The CapXon group was founded in 1980; it is incorporated in Taiwan to set up Capxon Electronic Industrial Co., Ltd.; the major production is aluminum electrolytic capacitors. After several years of research and development, it began automated production in 1985 and continued its expansion of business scale. From 1999 to 2003, Capxon Taiwan respectively issued new shares to individuals, legal persons (corporations), including the Group employees, and the company is listed on Taiwan emerging market on 3 Sep 2004; the shareholders increased to more than 800 before the enterprise reorganization.
In view of the market of China with lower production costs and potential for development, in 1993, Capxon Taiwan established Capxon Electronic (Shenzhen) Co., Ltd. through Lancom Limited, and actually it engaged in aluminum electrolytic capacitor production in Shenzhen, and Lancom Limited itself was responsible for procurement and support of the Group's operations in China. In 2000, the group started to conduct feasibility study of vertical integration anode foil production. It expected to reduce production costs by the production chains of vertical integration, and meanwhile, get reliable quality assurance in all the major manufacturing processes.
On 18 May 2001, the Group set up Capxon Electronic Technology (Yichang Sanxia) Co., Ltd. through Easy Chance Limited in Yichang City, Hubei province. Due to consider the main costs to produce anode foil and the stability of it's production are based on reliable and abundant supply of electricity; the Group has strategically set the foils manufacturing facilities in Yichang where, with its geographical advantage near the Three Gorges Dam, an abundant and reliable supply of hydropower is available at a lower cost compared with other regions in China.
Later the same year, Capxon Taiwan established Capxon Suzhou through Lancom Limited in Suzhou to produce aluminum electrolytic capacitor. But the cost of production was higher than forecast, so it was accordingly abolished, and Capxon Suzhou didn't invest into production yet but cancelled on 2006/12/18.
In May 2002, due to the considerations of lower procurement, installation and maintenance cost, it is registered in Yichang and established Yichang Fengshuo Equipment Co., Ltd. to provide technical support for Capxon Yichang production machinery and operation maintenance services. To ensure close distance, production facilities of Fengshuo Yichang were located in Capxon Yichang.
In the middle of 2003, Capxon Yichang completed the first and second stages of production facilities, and completed five anode forming foil production lines; monthly productivity was up to 80,000 m² and began trial-production in May 2003; followed up mass production in July. In addition, with a view to provide better customer after-sales service, Capxon Shenzhen also set up branch offices in Tianjin and Suzhou in February 2003 to cover the services to Samsung Electronics (Tianjin) Co., Ltd. and Philips Consumer Electronics Co. of Suzhou Ltd., etc.
CapXon management team make their best to develop, no matter products, production technology, and customer services, the Group's subsidiaries, Capxon Taiwan and Capxon Shenzhen, respectively was awarded the ISO-9002 and ISO-9001: 2000 certification in 1995 and 1999 \ 2001.
The vertical integration production mode of aluminum electrolytic capacitors is the Group's orientation of active research and development. At the end of 2003, it completed a total of 16 anode forming foil production lines; by the end of 2004, they increased to 26. But because the etching processes of anode etched foil requires high technology, the Group still rely on the Japanese manufacturers. But what is worthy of recognition is in January 2004, the Group not only won Samsung quality certification as qualified providers, Capxon Shenzhen capacitor products also received ISO-14001 certification. Then in February, the R&D department successfully overcame the technical obstacles of etching processes, so Capxon Yichang walked towards the new milestone of anode etched foil production. In December 2005, their anode foil products won ISO-9001 certification. After the rapid expansion from 2005 to 2006, it completed the installation of 23 anode etched foil production lines; the monthly productivity was up to 630,000 m². However, as for long-term objectives and decentralization of business and production risk, the Group decided to set up Capxon Electronic Technology(Bao-Tou) Co., Ltd. in Inner Mongolia to specialize in the production and sales of anode foil, and right now, the construction and setting of a new factory is conducting. It is expected to begin pilot production in July be this year(2007). Since now, the Group's production capacity may up to monthly 414,000,000 units aluminum capacitors;and 28 anode etching and 56 anode forming production lines were both up to 700,000 m².
At the same time of the integrating production chain mechanism, the Group also actively developed China's domestic market and established Capxon Trading (Shenzhen) Co., Ltd through Lancom Limited in Shenzhen to specialize in China's domestic marketing anodic foil and aluminum capacitors. Also to reach the best of allocation of resources, it transferred capacitor production business from Capxon Taiwan to Capxon Shenzhen to retain only related R & D, sales and marketing departments. On the other hand, the groups also actively conducted to enterprise reorganization to prepare for the Hong Kong listing planning process.
On 2005-12-14, Capxon International Electronic Co., Ltd. incorporated in the Cayman Islands; its subsidiaries have established to complete reorganization of the company structure. In June 2006, the Company based on the issuing issued by Capxon Taiwan to make an offer to their shareholders to subscribe their holding Capxon Taiwan shares and accepted the subscribers to hold their shares to subscribe the Company's shares. 2006/8/18, it purchased 0.99% stake of Capxon Taiwan at emerging market. The Group weighed to list on Hong Kong main board (the Main Board of the Stock Exchange of Hong Kong Limited)to replace the listing of Taiwan Stock Exchange Corp. to strengthen the international competitive advantage and up and down stream vertical integration business. Therefore, on 2006/8/21, it eliminated Capxon Taiwan from Taiwan emerging market. Later, after enterprise’s internal reorganization and integration and a series of share subscription and a public share subscription plans before listing in Hong Kong, the over-subscribed is up to 45.2 times and officially listed in Hong Kong on 2007/5/7. Its raising capital will provide the Group with more powerful resources to soundly move forward to the future vision.
It’s marked a new milestone in CapXon’s history, the pace of future vision re-step out...
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