Securities code: Suzhou Huaya Intelligence Technology Co.Ltd(003043) securities abbreviation: Suzhou Huaya Intelligence Technology Co.Ltd(003043) Suzhou Huaya Intelligence Technology Co.Ltd(003043)
Public issuance of convertible corporate bonds
Feasibility analysis report on the use of raised funds
April, 2002
1、 Use plan of the raised funds
The total amount of funds raised from this public offering of convertible corporate bonds shall not exceed 340 million yuan (including 340 million yuan). The net amount of funds raised after deducting the issuance expenses will be used for the following projects:
Unit: 10000 yuan
No. project name total project investment proposed to use raised funds
1. New project of intelligent production of precision metal parts in semiconductor equipment and other fields 380 Digital China Group Co.Ltd(000034) 00000
Total 380 Digital China Group Co.Ltd(000034) 00000
If the actual raised funds (after deducting the issuance expenses) are less than the total amount of the proposed raised funds, the board of directors of the company will arrange the specific use of the raised funds according to the importance and urgency of the purpose of the raised funds, and the insufficient part will be solved by self financing. Before the funds raised from the issuance of convertible corporate bonds are in place, if the company invests its own funds in the construction of the above projects, the company will replace them in accordance with the procedures specified in relevant laws and regulations after the raised funds are in place. Within the scope of the final investment project of the raised funds (subject to the documents filed by the relevant competent authorities), the board of directors or the authorized person of the board of directors of the company may appropriately adjust the investment sequence and amount of the raised funds of the above projects according to the actual needs of the project. 2、 Implementation background of the project invested by the raised funds
1. Market prospect of high-end equipment manufacturing industry
High end equipment manufacturing industry is a strategic emerging industry that determines the comprehensive competitiveness of national industries, and plays a key role in improving the comprehensive strength of the country. The State formulates a series of plans, action plans or specific policies and measures to promote the development of key industries and fields and accelerate the construction of a manufacturing power. According to the decision of the State Council on accelerating the cultivation and development of strategic emerging industries, as one of the strategic emerging industries, the high-end equipment manufacturing industry mainly includes five sub sectors: aviation industry, satellite and application industry, rail transit equipment industry, marine engineering equipment and intelligent manufacturing equipment. In the next decade, China’s high-end equipment manufacturing industry will usher in golden growth and become an important pillar industry of the national economy.
In recent years, high-end equipment manufacturing industry has always been a strategic focus in China’s economic construction. In the “made in China 2025” issued in May 2015, the State Council clearly pointed out that it aims at the rapid development of high-end CNC machine tools and Siasun Robot&Automation Co.Ltd(300024) , aerospace equipment, marine engineering equipment and high-tech ships, advanced rail transit equipment, energy conservation and strategic industries. In the classification of strategic emerging industries (2018) issued by the National Bureau of statistics in November 2018, the high-end equipment manufacturing industry ranks among the strategic emerging industries in the Ninth World War. The “made in China 2025 Suzhou Implementation Outline” issued by the central government in 2021 supports the development and growth of high-end equipment industry. It is necessary to implement the innovation and development project of high-end equipment and significantly improve the independent design level and system integration ability.
The high-end equipment manufacturing industry will inevitably become an important engine to drive the upgrading of the whole equipment manufacturing industry and an important support for the development of strategic emerging industries. Cultivating and developing high-end equipment manufacturing industry as a strategic emerging industry is an inevitable choice to embark on innovation driven and internal growth track, and it is a key measure for a long time in the future. Facing the challenges of intensified global competition, increasingly severe environmental and resource constraints and shortage of senior talents, China must attach great importance to strategy, promote the revitalization of the whole equipment manufacturing industry by developing high-end equipment manufacturing industry, and more effectively provide equipment and service guarantee for emerging industries in various fields.
