On March 28, 2025, Topband Co., Ltd. (002139.SZ) released its 2024 annual report. According to the report, in 2024, leveraging the localized operational advantages of its global manufacturing platforms, Topband demonstrated strengths in nearshore delivery and agile responsiveness. The total output value of its four major production plants outside China exceeded RMB 2.2 billion, marking a year-on-year increase of over 70%. This has laid a solid foundation for Topband to further deepen its presence in global markets and enhance its global market influence.

In 2024, business outside China accounted for over 65% of Topband’s total revenue. North America, as a key strategic market, has raised the bar for Topband’s agile delivery capabilities. Due to its strategic location, Mexico has become a vital hub for Topband to expand its presence in the Americas and improve its local service capacity. Since 2021, Topband has officially integrated Mexico into its global expansion strategy.

Located in central America, Mexico enjoys geographic advantages that enable it to serve the entire continent, significantly shortening delivery cycles and reducing overall logistics costs. Topband’s production plant is located in Monterrey, the third-largest industrial city in Mexico. The city offers mature industrial infrastructure, a well-established supply chain, and a high concentration of Chinese enterprises—facilitating resource integration and economies of scale. It also offers competitive advantages in labor, manufacturing, and land rental costs.

From the beginning of construction, Topband implemented an integrated operation model to ensure rapid ramp-up and efficient delivery. A vertically aligned operational link was established between headquarters and the local plant to uphold unified global quality standards and management efficiency. Chinese expert teams were deployed on-site to promote process standardization and quality system development. By leveraging mature domestic management experience and digital tools, they achieved efficient collaboration with local teams across quality, production, and supply chain functions, enabling the rapid establishment of a stable and mature operation system. Simultaneously, Topband actively engaged with local government and communities to integrate into the local market environment.

Currently, Topband’s Mexico facility covers a land area of 43,100 m² with a building area of 18,610 m². It houses 19 production lines that support the manufacturing of battery packs and intelligent controllers for appliances and power tools, as well as some new energy products. In 2025, six additional automated lines are expected to be added, with full-capacity output projected at 12 million units annually. Output value surged from RMB 40 million in 2023 to RMB 250 million in 2024—representing a 6.5-fold increase. Per capita output also rose from RMB 80,000 to RMB 226,000, driven by investments in automation and the efficiency gains from scaled production. The facility integrates key processes such as manufacturing, assembly, quality inspection, and logistics, with independent operation capabilities. It has fully adopted the company’s unified technology platform for simultaneous development of standard components and molds, and has established a smart manufacturing system centered on MES and ERP. The site has successfully completed IMMEX registration and acquired UL, ISO9001, ISO14001, and ISO45001 certifications, ensuring compliant, efficient, and sustainable manufacturing capabilities.

While continuing to enhance its overall operational qualifications, the plant has also optimized manufacturing processes to drive performance improvement through tangible results. Since the launch of a specific power tool component product in May 2024, UPH (Units Per Hour) increased from 300 to 350, and UPPH (Units Per Person per Hour) rose by 39%, while labor allocation was reduced by 19%. The level of automation improved significantly, and the monthly output value of the single product accounted for 30% of the plant’s total output. The facility is currently optimizing key processes further by introducing a fully automated fuse production line, unlocking greater manufacturing potential and enhancing overall production efficiency and resource utilization.

As of now, Topband’s Mexico plant employs a total of 1,107 people. With its operations gradually maturing, the facility will continue to leverage economies of scale and organizational efficiency to support customer demands across the Americas for localized, agile, and controlled supply chains—fully realizing the core value of “local manufacturing, local delivery.”

Topband will continue to expand its global capacity and enhance localized capabilities, fully unlocking the potential of its Mexico plant. By building a globally aligned and highly efficient collaborative system, we aim to create a resilient, secure, and efficient supply chain ecosystem. Working in synergy with our subsidiaries and offices across multiple countries, Topband is shaping a robust global operational network. Guided by brand values of Agility, Partnership, and Innovation, we are committed to delivering reliable supply and systematic service capabilities—creating long-term, sustainable value for our customers.