On the evening of October 16, Feike Electric announced that it plans to invest 1.52 billion yuan to invest in the construction of the Feige Electric Industrial Park Base Project in Lishui, Zhejiang. After the project is completed, it will mainly produce small household appliances such as razors and hair dryers.
China National Grid understands that the main body of the project is Zhejiang Feike Electric Co., Ltd., a wholly-owned subsidiary of Feike Electric. The implementation location is located in Jingning National Industrial Park, Lishui Economic Development Zone, Zhejiang Province. The total land area is about 480 mu. The land area is about 241 mu, 3 new production workshops, 3 supporting rooms, 1 auxiliary building and other buildings, with a construction area of about 207,000 square meters. The specific plan of the second phase will be based on the construction progress of the first phase. And the return on investment to determine.
According to Feike Electric, after the completion of the first phase of the project, it will form an annual production capacity of 22.5 million small household electrical appliances. It is estimated that the annual sales revenue of the first phase project will be about 1 billion yuan, and the net profit is expected to be about 150 million yuan.
For the purpose and function of the implementation of the project, Feike Electric said that the implementation of the project is conducive to the company to further expand production scale, enhance self-production capacity, meet the growing needs of the domestic market and the needs of international market expansion, while effectively reducing operating costs. , to improve production efficiency. It is expected that after the project is put into production, it will have a positive impact on the company's future performance growth.
In fact, Feike Electric adopts a light asset operation mode in the operation of the company, that is, firmly grasping the added value of the 'smile curve' and the higher profits of both ends - R&D design and brand marketing, the added value is more Most of the low production links are outsourced.
In terms of production, Feike Electric adopts a production mode combining independent production and outsourcing production. The semi-annual report of Feike Electric in 2018 shows that the proportion of its current outsourcing production to total production is 72.4%, and the products independently produced are mainly technology. New products and high-end products.
In the 2018 semi-annual report, Feike Electric said that it is developing its business by focusing on product R&D innovation, increasing production automation transformation, promoting online and offline integration development, and actively expanding overseas markets. The Electric Lijingyuan Industrial Base Project will help Feike Electric to further expand its production capacity, ensure the stability of product quality, effectively control costs and expenses, and thus enhance business efficiency.