According to the plan, the Jilin Changchun production base expansion project has a total investment of 805 million yuan, and it is planned to invest 800 million yuan in raised funds. The project construction scale is: an annual output of 1 million sets of rear combination LED lights and an annual output of 1 million sets of front fog lights. The project is located in Changchun Automobile Economic and Technological Development Zone, surrounded by major customers such as FAW-Volkswagen, FAW Fengyue, and FAW Car (16.92, -0.38, -2.20%). According to estimates, the normal annual operating income after the project is put into production will be 530 million yuan, and the after-tax financial internal rate of return of the project investment will be 12.86%. After the project is completed, the company's production capacity distribution will be more reasonable, product transportation costs will be significantly reduced, and market competitiveness will be enhanced. In addition to providing LED lighting products to local vehicle manufacturing companies, the company is also focusing on the rapidly growing automotive "aftermarket". The "aftermarket" such as vehicle maintenance and spare parts replacement is also the main digestion channel for new production capacity.
In addition, the automotive electronics and LED lighting R&D center has a total investment of 711 million yuan, and plans to invest 700 million yuan in raised funds. The project plans to focus on strengthening the company's research and development of new products and new technologies. The main research and development directions include: car lights and car light electronics, intelligent driving, vehicle-mounted wireless charging, head-up display, sensor technology and intelligent production lines. The project implementation period is expected to be 5 years, of which the construction period is 3 years. After the project is completed, it will be engaged in the research and development of new automotive electronic products such as car lights and car light electronics, body electronics, and intelligent driving, sensor technology, and intelligent production lines, laying a solid foundation for the company's long-term sustainable development.
Xingyu Shares stated that this scheduled addition of LED lighting projects will help alleviate production bottlenecks, optimize production capacity layout, reduce product transportation costs, and enhance research and development capabilities to better meet customer needs and is in line with the company's development strategy.
ANNA