On August 5th, Capital Bond learned that A-share company Debang Lighting (603303.SH) issued a letter on the receipt of the project by its subsidiary.
Zhejiang Debang Automotive Lighting Co., Ltd. (hereinafter referred to as "Debang Automotive Lighting"), a wholly owned subsidiary of Debang Lighting, received a designated letter from Wanxiang 123 Co., Ltd. (hereinafter referred to as "Wanxiang 123").
Debang Automotive Lighting will serve as the supplier of Wanxiang 12III part of the project, customizing the development and supply of battery management system (BMS) controller products according to the needs of the final depot customers. The above products will be used in some models of Porsche and Audi. The 12PPN001 project cycle is from 2021 to 2024, and the amount of battery management system (BMS) controller products provided by the company is expected to be about 70 million RMB; the 48PAU001 project cycle is from 2023 to 2033, and the battery management system (BMS) controller products provided by the company during the cycle are expected to involve about 1.2 billion yuan.
Debang Automotive Lighting is a wholly-owned subsidiary established in September 2018 based on strategic needs and business development, mainly engaged in automotive product research and development, manufacturing and sales. Debang Automotive Lighting has successfully mass-produced on-board headlight controller (LDM) products and carried in some Japanese models.
Debang Automotive Lighting obtained the above project confirmation letter, which is helpful to promote the company to establish business relationship with the world-famous automobile manufacturers or their suppliers, and is of great significance to the company's on-board business layout and sustained and rapid development.
Follow-up Debang Automotive Lighting will complete the development and production of the above project products within the specified time in accordance with customer requirements. The above projects are expected to have little impact on the company's performance this year, but will help to improve the company's future annual business income and have a positive impact on the company's future operating performance.
Debang Lighting said: the project fixed letter is only a recognition of the qualification of a single designated product development and supply, and there may be changes, suspension or termination of the project due to various reasons in the development and production process. At the same time, the designated letter of the project does not constitute an order or sales contract, and the actual supply quantity shall be based on the formal order or sales contract. There is uncertainty about the actual quantity and amount of goods supplied by the company in the future. Factors such as automobile industry policy and the overall situation of the automobile market may have an impact on customers' production and demand plans, which in turn brings uncertainty to the supply volume.