On the evening of May 13, Dongshan Precision announced that in order to actively promote its globalization strategy, expand the company's industrial layout in Europe, and increase the market scale in the field of auto parts, the company's subsidiary DSBJ PTE. LTD (hereinafter referred to as "DSG") plans to participate in the acquisition of 100% equity of Groupe Mécanique Découpage (hereinafter referred to as "GMD Group") and simultaneously promote its debt restructuring. The total transaction amount is approximately 100 million euros (equivalent to approximately 814 million yuan).
This transaction will be completed through a diversified debt restructuring plan. DSG will acquire part of GMD Group's claims at a cash discount and optimize GMD Group's debt structure through debt-for-equity swaps, shareholder borrowings to repay debts, and obtain debt exemptions. After the transaction is completed, DSG will hold 100% of the equity of GMD Group.
GMD Group was founded in 1986. It is a French auto parts contractor. Its business covers French domestic and overseas markets, focusing on passenger cars and commercial vehicle parts.Manufacturing of components. The Group has an annual turnover of 1 billion euros, employs more than 6,600 people and has 46 plants in 12 countries around the world, mainly in Europe, Asia and Africa. GMD Group currently has three major business segments: Plastics and Leather Division, Foundry Division and Stamping Division, all of which operate independently.
On thefinancial side, GMD Group's audited operating income in 2023 was EUR 983 million and net profit was EUR -6 million; its unaudited operating income in 2024 was EUR 1.012 billion and net profit was EUR 3 million.TheDongshan Precision business covers four major sectors: electronic circuit products, LED display devices, touch panels and LCD modules, and precision components, of which the LED display device business accounts for the smallest proportion. In 2024, the LED display device business achieved revenue of 768 million yuan, accounting for 2.09% of total revenue.
Dongshan Precision said that this transaction is to fully implement the company's two-wheel drive strategy, actively increase the company's market share in the field of auto parts, establish the company's industrial layout in Europe, and accelerate the process of globalization. Upon completion of this transaction, the Company will leverage the business of the GMD Group and itsStrength to further expand well-known customers in the global automotive industry will have a positive impact on the continuous improvement of the company's financial status and the steady improvement of the quality of operations.
ANNA