On the 14th, Guangdong Hongtu Technology Co., Ltd. (“Guangdong Hongtu”) announced that it plans to issue no more than 158 million company shares to no more than 35 specific objects including Guangdong Yueke Capital Investment Co., Ltd., and raise no more than 2.2 billion Yuan, invested in large-scale integrated lightweight auto parts intelligent manufacturing project, Guangdong Hongtu Science and Technology Park Phase II (Automobile Lightweight Auto Parts Intelligent Manufacturing) project, Guangdong Hongtu Automobile Lightweight Intelligent Manufacturing North China Base Phase I Project, Guangdong Hongtu Enterprise Technical center upgrade construction project and supplementary working capital.
Regarding the implementation of the fund-raising investment project, Guangdong Hongtu said that it is not only based on solving the capacity bottleneck faced by the current die-casting business, but also focuses on the future development trend of the industry in terms of product structure and supply chain, which will help the company get closer to the end market , optimize product transportation costs, and support the company to better meet customer needs. It is reported that the main products produced by the fund-raising project are precision aluminum alloy die-casting parts for automobiles.
The announcement shows that one of the fundraising projects, “Large Integrated Lightweight Auto Parts Intelligent Manufacturing Project”, is implemented by the company’s wholly-owned subsidiary, Guangdong Hongtu Wuhan Die Casting Co., Ltd., and the construction site is located in Jingang, Jiangxia District, Wuhan City, Hubei Province. The new area is planned to be implemented in the existing operating site of Wuhan Hongtu. The product sales of this project can efficiently cover the vehicle manufacturers in Central China. Guangdong Hongtu said that the company will use large-scale integrated auto parts as the market entry point to effectively increase the penetration rate of die-casting parts in the automotive field in central China and help further advance lightweight technology.
In addition, the Guangdong Hongtu Science and Technology Park Phase II (Intelligent Manufacturing of Automobile Lightweight Parts) project, which was raised and invested, will be implemented in Zhaoqing City, Guangdong Province, where the company’s headquarters is located. It is planned to be implemented in Guangdong Hongtu’s existing business site. Guangdong Hongtu Automotive Lightweight Intelligent Manufacturing North China Base Phase I Project is implemented by a wholly-owned subsidiary, Guangdong Hongtu (Tianjin) Auto Parts Co., Ltd., and the construction site is located in the North District of Tianjin Economic and Technological Development Zone.
Guangdong Hongtu said that at present, the company’s die-casting production capacity is mainly concentrated in South China, Central China, and East China. Based on the structural characteristics of the regional distribution of domestic automobile industry clusters, the first phase of the company’s lightweight intelligent manufacturing North China base project will effectively fill the company’s production capacity in North China. In order to improve the company’s product supply capacity and service efficiency in North China, it will give full play to its advantages in location and market, and provide market guarantee for the company’s future revenue growth. The implementation of this project is a key strategic step for the company to expand its new business territory.
In addition, the “Guangdong Hongtu Enterprise Technology Center Upgrading and Construction Project” funded by Guangdong Hongtu focuses on the research of precision preparation technology for ultra-large die-casting structural parts of automotive aluminum alloys. Through the introduction of advanced die-casting equipment, it focuses on low-cost heat-free aluminum Material preparation technology for alloy die-casting structural parts, simultaneous design optimization and simulation analysis of aluminum alloy super-large structural parts, mold preparation technology for aluminum alloy super-large die-casting structural parts, die-casting technology for aluminum alloy super-large structural parts and machine for aluminum alloy super-large die-casting structural parts processing technology research.
It is understood that Guangdong Hongtu mainly includes two business segments: precision light alloy parts forming manufacturing and automotive interior and exterior trim product manufacturing. According to the third quarter performance report released not long ago, in the third quarter of this year, Guangdong Hongtu’s operating income was 1.91 billion yuan, a year-on-year increase of 38.3%; net profit was 136 million yuan, a year-on-year increase of 125.25%. In the first three quarters, the company’s operating income was 4.808 billion yuan, a year-on-year increase of 10.56%; net profit was 357 million yuan, a year-on-year increase of 86.1%.