Our history began in 1996 when our CEO, Zhang Zhongliang, established Cixi Zhongxing (later known as Zhejiang Zhongxing) as a limited company with a registered capital of RMB 3.0 million.
Before the establishment of Cixi Zhongxing, Zhang Zhongliang was the factory manager of a collectively-owned enterprise, Gaowang, from 1990 to 1993, and subsequently of another collectively-owned enterprise, Cixi Huaxing, from 1993 to 1996. Gaowang and Cixi Huaxing were engaged in mould fabrication and metal stamping of electronic tuner components for their customers in the PRC. From these experiences, Zhang Zhongliang expanded his customer contacts and knowledge of the consumer electronics industry. Zhang Zhongliang saw the strong potential for consumer electronics products and as a result in 1996, Cixi Zhongxing established Ningbo Weite (later known as Ningbo Zhongjun) with HK Wittis to serve as an integrated one-stop service provider for consumer electronics manufacturers to meet their needs for electronic tuner components. HK Wittis then assisted Ningbo Zhongjun in expanding its customer base and hence, increasing its sales. The initial registered capital of Ningbo Zhongjun was US$ 0.7 million, with 49.0% and 51.0% equity interests held by Cixi Zhongxing and HK Wittis respectively.
In 1997, we acquired mould fabrication equipment such as wire-cutting machines and milling machines, advanced metal stamping machines and plastic injection moulding machines, imported from Japan and Taiwan. This was our first effort to develop our core competencies in precision engineering technology.
In the same year, we received orders from Sumitomo (Shanghai) for electronic tuner components used in the products of Sanyo (Japan). Sanyo (Japan) was the first MNC to use our products. Sanyo (Japan) subsequently became our direct customer. As a result of our marketing efforts overseas and our commitment to high quality product and service standards, MNCs such as the ALPS Group, the LG Group, the Panasonic Group, the Philips Group, the Samsung Group, the Sharp Group, the Sony Group, the Toshiba Group and the Thomson Group became our customers.
In 1998, we acquired and installed electroplating equipment to provide plating of electronic tuner parts we manufactured. In the same year, in recognition of our stringent standard of quality control, we were awarded the ISO 9002 certification by the CQC.
In 1999, we started to utilise progressive stamping techniques in our production process which enabled us to increase our production volume, maintain consistency of and improve the quality of our products and reduce rejection rates. In 2000, recognising the manufacturing efficiencies and competitive advantage of automated assembly, we set up an assembly automation team to design, develop and build automated assembly machines. As at the Latest Practicable Date, we had 42 automated assembly machines in operation.
In September 2001, we established Dongguan Zhongxing to tap into the business opportunity in the Pearl River Delta region which enabled us to respond quickly and effectively to customers located in this region. In 2003, Dongguan Zhongxing was certified by the Sony Group as one of its “Green Partner” under its “Green Partner Environmental Quality Approval Programme”. In 2004, we made a strategic decision for Dongguan Zhongxing to focus on the manufacture and supply of metal-stamped parts for manufacturers of office automation equipment (such as printers and photocopiers). Konica Minolta Business Technologies Manufacturing (HK) Ltd. became our customer in the Pearl River Delta region.
In December 2001, we established Ningbo Sunrise to also manufacture and sell metal and plastic parts for audio and video products. We were awarded the ISO 9001:2000 certification in 2003 by BSI Management Systems which affirmed our achievements in areas of product quality, management strength, manufacturing process efficiency and organizational competency.
We saw the market opportunity for the automotive industry and believed that by leveraging on our know-how in precision tooling and surface treatment, we would be able to further expand our businesses. As such, in 2003, we obtained QS 9000:March 1998 certification so that we could provide electroplating services for exterior automobile plastic parts such as logos, plates and grilles to the automotive industry. In April 2004, we entered into a “Plastic Plating Technology Assistance Agreement” with Uehara, a Japan-based company to acquire advanced technology for electroplating of plastic parts. In addition, we entered into a “Plastic Injection and Painting Technology Assistant Agreement” with Uehara in March 2005 to expand our range of services for automotive manufacturers. Uehara is mainly engaged in the development, manufacturing, electroplating and sale of interior and exterior parts for home-use electronic equipment and industrial-use automobiles, various kinds of nameplate mark emblem and PC card and display products. As at the Latest Practicable Date, we have been providing electroplating services for plastic parts used in automobiles manufactured by Dongfeng Honda Automobile Co., Ltd and Dongfeng Nissan Automobile Co., Ltd.
