Suntak Technology Co.Ltd(002815)
On the use of funds raised by non-public offering of shares in 2022
Feasibility analysis report
1、 Use plan of the raised funds
The total amount of funds raised from this non-public offering of shares shall not exceed 2 million yuan (including this amount). The net amount of funds raised after deducting the issuance expenses will be used for the following items:
Unit: 10000 yuan
Total investment amount of the investment project and the amount of raised funds to be invested
Zhuhai Chongda Circuit Technology Co., Ltd. newly built 365065.83 200000.00 road board project (phase II)
If the net amount of funds actually raised in this non-public offering is less than the total amount of funds to be invested in the above projects, the insufficient part of the raised funds shall be solved by the company with self raised funds. Before the funds raised from this non-public offering of shares are in place, the company can invest in advance with self raised funds according to the actual situation, and replace them after the raised funds are in place. 2、 The situation, necessity and feasibility analysis of the project invested by the raised funds
(I) basic information of the project
The new circuit board project of Zhuhai Chongda Circuit Technology Co., Ltd. adopts the phased construction method. The raised investment project "new circuit board project of Zhuhai Chongda Circuit Technology Co., Ltd. (phase II)" is the second phase of the project. The project plans to build a new printed circuit board production plant and supporting facilities to achieve the purpose of increasing the company's printed circuit board production capacity. The construction period of the project is 24 months. It is planned to be implemented by Zhuhai Chongda, a wholly-owned subsidiary of the company. After reaching the completion date, it will increase the annual production capacity of 1.08 million square meters high multilayer board and 420000 square meters HDI board. The project is implemented at No. 999, Sanhu Avenue, nanshaui Town, Gaolan Port Economic Zone, Zhuhai.
Project Name: new circuit board project of Zhuhai Chongda Circuit Technology Co., Ltd. (phase II)
The total investment of the project is 3650.6583 million yuan. The main body of the project is Zhuhai Chongda Circuit Technology Co., Ltd. the project is implemented at No. 999, Sanhu Avenue, Nanshui Town, Gaolan Port Economic Zone, Zhuhai
The construction period of the project is 2 years
1. The company's business development strategy needs
Electronic information industry is a strategic, basic and leading pillar industry in China. Printed circuit board industry is an indispensable part of electronic information industry. Under the background that the country is committed to the informatization development of the national economy and society, the new generation of mobile communication technology puts forward higher requirements for network transmission rate, delay and reliability, as well as equipment connection density and traffic density. The massive demand of communication base stations, servers and terminals in the future has brought rare development opportunities for the electronic information industry Driven by the development trend of digitization, PCB industry has broad market space and good development prospects.
Benefiting from the rapid development of downstream applications such as 5G communications, automotive electronics and consumer electronics, the global PCB industry has steadily increased, and the global PCB capacity has shifted to mainland China. The PCB demand in the Chinese mainland has increased rapidly, and China's PCB enterprises are in the golden stage of development. With the increasing demand of downstream customers, the production capacity of relevant products of the company will face the risk of failing to meet the order demand of downstream enterprises. If there is not enough space and relevant equipment for the production of products, on the one hand, the company will face the risk of losing orders from key customers, on the other hand, the company will lose the opportunity to further improve its market share. Therefore, while maintaining the company's existing production, the company will further actively expand production capacity, improve and improve the ability to serve customers, and enhance the company's core competitiveness. The company will deeply cultivate the PCB industry, make use of its existing advantages in PCB demand fields such as communication, medical instruments, industrial control and security electronics, take cost leadership and technology leadership as the premise, adhere to market-oriented and customer-centered, and strive to make greater achievements in the strategic transformation of large customers and large quantities, In order to become a world-class electronic circuit manufacturing enterprise, continue to improve its own management level.
