Dongshan Precision 80 million plus code LED and other main industries hope to break the regional capacity bottleneck

Dongshan Precision announced on June 17, the company will invest 20 million yuan and 60 million yuan, respectively, to participate in the establishment and holding of Shanghai Fushan Precision Manufacturing Co., Ltd. and Dongguan Dongshan Precision Manufacturing Co., Ltd., on the one hand to strengthen the precision manufacturing business expansion, while increasing LED business investment, to solve its regional capacity bottleneck.

The announcement shows that the company signed a "Joint Venture Agreement" with Shanghai Fuxin Venture Capital Co., Ltd. (hereinafter referred to as "Fuxin Venture Capital" on June 16th. The two parties jointly raised and established Precision Manufacturing Co., Ltd., the name of the joint venture company is Shanghai Fushan Precision Manufacturing Co., Ltd. The registered capital of the joint venture company is 50 million yuan, of which Dongshan Precision invested 20 million yuan, accounting for 40% of the registered capital, and Fuxin Venture Capital invested 30 million yuan, accounting for 60% of the registered capital. Fuxin Venture Capital is a wholly-owned subsidiary of Shanghai Fuxin Communication Technology Development Co., Ltd. The actual controller is the China Huaxin Post and Telecommunications Economic Development Center under the State-owned Assets Supervision and Administration Commission of the State Council.

After the establishment of the joint venture company, it will be mainly engaged in precision sheet metal processing, processing and assembly of hardware, parts and structural parts, manufacturing, development research, system integration, testing and maintenance of various chassis cabinets, development and manufacturing of cabinet control systems. ; production and technology development of communication products and system equipment; production and sales of electronic products.

According to the agreement, the joint venture company should give priority to Dongshan Precision as the outsourcing business partner under the same conditions. Dongshan Precision will also actively support any assistance that the new company needs in the production transfer process, including personnel and technology as well as production support.

For this investment, Dongshan Precision said that through the company's core competitiveness in the field of precision manufacturing, the company will expand its stable customers and business and optimize the company's industrial structure, which will help to improve the company's income level and profitability.

At the same time, in order to solve the bottleneck of the site and capacity encountered by the company's wholly-owned subsidiary Shenzhen Dongshan Precision Manufacturing Co., Ltd., the company plans to set up Dongguan Dongshan Precision Manufacturing Co., Ltd. together with its wholly-owned subsidiary Suzhou Yongchuang Metal Technology Co., Ltd. the company.

The new company has a registered capital of 60 million yuan, of which the company invested 57 million yuan, accounting for 95% of the registered capital (including 14.25 million yuan for the first time). Yongchuang Technology invested 3 million yuan, accounting for 5% of the registered capital (including the first investment of 750,000). yuan). Subsequent capital injections are in place within 2 years.

Dongguan Dongshan Precision Manufacturing Co., Ltd. will be mainly engaged in precision sheet metal processing, hardware, baking varnish, microwave communication system equipment manufacturing; production and sales of LED lighting products, LED backlights and LED display, LED drive power and control system, LCM mode Group and LED technology development and services.

Dongshan Precision said that in addition to solving the bottleneck of site and production capacity, it also hopes that the implementation of this project will better provide high-quality and fast products and services for customers in South China, ensure the rapid development of the company's business and enhance the company's profitability.

The company's 2012 annual report shows that the traditional precision sheet metal and foundry business is still the main body of the company's business, accounting for nearly 70%. In the 2013 business plan, the company clearly stated that it will continue to expand the domestic and overseas market share of the company's traditional products, unswervingly increase investment and accelerate market cultivation.

LED is the company's emerging business, but it is growing rapidly. Last year's revenue accounted for nearly 30%. According to the company's plan, under the dual driving of large and medium-sized LED backlights, general lighting market demand and national large-scale energy-saving subsidies, this year will accelerate the development of the company's LED application products, increase R&D investment and market development efforts, and accelerate research. The speed at which the products go on the market and expand the production capacity of the superior products.

In 2012, the company's operating income was 1.816 billion yuan, an increase of 54.33% over 2011. However, due to the huge investment losses of overseas subsidiaries, the company's net profit attributable to shareholders of listed companies was -1.10 billion yuan, down year-on-year. 301.45%, excluding the impact of investment losses, the company's net profit attributable to shareholders of listed companies was 90,774,200 yuan. In the first quarter of this year, the company's performance was the same as that of the same period of last year. However, with the increase in the company's business scale and the decrease in equity investment losses, the company expects the interim results to grow steadily, achieving a profit of 33.58 million-4.65 million, a year-on-year increase of 0-30%.

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