On December 25, Liaowang Automotive Lighting (Suzhou) Co., Ltd., a subsidiary of Foshan Lighting, officially started production in Xiangcheng District, Suzhou City.
It is understood that on November 8th this year, Foshan Lighting signed a strategic cooperation agreement with the Xiangcheng District Government of Suzhou City. As a subsidiary of Foshan Lighting, Nanning Liaowang Automotive Lighting Co., Ltd. signed an investment agreement with the Huangdai Town Government of Xiangcheng District to jointly promote the construction of the Yangtze River Delta automotive lighting manufacturing base project.
The project has a planned total investment of 2 billion yuan and will primarily focus on the production and sales of automotive lights, as well as the research and development of related automotive parts. The first phase of the project is expected to involve an investment of 580 million yuan, and upon reaching full production capacity, it is projected to generate annual sales revenue of approximately 1.4 billion yuan.
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Public information shows that Foshan Lighting focuses on the research, development, production and sales of energy-saving lighting products. Since 2021, Foshan Lighting has successively acquired and controlled Nanning Liaowang and Guoxing Optoelectronics. Its main business currently includes the research, development, production and sales of general lighting, electrical products, automotive lighting and LED packaging products.
In September of this year, Foshan Lighting announced that its holding subsidiary, Liaowang Automotive Lighting, plans to invest in and establish a wholly-owned subsidiary, Liaowang Automotive Lighting (Suzhou) Co., Ltd., in Xiangcheng District, Suzhou City. This move aims to expand its business with automotive OEMs in the Yangtze River Delta region, increase production scale, and accelerate its expansion into the mid-to-high-end product market.
In terms of performance, Foshan Lighting achieved operating revenue of RMB 6.887 billion in the first three quarters of 2024, an increase of 1.33% year-on-year; net profit attributable to shareholders of the listed company was RMB 251 million, an increase of 5.12% year-on-year.
On December 25th, Foshan Lighting released a progress announcement regarding asset disposal and land listing. On February 1st, 2024, the company signed an agreement with the Chancheng District Land Reserve Center and Zumiao Subdistrict Office of Foshan City, planning to acquire and reserve the land in batches over three years. As of December 25th, the company had received the first compensation payment of RMB 382 million, which is expected to increase net income by RMB 295 million in 2024. (Compiled by Mia)
