On the 14th, Wencan Group Co., Ltd. (referred to as “Wencan Group”) announced that the company’s wholly-owned subsidiary, Anhui Xiongbang Die Casting Co., Ltd. (referred to as “Anhui Xiongbang”), recently won the Anhui A piece of state-owned construction land use right in Lu’an City, with a land area of 135,669 square meters.
Wencan Group stated that after Anhui Xiongbang won the land use right this time, it will use the land to carry out the implementation of the intelligent manufacturing project of new energy auto parts to meet the needs of the project construction land. After the completion of the project, it will be able to meet the production capacity demands of surrounding new energy vehicle customers, which is conducive to further increasing the sales volume of the company’s new energy vehicle products, and is in line with the company’s development strategy and long-term planning.
It is understood that on July 29 this year, Wencan Group signed the “Investment Agreement” and related agreements with the Management Committee of Anhui Lu’an Economic and Technological Development Zone, and plans to invest in the construction of aluminum die-casting parts for new energy vehicles in Lu’an Economic and Technological Development Zone Production base project, and invested 100 million yuan to establish a wholly-owned subsidiary – Anhui Xiongbang Die Casting Co., Ltd. as the main body of the project.
According to the plan, Wencan Group’s Lu’an base is mainly engaged in the production of automobile chassis and body die-casting, extrusion and welding parts. In addition, while improving the production capacity layout, the Lu’an base will also invest in an integrated die-casting production line.
Wencan Group integrates high-pressure casting, low-pressure casting and gravity casting, and is committed to providing lightweight and high-safety products for global automotive customers. The products are mainly used in the body structure of traditional fuel vehicles and new energy vehicles, transmission systems, chassis systems, braking systems, engine systems and other auto parts, etc., and are in the leading position in the field of large-scale integrated castings.
According to the business report for the third quarter of this year recently released by Wencan Group, the operating income of Wencan Group was 1.446 billion yuan, a year-on-year increase of 55.08%; the net profit was 122 million yuan, a year-on-year increase of 2845.05%. In the first three quarters of this year, the company’s total operating income was 3.888 billion yuan, a year-on-year increase of 31.13%; net profit was 259 million yuan, a year-on-year increase of 275.8%.