On December 14, Gujia Home Furnishing (603816) issued an announcement that, in order to implement the internationalization strategy and increase the depth and breadth of market radiation, the company plans to use RMB 1,037,455,800 to invest in the Gujia Home Furnishing Mexico self-built base project (hereinafter referred to as "this project"). "). The company's wholly-owned grandson company KUKA PROPERTY MANAGEMENT, SOCIEDAD ANIMA DE CAPITAL VARIABLE (hereinafter referred to as "KUKA PROPERTY") and SCOTIABANK INVERLAT, SOCIEDAD ANNIMA, INSTITUCIN DE BANCA MULTIPLE, GRUPO FINANCIERO SCOTIABANK INVERLAT (hereinafter referred to as "KUKA PROPERTY") on December 13, 2021 ") Signed the "Letter of Intent to Purchase Land", intending to use USD 19,152,463.12 (calculated based on the exchange rate of RMB 6.36 on December 13, 2021, = 1 USD, equivalent to approximately RMB 121,809,700) to purchase 363,562.322 square meters of land ownership. In the future, the company will register a wholly-owned or controlled project production and sales company with an independent legal personality in Mexico as the main body of this project.
The basic situation of the investment target:
Gujia Home Furnishing Mexico Self-built Base Project
Investment plan: The project plans to build a production base in Monterrey, Mexico, and invest in supporting facilities including workshops, warehouses, production equipment, and testing. The total investment of the project is RMB 1,037,455,800, of which the land cost is RMB 126,940,600, accounting for approximately 12.24%; the construction projects such as production workshops and warehouses are RMB 619,683,600, accounting for 59.73%; and the equipment for production and testing is RMB 133,300,000, accounting for approximately 12.24% 12.85%; the initial working capital is 157,531,600 yuan, accounting for 15.18%.
Investment progress and project construction period: The project is expected to start in the first half of 2022. The project construction period is 36 months. The first phase of the project is expected to be completed and put into production in mid-2023. The later construction will be determined according to the growth rhythm of market demand. The start of construction time. When the project's overall goal is reached, it is estimated that the operating income will be about 3.019 billion yuan.
Feasibility analysis: The competition between the Chinese upholstered furniture manufacturing industry and international brands is becoming increasingly fierce. The company must accelerate the layout and construction of overseas bases, increase product styles, and increase the scale of products introduced to the market in order to maintain a good development trend and consolidate its position in the industry, Gradually expand market share. The implementation of this project will help the company rapidly expand production scale, improve production efficiency, increase market-oriented product styles while ensuring product quality so that consumers have more choices and better satisfy different consumers. Preferences, while shortening the order cycle, speeding up the delivery speed, better-improving customer satisfaction, sublimating the brand image, winning more customers with a good reputation, and achieving a leap in sales. With the completion of this project, the company will further expand its market share and increase the depth and breadth of market radiation through the implementation of this international strategic plan.
It is estimated that the normal annual operating income of this project is about 3.019 billion yuan, and the investment payback period (including the construction period) is 6.08 years.
The construction of this project has good market demand and is closely related to the company's existing main business. It is feasible in terms of technology, production, and marketing, and has obvious economic and social benefits. Therefore, the construction and operation of this project is feasible.
Relevant authorization: In order to ensure the smooth development of this project, the company’s management is authorized to take full responsibility for the relevant matters of this project. Including but not limited to signing relevant agreements/contracts, investment progress announcements and other documents, agreements, and related matters related to this project.
According to the data of digbei.com, Gujia Home is committed to providing healthy, comfortable and environmentally friendly home solutions for families around the world with "home" as its origin.