XGD advances intelligent manufacturing base project in Dongguan

Shenzhen XGD (SZSE:300130) is progressing with its "New Guodu Group Intelligent Manufacturing and Artificial Intelligence Headquarters Base Project" in Dongguan. In November 2024, XGD's board approved the investment for the project, and authorized management to execute related agreements with the Dongguan Binhaiwan New Area Management Committee. To manage the project, XGD established a wholly-owned subsidiary, Dongguan XGD Technology, in March 2025. Further streamlining the project structure, XGD has acquired the 40% equity stake in Dongguan XGD Technology held by its international subsidiary, New Guodu International, bringing its direct ownership to 100%. Dongguan XGD Technology has completed the necessary business registration changes. However, the project's land acquisition relies on a public auction, introducing uncertainty regarding securing the land and the final price. Additionally, the project is subject to macroeconomic, industry, and policy risks that could impact construction and production timelines. In related news, the company noted that its stock had experienced abnormal trading fluctuations, but an internal inquiry found no undisclosed information or irregularities.