Xinwanda to Invest up to 200 Million USD to Establish Factory in Vietnam

TapTechNews July 16th news, Xinwanda yesterday (July 15th) released an announcement. In the 10th meeting of the 6th board of directors/supervisory board, a new motion was reviewed and passed: It plans to invest no more than 200 million US dollars to establish Liwei Co., Ltd. in Vietnam to produce consumer cell, SiP, battery and other products.

The company announcement stated that this investment is to establish Liwei Co., Ltd. in Vietnam through its subordinate Hong Kong subsidiary, mainly for land purchase, construction projects, equipment procurement, etc.

Xinwanda believes that this investment in building a production base in Vietnam is conducive to improving the company's overseas strategic layout, establishing overseas product supply capabilities, enhancing the sales ability globally, responding more flexibly to fluctuations in the macroeconomic environment, industrial policy adjustments, and the impact of international trade patterns, enhancing the company's competitiveness and overall risk resistance ability, better serving overseas customers and meeting the order needs of overseas customers, which is in line with the company's overall strategic plan.

Relevant personnel of the company said that this factory construction is mainly for overseas customers. The cost overseas will be relatively low, and there are also some considerations of tariff policies.

The performance report disclosed by Xinwanda on July 15th shows that the company estimates to achieve a net profit of 767 million to 899 million yuan in the first half of the year, an increase of 75% to 105% compared to the same period of the previous year.

TapTechNews queried public information, and Xinwanda's consumer battery business achieved revenue of 28.543 billion yuan in 2023, accounting for 59.64% of revenue, and the company's products are applied in the fields of mobile phones, laptops, and consumer cells.