FOET(SZ:300173)2022-11-21 05:30Company Overview - Fone East has transitioned from manufacturing large industrial printing machines to high-end intelligent manufacturing equipment, focusing on lithium battery automation and 3C intelligent production equipment [1][2]. Capacity Expansion - The company has expanded its production capacity significantly, with its subsidiary, Chao Ye Precision, growing from one factory to four, and increasing its workforce from over 800 to approximately 2000 employees [2]. - The industry is optimistic about future growth, and the company plans to continue expanding capacity to meet increasing business demands [2]. Product Differentiation - The company provides tailored products for different customer needs in the lithium battery sector, with a focus on soft-pack lithium batteries for consumer applications and square hard-shell batteries for power applications [3]. Future Planning - The company is actively seeking additional production sites to support its expansion plans, including enhancing its industrial park in Foshan [4]. - Talent acquisition is a priority to meet the demands of increased production [4]. Sales Strategy - The company manufactures both single machines and complete production lines, customizing products based on client requirements. The injection machine is a flagship product with an estimated market share of around 30% [5]. Financial Strategy - The company canceled its planned capital increase due to the rapid development of the new energy sector, opting for faster fundraising methods to seize market opportunities [6]. Performance Challenges - Da Yu Precision's performance declined post-2017 due to a slowdown in the 3C consumer electronics market, increased competition, and external factors like the pandemic and trade tensions [7]. - The parent company incurs management, labor, and financing costs despite lacking direct operational activities, leading to higher overall expenses [8]. Incentive Programs - The company is awaiting approval from the Foshan State-owned Assets Supervision and Administration Commission for its stock incentive plan [8].