2. Expand production capacity and enhance product competitiveness
As most of China's PCB manufacturing enterprises have low technological level, few enterprises can form large-scale, stable and reliable production of high-end products, so the production capacity growth of high-end products is limited. However, with the rapid development of downstream industries, the market demand for high-end PCB boards is becoming stronger and stronger. The company is one of the few enterprises with leading technology advantages in the industry. It has the ability to produce high-end products in a large-scale, stable and reliable manner. Its main product types cover double-sided board, high multi-layer board, HDI board, thick copper board, back board, soft and hard combination board, buried capacity board, solid board, aluminum substrate, high-frequency board, etc. However, due to the limitation of site and production capacity, the production capacity of the company's high-end PCB can no longer meet the needs of the rapid development of the high-end market. Therefore, the company urgently needs to further expand the production capacity of high-end products and improve the competitiveness of products. After the raised funds are in place, the company will expand the production capacity of high-rise multi-layer board and HDI board, improve the product structure and enhance the market competitiveness of products.
3. Consolidate the leading position in the industry and enhance the company's market competitiveness
The company focuses on PCB R & D, production and sales. After years of development and accumulation, the company has formed unique advantages in product technology, brand construction, customer resources, cost management and quality control. It has also developed into a leading PCB manufacturer in China, formed an obvious competitive advantage and has the strength to participate in global competition. According to prismark's data, the company ranked 31st among the world's top 100 PCB enterprises in 2020. According to the data of CPCA, the company ranked 16th among China's top 100 circuit board enterprises and 5th among domestic enterprises in 2020.
Through this non-public offering of shares, the capital strength of the company can be further improved. At the same time, through the construction of the new circuit board project (phase II) of Zhuhai Chongda Circuit Technology Co., Ltd., the market share of the company can be further improved, the leading position in the industry can be consolidated, and the international competitiveness of the company's products can be enhanced, It lays a solid foundation for the company to achieve the goal of becoming a world-class electronic circuit manufacturing enterprise.
(III) feasibility of project construction
1. With the strong support of industrial policies, the PCB industry has developed rapidly
PCB industry is an important part of the electronic information industry. With the support and guarantee of national industrial policies and relevant laws and regulations, the industry market scale continues to expand and continues to develop in the direction of high-end and intensive. The products of the project belong to the encouraged industries in the "13th five year plan" for the development of national strategic emerging industries, which promote the R & D and industrialization of key technologies in the fields of "printing Electronics", the guidance catalogue of electronic core industries in the guidance catalogue of key products and services of strategic emerging industries and the guidance catalogue of industrial structure adjustment (2019 Edition).
The gradual introduction of relevant national industrial policies has laid a solid policy foundation for the high-end development of China's printed circuit board industry. With the strong support of industrial policies, the PCB industry has broad growth space in the future.
2. The company has a high-quality staff team and R & D personnel reserve
As of September 30, 2021, the company has 6126 employees, including 919 R & D personnel. Through continuous external recruitment and internal training, the company has formed a high-quality staff team with professional level and practical ability in various links such as management, R & D, production and sales in the PCB industry, which can provide guarantee for the smooth implementation of raised investment projects.
3. The company has rich product technology reserves and mature production skills
The company pays attention to technology research and development and accumulates a huge engineering technology database to meet the needs of customers at different levels and varieties. While comprehensively developing technology, the company has also made breakthroughs in many individual fields,
It has obtained a large number of patent technologies related to PCB and formed its own characteristics. As of September 30, 2021, the company has 283 patents, which is at the leading level in the industry, including 237 invention patents and 46 utility model patents; 27 software copyrights; Led the formulation of 4 national standards, 1 local standard, 4 industrial standards, and participated in the development of 3 IPC Chinese standards. At the same time, the company also actively carries out industry university research cooperation in the new PCB industry to improve the R & D strength and innovative R & D mechanism of new products. Therefore, the company has strong technical reserves and rich patented technology, which can ensure that the company can quickly develop safe, reliable and stable new products according to the development trend of the industry and the actual needs of customers, and provide an important guarantee for the smooth implementation of the project. 4. The company has rich customer resources and strong market development ability
The company has been deeply engaged in the PCB industry for more than 20 years. With professional market positioning and the precipitation of many years of technology and experience, the company has formed a unique and effective service mode and the ability to quickly respond to customer needs. The well-known customer base in the industry is constantly enriched. The company deeply promotes the sales strategy of key customers in the industry and strengthens the cooperation with the world's top 500 and leading enterprises in downstream industries. In terms of 5g customers, the company's main customers include Zte Corporation(000063) , Fiberhome Telecommunication Technologies Co.Ltd(600498) , CommScope, II-VI, Broadcom, Amphenol, Intel, etc. In addition to 5g communication, the company's key customers also include: abb, Schneider, Bosch, Hangzhou Hikvision Digital Technology Co.Ltd(002415) , Dahua Technology, BOE, H3C, Panasonic, preh Junsheng, Jiewen, astec, Flextronics, Jabil and other industry-leading enterprises. The company has abundant customer reserves, and its customers are evenly distributed in various regions and industries, effectively dispersing business risks. Therefore, the company has rich customer resources. Its customers are mainly global well-known enterprises, and the development ability of new industries and new customers is strong. A wide range of customers and high-quality customers have laid a good market foundation for the company's sustainable development in the future and ensured the smooth implementation of raised investment projects.
