Under the background of strong demand in downstream markets such as photovoltaics, new energy vehicles, and energy storage, Minglida has further increased the pace of production capacity layout after its successful listing in 2022.
On the evening of August 14, Minglida announced that the company intends to sign the “Investment Agreement on Newly-built Intelligent Manufacturing Projects for Precision Structural Parts” and a supplementary agreement with the Xinfeng County People’s Government to build a new “Minglida Newly-built Precision Structural Parts Intelligent Manufacturing Project” in Xinfeng County, Ganzhou City, Jiangxi Province. In order to better implement the above investment projects, the company plans to set up a wholly-owned subsidiary company in Xinfeng County through its wholly-owned subsidiary Guangdong Minglida Technology Co., Ltd. to be responsible for the construction and operation of the project.
According to reports, Minglida plans to invest 760 million yuan in the new intelligent manufacturing project of precision structural parts, of which 570 million yuan will be invested in fixed assets. The purpose of this foreign investment and the establishment of a wholly-owned subsidiary company is to optimize the company’s regional layout, to expand the production site of Guangdong Minglida Technology Co., Ltd. and solve the problem of high production costs in the Pearl River Delta region, reduce the comprehensive production cost of products, and improve the company. Layout of production bases to cultivate new profit growth points.
Minglida is a one-stop multi-process leading enterprise of precision structural parts. Its products include precision die-casting, precision injection molding, profile stamping, and wire assemblies. From 2008 to 2014, the company laid out the two fields of photovoltaic and security. From 2014 to 2017, it extended the layout of new energy vehicles and consumer electronics from the field of photovoltaic security. The main customers are overseas inverter leading companies, PMI and Domestic Sungrow, BYD, CATL, BAIC, SAIC, Hikvision, Huawei, etc. In terms of production capacity layout, Minglida mainly has six bases in Dongguan, Guangdong, Hai’an in Jiangsu, Guang’an in Sichuan, Tongliang in Chongqing, Changsha in Hunan and Zhaoqing in Guangdong.
According to the company’s previous disclosure, the growth rate will slow down slightly in 2020 and 2021, mainly because 75% of the company’s revenue comes from overseas, and the epidemic has affected overseas expansion. The first quarter report disclosed by the company shows that the first quarter performance has increased significantly year-on-year.
The field of new energy is undoubtedly the sector that Minglida is currently focusing on.
In the field of new energy vehicles, Minglida has been deployed since 2015, and its core products include structural parts for motors, electronic controls, batteries and lightweight structural parts for the body. The company has also publicly stated that from the perspective of the market’s prosperity, the entire new energy vehicles are accelerating to replace traditional fuel vehicles, and there has been a relatively large growth trend.
In this context, Minglida also disclosed on the evening of the 14th that it plans to sign an “Investment Agreement” with the Management Committee of Anhui Hanshan Economic Development Zone to build a “new energy vehicle parts and energy storage structure” project in Hanshan County, Ma’anshan City, Anhui Province. At the same time, it plans to set up a wholly-owned subsidiary company, Anhui Minglida Technology Co., Ltd., to be responsible for the construction and operation of the project.
The new energy vehicle parts and energy storage structure project plans to invest 1 billion yuan, of which 750 million yuan will be invested in fixed assets.
According to the plan, the project will purchase new automatic die-casting units, machining centers and other equipment, mainly engaged in the research and development, production and sales of new energy vehicle battery structural parts and household portable mobile energy storage structural parts. The main customers are well-known domestic automobile manufacturers. . After the project is fully put into operation, it will produce about 10 million new energy vehicle parts and energy storage structural parts annually and provide 2,000 jobs.
The company stated that the purpose of this foreign investment and the establishment of a wholly-owned subsidiary company is to optimize the company’s regional layout, better serve customers nearby and efficiently, reduce transportation costs, meet customer needs, promote the gradual implementation of the company’s medium and long-term strategic planning, and further enhance the company’s comprehensive Competitive strength, improve the company’s production base layout, cultivate new profit growth points, have a positive role in promoting the company’s sustainable development.