Zhitong Finance App News, Dingtai Hi-Tech (01377) issued an announcement. In order to promote the Group's overall strategic layout and actively develop the Group's development advantages in the PCB field, Dongguan Dingtaixin Electronics Co., Ltd. (Dingtaixin), a wholly-owned subsidiary of the company, will sign an investment agreement with the Dongguan Houjie Town People's Government. According to the investment agreement, Dingtaixin will invest in the construction of Dingtaixin's advanced new materials manufacturing base project in Houjie Town, Dongguan City, Guangdong Province, China. This project is mainly engaged in the development and production of non-woven brushes, ceramic brushes, brush wheels, functional film products, glass coatings, etc.
The total investment in this project is RMB 700 million, of which fixed asset investment (including buildings, structures and ancillary facilities, equipment investment, land prices, etc.) is RMB 560 million. According to the investment agreement, the overall investment intensity is not less than RMB 11.11 million per mu, of which the fixed asset investment intensity is not less than RMB 8.88 million per mu. Ding Taixin promised that from the second full fiscal year after the project was put into operation, the total annual industrial output value will not be less than RMB 14.25 million per mu; with a two-year assessment cycle, the average annual financial contribution will not be less than RMB 1 million per mu. The financial contribution assessment period is 10 full fiscal years starting from the second full fiscal year after the completion and commissioning of this project.
The board of directors believes that the implementation of this project will significantly expand the Group's production capacity in the field of high-end electronic materials, form a synergy effect with the Group's existing PCB precision tool business, help improve the Group's integrated industrial ecosystem, further enhance the Group's profit growth points, and lay a solid foundation for the Group's long-term sustainable development.
To implement this project, Dingtaixin will sign a land concession contract with the Dongguan Natural Resources Bureau to purchase the right to use the project's land. The project site is located in the TOD area of Houjie Town, Dongguan City, with a total land area of about 42,666.24 square meters (ultimately based on the actual concession area). The land use category of the project site is a type of industrial land. The nature of the ownership is nationally used land, the floor area ratio is not less than 2.7 (the details are subject to construction land planning conditions), and the concession period is 50 years. The land used for the project is traded through a public sale of state-owned construction land. The land price is subject to the land concession contract and related transaction documents signed between the Dongguan Natural Resources Bureau and Ding Taixin (or its wholly-owned subsidiary established at the project site).