Harbin Electric, Inc. (Harbin Electric) 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.