Igor plans to invest US$86 million in its subsidiary to build a production base in Mexico

On October 30, Igor issued an announcement announcing that based on the needs of the company's business development and overseas production base layout, the company plans to invest a total of no more than US$86 million in its wholly-owned subsidiary Eaglerise E&E (USA), Inc. (Chinese name: Los Angeles Igor) to invest in a new production base in Saltillo City, Coahuila State, Mexico.

According to the announcement, the products planned for the Mexican production base are mainly new energy products. This project will use the successful experience of Igor's domestic digital factory to build a digital factory with a higher level of automation in Mexico. The total investment in the entire project is expected to be no more than 86 million US dollars. The purpose of the funds includes but is not limited to purchasing land, building factories, purchasing production and IT equipment, reserve funds, and laying down working capital.

The planned land area of the project is about 65,000 square meters, and the construction period is planned to be 2 years, which includes domestic and overseas approvals, implementation of capital plans, survey, design and construction of civil engineering projects, equipment procurement, installation and commissioning, personnel recruitment and training, and trial production.

There are two entities to be implemented for the Mexican production base project. Both companies are 99% owned by Igor Los Angeles and 1% held by Igor Philadelphia, a wholly-owned subsidiary of Igor.

One of the companies is NET ELECTRIC REAL ESTATE S. de R.L.de C.V., with its registered address in Monterrey, Nuevo Leon, Mexico, and a registered capital of 3,000 pesos. Its business scope is the purchase, transfer or grant of property, lease, possession, use and other types of rights, movable or immovable property.

Another company is NETEL ECTRIC S.DER.L.DEC.V, with its registered address in Monterrey, Nuevo Leon, Mexico, and a registered capital of 3,000 pesos. Its business scope is the design, manufacture and sale of power and software products and solutions, including but not limited to inductors, transformers, high-voltage DC power supply systems, energy storage equipment, charging stations with integrated optical super storage, LED controllers and inductors, etc.

It is understood that Igor's current business is centered around the "2+X" strategic layout, based on energy products and lighting products, while actively deploying new application areas such as vehicle power supply, vehicle inductor, communication power supply and energy storage.

Igor said that new energy products have become an important engine for the company's revenue growth in recent years, and related products have been recognized by the market in North America. Take the new energy transformers produced by the company as an example. The products have been widely used in many photovoltaic power stations at home and abroad. The company is also one of the earliest domestic manufacturers to enter major photovoltaic markets such as the United States, Japan, and the European Union.

Igor is headquartered in Foshan, Guangdong, and has branches in Shanghai, the United States, Japan, Singapore and Malaysia. It has initially established a sales network covering major countries and regions around the world to better serve local customers and explore new market opportunities.

In Igor's view, Mexico, as a "near-shore" country to the United States, has outstanding advantages in trade policy, logistics, and labor force, and is becoming the first choice production base for Chinese companies to cover the U.S. market. Investing in a new production base in Mexico can get closer to customers in North America, better promote the company to develop new customers in North America, and improve the stability and timeliness of the company's supply chain in the North American market. Considering the strategic planning of global layout, investing in the new production base in Mexico will not only optimize the company's global supply chain, but also help enhance the brand image and continue to expand global business opportunities.

Talking about the impact of this investment on the company, Igor said that this investment will have a positive impact on the company's long-term development, and will help improve the layout of the company's overseas production bases, meet the order needs of overseas customers, and enhance the company's international competitiveness and overseas service capabilities.

Igor simultaneously disclosed the third quarter report on the evening of October 30. The company achieved operating income of 2.518 billion yuan in the first three quarters, a year-on-year increase of 22.49%; it achieved a net profit of 165 million yuan, a year-on-year increase of 15.56%. Among them, the operating income in the third quarter was 945 million yuan, a year-on-year increase of 41.42%; the net profit was 75.1889 million yuan, a year-on-year increase of 28.56%.