Friend (SH:605050) Zheng Quan Shi Bao Wang·2024-10-21 16:59Core Viewpoint - Furan De (605050) is set to establish a joint venture with Hunan Huazhong Lianyuan Steel Co., Ltd. to invest in a new energy vehicle parts manufacturing project in Loudi, Hunan, with a total investment of 2 billion yuan [1] Group 1: Joint Venture and Investment - The joint venture will be owned 65% by Furan De and 35% by Hunan Huazhong Lianyuan Steel [1] - The project will be executed in two phases, with the first phase involving an investment of 1 billion yuan to build high-end automotive sheet metal processing lines, expected to be completed within 8 months and generate an annual output value of over 1 billion yuan [1] - The second phase will also require an investment of 1 billion yuan, planned to be constructed within 2 years after the first phase, aiming to establish additional high-end automotive steel processing lines with a similar annual output value [1] Group 2: Funding and Financial Impact - The funding for the project will be entirely self-raised by the company, which will manage the financial arrangements based on the investment progress [1] - The project is not expected to have a significant impact on the company's operating performance in 2024 [1] Group 3: Company Background and Market Position - Furan De specializes in metal sheet processing and distribution services, primarily serving mid-to-high-end automotive and home appliance sectors, with a product range that includes cold-rolled steel, hot-rolled steel, galvanized steel, and aluminum [1] - The company has been expanding its production capacity, currently operating nine processing bases across various regions in China, with an annual processing capacity of approximately 2.5 million tons [1] - In the first half of the year, Furan De reported revenue of 5.1 billion yuan, a year-on-year increase of 15.08%, while net profit decreased by 34.35% due to falling raw material prices and price wars in the automotive industry [2]