Fu Chun Shin Machinery Manufacture Co., Ltd. (FCS, stock symbol 6603) believes that the market for new energy vehicles in China is promising and has invested NTD 1.2 billion to construct a new plant in Ningbo Hangzhou Bay, China. The plant is scheduled to be completed by the end of 2022. It plans to integrate the resources of the new plant and the existing plants in Dongguan and Ningbo and improve the overall arrangement for the enlargement and intelligent manufacturing of plastic Injection molding machines. Currently, the orders for auto parts have been arranged till the second quarter of 2022. The new plant is expected to be gradually put into production from the first quarter of 2023. 

FCS decided to set up the fourth production base for injection molding machines in Ningbo Hangzhou Bay New Area in 2019 and began the construction in 2020. The base covers an area of 66,690 square meters, with a gross floor area of 97,791 square meters. It is planned to be a production base with an annual output of 2,000 special injection machines. It will mainly produce large two-platen injection molding machines with a clamping force of more than 500 tons, large two-color injection molding machines, and large horizontal opposite injection molding machines. The annual output value is estimated to be RMB 600 million. FCS has been highly recognized and trusted by customers in the auto parts industry, sports equipment, staple merchandise, and 3C electronics for many years. Specifically, the revenue for the auto part industry accounts for an increasingly high percentage, which occupied 60% in the first half of 2022. 

Photo / This construction started in September 2020, and is expected to complete the main body in March 2022, and will be officially put into production in January 2023.

The market scale for new energy vehicles in China keeps growing. As a result, the main customers of FCS, including Tesla, BYD, Stanley, Yingli, TYC, SAIC Motor, and Guangzhou Automobile, had invested more to expand production, leading to the increasing sales of FCS multi-component injection molding machines. The combined revenue of FCS in the first seven months was NTD 2.703 billion, with a year-on-year increase of 10.02%. The gross profit rate for multi-component injection molding machines is higher than that of general machines for the high technical difficulty and complexity. Consequently, the gross profit rate of FCS in the first half year was 26.29%, up by 2.21% from the same period of last year. Its profit after tax for the first half year was NTD 96.14 million, with a basic profit of NTD 0.65 per share. The profit earned in the first half year has exceeded 80% of that the whole profit earned last year. 

FCS has arranged the orders for auto parts until the second quarter of next year, with the multi-component injection molding machines accounting for the most. It is expected to create the production rate of plants in Taiwan, Dongguan, and Ningbo. The overall operations of this year maintain a growing tendency. Benefiting from the constant tide of technologies regarding lightweight, energy saving, and carbon reduction, and the intelligent manufacturing of all industries around the world, FCS will continue to enhance the R&D energy and quality assurance system of its operation headquarter in Taiwan. It will utilize the Group's flexible production and sales distribution, and the integration strategy of all production bases to take over more market shares of customized plastic injection molding equipment of intelligent integration. While getting more orders, it also aims to promote the learning curve of the new plant in Hangzhou Bay and the plant in India, quickly achieve economies of scale and take the future operation to a higher level. 

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