Shanghai Dongzhou Assets Appraisal Co., Ltd
Letter of concern about Guangdong High Dream Intellectualized Machinery Co.Ltd(300720)
(GEM concern letter [2021] No. 405)
Shenzhen Stock Exchange:
September 28, 2021, Guangdong High Dream Intellectualized Machinery Co.Ltd(300720) (hereinafter referred to as " Guangdong High Dream Intellectualized Machinery Co.Ltd(300720) " or "the company") has received the letter of concern on Guangdong High Dream Intellectualized Machinery Co.Ltd(300720) issued by Shenzhen Stock Exchange (GEM concern letter [2021] No. 405). Guangdong High Dream Intellectualized Machinery Co.Ltd(300720) in accordance with the requirements of your exchange, Shanghai Dongzhou Asset Appraisal Co., Ltd. (hereinafter referred to as "the appraisal institution") ）The reply to the letter of concern was verified and the verification opinions were issued. The details are as follows:
Question 2 Announcement on supplementary disclosure of financial data of the subject company Chengdu Xintong Software Co., Ltd. (hereinafter referred to as "announcement 2") disclosed by the company on September 28 ）It shows that the unaudited owner's equity of the subject company in the last two years was 42.5594 million yuan, 48.3502 million yuan and 63.0281 million yuan respectively. Please describe in detail the calculation process of the equity evaluation of the target company in combination with the development of the industry, the composition of the main assets of the target company, the selection of evaluation parameters, future profit forecast, etc., evaluate the reasons and rationality of the high value-added, and fully prompt the risk of the high value-added. Please check and comment by the appraiser.
reply:
1. Industry development
The target company is an RF technology and service provider, which is widely used in three fields: mobile communication, medical treatment and Internet of things solutions. In the field of mobile communication, the target company mainly provides wireless access remote RF units, power amplifiers and other products, which are mainly used in the construction of base stations in multiple application scenarios; In the medical field, the target company mainly provides MRI ultra-high power RF power amplification modules and other products for medical nuclear magnetic imaging; In the field of Internet of things solutions, the target company mainly provides software and hardware solutions of machine data visual acquisition system.
According to the guidelines for Industry Classification of listed companies (revised in 2012) issued by the CSRC, it belongs to "C39 computer, communication and other electronic equipment manufacturing industry" under the category of "C manufacturing industry"; according to the industry classification of national economy (GB / T 4754-2011), it belongs to the manufacturing of communication system equipment under the category of c3921; According to the guidelines for the management industry classification of listed companies issued by the National SME share transfer system company, it belongs to the "communication system equipment manufacturing industry" (c3921); according to the investment industry classification index of listed companies issued by the National SME share transfer system company, the business of the target company belongs to "communication equipment" (18111010).
Communication system equipment manufacturing industry refers to the industry that provides wired communication system equipment, wireless communication system equipment and services. From the perspective of division of labor in the industrial chain of communication system equipment manufacturing, the target company belongs to the RF component manufacturing industry and is located in the middle of the industrial chain. The upstream of the industrial chain is mainly electronic component manufacturing, and the downstream is mobile communication equipment manufacturers and telecom operators.
(1) Industry supervision system
China Communications Industry Association (CCIA) is a non-profit national social organization voluntarily formed by Chinese units engaged in the research, production and development of communication equipment and systems and related supporting equipment and special parts. The purpose of the association is to rely on member units and industries to gather strength to accelerate the development of China's communication industry, safeguard the common interests of member units and the whole industry, and give full play to the role of government departments in implementing industry management Assistant role; Carry out exchanges and cooperation with relevant foreign organizations to promote the economic development, technology, management and efficiency of the whole industry.
China Communications Enterprise Association (CACE) is a non-profit national legal person approved and registered by the Ministry of civil affairs. The purpose of CACE is based on Deng Xiaoping Theory and "Three Represents" Under the guidance of important ideas; To abide by the national constitution, laws, policies and regulations and professional ethics as professional discipline; Take service, rights protection, self-discipline and coordination as the basic functions, give play to the role of bridge and link, serve the competent government departments, communication enterprises and consumers, and promote the healthy development of communication.
