Da Dong Electric Expands to U.S. for Semiconductor Plant Construction, Order Backlog Holds at 10 Billion Yuan

Cable manufacturer Da Dong Electric (1623) achieved a record-high June revenue of 603 million yuan, marking a 13.63% increase compared to the same period last year. The company's second-quarter revenue reached 1.436 billion yuan, and its cumulative first-half revenue stood at 3.298 billion yuan, a 1.84% year-on-year rise. Despite a slight dip in second-quarter revenue compared to the previous year due to customer delivery schedules, Da Dong Electric maintains a stable operational foundation with a robust order backlog exceeding 10 billion yuan.

Responding to global supply chain restructuring, Da Dong Electric is strategically expanding into the U.S. market, with its first base in Arizona. This location was chosen for its advantage as a hub for the rapidly growing semiconductor and AI supply chains, allowing the company to be closer to its North American clients. The U.S. operations will initially focus on business development, technical services, and warehousing logistics to enhance service efficiency and delivery quality for North American customers.

The company anticipates officially entering the U.S. market in the third quarter of this year after obtaining necessary certifications, with exports expected to commence by the end of the year. Da Dong Electric will evaluate further localization of operations and manufacturing based on market trends and customer demand. Additionally, the company successfully priced its first domestic convertible bond (CB) on July 8, which is set to list on July 16. The proceeds will be used to optimize its financial structure, repay existing loans, reduce financial costs, and improve financial flexibility and efficiency. Da Dong Electric expresses cautious optimism for the second half of the year, projecting double-digit revenue growth for the full year.