Guangdong Dongfang Precision Science & Technology Co., Ltd.

Guangdong Dongfang Precision Science & Technology Co., Ltd. is a manufacturing company listed on the Shenzhen Stock Exchange since 2011. The company focuses on intelligent equipment manufacturing, specializing in high-end intelligent equipment. Its primary operations include intelligent packaging equipment and water powersports equipment, with a strategic emphasis on developing industrial Internet industry solutions. Dongfang Precision's intelligent packaging equipment division encompasses smart corrugated packaging equipment, digital printers, and comprehensive industrial Internet solutions, addressing key processes in the corrugated packaging production chain. The company is recognized as a global leader in smart corrugated packaging equipment and is a prominent domestic provider of digital printers. Its subsidiary, Parsun Power, is a leading player in the domestic outboard motor market, exporting products to numerous countries worldwide. With a complete product portfolio and a strong focus on research and development, Dongfang Precision aims to meet diverse customer needs across various market segments.

With “intelligent equipment manufacturing” as its primary strategic focus, Dongfang Precision concentrates on the manufacturing of high-end intelligent equipment. Its principal operations include “intelligent packaging equipment” and “water powersports equipment”. The intelligent packaging equipment division: The company leads the world in terms of its comprehensive strength in smart corrugated packaging equipment business and can provide downstream customers such as cardboard plants and box plants with “one-stop” machinery and service support that covers each production process, including corrugated cardboard production, corrugated box production, and pre-printing and post-printing production processes, and different technology roadmaps, including flexographic printing and digital printing. The value of the global corrugated packaging equipment market is estimated to be about RMB30-40 billion. In terms of operating revenue, Dongfang Precision accounts for approximately 15% of the global corrugated packaging equipment market, ranking first among domestic enterprises of the same type and second in the global market. The water powersports equipment division: The subsidiary, Parsun Power, is a leading enterprise in the domestic outboard motor industry. According to the certificate issued by the China Internal Combustion Engine Industry Association, Parsun Power’s outboard motors ranked first in the industry for three consecutive years from 2020 to 2022. Parsun Power’s main products are outboard motors of various specifications and different series. The outboard motor products are exported to hundreds of countries and regions, including Europe, Africa, Oceania, South America, North America, the Middle East, and Southeast Asia. The analysis of the Company’s core competitiveness in the Reporting Period is as follows: (I) Industry-leading technology and strong capabilities of R&D and innovation The Company is at the forefront industry-wide in China in terms of R&D and technology (II) Complete layout in the corrugated packaging machinery industry chain and the most complete and richest product portfolio in the industry Among enterprises of the same type in the domestic corrugated packaging machinery industry, Dongfang Precision has the most complete and comprehensive industry chain layout, with its business covering almost all key processes in the corrugated packaging production and processing business chain. Meanwhile, the Company has the most complete and richest corrugated packaging production line equipment in the industry, making it capable of meeting the demands for complete production line and single machine products of different market positioning, different customer types and dozens of specifications and models, second to none in China. (III) Profound Know-How experience and experienced team in the industry Dongfang Precision has an experienced team with profound Know-How experience in the industry, which has 20 years of experience in both global and domestic industry markets and has an in-depth understanding of the Company's industrial layout, development planning, R&D approach, production operation, marketing, and team management. The core management team has a broad vision, can promptly keep up with the general development trend of the smart corrugated packaging equipment manufacturing industry, and can enable the Company to achieve steady and sustainable development through forward-looking strategic planning and layout. (IV) High brand popularity and customer recognition worldwide Dongfang Precision-branded corrugated box printing and packaging production line equipment, Fosber-branded corrugated cardboard production lines, Wonder Digital-branded digital printers, Quantum-branded corrugated cardboard production lines, Tiruña-branded corrugated rollers and Parsun-branded outboard motors of the Company are enjoying considerable brand recognition and industry influence at home and abroad. (V) Global layout of business assets The Company mainly serves customers in the corrugated packaging industry worldwide, and has realized the global layout of its business assets.An internationalized marketing and service network enables the Company to seize all opportunities in the global industry market and to provide product machinery and technical services for customers in the industry in over 100 countries and regions worldwide. An internationalized product R&D, production and supply chain layout enables the Company to make prompt responses worldwide and meet customer demands and is conducive to the Company's integration of global resources, improvement of resource allocation efficiency, complement of advantages, reduction of the total cost and improvement of the allocation efficiency, so that the Company can be increasingly competitive in the world when it is operated as a group. (VI) Strong capabilities of strategic control and integration Since listing, the Company has kept expanding its presence in the upstream and downstream of the industry chain of its core business. After years of practice, the Company has developed strong strategic control and deep integration of its business divisions and accumulated rich experience and practice, through the deep perception of the industry, forecast of industry trends, and a clear understanding of its own strategic development objectives.