NANFANG COMM suggests developing the Southern Technology Ecological Industrial Park
NANFANG COMM plans to develop the Southern Technology Ecological Industrial Park by renovating and rebuilding its former factory located in Changzhou, Jiangsu Province, with an expected investment of 50 million yuan. The board believes that this project aligns with the group's long-term development goals, helps concentrate production capacity, reduce management costs, enhance production efficiency, and create new cash flow. In addition, the group will consider leasing or selling properties within the industrial park to attract high-quality talent and promote business development
According to the Zhitong Finance APP, NANFANG COMM (01617) announced that the company plans to develop the Southern Technology Ecological Industrial Park by renovating and rebuilding its former factory site located in Changzhou, Jiangsu Province, China. The group expects to invest RMB 50 million in the proposed reconstruction project.
The board of directors believes that the proposed reconstruction project aligns with the group's long-term development goals and business strategy.
From an operational and management perspective, the board believes that consolidating production capacity from two factory sites into one can achieve economies of scale and intensification of production. Procurement, logistics, and management costs will decrease due to scale effects, allowing the management team to focus more, thereby enhancing production efficiency and flexibility, and preparing the group for large-scale intensive production of products in the future.
Additionally, this move presents a good opportunity for the group to reduce overall operating costs and create new cash flow. Transforming the land of the old factory into a modern industrial park can significantly reduce maintenance expenses associated with outdated or obsolete equipment and facilities. The group will also consider leasing and/or selling properties within the industrial park to explore new sources of income.
The board believes that the proposed reconstruction project is an important opportunity to enhance the group's image and promote continuous breakthroughs in its business strategy. It is expected that the proposed reconstruction project will attract elite and high-quality talent to join the group, assisting in the expansion of its business
