Stock Code: 002851 stock abbreviation: Shenzhen Megmeet Electrical Co.Ltd(002851) listing place: Shenzhen Stock Exchange Shenzhen Megmeet Electrical Co.Ltd(002851)
Shenzhen Megmeet Electrical Co., Ltd
(a, B, c501-503, D and E, 5th floor, Tsinghua Ziguang Science Park, No. 13, Langshan Road, North District, high tech Zone, Nanshan District, Shenzhen)
Public issuance of convertible corporate bonds
Feasibility analysis report on the use of raised funds
February, 2002
1、 Use plan of the raised funds
The funds to be raised in this issue of convertible bonds shall not exceed RMB 1220 million. After deducting the issuance expenses, the total funds raised in this issue of convertible bonds are proposed to be invested in the following projects:
Unit: 10000 yuan
No. project name total investment to be invested in raised funds
1 Shenzhen Megmeet Electrical Co.Ltd(002851) Hangzhou high end equipment industry center project 50000.00 30000.00
2 Shenzhen Megmeet Electrical Co.Ltd(002851) Zhuzhou base expansion project (phase II) 31000.00 31000.00
3. Intelligent storage project 25000.00 25000.00
4. Supplementary working capital project 36000.00 36000.00
Total 142000.00 122000.00
The Hangzhou high-end equipment industry center project is implemented by Zhejiang Shenzhen Megmeet Electrical Co.Ltd(002851) Electric Technology Co., Ltd., a wholly-owned subsidiary of the issuer; Shenzhen Megmeet Electrical Co.Ltd(002851) Zhuzhou base expansion project (phase II) is implemented by Hunan Blue Valley Technology Co., Ltd., a wholly-owned subsidiary of the issuer; The intelligent warehousing project is implemented by Zhuzhou Shenzhen Megmeet Electrical Co.Ltd(002851) Electric Co., Ltd., a wholly-owned subsidiary of the issuer; Supplementary working capital projects shall be implemented by the issuer.
The insufficient part of the net amount of funds actually raised less than the total investment of the project shall be solved by the company with its own funds or through other financing methods. The board of directors of the company may appropriately adjust the investment sequence and amount of the raised funds of the project according to the authorization of the general meeting of shareholders. If the company invests the project with self raised funds in advance according to the company’s operating conditions and development plan before the funds raised in this issuance are in place, the part invested in advance will be replaced with raised funds after the funds raised in this issuance are in place.
2、 Details of investment projects with raised funds
(I) Shenzhen Megmeet Electrical Co.Ltd(002851) Hangzhou high end equipment industry center project
1. Project overview
The project will build a full-featured industrial center integrating R & D, manufacturing, testing and verification, marketing, exhibition hall and training in Hangzhou. The implementation of the project will first build a Shenzhen Megmeet Electrical Co.Ltd(002851) Yangtze River Delta regional headquarters and improve the layout of the company in the Yangtze River Delta, so as to lay a solid foundation for the sustainable and stable development of the company in the future. Secondly, it will expand the site, equipment and other resources of intelligent oil production system business, and expand the production capacity of submersible screw pump intelligent oil production system, so as to speed up the expansion of oil production system business, so as to grasp the development opportunity of new oil production equipment market. Thirdly, it will further layout the production capacity of intelligent sanitary ware, expand the supply scale of the company’s intelligent sanitary ware products, meet the continuous expansion of the company’s intelligent sanitary ware business, and improve the market penetration of the company’s intelligent sanitary ware products. Finally, the company will build a new R & D center building, expand the company’s R & D site, purchase advanced R & D and testing equipment, build a good R & D test platform, continuously enhance the company’s R & D strength, maintain the company’s technological R & D advantage and consolidate its leading position in the industry.
