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Won 267 million yuan of government subsidies, Dongshan precision depends on what?

Sep 26, 2018

On the evening of September 25, Dongshan Precision (002384) announced that recently, according to the "Project Investment Framework Agreement" signed by the company and the Management Committee of Jiangsu Yancheng High-tech Development Zone in May 2017 and the subsequent "Project Investment Supplementary Agreement", the wholly-owned subsidiary of the company, Yancheng Dongshan Precision Manufacturing Co., Ltd. Yancheng Weixin Electronics Co., Ltd. received various government subsidies and special awards totaling RMB 267 million yuan.

It is worth mentioning that in the first half of 2018, Dongshan Accurate realized a net profit of 260 million yuan belonging to shareholders of listed companies, and the government subsidy received this time has exceeded the first half of the net profit. Dongshan Precision said that as of the announcement date, the above-mentioned subsidies have been in place, and the above-mentioned government subsidies will have a certain impact on Dongshan Precision's net profit for 2018.

It is reported that in May last year, Dongshan Precision and Yancheng High-tech Development Zone Management Committee signed the "Project Investment Framework Agreement," the main content of Dongshan Precision in Yancheng High-tech Development Zone Intelligent Terminal Industry Park, investment to establish Yancheng Dongshan Precision Co., Ltd. or Yancheng Weixin Electronics Co., Ltd., covering an area of about 500 acres. With a total floor area of 550,000 square meters, the project invested about 3 billion yuan in flexible circuit board (FPC), LED packaging, cover glass (CG) and other projects.

It is understood that Dongshan precision subsidiary MFLX has the world's leading FPC production technology, and Suzhou Weixin is the subsidiary MFLX in Suzhou wholly-owned enterprises, this investment will effectively solve the Suzhou Weixin production capacity bottleneck, enhance the company's FPC business production capacity. In addition, LED business is Dongshan precision important performance growth point, this expansion will provide support for the future growth of its LED business. At the same time, Dongshan precise site tension problem will also be solved.

Dongshan Precision also indicated that the signing of this agreement is conducive to further expand the company's production capacity, promote the continuous optimization of capacity distribution, improve the comprehensive competitiveness, so as to better serve customers and comprehensively promote the realization of the company's strategic objectives.

According to public information, Dongshan Precision is committed to providing the world's leading technology core devices for intelligent interconnection and interoperability, and provides global customers with a full range of intelligent interconnection solutions. Its business covers printed circuit boards, electronic devices and communications equipment, and its products are widely used in consumer electronics, telecommunications, and industry. Automobile and other industries.

It is worth noting that Dongshan precision completed its acquisition of MFLX, the leading manufacturer of FPC in 2016. MFLX, formerly founded in California in 1984, was re-registered in Delaware and listed in Nasdaq in 2004, mainly engaged in research, development, production and sales of FPC (Flexible Circuit Board). After the merger, MFLX's common stock was delisted from the US NASDAQ. Dongshan has become one of the largest PCB and FPC manufacturers in China after its acquisition of MFLX.

Up to now, Dongshan Precision has developed into the world's top five manufacturers of flexible circuit boards, industry-renowned base station antenna communication equipment components suppliers, LED market share in some small-pitch subdivision areas leading.

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