Announcement on Establishing a Holding Subsidiary in Thailand and Investing in a Harmonic Drive Production Base
The company and its board of directors guarantee that the information disclosed is true, accurate, and complete, with no false records, misleading statements, or significant omissions.
Risk Warning:
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Risk of Market Demand Falling Short of Expectations: If downstream customers' bulk procurement orders for harmonic drives fall short of expectations, the market's capacity to absorb new production will be limited. The company's new production lines may not operate at full capacity, resulting in actual effective production being lower than planned, thus extending the investment payback period.
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Risk of External Environment Fluctuations: During the project's operation, it may face multiple risks arising from changes in the domestic and international economic environment. Uncertainties in future market conditions, policy directions, and macroeconomic situations may lead to policy adjustments, intensified market competition, operational management challenges, exchange rate fluctuations, and increased costs.
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Risk of Uncertainty in Cross-border Project Approval and Filing: This project requires filing and approval from relevant government departments in China, such as the National Development and Reform Commission, the Ministry of Commerce, and the State Administration of Foreign Exchange, as well as approvals from relevant Thai government authorities in accordance with Thai laws and regulations. There is a risk of uncertainty regarding whether these approvals can be obtained and the time required for final approval.
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Risk of Uncertainty in Early Stage Business Investment: Harmonic drives are core components of precision transmission with expanding downstream applications and broad long-term development potential. The company's revenue from related products is less than 1% of its projected 2025 revenue, which is a relatively small proportion. This field is still in its early stages of development. As the industry system continues to improve and commercial application scenarios are increasingly realized, the company needs to invest continuously in core technology research and development, production process optimization, professional equipment procurement, and talent team building. Meanwhile, industry development is influenced by multiple factors such as the macroeconomic environment and market demand, posing uncertainties.
We urge all investors to invest rationally, be aware of investment risks, and the company will strictly comply with legal and regulatory requirements to disclose relevant progress in a timely manner.
Overview of Overseas Investment
(I) Basic Situation
To optimize its supply chain, deepen its international market presence, and further expand its harmonic drive production capacity, Shenzhen Keda Industrial Co., Ltd. (hereinafter referred to as "the Company") intends to jointly invest with Taiwan Leadwell Automation Co., Ltd. (hereinafter referred to as "Taiwan Leadwell") and Taiwan Leadwell Technology Co., Ltd. (hereinafter referred to as "Taiwan Leadwell Technology") to establish Thailand Keda Robotics Technology Co., Ltd. (hereinafter referred to as "Thailand Keda") in Thailand and invest in building a harmonic drive production base in Thailand.
The planned investment for this project does not exceed RMB 350 million. The Company will contribute 51% of the capital, Taiwan Leadwell will contribute 39%, and Taiwan Leadwell Technology will contribute 10%. This includes, but is not limited to, leasing factory premises and purchasing fixed assets. The actual investment amount will be subject to the approval of the competent authorities in China and Thailand.