Borqs Technologies Completes Manufacturing Facilities at the 5G Industrial Park Project in Huzhou, China

Rhea-AI Summary

Borqs Technologies, Inc. (Nasdaq: BRQS, BRQSW) announced the completion of its new manufacturing facilities in Huzhou, China, marking a significant milestone since its inception in 2007. This facility will enable the company to reduce production costs by in-sourcing manufacturing processes previously outsourced. The initial phase can produce up to 700,000 units per year, with potential for expansion as demand grows. The establishment of these facilities reinforces Borqs’ position in the IoT sector, aiming to enhance its manufacturing capabilities and operational efficiency.

Positive

• Completion of new manufacturing facilities in Huzhou, China.
• Ability to reduce production costs by moving manufacturing in-house.
• Initial capacity of 700,000 units per year, scalable with demand.

Negative

• Uncertainty whether new facilities will achieve expected cost reductions.
• Potential risk of not receiving anticipated orders.
• Supply chain disruptions due to the coronavirus may impact operations.

SANTA CLARA, Calif., July 07, 2021 (GLOBE NEWSWIRE) -- Borqs Technologies, Inc. (Nasdaq: BRQS, “Borqs”, or the “Company”), a global provider of embedded software and products for the Internet of Things (IoT), today reported that construction of the Company’s new manufacturing facilities in Huzhou, China has been completed.

For the first time since its founding in 2007, the Company has its own micro-electronics manufacturing line. Located at Huzhou South Taihu New Area of Zhejiang province, the facilities are intended to lower production costs instead of using contracted third-party facilities. Certain manufacturing activities will immediately be moved in-house. This initial phase has the capacity of up to 700,000 units of products per year depending on complexity, and can easily scale up as demand increases.

About Huzhou South Taihu New Area of Zhejiang province, China
The South Taihu New Area of Huzhou City was officially established on June 2, 2019 and is one of the four new areas established by the provincial government. It is located in the northern part of Zhejiang Province at the south shore of the Taihu Lake, with a total planning area of 225 square kilometers. Accessible by high speed railway and five express highways, the area is also connected with the inland water transportation channels in China. There are four international airports around the new area, including Hongqiao and Pudong in Shanghai, Xiaoshan in Hangzhou and Lukou in Nanjing.

About Borqs Technologies, Inc.
Borqs Technologies is a global leader in software and products for the IoT, providing customizable, differentiated and scalable Android-based smart connected devices and cloud service solutions. Borqs has achieved leadership and customer recognition as an innovative end-to-end IoT solutions provider leveraging its strategic chipset partner relationships as well as its broad software and IP portfolio.

Borqs’ unique strengths include its Android and Android Wear Licenses which enabled the Company to develop a software IP library covering chipset software, Android enhancements, domain specific usage and system performance optimization, suitable for large and low volume customized products. The Company is also currently in development of 5G products for phones and hotspots.

Forward-Looking Statements and Additional Information

This press release includes “forward-looking statements” that involve risks and uncertainties that could cause actual results to differ materially from what is expected. Words such as “expects”, “believes”, “anticipates”, “intends”, “estimates”, “predicts”, “seeks”, “may”, “might”, “plan”, “possible”, “should” and variations and similar words and expressions are intended to identify such forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Such forward-looking statements relate to future events or future results, based on currently available information and reflect our management’s current beliefs. Many factors could cause actual events or results to differ materially from the events and results discussed in the forward-looking statements, including the possibility that the new facilities will not lower production costs to the extent intended or at all, that the Company may not receive actual orders in any amounts expected, and the negative impact of the coronavirus on the Company’s supply chain, revenues and overall results of operations, so the reader is advised to refer to the Risk Factors sections of the Company’s filings with the Securities and Exchange Commission for additional information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements. Except as expressly required by applicable securities law, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Contact:

Sandra Dou
Vice President of Corporate Finance
Borqs Technologies, Inc.
sandra.dou@borqs.net
www.borqs.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/14247cd2-8459-4beb-99d4-d511487b619f

FAQ

What is the significance of Borqs' new manufacturing facility in Huzhou?

The new facility allows Borqs to reduce production costs by in-sourcing previously outsourced manufacturing.

What is the production capacity of Borqs' new manufacturing facility?

The facility can produce up to 700,000 units per year, with the potential for scaling based on demand.

How does the new facility impact Borqs Technologies' cost structure?

By moving manufacturing in-house, Borqs aims to lower production costs compared to using third-party facilities.

What risks are associated with Borqs' new manufacturing capabilities?

There are uncertainties regarding the facility's ability to achieve expected cost reductions and potential order volume.