

Testing & Analysis

cover comprehensive testing labs for various product categories, including relays,

low-voltage device and electronic products etc. Own the largest and most

comprehensive relay testing center in Chinese relay industry.

Certified by VDE, UL and CNAS implemented 10+ national or international

standards, e.g. EN61810 and UL508. Chemical Analysis Lab accredited by CNAS,

capable of conducting RoHS compliance test.

Partner of VDE since 2007, the only enterprise in the global component industry

Core Competitiveness

FT-IR Spectrum Analysis Leica Particle Counter

X-Ray Inspection Machine SEM+EDS Electrical Contact Analysis

Hongfa chemical analysis testing lab is recognized by CNAS, which means we are capable of providing

RoHS complianc testing data and report with accuracy, reliability and credibility.

Testing & Analysis

Core Competitiveness

Development Plan

Work hard to achieve “Three Changes”. That is to change from developing market by

quantity and share to quality, reliable technology and perfect service; to change from

supplying relays only to supplying various categories; to change from providing products to

providing solutions to customers.

2015 2016 2020

5.45

billion

5.75

billion

10

billion

Our goal by the end of the 13th Five Year Plan is to achieve 10 billion RMB turnover, 600

thousand RMB receivable per capita, to become a world major relay manufacturer, a key low

voltage device manufacturer and supplier in China and to diversify our development paths.

By 2025, Hongfa aims at achieving 16 billion RMB turnover and expanding the development

of other significantly besides our primary and secondary categories to lay a solid foundation

for Hongfa to become a world-renown company.

For more details, please contact us via www.hongfa.com、+86-592-6196710、marketing@hongfa.com