(Yicai) March 19 -- Anhui Tongfeng Electronics, a Chinese supplier of thin-film capacitors and related raw materials, will invest CNY80 million (USD11.1 million) to build a plant in Thailand.

The new production base will be built in phases, the Anhui province-based company announced yesterday, without revealing any further details.

The Thai plant will help Tongfeng better meet demand from overseas clients and deal with potential adverse impacts from macroeconomic and international trade changes, the firm added.

Thailand’s supply chain is becoming increasingly complete as more capacities have been transferred to the Southeast Asian country, so the needs of the company’s new plant will be easily satisfied, Tongfeng noted.

Tongfeng also released its 2023 earnings report yesterday. Net profit widened 17 percent to CNY86.8 million, and operating revenue rose 4.1 percent to CNY1.1 billion (USD152.8 million) last year from the previous one. Revenue from the capacitor and thin-film capacitor materials business accounted for about half of the total.

Tongfeng earned CNY248 million (USD34.5 million) in sales revenue from overseas clients last year, making up about 23 percent of the total, according to the financial statement.

Shares of Tongfeng [SHA: 600237] were trading up 0.7 percent at CNY6.04 (84 US cents) as of 1.20 p.m. in Shanghai today.

Editor: Futura Costaglione