Financial Services Association, March 22 (Reporter Wang Bin) Thanks to increased demand for electric products from lessors, Zhejiang Dingli (603338.SH), a leading global aerial work platform company, has decided to increase its new energy layout.

This evening, Zhejiang Dingli announced that it plans to use its own funds to invest in a new energy aerial work platform project with an annual output of 20,000 units, with a total investment amount of 1.7 billion yuan. Currently, the bill on this project has been passed by the company's board of directors.

According to reports, the construction site of the project is located in Leidian Town, Deqing County, Zhejiang Province. The construction period is 36 months; after completion and delivery of the project, it is expected to achieve annual sales revenue of about 2.5 billion yuan in normal years.

In response to the need for project construction, Zhejiang Dingli said that in recent years, as carbon emission requirements have increased, leasing companies are increasingly inclined to choose electric products, and have also placed higher demands on products in terms of energy saving, emission reduction, and electrification. The electrification, greening and intelligence of aerial work platforms have become the development trend of the industry. According to Zhejiang Dingli, the implementation of this project will not only further expand the company's production capacity, but also help optimize the product structure and cultivate new profit growth points.

According to the investor relations activity record recently disclosed by Zhejiang Dingli, the company began laying out a new electric product matrix as early as 2016, and has taken the lead in electrifying a full range of products; in the first three quarters of 2023, the company's scissor electrification rate reached more than 90%, and the arm-type electrification rate reached more than 70%.

In terms of production capacity, Zhejiang Dingli stated on the investor interaction platform at the beginning of the year that the company's existing production lines were all in full production, and the new Phase 5 production line had not yet been officially put into operation. According to reports, the company can now launch a scissor aerial work platform in 7 minutes and an arm-type aerial work platform in half an hour.

Referring to the market space of the industry, Zhejiang Dingli said that the domestic aerial work platform market is growing. The per capita ownership is small, the product structure is not perfect, the industry penetration rate is low, and there is plenty of room for future growth. At the same time, competition in the domestic market is becoming increasingly intense. In recent years, leasers have been more cautious in purchasing new machines than before. The market is under pressure in the short term and improving in the long term.

It is worth mentioning that in the first three quarters of 2023, Zhejiang Dingli's net profit surpassed the full year of 2022. According to the performance forecast, benefiting from the continuous optimization of the product structure and overseas market expansion, Zhejiang Dingli expects to achieve net profit of about 1,856 billion yuan in 2023, an increase of 47.62% over the previous year.

Financial data shows that from 2011 to 2022, Zhejiang Dingli's revenue scale exploded, increasing from 245 million yuan to 5.445 billion yuan, an increase of more than 21 times. Under these circumstances, Zhejiang made every effort to expand production capacity at an accelerated pace.

At the beginning of 2022, Zhejiang Dingli will raise an additional capital of 1.5 billion yuan for a large-scale intelligent high-altitude platform project with an annual output of 4,000 units. According to the announcement, the main product types of the project are high-meter arm-type aerial work platforms, high-meter scissor aerial work platforms, and differentiated categories, with an annual design output value of 3.8 billion yuan after delivery. According to the company's latest disclosure, the project can carry out slope climbing production this year.