TK GROUP HLDG has completed its restructuring, holding over 1 billion in cash, with a revenue target of 5 billion by 2028

Dongjiang Group (2283) has completed its business restructuring under the recommendation of Boston Consulting Group, defining six core tracks and setting clear growth targets, including aiming for revenue of 5 billion yuan by 2028 and further challenging 10 billion yuan by 2033. Chairman Li Peiliang stated that the group will primarily focus on organic growth, supplemented by acquisitions, holding over 1 billion yuan in cash to support billion-level acquisitions, emphasizing that "we cannot use a definite plan to deal with an uncertain environment." Focus on Six Major Areas After Restructuring Li Peiliang stated that after the restructuring, the group will focus on six major areas, including overseas and domestic consumer electronics, medical consumables, packaging, smart home, and automotive. There are no geographical restrictions on acquisitions, with a minimum annual revenue requirement of 100 million yuan for targets, aiming to strengthen technological synergy and extend the customer value chain, striving for "1+1 greater than 2," with the goal of implementing at least one acquisition within this year. In terms of technology and products, Li Peiliang mentioned that Dongjiang is closely aligned with trends in AR/VR, voice control, and health monitoring, with related devices capable of non-contact monitoring of blood pressure, blood sugar, and other functions. As AR/VR enters its application year, related demand is expected to explode, becoming the group's main growth driver; the medical sector benefits from an aging population, while the automotive field focuses on expanding high-growth products such as connectors around autonomous driving. Slight Downward Adjustment of Gross Margin Not Ruled Out With the continuous increase in the proportion of domestic customers, Dongjiang Group's Executive Director and Chief Financial Officer Zhang Fanghua emphasized a rigorous customer selection process, focusing on large-scale quality customers, which does not negatively impact gross margin and cash flow. To enter new fields, the group does not rule out a slight downward adjustment of gross margin in stages, stating, "A slightly lower gross margin in stages is acceptable, as the ultimate goal is to increase the absolute value of profits," and aims to dilute fixed costs through economies of scale. In terms of operational strategy, Li Peiliang emphasized that "profits come from factories, not markets," and the group insists on a high-quality, high-efficiency route, leveraging mold technology advantages to multiply production capacity, with customers willing to pay a premium. To further strengthen its advantages, Dongjiang plans to increase capital expenditure in 2026 to promote factory relocation and fully automated upgrades, aiming to build the most automated precision manufacturing factory in the country. Capital Expenditure in 2026 Will Reach a Historical High In terms of capacity layout, the group stated that capital expenditure in 2026 will reach a historical high. The Suzhou factory has doubled its production capacity but is still in short supply; the Vietnam factory expanded its area to about 9,000 square meters last year and rented an additional 4,000 square meters in the first half of this year. In response to tariff uncertainties, the group has abandoned plans to purchase land locally, insisting on maintaining flexibility through a factory rental model