Stock Code: 300709 stock abbreviation: Jiangsu Gian Technology Co.Ltd(300709) Jiangsu Gian Technology Co.Ltd(300709)
Demonstration and analysis report on issuing convertible corporate bonds to unspecified objects
February, 2002
catalogue
interpretation…… 2 I. background and necessity of the implementation of this issuance 3 II. Appropriateness of the selection scope, quantity and standard of this issuance object 7. Principle and method of pricing 8 IV. feasibility of this issuance method 11 v. fairness and rationality of this issuance plan 23 VI. the impact of this offering on diluted immediate return and specific measures for filling 23 VII. Conclusion thirty-one
interpretation
In this report, unless the context otherwise requires, the following abbreviations have the following meanings:
Jiangsu Gian Technology Co.Ltd(300709) , company, refers to Jiangsu Gian Technology Co.Ltd(300709)
publisher
Plan refers to Jiangsu Gian Technology Co.Ltd(300709) plan for issuing convertible corporate bonds to unspecified objects
This time refers to the company’s issuance of convertible corporate bonds to unspecified objects
Like issue, this issue
The pricing benchmark date refers to Jiangsu Gian Technology Co.Ltd(300709) the announcement date of the prospectus for the issuance of convertible corporate bonds to unspecified objects
General meeting means Jiangsu Gian Technology Co.Ltd(300709) general meeting of shareholders
Board of directors means the Jiangsu Gian Technology Co.Ltd(300709) board of directors
Articles of association means the Jiangsu Gian Technology Co.Ltd(300709) articles of association
Securities Law means the securities law of the people’s Republic of China
Company law means the company law of the people’s Republic of China
The Administrative Measures refer to the measures for the administration of securities issuance and registration of companies listed on the gem (for Trial Implementation)
CSRC refers to the China Securities Regulatory Commission
Shenzhen stock exchange refers to Shenzhen Stock Exchange
MIM refers to metal injection molding, a near net shape forming technology formed by combining traditional powder metallurgy process with modern plastic injection molding technology
TWS headset refers to true wireless stereo, a true wireless stereo Bluetooth headset
IDC refers to International Data Corporation, a world-famous professional provider of consulting, consulting and event services in information technology, telecommunications industry and consumer technology market
Yuan, 10000 yuan and 100 million yuan refer to RMB yuan, 10000 yuan and 100 million yuan
Note: in this report, if the total is inconsistent with the mantissa of the sum of the sub item values, it is caused by rounding.
Jiangsu Gian Technology Co.Ltd(300709)
Demonstration and analysis report on issuing convertible corporate bonds to unspecified objects
Jiangsu Gian Technology Co.Ltd(300709) in order to meet the capital needs of the company’s business development and enhance its capital strength and profitability, according to the provisions of the company law, securities law, articles of association, management measures and other relevant laws, regulations and normative documents, it is proposed to issue convertible corporate bonds to unspecified objects, and the raised funds shall not exceed RMB 600 million (including this amount), After deducting the issuance expenses, it is proposed to be used for the following raised investment projects:
Unit: 10000 yuan
No. project name the total investment of the project is planned to use the raised funds
1 new high-precision and high-performance transmission system group 31445.14 30519.05
Part production project
2. Intelligent information upgrading of MIM production line 16612.00 16612.00
Renovation project
3. Supplementary working capital 13509.60 12868.95 (note)
Total 61566.74 60000.00
Note: the company invested US $1 million to acquire preferred shares issued by tbdx Inc. in November 2021, which was converted into RMB 6.4065 million according to the spot exchange rate on the purchase date. This investment is a financial investment. In the above amount of raised funds to be used, the financial investment of 6.4065 million yuan in the six months before the resolution of the eighth meeting of the third board of directors has been deducted.
After the funds raised from the issuance of convertible corporate bonds to unspecified objects are in place, the company will invest the raised funds into the above projects according to the actual needs of the project. Before the raised funds are in place, the company will first invest with self raised funds according to the actual situation of the investment projects with raised funds, and replace them in accordance with the provisions of relevant laws and regulations after the raised funds are in place.
After the raised funds are in place, if the actual net amount of raised funds after deducting the issuance expenses is less than the total amount of raised funds to be used, the insufficient part shall be solved by the company with self raised funds or other financing methods. 1、 Background and necessity of this issuance
(I) background of this issuance
1. The state has issued a series of policies to support the development of the consumer electronics industry
In order to promote the development of China’s consumer electronics industry, China has successively issued a number of important industrial support policies, creating a good environment for the rapid development of the current consumer electronics industry.
In October 2019, the Ministry of industry and information technology of the people’s Republic of China and other 13 departments jointly issued the notice on printing and distributing the special action plan for improving the design capacity of manufacturing industry (2019-2022), which made it clear that new materials, new technologies and new processes should be used to optimize and improve the design in industries with certain comparative advantages such as light industry, textile, automobile and electronic information, Promote the transformation and upgrading of traditional industries.
The national development and Reform Commission issued the Guiding Catalogue for industrial structure adjustment (2019 version), which listed “new powder metallurgy parts: high density (≥ 7.0g / cm3), high precision and complex structural parts”, “wearable devices, smart Siasun Robot&Automation Co.Ltd(300024) , smart home” as incentive projects.
In February 2020, the national development and Reform Commission and other departments and institutions issued the implementation opinions on promoting the expansion and quality of consumption and accelerating the formation of a strong Chinese market, Among them, it is clear to “accelerate the development of new information products such as ultra-high definition video, virtual reality and wearable devices. Enterprises are encouraged to use Internet of things, big data, cloud computing, artificial intelligence and other technologies to promote the intelligent upgrading of various electronic products”.
