China Dynamics Actively Expands in the PRC and Overseas, Seizes Opportunities in NEV Market
Eyes on the Huge Potential of PRC Market
The Group's subsidiary Chongqing Suitong New Energy Automotive Manufacturing Co., Ltd. ("Suitong") has secured sales order from Wulong County, Chongqing, for its 8.5 meter buses and is expected to deliver within this year. Although the EVs market remains highly competitive as of this moment, the market potential is tremendous and Suitong is believed to be able to capture a rewarding return from the PRC market in the years to come.
Expands Actively towards Overseas Markets
The Group expects to deliver two smart electric buses to the Hong Kong Productivity Council for trial run by the Airport Authority Hong Kong and the Hong Kong Anti-Cancer Society within year 2020. Meanwhile, the Group has secured several sale orders from South East Asia and South America for different EVs products. The Group is highly confident that sizable bulk orders will be concluded after those first orders of products are delivered. In addition, the Group has also secured a trial order of its logistic vehicles and buses to Europe and is expected to deliver soon. It is also confident to secure more orders from Europe after the trial period of this first lot of orders.
Completes Main Building Blocks of New Chongqing Plant
The main building blocks of new plant in Qijiang District of Chongqing have been completed. Installation of production equipment will be conducted on a demand basis in order to allocate more working capital for the new EVs orders possibly coming in shortly. The Group is still utilising the existing production plant and will continue to install production facilities when necessary.
Glauberite Mine Boasts Promising Market Potential
The product of glauberite mine is thenardite, which is a type of important raw materials used in chemical and light industrial manufacturing. The Group's wholly-owned subsidiary, Guangxi Weiri Mining Company Limited (the "Guangxi Weiri"), owns a glauberite mine located in Guangxi Zhuang Autonomous Region, the PRC. Guangxi Weiri has completed the purchase of land use rights covering 63,118 square meters of land and is working closely and regularly with the local government to resolve the land issue, and hopes to obtain access to another land parcel of 100,000 square meters for a factory site.
Share Repurchase Enhances Net Asset Value
To align with the management's commitment in enhancing the net asset value of the Company and protecting its long-term interest, a share repurchase exercise was implemented. During the year ended 31 March 2020 and up to the present, the Group has acquired 253,740,000 ordinary shares at an aggregate price of approximately HK$27.4 million. These repurchased shares of approximately 3.57% of the total number of issued shares of the Company have subsequently been cancelled.
Mr Cheung Ngan, Chairman of China Dynamics, said, "The COVID-19 has inevitably added further complications and challenges to the Group, but with the easing of worldwide lockdown, the overseas market orders have been resuming and become active again. We are very optimistic that our swift market plan can be successfully carried out within a foreseeable future. Going forward, the Group will closely monitor the market condition and adjust our business model to face the upcoming challenges, continue to seize opportunities from the rapid growth of NEV market, actively explore the PRC and overseas markets so as to enhance the Group's competitiveness, and create long-term value for the shareholders."
Copyright 2020 ACN Newswire. All rights reserved. www.acnnewswire.com