Profile: Harbin Electric, Inc. (HRBN.O)

Harbin Electric, Inc. (Harbin Electric), incorporated on July 9, 2003, designs, develops, manufactures and services a range of electric motors, including linear motors, specialty micro-motors and industrial rotary motors. The Company operates, through its indirect wholly owned subsidiaries, Harbin Tech Full Electric Co., Ltd. (HTFE) and Weihai Hengda Electric Motor (Group) Co., Ltd. (Hengda). The Company offers three product lines: linear motors and their integrated application systems, automobile specialty micro-motors and industrial rotary motors. On July 10, 2008, the Company’s subsidiary, HTFE acquired Hengda. In October 2008, the Company, through its indirect wholly owned subsidiary Advanced Automation Group, LLC (AAG), formed Advanced Automation Group Shanghai Co., Ltd. (AAG Shanghai), to design, develop, manufacture, sell and service custom industrial automation controllers for linear motors.

The Company provides after-sale services to its customers. The Company typically offers a warranty of up to two years on its products. The Company generally provides onsite services at a client location within 24 hours to fix problems arising within the warranty period. After the warranty period has expired, the Company offers after-sale services for a fee.

The flat linear asynchronous motor series is applied in transmission systems, such as the production transportation line, the crane, postal service sorting machine, baggage sorting machine, printed matter sorting machine, automatic linear door and revolving door applications. The flat linear asynchronous motor series is self-cooling using the ambient environment.

The flat three-phase linear asynchronous motor has forced ventilation structure, which is loaded with radiator, bottom board and air blower to reduce and dissipate heat. This motor is used in transmission systems, such as the production transportation line, the crane, postal service sorting machine, baggage sorting machine, printed matter sorting machine, automatic linear door, and revolving door applications. Unlike the self-cooling design of its flat linear asynchronous motor series, its flat three-phase linear asynchronous motor utilizes forced ventilation.

The Company’s integrated linear motor system has been used in the oil services, factory automation, packaging, logistic systems and food industry. Applications mainly include production transportation conveyor line, the postal service mail sorting machine, the baggage sorting machine, the printed matter sorting machine, food and meat slicer, oil pump machine of oilfield and automated power switch.

Automobile specialty micro-motors are used for various automation functions in an automobile. The Company has developed nine products that are used for car seat automation, back seat folding, electric power steering (EPS), automated window, and automated trunk opening.

The Company manufactures various industrial rotary motors, such as high/low voltage motors, alternating current/ direct current (AC/DC) motors and speed control motors, including small to medium sized. Its industrial rotary motors are used mainly in petrochemical industry, metallurgical and mining industry, textile industry, agricultural machinery, transportation machinery, machine tools, medical devices, ventilation equipment, air compressor, and electric pumps.