Stock Code: 300709 stock abbreviation: Jiangsu Gian Technology Co.Ltd(300709) Jiangsu Gian Technology Co.Ltd(300709)
Feasibility analysis report on the use of funds raised by issuing convertible corporate bonds to unspecified objects
February, 2002
1、 Use plan of the raised funds
The total amount of funds raised by Jiangsu Gian Technology Co.Ltd(300709) (hereinafter referred to as " Jiangsu Gian Technology Co.Ltd(300709) ", "the company" and "the company") from the issuance of convertible corporate bonds to unspecified objects (hereinafter referred to as "the issuance") does not exceed RMB 600 million (including this amount). The net amount of funds raised after deducting the issuance expenses is intended to be used for the following projects:
Unit: 10000 yuan
No. project name total investment proposed to use raised funds
1. New high-precision and high-performance transmission system components 31445.14 30519.05
Production items
2. Intelligent and information upgrading of MIM production line 16612.00 16612.00
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 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. 2、 Basic information of the project invested by the raised funds
(I) new high-precision and high-performance transmission system components production project
1. Basic information of the project
The main body of the new high-precision and high-performance transmission system component production project is Jiangsu Gian Technology Co.Ltd(300709) , with a total investment of 314451400 yuan. It is planned to use the raised funds of 305.1905 million yuan, and the construction period of the project is 36 months. The project will introduce advanced automatic production and testing equipment through new production workshops and supporting facilities for the construction of production lines of high-precision and high-performance transmission system components. The main products include smart phone flexible screen rotating shaft, smart TV camera lifting mechanism, motor gearbox module, TWS headset box rotating shaft, etc.
The implementation of the project conforms to the strategic planning of the company's transmission business, realizes the large-scale production of transmission products, and meets the increasingly diversified needs of users in the downstream market. It is conducive to further promote the overall business layout of the company and create new profit points for the company in the field of transmission.
2. Necessity of the project
(1) Comply with the development trend of transmission and meet the new demand of the market for products
In recent years, driven by the Internet era, the consumer electronics industry has gradually developed to portable and light-weight. At the same time, with the promotion of flexible screen, the market has given more development space and opportunities for precision transmission. Precision transmission products are widely used in smart phones, smart appliances, smart homes, medical and many other fields, with good development prospects. According to the statistics 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 1 global folding screen mobile phone shipments and forecasts from 2020 to 2024
Unit: 10000 units data source: omdia, counterpoint
In order to meet the increasingly diversified needs of users and consumers in the downstream market, the company has established a transmission division to strengthen the research on precision transmission parts, extend from parts to component manufacturing, closely follow the development trend of mobile phone folding screen, and meet the new demand for transmission components in the consumer electronics industry.
Based on the company's existing transmission technology, relying on rich customer resources in the field of consumer electronics, and taking the development trend of consumer electronics portable as an opportunity, the project will further promote the product layout of the company's business in the transmission field, and continuously improve the company's product supply capacity in the fields of smart phones, video camera lifting mechanisms and TWS headphones, So as to create new growth points for the company's business and further strengthen the company's comprehensive competitive strength in the field of consumer electronics.
(2) Broaden the company's business areas and promote the extension and upgrading of products from single parts to components
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. Its products cover multiple sub categories such as camera brackets, connector interfaces, decorative rings, mobile phone rotating shaft parts, wearable structural parts, auto parts and so on.
With the gradual recognition of MIM technology by the market and the increasing competition in the industry, some enterprises enter the MIM product market through acquisition and integration. Although the company continues to maintain the leading level in the industry in terms of comprehensive 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. Therefore, based on the long-term needs of the company's strategic planning and business development, while gradually expanding the scale of MIM business, the company is also actively promoting the transformation of the company's products from single parts to components, promoting the extension of MIM business to the downstream industrial chain, constantly broadening the business scope, and promoting the diversification of the company's products and business fields, Continue to strengthen the company's market leading position in the field of consumer electronics.
The project focuses on the production capacity construction of high-precision and high-performance transmission system components, enriching the company's product structure, improving the anti risk ability and continuously expanding the company's market share in the field of consumer electronics through the extension to the downstream industrial chain.
(3) Break through the production bottleneck and realize the large-scale production of transmission
In August 2018, the company established a transmission division, which is positioned in mechanical transmission components and electromechanical transmission modules. Based on the leading advantages established in MIM industry, the company strengthened the research and development of precision transmission, developed a series of products such as smart phone flexible screen rotating shaft, TV camera lifting mechanism, motor gearbox module and TWS earphone box rotating shaft, and actively expanded the business extension of mobile phone, automobile, medical treatment, Siasun Robot&Automation Co.Ltd(300024) , smart home appliances, smart home and other application fields.
Relying on high-quality customer resources, rich large-scale production experience and full process control ability, the company has actively carried out cooperative research and development with customers, which has been widely recognized by customers. Many projects of the transmission division are under continuous investment, and some transmission projects have entered the stage of mass production, with products covering mobile phones, TVs, headphones and other fields. With the continuous and rapid improvement of the business volume of the transmission sector and the gradual increase of R & D and mass production projects, the transmission level of the existing plant provides a strong guarantee for the development of the transmission business, so as to realize large-scale production, reduce production costs and improve profitability.
The project realizes the automation and scale of production by building new production workshops and supporting facilities and introducing advanced automatic production and testing equipment. After the implementation of the project, it will fully meet the needs of the company's transmission business capacity planning and further expand the overall income and profit scale of the company.
