Business summary

The group is an ODM mobile phone supplier located in China that focuses on emerging markets.

According to reports, based on 2018 shipment volume, the group ranked fifth among ODM mobile phone suppliers in China, with a market share of 3.3%. According to the same report, in 2018, the group accounted for 1.1% of total mobile phone shipments in China. The group is mainly engaged in the development, design, manufacture and sale of printed circuit boards for mobile phones and mobile phones according to ODM standards. The market covers more than 15 countries around the world, and strategically focuses on India and other emerging markets where demand continues to rise and the population is large. The Group's customers include India, Thailand, China, other countries in Asia and many of the largest local mobile phone suppliers, telecom operators and trading companies in other parts of the world.

The group operates two production bases, the Shenzhen factory responsible for mobile phone assembly and the Luzhou factory equipped with 4 patch lines for printed circuit board assembly. Production began in April 2018.

Competitive advantage

One of the top ten Chinese ODM mobile phone suppliers focusing on emerging markets

Continue to expand the customer base and maintain stable relationships with major customers

Based on the quality management system, we provide one-stop vertically integrated ODM service risk factors

The group operates in the mobile phone industry, which is characterized by rapid technological change and short product life cycle

The group may not be able to respond to rapidly changing trends and customer preferences in the mobile phone market in a cost-effective and time-efficient manner, and its ability to compete will decline

Group net interest rates are relatively thin, so they are very sensitive to any adverse changes in cost of sales, sales price, and sales volume

Use of proceeds

About 46.0% is used to increase the production capacity of printed circuit board assembly in the Luzhou factory

Approximately 16.8% is used to enhance R&D capabilities

Approximately 10.2% is used to increase sales and marketing efforts

Approximately 6.7% is used to upgrade computer hardware, software and ERP systems

Approximately 10.4% was used to reimburse part of the Shanghai R&D Center's mortgage bank loans

Approximately 9.9% is used as general working capital