2. Necessity of project implementation
(1) It is necessary to build the group’s Hangzhou industrial center and improve the company’s regional layout
The Yangtze River Delta is one of the regions with the most active economic development, the highest degree of openness and the strongest ability of innovation in China. It plays an important strategic role in the overall situation of national modernization and all-round opening-up. The company is headquartered in Shenzhen and has set up production bases in Zhuzhou, Hunan, Taizhou, Zhejiang and Zibo, Shandong. With the increasingly prominent location advantages of the Yangtze River Delta, combined with its current regional layout and future development planning, the company will build a full-function industrial center integrating R & D, manufacturing, testing and verification, marketing, exhibition hall and training in Hangzhou. On the one hand, Hangzhou industrial center will be positioned as the regional headquarters of Shenzhen Megmeet Electrical Co.Ltd(002851) Yangtze River Delta. By making full use of the advantages of the Yangtze River Delta in terms of location conditions, transportation and industrial policy support, Hangzhou industrial center will improve the layout of the company in the Yangtze River Delta, so as to lay a solid foundation for the sustainable and stable development of the company in the future. On the other hand, the convergence of R & D, manufacturing, marketing and other resources helps to promote the overall management of the company’s business and the integration and sharing of resources, so as to generate greater collaborative value, help the company grow its business and enhance the company’s ability to resist risks.
(2) It is necessary to accelerate the expansion of oil production system business and grasp the market development opportunities
The company is an electrical automation company based on power electronics and related control technology. In recent years, it has continuously expanded its extension and expansion, and has achieved fruitful layout in new business areas. Among them, the intelligent oil production system has formed large-scale application and continuous orders, which has laid a good foundation for the comprehensive promotion and sales of related technologies. As China’s large oil fields enter the late stage of exploitation to varying degrees, the environmental and geological conditions are gradually complicated, and the exploitation of oil resources is more difficult. The changes of oil field exploitation industry put forward higher requirements for oil production technology, driving the rapid development of submersible screw pump oil production technology. Submersible screw pump production equipment is more and more favored by petroleum enterprises because of its obvious advantages such as high efficiency and energy saving, green environmental protection, safety and reliability, intelligent management, wide application range and small floor area. In order to ensure that oil resources can continue to better meet the production, operation and construction requirements of various industries in society, the market demand for oil production equipment upgrading and energy-saving and efficiency enhancing services is increasing day by day. Therefore, in order to grasp the development opportunity of the new oil production equipment market, it is necessary for the company to accelerate the expansion of intelligent oil production system business, promote the product development of intelligent oil production system, and fully meet the needs of downstream oilfield enterprises for high-performance, digital and intelligent oil production equipment, so as to consolidate and enhance the leading position of the company in the intelligent oil production system industry.
(3) Expand the production capacity of intelligent sanitary ware to meet the needs of continuous business expansion
After years of continuous layout and efforts, the company has become a professional manufacturer of intelligent toilet. It has the manufacturing capacity from bathroom components to complete machine linkage production in Taizhou, Zhejiang Province.
In recent years, with the continuous improvement of residents’ living standards and health awareness, consumers’ acceptance and demand for intelligent toilets have increased rapidly, and China’s intelligent bathroom industry shows a good growth trend. However, as the development of China’s intelligent toilet industry is still in the primary stage and product introduction period, and the consumption concept and market pattern are not yet mature, the penetration rate of China’s intelligent toilet in 2020 is only 2.29%, far lower than that of developed countries, and still has great potential for sustainable growth in the future. Therefore, in order to better respond to the future market order demand and meet the continuous expansion of the company’s intelligent bathroom business, it is necessary for the company to further layout the intelligent bathroom production capacity and expand the supply scale of intelligent bathroom products, so as to improve the market penetration of the company’s intelligent bathroom products.
(4) The company needs to consolidate its leading position in the industry and strengthen its R & D strength
The electrical automation industry in which the company is located belongs to a typical technology intensive industry. The advanced technical level constitutes an important competitive strength of the enterprise in the electrical automation industry. Continuously improving the R & D ability of the industry’s advanced technology is not only an important driving force for the rapid development of the enterprise, but also the basis for improving its competitive position in the industry. Through technological innovation and technical advantages, we can design and develop high-quality products, more effectively meet customer needs and win the market, so as to ensure the healthy development of the enterprise. With the intensification of market competition and the gradual expansion of the company’s scale, the continuous expansion of research technology field and the deepening of R & D depth, the company’s existing R & D sites, R & D equipment and other resources are gradually difficult to keep up with the company’s development pace, which affects the R & D efficiency and is not conducive to the healthy and innovative development of the company. Therefore, in the future, the company still needs to continue to increase R & D investment and further enhance the company’s R & D strength, so as to continuously consolidate the company’s leading position in technology in the industry.
