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:
- High Security Products such as ATM safes, commercial safes and weapons safes
- 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 …