In April 2004, to further tap into opportunities in the consumer electronics and telecommunication industries in the Yangtze River Delta region, we established Suzhou Zhongxinglian with a registered capital of US$ 10.0 million. Suzhou Zhongxinglian manufactures and assembles precision metal stamped and precision plastic injection moulded parts, such as connectors and components for mobile telephones. These products require higher precision and thus employ more sophisticated tooling, equipment and manufacturing capabilities. In December 2004, we entered into a “Precision Injection Molding Transfer Agreement” with Meiho Co. Ltd, a Japan-based company, and Hong Kong Meiho Co. Ltd to acquire advanced technology for precision injection moulding. Meiho Co. Ltd and its related companies are mainly engaged in the design, development, manufacturing and sale of plastic injection moulds, plastic moulded parts, precision parts of moulds for integrated circuits, biaxial stretch blow moulds for polyethylene (a type of plastic) bottle, precision parts for automatic machines, machines for packaging semiconductors with thermoplastics, vertical super-miniature injection machines.
In February 2005, Sumitomo (HK) subscribed for 107,441 shares of S$ 1.00 each in our Company for a consideration of S$ 287,144.
In February 2005, we established Hongkong Sunrise to liaise and trade with our customers and suppliers who are represented by their agents or sales offices in Hong Kong.
In July 2005, to enhance the competitiveness of Suzhou Zhongxinglian, we established Wuxi Ruite, an 82.0% owned subsidiary in Wuxi City, Jiangsu Province to carry on the business of providing electroplating services for precision metal parts to customers in the vicinity of Suzhou City and Wuxi City. With this subsidiary, we are able to provide a comprehensive and integrated range of products and services to our customers. Wuxi Ruite was awarded ISO 9001:2000 certification in February 2006.
On 17 October 2005, our Company entered into a collaboration agreement with Jurong Hi-Tech Industries Pte Ltd whereby (i) Jurong Hi-Tech Industries Pte Ltd and our Group would each act as the preferred sub-contractor to the other and its respective customer base, and (ii) Jurong Hi-Tech Industries Pte Ltd (and its other collaboration partners) and our Group agreed to jointly carry out product development in original design manufacturer PDP and LCD products and businesses, as well as accessories for telecommunication products, such as Bluetooth consumer products (e.g. Bluetooth headsets), Global Positioning Systems and antenna modules for telecommunication products. Jurong Hi-Tech Industries Pte Ltd is a wholly-owned subsidiary of Jurong Technologies, a company listed on the Official List of the SGX ST. It is an electronics manufacturing services provider in the region, engaged in product design, manufacturing and testing activities for the telecommunications and consumer electronics industries. Our Directors believe that this collaboration would provide synergistic benefits to us in our long-term strategy to expand our other business segment, in particular the manufacturing of connectors as this would allow us to tap into the established network of Jurong Technologies Group in the mobile phone and hard-disk drive markets.
On 12 January 2006, JT, another wholly-owned subsidiary of Jurong Technologies, entered in an investment agreement with our Company, Dynamic Goal Finance, Ng Liew Peng, Sumitomo (HK), the RCLS Investors, Wang Huadi and Zhang Zhongliang under which it acquired 20.0% of our Company's post-Invitation issued share capital. Please refer to the section “Share Capital” for further details.
We have established Dongguan Xingbo as an 80.0% owned subisidiary in Dongguan, Guangdong Province in collaboration with Bright Precision on 31 March 2006. The formation of Dongguan Xingbo enables us to tap the expertise of Bright Precision in meeting the demand for design and fabrication of precision moulds for the office automation equipment and automotive sectors. This is part of our effort to enhance our strengths in these two sectors. Bright Precision, through its subsidiary in Shenzhen, PRC, has established business relationships with its customers such as Advanced Production System Limited, Wurayoshi Electronics (Shenzhen) Co., Ltd, and Kyoushin Machinery (Shenzhen) Co., Ltd, who are suppliers to Canon, Konica Minolta, NEC, Ricoh and Sanyo. Yan Changxian, the chairman of Bright Precision, has over 15 years of experience in precision mould design and fabrication, serving the consumer electronics and office automation equipment industries. We believe that through our collaboration with Bright Precision, we could leverage on its expertise in precision mould design and fabrication as well as its established customer base in the consumer electronics and office automation equipment industries.
We are in the process of establishing Ningbo Zhongjun Auto in Cixi City, Zhejiang Province, and this is expected to be completed in the third quarter of 2006. The purpose of the formation of this wholly-owned subsidiary is for it to take over the electroplating operations for the automotive industry from Ningbo Sunrise in FY2006. Such a transfer would result in an independent business unit which would facilitate possible future introduction of suitable joint venture partner(s) where our Group can benefit from potential technology transfer and expansion of our market reach.
Over the years, we have grown from a small manufacturer of metal-stamped parts to become an integrated manufacturing services provider for the consumer electronics, office automation equipment, telecommunication and automotive industries. As at the Latest Practicable Date, our production facilities (including warehouse, office and production space) had grown from an aggregate area of 10,000 sq m in 1996 to approximately 39,423 sq m.
Our Company was incorporated as a private limited company in Singapore under the Companies Act on 17 May 2004. In connection with the Restructuring Exercise undertaken to streamline and rationalise the corporate structure and business activities of our Group in November 2004, our Company became the holding company for our Group. On 8 May 2006, we were listed on the SGX-ST Mainboard and assumed our present name on 28 July 2005.