Capxon Group is one of the Asian leading vertically integrated aluminum electrolytic capacitor makers, and it mainly researches and develops high quality anode foil. Restriction of Hazardous Substances Directive 2002/95/EC (“RoHS”) is an environmental protection directive enacted by the European Union in 2003 and came into force from July 2006. It mainly regulates the standards for raw materials and production techniques for electronic products. The Group’s raw materials inspection is in compliance with the RoHS directive and the related equipment and apparatuses have been added to support quality control in the entire production process, thereby winning the trust of customers.

During the financial year ended 31 December 2007, the Group achieved steady growth in various aspects, and completed its capacity and business expansion plans and was successfully listed in Hong Kong as part of its strategy to go global. The Group fully utilised the proceeds from the listing to actively invest in the expansion of its production technology research and development capacity, as well as its production lines in Mainland China. As a strategic move, the production chain for anode foils and aluminum electrolytic capacitors have been vertically integrated to facilitate better cost and quality control. Besides, efforts were made to further explore external sales for the anode foils business and to realise the high value added by the processing of aluminum foils. In respect of the electrolytic capacitors, the solid-state conductive polymer series was successfully developed, and new products of the SMD electrolytic capacitor series were developed to satisfy the diverse customer needs. Apart from product development, the Group has obtained the ISO/TS 16949 certification, paving way for the entry of its products in the automotive electronic devices supply market.

The capacitor product produced by Capxon used the brand of CapXon to sell in the regional and aboard markets and is widely used in computer peripherals, power supply products, consumer electronic products, communication products, lighting products, and automation products. The industrial performance is over 25 years, and its capacitor products have been renowned and owns a strong customer base of more than 300 customers, including LG, Samsung, Philips, Vestel, Foxconn, and Lite-brand customers. Currently, the Group’s aluminum electrolytic capacitor production technology has also reached a very high standard. In response to the demand from electronic products for diverse applications, the Group’s aluminum electrolytic capacitors feature a complete range of sizes, long duration, high capacitance, low resistance, high tolerance to heat and high voltage. The Group’s various major products all share these characteristics. They include the SMD electrolytic capacitors, for which the EV, JV, MV and TV series were launched during the Year; the solid-state conductive polymers, for which the PL, PS, PU, PX, PM, PD and PV series were launched during the Year, and the newly innovated products which have the features of being flame retardant and with safety vent construction design, for which the MF, WF and LF series were launched during the Year. In addition, the Group also successfully developed certain products which meet the requirements of the automotive industry for heat resistance, shock-proof, high ripple rejection and low resistance, and obtained the ISO/TS 16949 certification for such products, thereby becoming a qualified supplier for the related electronic devices for the automobile industry.

The Group also uses CapXon brand to sale anode foil products to other aluminum electrolytic capacitor manufacturer or anode foil manufacturers. So far, with its anode foils production technology surpassing the requirements of downstream customers, the Group has become one of the few leading anode foil manufacturers in Mainland China. Besides, its anode foil research and development technology has also reached a standard close to Japanese manufacturers, who used to monopolise the market. The Group has successfully increased the capacitance of its standard middle and high-voltage anode foils from 2.0μF/cm² and 0.75μF/cm² to 2.2μF/cm² and 0.8μF/cm², respectively. The capacitance of its low-voltage anode foils has also reached the market standard of 85μF/cm². In the production of anode foils, the Group has a high technology standard and robust production capacity. Given the impressive gross profit margin of aluminum foils and the huge demand from both the domestic and overseas markets, as well as the high demands for quality, the Group has made high quality anode foils a major product focus in its sales strategy. On the one hand, the anode foils can be used as a source of quality raw materials to reduce the Group’s production costs and enhance product quality in the manufacturing of electrolytic capacitors. On the other hand, the anode foils can be sold to domestic and overseas electrolytic capacitors manufacturers to enhance the Group’s revenues and gross profits. We’ve won the favor from several of global top 20 largest capacitor manufacturers and their subsidiaries.