On August 3rd, Aihua Group (603989) disclosed that the company plans to relocate its subsidiary, Sichuan Aihua Electronics Co., Ltd., to the Jinshan Industrial Park within the Luojiang Economic Development Zone. This relocation and expansion project is estimated to require an investment of approximately 150 million yuan.
Sichuan Aihua Electronics primarily focuses on manufacturing and selling aluminum electrolytic capacitors, along with related electronic materials. The company also handles the import and export of aluminum electrolytic capacitors. Construction of this project is expected to take two years, with an initial capacity reaching 50% in the first year post-production, increasing to 75% by the second year, and fully operational by the third year. Once completed, it is anticipated to generate sales revenue of 360 million yuan and a net profit of 39 million yuan.
Aihua Group emphasized that the execution of this project will allow the company to concentrate on its core business while significantly expanding its capacitor production capacity.
Furthermore, in July, Aihua Group (603989) announced that its subsidiary, Xinjiang Rongze Aluminum Foil Manufacturing Co., Ltd., had entered into an investment agreement with the Kuitun Tianbei New District Management Committee. This agreement aims to expand the production line for medium and high-pressure chemical foils in Xinjiang. The total investment for this expansion project is approximately 306 million yuan. The project site is located in the Tianbei New District Industrial Park, where Xinjiang Rongze will purchase existing land, buildings, and facilities in the 7th Division Kuitun Tianbei New District Industrial Park. Additionally, they plan to acquire 28 more acres of land and construct 30 new foil production lines.
The company stated that the signing of this agreement will facilitate the progress of the project. Upon completion, it will ensure a stable supply of raw materials, allowing the company to control both supply and pricing. This initiative will also enable Aihua Group to establish a complete industrial chain encompassing "corrosion foil + chemical foil + electrolyte + aluminum electrolytic capacitors." This move strengthens the company's vertical integration capabilities across the upstream and downstream sectors, optimizing their strategic layout and enhancing competitive advantages in the integrated industrial chain.
According to the financial report, Aihua Group recorded operating income of 377 million yuan in the first quarter of 2017, with net profit attributable to listed company shareholders amounting to 76.39 million yuan, representing a 39.50% increase from the previous year.
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