Hotai Electromechanical's main business is the research and development, design, manufacturing and sales of material conveying equipment. It is one of the advanced material conveying equipment manufacturers in China.

The company's main products include plate chain bucket elevators, belt bucket elevators and other series of conveying equipment and accessories, which are widely used in cement building materials, steel and other industries to provide customers with environmentally friendly and efficient bulk material conveying solutions.

In response to the country's "One Belt, One Road" strategic policy, the company has actively deployed overseas markets and has successively obtained product qualification certifications such as CE certification and ATEX explosion-proof certification. Its customers have spread to Southeast Asia, the Middle East, Africa, the Americas and other regions, and it has won many awards in the industry.

Reasons for the issuance of new shares: 1. The issuance price of new shares is too high.

The issue price is usually higher than the valuation, and companies with high price-to-earnings ratios cannot support such a high issue price.

2. The market size of newly listed companies is relatively large.

Market funds are limited, and it is easy to have a breakout when everyone sells stocks.

3. The overall market conditions are not good.

The listing of new stocks coincides with a bear market, and new stocks are prone to breakouts.

4. The registration system makes the capital market more mature.

5. After the new shares are listed, retail investors take profits and cause the shares to break.