Changhua shares IPO fundraising project put into production Accelerate the improvement of production capacity layout

On December 25, Changhua Co., Ltd. announced that the company's initial public offering project "Automobile Stamping Weldment (Wuhan) Production Base Construction Project" has officially entered the production stage to achieve mass production and supply, and achieve the expected goal of putting it into operation at the end of 2021.

According to the announcement, the "Automobile Stamping weldment (Wuhan) Production Base Construction Project" is located in Caidian Economic Development Zone, Wuhan City, Hubei Province, covering an area of 68,380 square meters, with a total investment of 388.7 million yuan. On the basis of the original company's Wuhan manufacturing base, the project has now built a 500T-3000T stamping machine group, automatic three-dimensional welding line, automatic three-dimensional chassis assembly line, ring automatic electrophoresis line that can meet the surface treatment of large parts, and has realized the full automation and self-control capabilities of the whole process such as material reform, stamping, welding, electrophoresis, assembly, online testing, etc., and has obtained the customer's mass production orders and begun to enter the large-scale production stage. The project adopts a lean production model, which greatly improves production efficiency, reduces production costs, and enhances the competitive advantage of the company's products.

It is reported that on the basis of the company's existing customers of Guangqi Honda and Dongfeng Honda, the products supplied to Anhui Volkswagen, SAIC-GM Wuhan Base, Auto New Forces and other car companies will enter trial production or mass production. The company said that with the continuous release of the new model production capacity of the company's cooperative vehicle manufacturers, the production and sales scale of the Wuhan manufacturing base will continue to increase in the future.

It is worth noting that the company's non-public issuance of shares application last month was approved by the China Securities Regulatory Commission, the company intends to raise a total of no more than 760 million yuan, for the "annual output of 2 billion pieces of automotive high-strength fastener production line construction project (Phase I)", "automotive stamping welding parts (Guangqing Industrial Park) production base construction project (Phase I)" and "lightweight automotive aluminum components intelligent production base project" construction, at that time the company will further improve the production capacity planning layout, expand high-strength fasteners, large-scale stamping welding integrated parts, The production capacity of cast aluminum punched welding assembly parts will further increase the proportion of the value of the company's products, while optimizing the company's product structure and expanding product sales in the new energy auto parts market. (Shen Zhenzhou)