China Communication Standardization Association (CCSA) is a non-profit legal person social organization voluntarily organized by Chinese enterprises and institutions, approved by the competent business department and registered by the National Association registration authority to carry out standardization activities in the field of communication technology. The association organizes and carries out communication standardization research activities in accordance with the principles of openness, fairness, impartiality and consensus. Through the study of communication standards and technology industry Business consulting and other work to contribute to the development of the national communication industry. Entrusted by the competent business department, the association organizes and carries out standardization work in the field of communication technology.
In addition, the national development and Reform Commission, together with relevant departments, regularly formulates development strategies and major policies for the communication industry, draws up development strategies and plans for the modern communication industry, and organizes the formulation of strategies, plans and major policies for the development of high-tech industries and industrial technological progress.
(2) Cyclical, seasonal and regional characteristics of the industry
1) Industry cyclicality
Mobile communication technology has the characteristics of rapid development and continuous innovation since its inception. It has developed from 1g and 2G in the early stage to 4G and 5g at present. Technological innovation promotes the continuous upgrading of mobile communication equipment. As a sub industry of mobile communication industry, the development of enterprises in the industry also presents a certain periodicity with the development of the whole mobile communication technology, Communication system equipment is often faced with technical upgrading or redesign of products to meet the needs of the market.
The medical equipment industry is relatively stable and the product life cycle is long, but the product introduction cycle is also slow, and the quality and stability of products are the first requirements.
2) Industry regionality
China's industry layout shows obvious regionality. Because the manufacturing of communication system equipment in the field of RF technology belongs to a typical technology intensive high-tech industry, there is a high demand for talents and technology. From the distribution of major manufacturers in the industry, enterprises in the industry are mainly located in the Pearl River Delta and important provincial capitals. These regions have a high level of foreign development, rapid economic development and a concentration of high-quality scientific and technological talents. At the same time, the high-tech parks arranged in the region also provide hardware and policy support for the development of various high-tech enterprises.
3) Seasonality of the industry
The industry has certain seasonality. Since enterprises in the industry generally adopt the order production mode, and the bidding of communication equipment of downstream operators is more concentrated in some months of each year, after winning the bid and obtaining the order, enterprises in the industry will arrange production according to the order, and the peak production season will begin.
(3) Industry status and trend analysis
See profit forecast analysis for industry status and trend analysis.
(4) Industry barriers
1) Technological innovation and professional barriers
The industry is a technology intensive industry, such as RF technology, covering many disciplines such as electronics and electromagnetic field, electrical engineering, material engineering, mechanical engineering and so on. The products in the industry are updated quickly, the technical indicators are upgraded quickly, and the market price of a single product shows a downward trend. If enterprises want to maintain stable profits, they must produce new products that meet the needs of the market through technological innovation, or improve product performance and maintain stable gross profit margin.
Due to the high requirements for parts processing and assembly accuracy, various professional equipment, precision tools and molds and a set of corresponding advanced process flow are required in product R & D and production. The manufacturing of these special equipment and precision tools and molds not only requires large investment, but also requires enterprises to have strong equipment and self-control ability.
2) Capital Barrier
The industry is a capital intensive industry. In the process of R & D and production, enterprises need to invest a lot of money to purchase primary equipment for subsequent maintenance and upgrading.
At the same time, in terms of market demand, downstream customers in the industry such as telecom operators and telecom equipment integrators have great purchasing power and have strict regulations on the delivery time of purchased products. Suppliers are usually required to provide large quantities of products in a short time. Depreciation puts forward high requirements on the manufacturing capacity and financial strength of communication system equipment manufacturers.
3) Strict supplier system barriers
Downstream customers of the industry, telecom operators and equipment integrators not only pay attention to the performance and quality of the equipment itself, but also pay great attention to the capacity and process quality control and assurance ability of suppliers. It needs long-term investigation and audit to pass the qualified supplier certification of operators and equipment integrators and supply goods in batches. In comparison, the certification of equipment integrators is more strict. In each stage of supplier product R & D, pilot test and mass production, equipment integrators shall certify product performance indicators and quality assurance system.
(5) Favorable and unfavorable factors affecting the development of the industry
1) Favorable factors
① Support of national industrial policy for communication industry
Communication system equipment manufacturing industry has the characteristics of high added value, high technology content and low pollution. It has always been supported by national industrial policies. In recent years, China's accelerated industrialization and urbanization, sustained and rapid economic development and continuous improvement of people's lives have put forward higher requirements for the overall level of the communication industry. Relevant contents to promote the development of mobile communication industry are put forward in the high and new technology fields supported by the state, the plan for the adjustment and revitalization of electronic information industry, and several opinions of the State Council on vigorously promoting information development and effectively ensuring information security.