3. Feasibility of the project
(1) High quality and abundant customer resources and broad market prospects
Relying on its leading technical level, stable product quality, professional service team and rapid response ability in the MIM industry, the company has accumulated a large number of well-known brand customer resources in the fields of consumer electronics, automobiles, medical devices and other fields, with comprehensive customers and high coverage, and has established a long-term and stable cooperative relationship with them. The products have been finally applied to apple Oppo, Better Life Commercial Chain Share Co.Ltd(002251) (vivo), Samsung, Xiaomi, Fitbit, Google and other well-known consumer electronics brands at home and abroad. These companies are also important leaders of new consumer electronics products. They constantly generate new parts demand in the development and production of new products, which provides a strong customer base for the company's business expansion.
According to the situation of customers and the regional distribution of industries in the downstream market, the company has a reasonable layout in the markets outside China. In China, the company is headquartered in Changzhou and is mainly responsible for product R & D, sales and manufacturing. In addition, the company has set up a wholly-owned subsidiary in Dongguan to radiate the Pearl River Delta; The company has set up a subsidiary in Shanghai to attract high-tech talents, introduce advanced high and new technology, and have a keen insight into the market trend. At the same time, in order to better expand the overseas market, grasp the development trend of the industry and improve the company's global popularity and competitiveness, the company actively introduces international marketing talents, sets up wholly-owned subsidiaries in Hong Kong and the United States, and sets up offices in Europe and South Korea to further build and improve the overseas development platform and strengthen the communication, exchange and interaction with customers. The comprehensive market layout enables the company to track the latest trends of industry and customers in real time, develop transmission products with matching design in time, tap market potential and accurately implement product promotion.
So far, in terms of transmission business, the company has reached intentional cooperation with customers such as Xiaomi, Hisense Group, Tianke intelligent and Guanjie technology, and provided them with products such as smart TV camera lifting mechanism, smart phone flexible screen rotating shaft, headset box rotating shaft and so on. The company's high-quality and rich customer resources and broad market prospects provide a guarantee for the production capacity of transmission products formed by the project.
(2) Rich R & D resources and strong technical strength
In terms of professional team, the transmission division of the company now has a professional team with the ability of transmission design, management and production, including more than 30 technicians, rich experience in transmission mechanism design, proficient in small module gear design, screw rod design, notebook computer shaft design, etc. At present, the transmission division has been equipped with professional production process engineers to study the assembly technology, which can meet the yield and efficiency requirements of mass production of transmission products of the project. At the same time, in order to meet the growing capacity demand of transmission projects, the company is also actively carrying out the reserve of relevant talents.
In terms of core technology, the company has mastered small module gear transmission technology and folding mobile phone shaft design technology. Small module gear transmission is a common structure in precision transmission mechanism. Through the research on small module gear and joint technical research with Beijing Institute of automation control equipment in 2020, the company has improved the gear accuracy, optimized the gear transmission efficiency and met the strength requirements of gears in mobile phone rotating shaft and lifting camera mechanism Noise demand and output torque demand. The folding mobile phone shaft design technology is applied to the flexible screen shaft, which can realize the inner folding and outer folding of the flexible screen, ensure the user folding experience and hovering function required by the folding mobile phone, and meet the protection and service life requirements of the mobile phone against reverse folding, distortion and falling. After long-term efforts, the company has obtained 13 authorized patents related to the core technology of transmission, including "folding mechanism for folding screen", "lifting and overturning device for TV camera" and "folding driving device for automatic folding screen mobile phone". In addition, more than 10 patents related to transmission products are under examination.
The above patent technology reserves will promote the implementation of the project, play an important role in product process development and organization, implementation and production, and provide sufficient technical support for the implementation of the project.
(3) Mature production experience and sound management system
After years of training, the company has accumulated rich product development and production experience and excellent talent team from the production tools and medical products at the beginning of its establishment to the current product system dominated by consumer electronics and supplemented by automobile manufacturing, medical devices and other fields.
In terms of production system, the company has good whole process control ability to ensure the final yield of products, control production costs, meet the delivery requirements of customers and enhance customer satisfaction. The company has been deeply engaged in the MIM industry for more than ten years and has excellent experience in large-scale production and full process control of MIM. In the face of complex and diverse MIM orders, it can ensure that the final comprehensive yield of MIM products remains at a high level.
In terms of management system, after more than ten years of development, the company has established a relatively perfect management system. common
The company has passed the certification of ISO 9001:2015 and IATF 16949:2016 quality system, ISO 14001:2015 environmental management system, qc080000:2017 hazardous substance process management system, etc. at the same time, it actively introduces the advanced management mode of the industry, continuously improves the construction of its own management system, vigorously promotes the construction of information management system, and improves the production, operation and management efficiency of the company. In addition, the company formulates a sound management system to cover the company's production, sales, R & D and other links, institutionalize and process the advantages formed in each link one by one, and promote the circular and sustainable development of the company's overall advantages.
In recent years, the company has been carrying out trial production of transmission products such as folding screen mobile phone shaft, with high customer satisfaction. At present, customers have signed batch orders. The company's full process production system, sound management system and existing production experience of transmission components provide necessary experience support for the production of the project, which will effectively ensure the company's rapid response ability to market demand and provide important production support for the smooth implementation of the project
