一、Development history

Xiamen Chenggang Motor Co., LTD. : Its history can be traced back to the establishment of Taiwan Chenggang Enterprise Co., Ltd. in 1979. In its early days, it mainly produced motor shafts and parts for automobiles and motorcycles. Our products are mainly supplied to internationally renowned companies such as Panasonic Electric, Datong Company, TECO Electric, and Goling Electric, and we have established supply and sales relationships with them. Moreover, it is necessary to pass the certification of the above-mentioned manufacturers every year to obtain the qualification of a third party.

In 2003, due to business expansion needs, Xiamen Chenggang Motor Co., Ltd. was established in Xiamen. We mainly produce 6W - 2200W micro and small gear reduction, variable speed and brake motors, providing high-quality products and perfect after-sales service for the Chinese market, and are deeply trusted and highly praised by the market. With the continuous rise in performance, Chenggang Motor Co., Ltd. was established in Bangkok, Thailand in 2005. The products of Chengsteel Motor feature long service life, no noise, small size, light weight and maintenance-free. The gear material is made of SCM-415 (chromium-mesh alloy steel) and carburized and hardened to ensure the toughness of the material, preventing it from becoming brittle and able to withstand sudden impacts. The gear accuracy can reach within JIS- III grade. The products have successively passed the ISO9001 quality management system certification, CE and CCC qualification certifications, and the business network covers the whole country.

In 2024, Xiamen Chenggang Motor Co., Ltd. and Xiamen Yingcheng Transmission Technology Co., Ltd. reached an important consensus and successfully acquired the two major brands, "STS Chenggang" and "Yashi", under the umbrella of Xiamen Yingcheng Transmission Technology Co., LTD. This strategic move marks a crucial step forward for both sides in market layout, resource integration and business expansion, laying a solid foundation for future development and opening a new chapter in growth.

二、Reasons and strategic significance of mergers and acquisitions

1. Market environment and industry trends: Currently, competition in the motor drive industry is becoming increasingly fierce, and the market's demand for product diversification, high performance, and intelligence is constantly growing. To gain an advantage in such a market environment, enterprises need to constantly integrate resources, optimize product structures, and enhance their core competitiveness. Through mergers and acquisitions, resource sharing and complementary advantages can be achieved, better adapting to market changes and meeting the increasingly diverse needs of customers.

2. Synergy effect and resource integration: Xiamen Chenggang Motor Co., Ltd. has rich experience and mature technology in the field of motor production and manufacturing. It has several professional technical R&D personnel at its headquarters in Taiwan. Its brand also enjoys a high reputation and good word-of-mouth in the market. Although Xiamen Yingcheng Transmission Technology Co., Ltd. was established relatively recently, it has unique advantages and innovative concepts in technology research and development, market expansion, and enterprise management. The merger of the two sides can achieve synergy in multiple aspects such as technology, production, market and talent. Technically, jointly develop new products and enhance product performance; In production, optimize the production process and reduce production costs; In the market, integrate sales channels and expand market share; In terms of talent, achieve complementary advantages among talents and build a more competitive team.

3. Brand value enhancement and market expansion: The two major brands, "STS Chenggang" and "Yashi", each have a certain customer base and market share in their respective niche markets. By acquiring these two major brands, Xiamen Yingcheng Transmission Technology Co., Ltd. can rapidly enhance its brand influence and market recognition, and further expand its market territory. At the same time, by leveraging the brand's advantages, it can attract more customers and partners, laying a solid market foundation for the company's long-term development.

三、Business development and product upgrade planning after mergers and acquisitions

1. Business development plan

- Optimize the product line layout: Conduct a comprehensive review and optimization of the existing product lines of the "STS Chenggang" and "Yashi" brands, and rationally adjust the product structure based on market demand and industry development trends. Retain the product series with strong market competitiveness and high customer recognition, and upgrade and improve them. For products with small market demand or weak competitiveness, they should be phased out or transformed, and resources should be concentrated on developing core products to enhance their market competitiveness.

- Expand market channels: On the basis of consolidating the existing domestic market, intensify efforts to explore the international market. By leveraging the market resources and marketing team of Xiamen Yingcheng Transmission Technology Co., LTD., and in combination with the certain popularity of the "STS Chenggang" and "Yashi" brands in the international market, we will actively expand overseas sales channels and promote our products to more countries and regions. At the same time, we should strengthen cooperation with major domestic enterprises, deeply explore the potential of the domestic market, and increase market share.

- Strengthen customer service: Oriented towards customer demands, further improve the customer service system. Establish a professional customer service team to provide customers with all-round and one-stop services, including pre-sale consultation, in-sale support and after-sale service. Timely understand customers' usage feedback, respond quickly to their demands, and continuously enhance customer satisfaction and loyalty.

2. Product upgrade planning

- Increase investment in research and development: Continuously increase investment in product research and development, introduce advanced R&D equipment and high-end talents, strengthen cooperation with domestic and foreign research institutions and universities, and enhance the company's independent innovation capabilities. Establish a dedicated research and development center to conduct research and development on new technologies and new processes in the field of motor drive, providing technical support for product upgrades.

- Enhance product performance: During the product upgrade process, focus on improving the performance and quality of the product. By optimizing design, adopting new materials and advanced manufacturing processes, the efficiency of the motor can be enhanced, energy consumption reduced, noise and vibration decreased, and the service life of the product prolonged. At the same time, strengthen the control over product quality, establish a strict quality inspection system, and ensure that every product meets high-quality standards.

- Intelligent and automated upgrade: In line with the development trends of Industry 4.0 and intelligent manufacturing, upgrade products to be intelligent and automated. Integrate technologies such as the Internet of Things, big data, and artificial intelligence into motor products to develop smart motor products with functions such as intelligent control, remote monitoring, and fault diagnosis, meeting the demands of industrial automated production and enhancing the added value and market competitiveness of the products.