On August 3rd, Aihua Group (603989) disclosed that they have decided to relocate their subsidiary, Sichuan Aihua Electronics Co., Ltd., to the Jinshan Industrial Park within the Luojiang Economic Development Zone. The relocation and expansion project is estimated to involve an investment of approximately 150 million yuan.
Sichuan Aihua Electronics specializes in manufacturing and selling aluminum electrolytic capacitors and related electronic materials, along with handling imports and exports of aluminum electrolytic capacitors. The construction of the new facility is set to take two years, with initial operations reaching 50% capacity in the first year post-production, increasing to 75% in the second year, and full operational capacity by the third year. Upon completion, the project is projected to generate annual sales revenue of 360 million yuan and net profits of 39 million yuan.
Aihua Group stated that this move aims to strengthen their core business focus and enhance their capacitor production capacity. This decision underscores the company's commitment to expanding its market presence while maintaining its competitive edge in the electronics industry.
In related news, earlier this July, Aihua Group (603989) announced an agreement with the Tianbei New Area Management Committee in the 7th Division of Kuitun to expand the production line for medium and high-pressure chemical foils at Xinjiang Rongze Aluminum Foil Manufacturing Co., Ltd. The total investment for this expansion project amounts to around 306 million yuan. The project site is located in the Tianbei New Area Industrial Park, where the company plans to acquire existing land, buildings, and facilities from Xinjiang Rongze. Additionally, 28 acres of new land will be purchased, and 30 new foil production lines will be constructed.
Aihua Group emphasized that this collaboration will ensure a stable supply of raw materials for their production processes, enabling better control over supply and pricing. Furthermore, this initiative will help the company establish a comprehensive industrial chain encompassing corrosion foil, chemical foil, electrolyte, and aluminum electrolytic capacitors, enhancing their vertical integration capabilities across the entire supply chain. This strategic move is anticipated to optimize the company’s overall planning and reinforce its competitive position within the industry.
According to recent financial reports, Aihua Group reported operating income of 377 million yuan in the first quarter of 2017, with net profits attributable to listed company shareholders amounting to 76.39 million yuan, representing a 39.50% increase compared to the same period last year.
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