Hengdian Dongji plans to set up a joint venture company in Vietnam to develop its business as a whole.

On the evening of June 10, Hengdian East Magnetic announced that the company signed a "Joint Venture Framework Agreement" and a memorandum with Fengda Motor Co., Ltd. of Japan. The company and Fonda Motor jointly funded the establishment of a joint venture company in Vietnam and invested in the production of loudspeaker magnets and shingles. Hengdian East Magnetic said that Haiyang Province of Vietnam has an open business environment, convenient transportation and increasingly improved infrastructure, while Vietnam and its surrounding areas have more customer groups, through the establishment of a joint venture company, the company can serve customers nearby, and further enhance the international service level and influence, so as to further increase market share, in line with the company's development strategy.

The independent director of Hengdian East Magnetic issued an independent opinion on the company's proposal to set up a joint venture in Vietnam, saying that the establishment of a joint venture in Vietnam would help the company to expand its overseas market share and was in line with the company's strategic plan of "strengthening magnetism". In the medium and long term, it will help to improve the market competitiveness of the company's permanent magnet ferrite industry and enhance the company's staying power for development. In line with the basic interests of the company and all shareholders.

Hengdian East Magnetic is a high-tech enterprise with two major industrial clusters: magnetic materials + devices and photovoltaic + lithium electronics. it is the rotating chairman of China Electronic components Industry Association and is known as the "magnetic capital of China" all over the world. the company is the leading enterprise in the ferrite magnetic materials industry, and the scale of ferrite permanent magnets and ferrite soft magnets are in the first place in the industry. At the same time, it is also the leader of the photovoltaic industry and the leader of vibration devices. Hengdian East Magnetic was founded in 1980 and listed in 2006. After listing, the company expanded the industry from a single magnetic material to photovoltaic, lithium and devices through the combination of industry and finance, which made the company maintain a good growth trend over the years.

In the first quarter of 2021, the income of Hengdian East Magnetic Company was 2.558 billion yuan, an increase of 91% over the same period last year. The net profit belonging to shareholders of listed companies was 258 million yuan, an increase of 193% over the same period last year. The performance is good.

Prior to this, Hengdian East Magnetic said in an institutional survey that the company's magnetic materials business is currently in a state of taking orders at full load. Based on the increase in customer demand, the company is also increasing capital expenditure, and there are projects in this department and Jinchuan Electronics that are expected to maintain double-digit growth throughout the year. For the device business, the original base of inductor and annulus / isolator is small, and its growth rate will be relatively large. For example, inductance business companies are carrying out omni-directional, multi-category layout and investment; the annulus is affected by the reduction in the construction of base stations and the use of single base stations, and the overall market demand has dropped greatly. however, several of the company's products have obtained the first and second supply orders from major customers, realizing batch supply. The photovoltaic business will show a trend of rapid growth, mainly the annual production of 4GW high-efficiency battery chips and annual 2GW high-efficiency modules will be completed and put into production in the second half of the year. Lithium power business will show a trend of rapid growth, mainly the annual production of 148 million lithium power projects will be built and put into production in the second half of the year.

At present, Hengdian East Magnetic focuses on the capital expenditure and R & D expenditure of magnetic materials + devices, photovoltaic + lithium power, different businesses cooperate with each other, and the company is constantly committed to the improvement of production capacity and further expansion of business. with the continuous improvement of new energy, photovoltaic and other sectors, the development space of Hengdian East Magnetic is also further expanded.