2. Market prospect of precision metal manufacturing industry
In recent years, under the background of global economic integration, accelerated international industrial transfer and world manufacturing enterprises moving towards China, China has gradually developed into a large country in high-end equipment manufacturing industry through continuous introduction and absorption of foreign advanced technology and independent innovation. In particular, the demand for high-end precision metal products in communication, electronics, medical treatment, energy, machine tools, aerospace and other industries has increased rapidly, This growth has promoted the rapid development of upstream precision metal manufacturing and other industries. There are more than 1000 precision metal manufacturing service enterprises in China, which are mainly distributed in the regions with relatively developed market economy and private economy such as the Yangtze River Delta, the Pearl River Delta and the Bohai Sea. More than 80% of the precision manufacturing enterprises in China are concentrated in the above regions. The technical level and sales scale of foreign-funded enterprises and Taiwan funded enterprises occupy a leading position in the above regions. However, in terms of capital strength, technical equipment and production process, the strength of China’s precision metal manufacturing enterprises is still relatively weak. There are few enterprises with annual sales of more than 100 million yuan, and there are few enterprises that can provide high-precision structural parts and ultra-precision structural parts. China has a large number of precision metal manufacturing service enterprises, with customers in many industries such as communication, new energy, machine tools, medical devices, transportation and so on. Although the industry as a whole has formed a sufficient industrial scale, the industry concentration is not high. Although most enterprises have certain manufacturing capacity, their technical level, R & D capacity and service quality are relatively lagging behind, and have not yet formed their own brand. With the continuous enhancement of the overall strength of leading enterprises in the industry, the industry concentration will gradually increase.
General precision metal structural parts or traditional precision metal structural parts can be completed only by simple stamping equipment and molds. There are many enterprises that can provide relevant services in the market, and the market competition is fierce. High precision or ultra precision structural parts need expensive stamping equipment, CNC milling equipment and other high-end equipment, as well as a professional R & D team with industry experience and design ability. Fewer enterprises can meet the above requirements, while the downstream demand for high-precision metal structural parts is growing rapidly year by year. Therefore, the degree of market competition is low and the development prospect is good.
China’s Internet plus one belt, one road China, 2025 Internet companies and the Internet plus action plan have been accelerated. As well as the continuous introduction and implementation of policies and measures such as intelligent manufacturing and small and micro businesses, the growth rate of Chinese industry has been steadily stabilized. The severe situation will be partially alleviated. New industries such as the new generation of information technology, high-end equipment manufacturing, precision metal manufacturing will become a new bright spot of economic growth.
3. Industry policy background
The fourteenth five year plan for national economic and social development of the people’s Republic of China and the outline of long-term goals for 2035 focus on the new generation of strategic emerging industries such as information technology, biotechnology, new energy, new materials, high-end equipment, new energy vehicles, green environmental protection, aerospace and marine equipment, accelerate the innovative application of key core technologies, enhance factor support capacity, and cultivate and expand new drivers for industrial development.
Made in China 2025 focuses on the strategic goal of achieving manufacturing power. Made in China 2025 defines 9 strategic tasks and key project construction, which is in line with the contents of the plan and is of positive significance to accelerating China’s industrial transformation.
The 14th five year plan for intelligent manufacturing development proposes that by 2025, the transformation and upgrading will achieve remarkable results and the foundation support will be more solid Build a number of innovation carriers and public service platforms in the field of intelligent manufacturing, and form a service network.
The “made in China 2025 Jiangsu action plan” puts forward that “focusing on promoting transformation and upgrading, building an advanced manufacturing system, based on the existing foundation, focusing on future development, focusing on 15 key areas such as new generation information technology, high-end equipment and new materials, gathering innovative factor resources, breaking through key core technologies, accelerating the transformation of scientific and technological achievements, promoting the development of advantageous and strategic industries, and leading the manufacturing industry to move towards medium and high-end”.
The 14th five year plan for Suzhou’s national economic and social development and the outline of the long-term objectives for the year 2005 put forward “accelerating the intelligent transformation and digital transformation of industries, accelerating the intelligent upgrading of production equipment, realizing the ubiquitous interconnection and data exchange of production equipment, and developing the construction of intelligent workshops and intelligent factories”. The implementation of the project conforms to the manufacturing development strategy of Suzhou.
3、 Basic information, necessity and feasibility analysis of the project invested by the raised funds
(I) basic information of the project
The project is a new intelligent production project of precision metal parts such as semiconductor equipment. The construction period is 2 years. The total investment of the project is 380 million yuan. It is planned to use the public offering of convertible corporate bonds to raise 340 million yuan. After the project is completed, the production capacity can reach an annual output of more than 23000 precision metal parts in semiconductor equipment and other fields.
