Business summary

Established in Changshu, China in 2010 and spun off and listed by Tongda (00698), Tongda Hongtai is a supplier that provides one-stop manufacturing solutions for laptops, tablet cases and other accessories (such as portable chargers and router cases). The group manufactures and sells all kinds of laptop and tablet cases and components. The group's products are semi-finished products of notebook computers and tablet components, which are delivered to the customer's factory in China for further processing and resale to final users, while customers are mainly original equipment from leading local and international brands manufacturer.

Competitive advantage

The group's R&D capabilities are strong

The Group has established relationships with original equipment manufacturers that own leading local and international brands

The Group has a strategic location and cost advantage in production facilities

Risk Factors

The group relies on a small number of key customers

There is no long-term agreement between the Group and the customer, so there is no guarantee that the current relationship with any customer will continue in the future

Fluctuations in material prices may have a significant adverse effect on the Group's operations, operating results and financial position

Use of proceeds

Approximately 15.1% will be used to rent a new factory for a period of 10 years

Approximately 19.9% will be used to renovate and rent new factory buildings

Approximately 46.2% was used as capital expenditure for the purchase of additional production facilities and mechanical equipment

Approximately 16.1% was used as capital expenditure to enhance the automation of group manufacturing processes

Approximately 0.3% is used to enhance sales and marketing activities

Approximately 2.4% is used to support the enhancement of the Group's R&D capabilities