Jindi to invest RMB 175M in Mexico unit

On October 30, Shandong Jindi Precision Machinery Technology Co., Ltd. announced that, in order to meet the demand for overseas customer orders and the need for production scale expansion, the company plans to increase its investment in its wholly-owned Mexican subsidiary, GOLDEN EMPIRE PRECISION TECHNOLOGY AMERICA S.A.DE C.V., by 175 million yuan. After this capital increase, the total investment scale will reach 330 million yuan. This transaction has been approved by the board of directors and still requires submission to the company’s shareholders’ meeting and relevant domestic and foreign regulatory authorities for approval.

The announcement indicates that the funding source will be the company’s own funds or self-raised funds. The capital increase will be carried out through the wholly-owned subsidiaries Jindi Precision Technology Hong Kong Co., Ltd. and GEB PRECISION TECHNOLOGY (SINGAPORE) PTE. LTD., according to their original shareholding ratios (90% and 10%, respectively).

Jindi Mexico was established on February 12, 2024, and is located in Ciudad de San Luis Potosi, San Luis Potosí State, Mexico. Its registered capital is 50,000 pesos. The main business covers the R&D and manufacturing of products such as bearing cages, automotive precision stamping parts, and core structural components for hydrogen energy systems. As of the end of September 2025, Jindi Mexico’s total assets reached 157 million yuan, an increase of 163% compared to the initial establishment period. The asset-liability ratio decreased from 18.47% to 8.91%. However, it has not yet generated operating revenue, and the cumulative net loss is 10.17 million yuan, primarily attributable to preliminary factory construction and equipment investment.

Jindi stated that this capital increase aims to improve the layout of its overseas production base, enhance the supply chain response speed to the North American automotive industry cluster, and meet the localized procurement demands of core customers such as Tesla and General Motors. The company emphasized that through the construction of the Mexico base, it will achieve localized production of core products like bearing cages and automotive precision stamping parts, further aligning with North American market customers and reducing tariff and logistics costs.