SHANDONG WEIDA(SZ:002026)2022-12-08 01:22Group 1: Company Overview and Acquisition - Shandong Weida Machinery Co., Ltd. is acquiring Suzhou Demai Electric Co., Ltd. to enhance its operational capabilities and resolve related party transactions [2][4] - The acquisition is expected to dilute the shares of Weida Group, but it aims to inject precision casting assets into the company [4] Group 2: Financial Performance - Demai Electric's gross profit margin has remained stable at around 25% since its establishment in 2012, with significant profit growth observed in 2015 due to revenue recognition starting in 2014 [2][3] - The company anticipates achieving a performance commitment of 38.2 million in the next four years [4] Group 3: Future Business Focus - Demai Electric plans to maintain steady growth in factory automation, while logistics automation and intelligent equipment will be key areas for future development [3][4] - The company requires 30% prepayment for business operations, with 30%-40% payment upon delivery, and 20%-30% after debugging, indicating a structured cash flow management strategy [4] Group 4: Funding and Investment - A total of 50 million is allocated for working capital to support Demai Electric's operations, particularly for the new Kunshan factory set to commence operations early next year [4] - The precision casting company also requires working capital due to a three-month payment term from customers and the need for raw material procurement [4]