The financial crisis may have ravaged China's manufacturing industry but one manufacturing equipment producing company in North East China seems to have prospered from it, with revenues shooting up 21 percent in the first half 2009 to £21.1m.

China Wonder pre-tax profits did however decrease slightly to £0.22 million from £0.25 million the previous year, but the company expects a 30 percent growth in profits and revenues over the next year.

That's in a backdrop of China's 1,605 domestically listed companies reporting an average drop in first half turnover of 11.8 percent.

"The financial crisis brought about a competition for survival amoung manufacturing companies, in which improving technology became the crucial battlefield. This is the opportunity that China Wonder got from the crisis," Says CEO Zeng Qing Dong.

China Wonder (AIM:CWO) was the first Chinese company to list on AIM. Its core business is in designing non-standard manufacturing equipment for drug packaging, auto-parts producing equipment and moulding machinery.
Because of over-capacity in the industry, low tech manufacturing of car parts became particularly precarious business to be in as the financial crisis hit in. But the supply of parts normally sourced from overseas were still in short supply, and with budgets tightened a market was created for domestically produced high quality alternatives. Upgrading became the only way for some auto part producers to survive.

China Wonder was suddenly with offers to upgrade manufacturing lines. "Our products have better technology than other domestic competitors and are cheaper than foreign competitors," says Zeng.

China Wonder long-term research collaboration with Jilin University, Beijing Institute of Technology and Liaoning Technical University has put it in a technological advantage to its competitors. Recently China Wonder established another research division dealing with research in automated assembly lines.

The current financial crisis spelt the end of the sweatshop export model. China has had no choice but to seek growth model, according to the implementation of sustainable development and increasing competitive strength. This can only be done by upgrading production lines and manufacturing technology.

China Wonder's track record and competitive advantage sits in stead for further growth.