AUO subsidiary Daywin Xiamen plans to invest 239 million yuan to expand production capacity

Dec 09, 2021

Kite yon mesaj

On December 1st, the board of directors of AUO Group's backlight module factory, Delta, approved the new capital expenditures of its subsidiary Xiamen plant (Delta Precision Industries (Xiamen)), with a planned investment of 239 million yuan, which will be used to purchase additional equipment and expand Capacity. The actual execution status will be flexibly adjusted according to customer needs and market conditions.

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Dayun has suffered losses in its business since 2018 and has been actively undergoing transformation and adjustments in recent years. In the production of precision components such as existing light guide plates and FMM precision metal shields, as well as the manufacturing of backlight modules and systems such as NB notebook computers and monitor displays, we continue to optimize the value enhancement product portfolio, including the development and introduction of anti-peep/high-brightness light guide plates, High-end NB modules, Mini LED backlight products, large-size precision metal shields, etc.
 
At the same time, the company is also actively investing in high-precision molds, new optical components, smart mobility, smart medical and other related new product businesses, and expanding integrated service business such as entering smart mobility and field applications, etc., in an attempt to establish a third foot in operation.
 
 
On the whole, Delta hopes to use its existing optical component and display product manufacturing technology advantages to expand into semiconductor packaging, automotive electronics, medical industry and high-end displays and other diverse application fields, seeking more opportunities.
 
On the other hand, in order to improve its operating conditions, Daywin also continued to converge on less competitive factories. Following the sale of Kunshan land and plant in 2017, it will dispose of the land and buildings and ancillary equipment in the Suzhou Industrial Park in mainland China in 2021. It is estimated that the disposal benefit will be about 1.23. RMB 100 million will be recognized in subsequent financial reports. In the future, production bases in mainland China will be concentrated in Wujiang and Xiamen plants.
 
 
Benefited from the effect of the housing economy, which has pushed up the demand for IT products, Dayun's cumulative revenue in the first 10 months since 2021 has risen to 16.647 billion yuan, an annual increase of 49 percent . However, due to the shortage of various materials and the impact of rising costs, the average value of the first three quarters The gross loss rate was about 0.87 percent , the operating loss in the first three quarters was 1.022 billion yuan, and the net loss attributable to the parent company was 743 million yuan. Even if the disciplinary benefits are accounted for, 2021 may still be a low-altitude flight, and the turnaround will look at 2022.

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