(II) necessity of project implementation
1. Improve the production level of precision metal structural parts to meet the needs of the development of high-end equipment manufacturing industry
The precision metal manufacturing industry is a basic industry in the high-end equipment manufacturing industry. The overall level of the industry has a great impact on the level of China’s high-end equipment manufacturing industry. It is a key industry supported by the state. With the rapid development of high-end equipment industries such as semiconductors, computers, intelligent equipment and power equipment, downstream customers have increasingly stringent requirements for product quality, accuracy, delivery date and design. Precision metal manufacturing enterprises will continue to improve the level of R & D and design, improve the flexible production capacity, and improve the technical level and information management level of numerical control, precision welding and so on. Precision metal manufacturing service industry originated in Europe, America, Japan and other economically developed countries in the early 1960s. With the rapid development of management, industrial technology and information technology, advanced production management concepts such as lean manufacturing and flexible production appear and are widely used in precision metal manufacturing services. With the increasingly diversified market demand and increasingly fierce market competition, large brand high-end equipment manufacturers gradually outsource the precision metal processing business to more professional precision metal products processing enterprises. Therefore, a large number of modern professional precision metal manufacturing service enterprises have emerged.
The company introduces advanced technology and equipment and combines service advantages, quality advantages, process advantages and customer resource advantages to provide customers in high-end equipment fields such as semiconductor equipment, power equipment, rail transit and medical equipment with high-precision or ultra-high-precision metal structure products, improve the production level of precision metal structure parts and meet the needs of the development of high-end equipment manufacturing industry.
2. Further improve product quality and meet the needs of downstream customers for product upgrading
The company is one of the first enterprises to enter the precision metal manufacturing industry in China. After years of development, the company has established a good and stable supply relationship with well-known customers in the manufacturing industry at home and abroad in the fields of semiconductor equipment, rail transit, high-end medical devices, power equipment and mechanical equipment. The products are supplied to many enterprises such as global well-known semiconductor equipment manufacturers and electrical manufacturers for a long time. These high-end market customers have high requirements for product design level and performance, and extremely strict requirements for product quality consistency.
Through the construction of this project, the project not only ensures the output capacity of the company’s products, but also improves the consistency level of the company’s product quality, reduces the defective rate of products caused by manual misoperation, improves the manufacturing accuracy and quality assurance ability of products, and lays a solid foundation for expanding the market share of products.
3. The need to break through the bottleneck of production capacity and further expand market share
The company has a relatively comprehensive precision metal manufacturing technology and has accumulated a relatively rich level of precision production technology. The product quality is widely recognized by customers, but the production capacity is still limited. At the same time, due to the limited production capacity of the company, in the case of large orders, some machining processes and sheet metal processing processes are completed through outsourcing, which is not conducive to the long-term development of the company.
Although the company has increased production capacity through flexible production, improving production efficiency, improving process and other measures, it is still unable to meet the growing demand of downstream customers for the company’s products. Capacity factors restrict the company to further obtain market share and expand the scale of revenue. Therefore, it is an inevitable choice for the company to expand production capacity, improve product quality, improve production efficiency and break through capacity bottlenecks through new projects.
4. The existing plant, equipment and technology can no longer meet the needs of the company’s daily production
Over the years, the processing performance of some equipment on the company’s production line has gradually declined, and some old equipment has been unable to meet the quality requirements of products. It is urgent to expand intelligent production equipment, alleviate the company’s capacity bottleneck, improve production efficiency, improve product quality, meet the needs of downstream customers for product upgrading and reduce the production cost of the enterprise. In addition, with the development of society, the demand for precision technology structure products is increasing, and the business volume of the company is gradually expanding. The characteristics of the industry are multiple varieties and small batches, high product quality requirements and short delivery time. Under such an industry characteristic, the existing plant and equipment technology can not fully meet the needs of the company’s daily production. The company must constantly optimize the production process and add intelligent production lines, To meet the fast-paced product delivery.
5. The government vigorously promotes intelligent manufacturing, and intelligent upgrading is imperative
The construction of intelligent factory represents the future development direction of informatization. By adding an intelligent production line, the project can not only improve the company’s intelligent production level, but also train the team, cultivate talents, improve the informatization R & D, construction and management level, and drive the Informatization Transformation and innovative development of the company. Intelligent manufacturing can effectively shorten the product development cycle, reduce operating costs, improve production efficiency, improve product quality and reduce resource and energy consumption. Through the introduction of intelligent production equipment, the company’s technical equipment level, scientific research and development capacity, product production capacity and supply capacity can be greatly improved to meet the enterprise’s own requirements for implementing innovation driven and value creation strategy.
(III) feasibility of project implementation
1. The company has rich industry experience and mature technical level
The company is a high-tech enterprise in Jiangsu Province and an innovative enterprise in Jiangsu Province. It has three R & D institutions and an excellent R & D team, including “Jiangsu enterprise technology center”, “Jiangsu Huaya welding automation engineering technology R & D center” and “National Postdoctoral research workstation”. Owned by the company’s technology center
