Business Model of Dutech Holdings Limited (‘Dutech’)

Dutech is a global leading manufacturer of high security products and operates in a niche market that is generally recession proof. It is headquartered in Shanghai and has about 2,500 employees globally. It serves a global customer base and has factories in Europe and Asia. It is led by Dr Johnny Liu, a respected figure in the Chinese engineering fraternity. Its principal activities can be categorised into 2 business segments:

  1. High Security Products such as ATM safes, commercial safes and weapons safes
  1. Business solutions such as auto ticketing machines, gaming machines, money changers.

Its high security division contributed to about 69% of Dutech’s revenue in 2015, and also enjoyed a higher gross profit margin compared to the business solutions division. Given the strategic importance of the high security division, this initiation report by …