Yongding "go out" "go up" strategic results show

Recently, Jiangsu Etern Co., Ltd. (hereinafter referred to as "Yongding Co., Ltd") announced that Yongding Co., Ltd. and its related party Beijing Zhongcable Tongda Electric Complete Set Co., Ltd. (hereinafter referred to as "Zhongcable Tongda") signed the "Cooperation Agreement on Bangladesh State Grid Upgrade and Renovation Turnkey Project" to divide the implementation management division of Bangladesh State Grid upgrade and renovation turnkey project to Zhongcable Tongda.

The total contract price of Bangladesh's national power grid upgrade project is as high as US $1.14 billion, which will greatly improve the performance of Yongding shares when fully launched. The relevant person in charge of Yongding shares told reporters that in order to get rid of the dependence on the orders of the three major operators, Yongding shares chose the strategy of "going out" and actively explored new markets such as overseas projects and special fiber projects, so as to open up the growth space of enterprise performance. Up to now, Yongding shares overseas power engineering sector positioning Southeast Asia and East Africa and other "Belt and Road" countries along the new market. This year, Yongding shares in Bangladesh, Pakistan, Ethiopia, Zambia, Tanzania and other projects under construction.

In the first three quarters of this year, Yongding's main income was 2.814 billion yuan, up 25.64 year on year. The continuous optimization of profitability is not only due to the successful implementation of the "go out" strategy, but also due to the previous implementation of the "go up" strategy.

As early as 2019, Yongding shares and South Korea chip enterprises to set up a joint venture company, involved in the field of passive optoelectronic chips, and in Wuhan, Suzhou set up chip design, process development research center, the successful layout of DWDM filter chips, VCSEL laser chips. In March this year, the "Nanyou-Yongding 5G Application Technology Research Institute" was officially unveiled to carry out research on key technologies related to 5G. Up to now, Yongding shares in the 5G pre-transmission market optical devices, optical modules and optical chip business in the rapid growth of operating income, AWG/WDM and other optical devices in the market segment of the size and market share have entered the position of the head of the enterprise.

At present, Yongding Smart Science and Technology Industrial Park project is steadily advancing, the second phase of the project is mainly to promote 5G network and chip research and development and industrialization. The relevant person in charge of Yongding shares said that after the completion of the industrial park project, the company will continue to promote the research and development and industrialization of laser chips, AWG chips and DWDM filters in the future, further enhance the control and productization capabilities of core technologies, and help the company gradually extend vertically from load-bearing network optical devices to upstream core optical chips.

Since the beginning of this year, Yongding shares in automotive wiring harness, optical fiber communications, overseas markets and other sectors have also achieved good benefits. Recently, Yongding shares announced the 2021 restricted stock incentive plan (draft), to grant 34.9723 million shares of restricted stock to the incentive object. The total number of incentive objects granted by the incentive plan for the first time is 143. The relevant person in charge of Yongding shares told reporters that the implementation of the equity incentive plan is a move for the company to establish long-term incentive measures, which will further stimulate the enthusiasm of employees, open up the company's performance growth space, and help to create a technology "moat". Maintain a leading position in related fields.

Source: Fenhu Release