Headline: Investment of 700 Million Yuan Layout of Large Magnesium Alloy Precision Forming

01 Investment of 700 million yuan layout of large magnesium alloy precision moulding

Ningbo Xingyuan Zhuo Magnesium Technology Co., Ltd. in order to meet the company's strategic development needs, and Fenghua Economic Development Zone Management Committee signed the ‘Project Investment and Construction Agreement’, in the Fenghua Economic Development Zone to invest in the construction of an annual output of 3 million sets of automotive high-strength large-scale magnesium alloy precision moulding parts project (Phase I project name).

The project, with an annual output of 3 million sets of high-strength large magnesium alloy precision moulded parts for automobiles, is located in Shangqiao Park of Fenghua Economic Development Zone. The planned construction period of the project is from September 2024 to December 2027. During the construction period of the project, the Company will complete the construction of factory buildings, purchase and installation of equipment, recruitment and training of personnel.

Ningbo Xingyuan Zhuo Magnesium Technology Co., Ltd. annual output of 3 million sets of automotive high-strength large magnesium alloy precision moulding parts project, the total investment of RMB 700 million yuan, the company intends to the remaining over-subscription funds of 119.043 million yuan all for the construction of the project investment. And August 9 announcement, the company intends to issue convertible corporate bonds to unspecified objects to raise funds totaling no more than RMB 45,000,000, the proceeds after deducting issuance costs, to be used for an annual output of 3 million sets of automotive high-strength large magnesium alloy precision moulding parts project.

The main products of this project are large magnesium alloy precision moulded parts, including new energy automobile power assembly parts, automobile display system parts, automobile centre console parts and so on. The implementation of this project is a strategic move based on the company's actual situation and customer demand. Through the implementation of this project, the company will purchase a certain number of product forming equipment, machining equipment, to undertake subsequent orders to prepare for the production capacity, to enhance the ability to undertake business, in line with the company's long-term strategic planning direction.

02 Taixiang shares 2024 half-year net profit of about 21.79 million yuan

Taixiang shares released the semi-annual performance report on the evening of August 9, 2024, said that the first half of 2024 operating income of about 206 million yuan, an increase of 110.39%; attributable to shareholders of listed companies net profit of about 21.79 million yuan, an increase of 24.32%.

On 28 April 2023, the acquisition of 99.13% equity interest in Hongma Technology by Taixiang Shares has completed the delivery and transfer of the first phase of the subject equity interest (52,227,331 shares, accounting for 73.84% of its total share capital). 20 June 2023 Hongma Technology has completed the industrial and commercial changes, and Mr. Wang Shibin, the chairman of the board of directors and the general manager of Taixiang Shares, is now acting as the legal representative, chairman of the board of directors and general manager of Hongma Technology. and general manager.

Hongma Technology is mainly engaged in the research and development, production and sales of automotive aluminium alloy precision die castings. The main products are engine head covers, oil sumps, engine mounts and servo housings, covering automotive engine systems, steering systems and pump system components. At the same time, Hongma Science and Technology has also begun to enter the new energy vehicle electric drive and electronic control controller shell parts such as R & D, production and sales.

03  Liying Precision Annual Output of 2 Million Sets of Home Appliances and Auto Parts Project

Anhui Liying Precision Products Co., Ltd plans to build an annual output of 2 million sets of home appliances and auto parts project, is located in Anhui Province, Lu'an City, Shucheng County Economic Development Zone, Hangbu Park, Jinxiu Avenue and Xiangzhang Avenue intersection. It is a comprehensive production project integrating injection moulding, screen printing, painting, aluminium (zinc) alloy die-casting, machining and other production processes. The project aims to form an annual production capacity of 1.5 million sets of home appliance parts (of which 500,000 sets are die-casting products and 1 million sets are injection moulding products) and 500,000 sets of auto parts.

The project builds 2 new factory buildings, covering an area of 36658.2 square metres, with a total construction area of 39,393.03 square metres. It is set up with 30 sets of injection moulding machines, 3 sets of screen printing machines, 1 paint spraying line, 20 sets of die-casting machines, 10 sets of CNC machines, 5 sets of stamping machines and so on. Production is carried out through the production process of injection moulding, silk screen printing, paint spraying (90% water-based paint, 10% oil-based paint), aluminium (zinc) alloy die-casting, machining, etc., with a total investment of 22,000,000 RMB.

04  Aerospace communication die-casting production project of MKW Casting Co.ltd.

MKW Casting Co.ltd. is located in Nantong Changjiang Town Fugang Industrial Park, mainly engaged in the research and development and production of 5G communication equipment, medical equipment, aviation components, with a total investment of 50 million yuan, of which 45 million yuan is invested in equipment, and rented 5,000 square metres of standard factory production and operation. The project was officially put into operation at the end of 2023 April.

MKW Casting Co.ltd. increased investment of 30 million yuan in 2024 to set up Jiangsu Maijiafu Technology Co., Ltd. to engage in aerospace communication-related die-casting production, and MKW Casting Co.ltd. to form a complementary chain, the plant is currently installing equipment, and is expected to be formally put into operation in August this year.

05 Grand Opening of Ne Zha Auto's Hong Kong R&D Centre

On August 9, Nezha Auto's Hong Kong R&D Centre was officially unveiled, marking the official landing of Nezha Auto's R&D strength in Hong Kong. It is reported that the centre will bring together the world's top R&D talents to focus on the core technologies of new energy vehicles, including, but not limited to, intelligent driving for the global market, all-natural language multilingual voice interaction, intelligent graphics, OTA software online upgrades, AI models, as well as intelligent networking ecological applications and services.

The unveiling event was accompanied by an ‘Intelligent Vehicle Technology Innovation and Development Salon’. Guests included Fong Yunzhou, Chairman of Ne Zha Auto, and Fong Fong, a member of the Commission on Strategic Development of the HKSAR Government.

In recent years, the penetration rate of new energy vehicles has been increasing rapidly. According to Ne Zha Auto, in the next 3-5 years, the technology of new energy vehicles will mature rapidly, and innovative technologies in the vehicle sector, such as CTC and integrated die-casting, wire-control chassis, and hardware convergence, will continue to lead the industry's development.