3. Feasibility of project implementation
(1) Perfect marketing system and high-quality customer resources provide sufficient sales guarantee for the implementation of the project
In recent years, the company has made an important layout of the marketing platform, strengthened the unified coordination of construction marketing and the management of regional representative offices, so as to form a matrix support for the marketing system, representative offices and sales of the business division, continue to implement the idea of “crossing the edge horizontally and connecting the bottom vertically”, and realize the organic interaction between the marketing resource platform and the product department. The company has set up representative offices in North China, East China, southwest, northwest, central and South China, and overseas representative offices in the United States, Japan, South Asia, Europe and Russia. Among them, the marketing outlets and dispatched marketing personnel extend to East Asia such as South Korea, Southeast Asia such as Vietnam and Europe such as Turkey and Poland. The perfect marketing platform layout has played a decisive role in the development and growth of the company in the past business process, and also laid a solid foundation for the sales of the products of the project.
In terms of intelligent oil production system, after years of unremitting efforts, the company has established Hangzhou R & D center, Shandong Zibo manufacturing base and Tianjin Dagang electric submersible screw pump lifting test service base. At the same time, in order to better serve customers, the company has successively set up service stations in jimusar, Zibo, Xi’an and Daqing in Xinjiang, forming one center, two bases Multi site network service system. At present, the company’s intelligent oil production system has covered Daqing, Shengli, Kazakhstan, kozhan and other oilfields outside China, and its products have been widely praised by users. In terms of intelligent sanitary ware, the company’s business strategy is to focus on to B business, serve many high-quality brand customers at home and abroad, and provide integrated solutions for core customers. Relying on the technological development platform of independent innovation, the intelligent toilet products developed by the company have been widely used in front-line sanitary ware and smart home brands at home and abroad, such as Anhua, Moen, Huida, Lizhu, etc. The company has established a relationship of mutual trust and mutual benefit with downstream customers, helped customers with product line planning and new product design, implanted the company’s core components, and formed a strategic cooperative relationship. With its excellent product quality, the company has obtained increasing orders from customers, and the progress of cooperation with many major customers continues to be good. In conclusion, with perfect marketing platform layout and excellent product quality, the company’s products have won the recognition and trust of customers, formed extensive and high-quality customer resource advantages, and has a certain market influence outside China. Many high-quality customer resources outside China ensure the steady and sustainable growth of the company’s business, and also provide sufficient sales guarantee for the capacity digestion of the expanded intelligent oil production system and intelligent sanitary products of the project. In the future, the company will continue to layout and improve the innovation marketing center, expand the brand, product and channel construction of emerging channels such as online sales at home and abroad, and closely follow up with existing customers to expand cooperation and provide further sales support for project implementation.
(2) Strong R & D resources and strong innovation ability provide strong technical support for the implementation of the project
As a science and technology enterprise with independent innovation, the company always focuses on core technology and is committed to providing customers with the best components and solutions. Therefore, the company attaches great importance to R & D investment. The company has maintained R & D investment of about 10% of sales revenue for many years, which provides strong support for the realization of product strategy and R & D plan. After years of continuous R & D investment, the company has built a standardized, professional and international R & D platform system, accumulated abundant R & D resources, and formed a strong technological innovation ability on this basis. With the support of abundant R & D resources, after years of accumulation, the company has also formed strong technological innovation strength in intelligent oil production system and intelligent sanitary products, which provides strong technical support for the R & D and manufacturing of intelligent oil production system and intelligent sanitary products of the project, so as to ensure the smooth implementation of the project.
(3) Clear strategic layout and excellent management team provide solid operation guarantee for the implementation of the project
Focusing on the core technology of power electronics and related control, the company continues to extend to the cross fields and emerging fields related to the core technology, with a clear strategic layout. Intelligent oil production equipment and intelligent sanitary ware are technology intensive industries, which need dedicated and pragmatic technical and management professionals. The company has established a highly educated, high-level management team with international background and vision, and most of its core members have doctoral and master’s degrees. Over the years of development, the company has built a cross domain complementary business model, formed a unique and difficult to replicate competitive advantage in the industry, and built an excellent and stable management team. For the production management of the project products, it can provide sufficient operation experience for reference, so as to ensure the realization of the project construction objectives.
4. Project investment estimation
The estimated total investment of the project is 500 million yuan, mainly including land investment, construction investment, equipment investment, etc. the specific investment of the project is as follows:
Unit: 10000 yuan
No. project amount proportion raised capital investment self owned capital investment
1. Land investment 2306.00 4.61% —
2. Construction investment 37964.00 75.39% 20000.00-
3 equipment investment 10000.00 2