As a sub industry of the communication industry, the manufacturing of communication system equipment will continue to be supported by relevant industrial policies for a long time in the future and enjoy preferential policies in many aspects such as taxation and financing.
② 5g technology brings new opportunities to the communication industry
Compared with 3G and 4G technologies, 5g can meet more diversified scenarios and timeliness challenges. For example, 5g will penetrate into the Internet of things and other fields, deeply integrate with industrial facilities, medical devices, medical instruments and means of transportation, and fully implement the interconnection of all things, which can effectively improve the efficiency of vertical industries such as industry, medical treatment and transportation. The unlimited capacity of 5g network will be 1000 times higher than that at present, and it has the ability to serve 7 billion people. In such a huge market, there are unlimited business opportunities and possibilities.
2) Adverse factors
① The products are updated quickly, and the technical substitution factors are obvious
The development of communication system equipment manufacturing is also synchronized with the development of mobile communication technology. In the past two or three decades, the world mobile communication technology has experienced the development of analog system, 2G, 3G and even 4G. Every technological progress has promoted the development of the whole mobile communication equipment industry including treasure house communication antenna and RF components and the upgrading of products. If the enterprises in this industry cannot keep up with the technological development trend and timely develop equipment products suitable for the requirements of operators and integrators, they will be in a disadvantageous position in the market competition and may face the risk of being eliminated by the market.
② The market demand of communication system equipment is subject to the main communication equipment suppliers
From the classification system of communication system equipment, RF components belong to the category of mobile communication network coverage system equipment and are used in the network coverage equipment base station system. Base station system (including base station and antenna feeder system) is used for transmitting, receiving and processing radio frequency signals. Its development is closely related to the development of mobile communication technology. It is the core equipment of network coverage system, mainly including radio frequency components, base station controller, transceiver, base station antenna and other communication main equipment, primary base station power supply, transmission line, lightning protection device and other supporting equipment.
The expansion and upgrading of mobile communication base stations will directly stimulate the demand of mobile communication base station equipment manufacturers for RF parts, which is the core and direct driving factor to promote the development of RF parts market. The concentration of main communication equipment manufacturers is high. Due to the license control of mobile communication operators in China, the shortage of operator licenses and communication frequency band resources determines the limited number of operators. At the same time, telecom equipment integrators continue to integrate under the background of intensified market competition and increasingly concentrate their market share. Therefore, downstream mobile equipment manufacturing and R & D enterprises are highly dependent on customers, The bargaining power to customers is weak, which is easy to have an adverse impact on the development of enterprises in this industry.
2. Composition of main assets of the subject company
The asset structure and changes of the target company in recent years are shown in the table below:
Project name December 31, 2019 December 31, 2020 August 31, 2021
Amount (ten thousand yuan) proportion amount (ten thousand yuan) proportion amount (ten thousand yuan) proportion
Current assets 5750.9192 78%6,478.0093. 31%10,983.5791. 46%
Non current assets 447.527 22%464.726. 69%1,025.228. 54%
Total 6198.43100 00%6,942.72100. 00%12,008.79100. 00%
With the expansion of the business scale of the target company, the total assets have increased steadily and the asset structure is relatively stable. It is mainly determined by the business characteristics of the target company. The production mode of the target company is mainly responsible for product R & D and process design. The production, manufacturing and assembly of products are processed through outsourcing. The main equipment are also machinery and equipment related to R & D and testing, electronic equipment, fixtures and other auxiliary equipment, and the relevant patents The software copyright is not reflected in the book. The non current assets of the target company account for a small proportion of the total assets, that is, the target company is an asset light enterprise.
As of the benchmark date August 31, 2021, the current assets of the subject company account for more than 90% of the total assets, including monetary capital, notes receivable, accounts receivable, accounts receivable financing, prepayments, other receivables, inventory and other current assets, of which the total amount of monetary capital, accounts receivable and inventory accounts for 91% of the current assets. Non current assets account for less than 10% of total assets, including fixed assets, right of use assets, intangible assets, long-term deferred expenses, deferred income tax assets and other non current assets.
As of the benchmark date, the intangible assets not recorded in the book of the subject company involved 78 patents, 27 software copyrights and 1 domain name. The details are as follows:
1) Patent
Title of patent
