Dongshan Precision: plans to invest 200 million yuan to set up a wholly-owned subsidiary

On March 15, 2016, Dongshan Precision (002384) announced that the 25th meeting of the third board of directors of the company reviewed and approved the “Proposal on Investment in Establishing a wholly-owned Subsidiary” and agreed to invest in the establishment of a wholly-owned subsidiary. Suzhou Dongjiyuan Metal Technology Co., Ltd. Registered capital: 200 million yuan.

Dongshan Precision said that the establishment of a wholly-owned subsidiary will help to further integrate the production capacity of precision metal parts outside the company's headquarters, so as to gather effective resources to enhance synergies and enhance the competitiveness of the company's precision metal products business. The company serves customers such as consumer electronics and auto parts.

Dongshan Precision's addition of the subsidiary will put forward higher requirements for the company's management. The company will strengthen management efforts to ensure effective control of subsidiaries.

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