To sum up, the company is a leader in China's PCB industry, with rich technical reserves and mature production skills, a wide range of customers and high-quality customers, which has laid a good market foundation for the company's sustainable development in the future and can smoothly ensure the implementation of raised investment projects.
(IV) project investment estimate
The total investment of the project is 3650.6583 million yuan, including 1404.7618 million yuan of construction engineering cost, 1850.633 million yuan of equipment purchase cost, 37.0127 million yuan of installation engineering cost, 33.6127 million yuan of other expenses of engineering construction, and 324.6381 million yuan of reserve fund and initial working capital. The amount of raised funds to be invested is 2 million yuan, all of which will be used for the capital expenditure of the project.
(V) economic benefits of the project
The construction period of the project is 24 months. After calculation, the internal rate of return (after tax) of the project is expected to be 10.07%, and the static investment payback period (after tax) is 8.07 years, which has good economic benefits.
(VI) project filing, environmental impact assessment and land conditions
1. Record of national development and Reform Commission
The filing procedures of the project are being handled.
2. Environmental impact assessment
On March 29, 2018, the project completed the environmental protection approval procedures at the environmental protection department of Guangdong Province, and obtained the reply of the environmental protection department of Guangdong Province on the environmental impact report of the new circuit board project of Zhuhai Chongda Circuit Technology Co., Ltd. (with an annual output of 6.4 million square meters of circuit boards) (YHS [2018] No. 89). 3. Land situation
The project is constructed on the existing industrial land of the company. The construction plot is located at No. 999, Sanhu Avenue, Nanshui Town, Gaolan Port Economic Zone, Zhuhai, and has obtained the real estate property right certificate numbered Yue (2018) Zhuhai real estate property right No. 0092913.
3、 The impact of this issuance on the company's operation, management and financial status
(I) impact on the company's operation and management
The funds raised in this non-public offering will be used for the construction project of printed circuit board production line after deducting relevant issuance expenses. The investment project of the raised funds conforms to the relevant national industrial policies and the company's overall strategic development direction in the future, and has good market development prospects and economic benefits. This non-public offering will further expand the company's production capacity, enhance product competitiveness, consolidate the company's leading position in the PCB industry, and improve the company's profitability and sustainable development ability, which is in line with the company's long-term development needs and the interests of all shareholders.
(II) impact on the company's financial position
After the funds raised from this non-public offering are in place and put into use, the total assets and net assets of the company have increased, and the working capital has been further enriched. Although it will take some time for the projects invested with raised funds to be completed and put into operation and generate benefits, in the long run, the scale of the company's operating income and profit level will increase with the implementation of the projects invested with raised funds. The investment project of the raised funds will help the company further expand production capacity, improve and improve the ability to serve key customers, enhance the core competitiveness of the company, and have good economic benefits, so as to bring better investment returns to the company and shareholders. However, at the same time, after the completion of this non-public offering, the total share capital and net assets of the company will increase to a certain extent, and it will take a certain time for the completion and operation of the investment projects with raised funds to generate benefits, which may dilute the return on net assets and earnings per share of the company in the short term.
4、 Feasibility conclusion of the use of the raised funds
To sum up, after careful analysis and demonstration, the board of directors of the company believes that the use plan of the funds raised by this non-public offering is necessary to comply with relevant policies, laws and regulations and the overall strategic development plan of the company in the future
