The Company, a widely respected China-based designer and manufacturer of internal combustion engine and parts, particularly for China's $100 billion diesel engine and parts market, previously reported that after successful testing of its patented fuel injection system, it received a supply letter of intent for 200,000 sets of the product annually once production commenced from Weichai Power, Ltd., one of China's largest diesel engine manufacturers. It reported that similar agreements since have been forged with Jiangsu Jianghui Engine Co. Ltd. and Sichuan Emei Diesel Engine Co. Ltd., two large PRC diesel manufacturers. The Company said letters of intent for long term guaranteed fixed quantities now also have been signed with several other domestic diesel manufacturers and it anticipates the number of agreements will continue to grow.
On April 7, 2011, Xinde Technology Company held a special meeting of its stockholders. The Company's stockholders approved, by the requisite number of votes, two proposals as follows: To effect an increase in the amount of the Company's authorized common stock from 150,000,000 shares to 350,000,000 shares. To effect a 4-for-1 forward split of the Company's outstanding Common Stock.
To honor the Company's continuous contribution to the local economy and its achievement of going public in the U.S., the local tax bureau exempted the Company's output VAT payable of $12,085,158, which was recorded as subsidy income in the accompanying consolidated statements of income and comprehensive income for the year ended June 30, 2010.