It is reported that Dongguan Dongshan Precision registered capital of 60 million yuan, jointly established by Dongshan Precision Co., Ltd. and a subsidiary company, Dongshan Precision invested 57 million yuan, accounting for 95% of the registered capital, the first phase of capital contribution is 14.25 million yuan, the capital contribution is the currency Funds, follow-up capital injections are in place within two years.
According to the reporter, Dongshan Precision set up a production base in Shenzhen in 2010, and its customers include Skyworth, Huawei, TCL and other South China enterprises. However, the situation of only one subsidiary in South China is difficult to meet the growing demand of customers in Dongshan Precision South China. Dongshan Precision said that after investing in Dongguan, it will solve the bottleneck of the venue and capacity encountered by the Shenzhen subsidiary.
Dongshan Precision's 2012 annual report shows that the traditional precision sheet metal and foundry business is still the mainstay of the company's business, accounting for nearly 70% of revenue. In the 2013 business plan, Dongshan Precision proposed to continue to expand the domestic and overseas market share of the company's traditional products, while the customers of the precision sheet metal and foundry business are mainly in the communications and semiconductor industries, and are concentrated in the Pearl River Delta region. “Therefore, the Dongguan subsidiary has great significance for Dongshan Precision to expand production capacity and increase profitability.†A securities institution pointed out in the research report of Dongshan Precision.
According to Dongshan Precision's planning, Dongguan Dongshan Precision will also engage in LED related business in the future. LED is Dongshan Precision's emerging business, but it has grown rapidly. Last year's revenue accounted for 30%. According to Dongshan Precision's plan, under the dual driving of large and medium-sized LED backlights, general lighting market demand and national large-scale energy subsidies, this year will accelerate the development of the company's LED application products, including the Pearl River Delta, including Dongguan. The region with the largest demand for LED general lighting in China.
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