Quanfeng Automobile issued an announcement, in order to meet the growing downstream market demand, improve the company’s product supply capacity, solve the problem of insufficient production capacity caused by the rapid growth of downstream demand, greatly increase the company’s production capacity, and build intelligent, efficient, and flexible features New energy auto parts production line. The company signed the “Investment and Construction Agreement” with the Nanjing Jiangning Economic and Technological Development Zone Management Committee on December 29. It plans to invest in a new energy component production line south of No. 159 Jiangjun Avenue, Jiangning Economic Development Zone, Nanjing, and build an efficient and intelligent Industrialized production base. The total investment of the project is estimated to be about 502 million yuan, and the construction period is 2 years. After the project is put into production, it is estimated that the annual sales revenue of the project will be 525 million yuan, and the total annual profit will be 78,789,800 yuan.
The company said that from the perspective of short-term impact, it will take a certain time for the project to realize the expected benefits after its completion. Within a period of time after it is completed and put into production, it may face the risk of increasing the depreciation of fixed assets that will affect the company’s consolidated profitability. On the one hand, the implementation of the project will further enhance the company’s intelligent, high-efficiency, and large-scale manufacturing level, and lay a foundation for the company to reduce costs and increase efficiency, expand its capacity and improve quality. Energy vehicle market space, enhance the company’s profitability and profitability scale.