In July 2021, entrusted by the equipment industry department of the Ministry of industry and information technology, China Construction Machinery Industry Association issued the “14th five year plan” for the development of construction machinery industry, Among them, “XIII. Key development fields of basic parts: electrical control components and systems, high-pressure hydraulic components and systems, transmission components, power system, electric drive system, intelligent components and functional components and accessories of intelligent construction machinery”.
With the support of national policies, the consumer electronics industry will continue to maintain a good development trend, and the scale of the upstream MIM industry will continue to expand.
2. MIM industry is developing rapidly, and new products and technologies are changing rapidly
MIM technology is a new powder metallurgy near net shape technology extended from the injection molding industry. With the transfer of manufacturing industry to China and other Asian countries and the application of MIM process in electronic products, the scale economy advantage of its process has gradually been presented in the production of electronic products. According to the relevant data of powder metallurgy industry, the market scale of MIM in China was 1 billion yuan in 2011, and by 2020, the market scale has increased to 7.3 billion yuan, showing an obvious upward trend.
Figure 1 China’s MIM market size from 2011 to 2020
Unit: 100 million metadata source: Journal powder metallurgy industry
Consumer electronics is the main production field of MIM industry. With the improvement of people’s living standards and the continuous deepening of technology and product innovation, the iteration cycle of consumer electronics continues to shorten. Terminal brands launch new products every year. The replacement speed between products is accelerated, the types of parts are becoming more and more complex, and the versatility between them is poor. For example, for typical camera brackets, the same series of products from different manufacturers have obvious differences in size and location. In order to adapt to the rapidly changing downstream consumer market, major MIM parts manufacturers invest a lot of money every year to transform production equipment and software algorithms, so as to seize the highly competitive consumer electronics market share.
With the development of technology, while the types of products are constantly enriched, new technologies and products are also constantly emerging. The products of the consumer electronics industry are gradually developing in the direction of intelligence, portability and lightness. Representative mobile phones such as folding screen are gradually promoted. At present, terminal brands are pushing their own folding screen products. According to the prediction data of omdia, By 2024, the global output of folding screen mobile phones will reach 40 million, with broad market prospects in the future. The emergence of new consumer electronics products represented by folding screen mobile phones has put forward new requirements to MIM parts suppliers. The new product trend in the field of consumer electronics has also brought huge market space for precision transmission business.
(II) necessity of this issuance
1. Broaden the company’s business areas and promote the extension of products to the downstream
After years of development, the company mainly provides customized MIM core parts with high complexity, high precision, high strength and exquisite appearance for consumer electronics fields such as smart phones and wearable devices.
Although the company maintains the leading level in the industry in terms of technical strength, in some traditional MIM businesses, the ability of market competitors is gradually approaching, which has a certain impact on the company’s gross profit margin. At the same time, with people’s pursuit of portable and intelligent electronic products, it has brought more space and opportunities to the development of precision transmission industry. The representative is the explosive development of folding screen mobile phones. According to the statistical data of research institutions omdia and counterpoint, the global shipment of folding screen mobile phones has reached 2.3 million units in 2020 and is expected to reach 40 million units by 2024, with a compound growth rate of 104.21%. The market prospect is broad.
Figure 2 global folding screen mobile phone shipments and forecasts from 2020 to 2024
Unit: 10000 units data source: omdia, counterpoint
In order to meet the growing demand for new products from users and consumers in the downstream market, the company has established a transmission division to strengthen the research on precision transmission. In recent years, there have been sample orders for production, which have been unanimously recognized by customers. However, the production of transmission components in the existing plant has been unable to meet the capacity planning and sustainable development of transmission business, There is an urgent need to increase production capacity to provide a strong guarantee for the development of transmission business, so as to realize large-scale production, reduce production costs and improve profitability.
The company plans to make full use of the existing technical basis and management experience to expand the transmission production layout, actively explore the downstream market while ensuring the existing MIM market share, bring new profit growth points for the company, and further strengthen its competitive strength in the field of consumer electronics.
2. The products of consumer electronics industry change rapidly, which puts forward higher requirements for MIM products
MIM new powder metallurgy near net shape forming technology is a hot technology in the field of powder metallurgy since 1980s. MIM technology has unique advantages in preparing near net shape parts with complex geometry, high precision requirements, uniform microstructure and excellent performance. At present, using MIM process to manufacture parts and components products has covered many fields, such as electronic products, automobile parts, mechanical parts, hardware products, medical devices and daily necessities.
The consumer electronics industry is one of the most important application fields of MIM products. With the improvement of residents’ income level, people have higher and higher demand for portability, intelligence and function integration of electronic products. The consumer electronics industry has ushered in a new round of high-speed development period, and the prosperity has continued to improve. At the same time, the continuous deepening of technological and product innovation in the field of consumer electronics has continuously shortened the iteration cycle of consumer electronics products, and the precision and complexity of the internal structure have also continued to improve. MIM products can meet the higher and higher parts requirements of the market.
In a good external environment, the company complied with the market trend and carried out intelligent upgrading and transformation of MIM production line to cope with the downstream consumer market with frequent renewal and further consolidate the company’s market position.
3. Meet the growing demand for working capital
In recent years, the prosperity of the company’s downstream consumer electronics industry has continued to improve. In the last three years, the company’s operating regulations
