About 680 million increase in capital and two subsidiaries to expand the layout of Vietnam and the Middle East

The trade friction is becoming more and more intense. The company has expanded its production base outside China, strengthened its Asian layout, and started increasing cash in Vietnam and Middle East Jordan subsidiaries. The total amount of the two cases is about 680 million yuan.

Guang Bao announcement, with no more than 77 million 400 thousand US dollars (equivalent to RMB 540 million yuan), will increase the capital of LITE-ON VIETNAM CO., LTD., which is directly held by 100%.

In addition to strengthening the layout of Southeast Asia, Guang Bao, in order to implement the business capital needs in the Middle East, announced that the subsidiary's KBW-LITEON cash increased by 20141602.17 US dollars (equivalent to RMB 140 million yuan), plus the case of Vietnam's capital increase, amounting to about 680 million yuan.

It is understood that the original company in Vietnam, Middle East Jordan has subsidiaries, including the Middle East because of winning the local standard case, the capital increase is mainly in line with the customer's near production, due to the demand for orders to expand production.

Mainland China is still the largest production base of Guang Bao. Its share is nearly 80%. Due to the rapid rise of labor costs in mainland China in recent years, coupled with trade wars, tariffs on products exported to the United States have increased, so that this year, Guang Bao has gradually strengthened the layout of overseas production bases.

At present, Guang Bao has factories in Vietnam, Thailand, Mexico, Philippines and Malaysia. Among them, the Thailand plant has been established for nearly 30 years, and Vietnam's production base has been five years. Southeast Asia is the largest production base outside the mainland of China.

In addition to strengthening the overseas layout, the Kaohsiung operation center and new plant, which invested tens of billions of yuan (NT $) in 2016, will also be launched in the first quarter of next year, mainly producing automotive electronic products, including LED headlights, body control and vehicle image sensor modules.

Chen Guangzhong, chief executive officer of Guang Bao, pointed out that because of the Sino US trade war factors, the customers have more uncertainty on the terminal market, and the guests are more nervous than that of Guang Bao, including suppliers where to purchase and distribute. This situation is also reflected in the low visibility of the Po, and is more conservative for the first quarter of next year.

Chen Guangzhong stressed that up to now, the increase in tariffs has less than 2% impact on the revenue of light treasure, and the rate of direct export to the United States is relatively low.

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