Company code: 688210 company abbreviation: Tonglian precision Shenzhen oceanwide Tonglian Precision Manufacturing Co., Ltd
Summary of annual report 2021
Section I important tips
1 the summary of this annual report comes from the full text of the annual report. In order to fully understand the company’s operating results, financial status and future development plan, investors should http://www.sse.com.cn./ The website carefully reads the full text of the annual report. 2. Major risks: the company has described in detail the relevant risks that may be faced in the process of production and operation in this annual report. For details, please refer to the relevant contents in Section III, IV and “risk factors” of this report. 3 the board of directors, the board of supervisors and the directors, supervisors and senior managers of the company guarantee the authenticity, accuracy and completeness of the contents of the annual report, and there are no false records, misleading statements or major omissions, and bear individual and joint legal liabilities. 4. All directors of the company attended the board meeting. 5 Tianzhi International Certified Public Accountants (special general partnership) issued a standard unqualified audit report for the company. 6. The company is not profitable and has not yet achieved profitability when it is listed □ yes √ No 7. The profit distribution plan for the reporting period or the plan for converting provident fund into share capital adopted by the board of directors is: 1 The company plans to distribute profits based on the total share capital registered on the date of equity distribution, and plans to distribute a cash dividend of 2 yuan (including tax) to all shareholders for every 10 shares. As of December 31, 2021, the total share capital of the company is 80000000 shares. Based on this calculation, the total cash dividend to be distributed is 1 Shanghai Pudong Development Bank Co.Ltd(600000) 000 yuan (including tax). The company’s cash dividend accounts for 33.73% of the net profit attributable to the shareholders of the parent company in this year. After this profit distribution, the remaining undistributed profits are accumulated and distributed in future years. 2. The company plans to increase 4 shares for every 10 shares to all shareholders with capital reserve. As of December 31, 2021, the total share capital of the company is 80000000 shares, which is calculated to add a total of 32000000 shares. After the capital reserve is converted, the total share capital of the company is 112000000 shares. 3. In 2021, the company did not send shares. 4. If the total share capital of the company changes before the date of equity distribution and equity registration, the company plans to keep the total distribution unchanged and adjust the distribution proportion per share accordingly. The company’s profit distribution plan for 2021 has been deliberated and approved at the 14th meeting of the first board of directors, and needs to be submitted to the company’s 2021 annual general meeting for deliberation and approval. 8. Whether there are important matters such as special arrangements for corporate governance □ applicable √ not applicable
Section II basic information of the company
1 company profile company stock profile √ applicable □ not applicable
Company stock profile
Stock type stock exchange stock abbreviation before stock code change stock abbreviation and sector
RMB common stock A-share Shanghai Stock Exchange Tonglian precision 688210 is not applicable
Scientific innovation board
Profile of the company’s depositary receipts □ applicable √ not applicable contact person and contact information
Contact person and contact information secretary of the board of directors (domestic representative of information disclosure) securities affairs representative
Name: hou can, Huang Rongfang
Office address: Room 101, plant 1, No. 282, songguanzhong Road, Guanhu street, Longhua District, Shenzhen
Tel: 075523720932075523720932
E-mail Stocks@pu -sz. com. Stocks@pu -sz. com.
2. Introduction to the company’s main business in the reporting period (I) main business, main products or services
The company is committed to becoming a professional manufacturer and solution provider of precision parts and components. At present, the company mainly provides customers with metal injection molding (MIM) precision metal parts with high precision, high density, complex shape, good performance and exquisite appearance. The main end customers of the service are apple, Amazon, Dajiang, Anker Innovations Technology Co.Ltd(300866) and other well-known consumer electronics brand manufacturers at home and abroad, and cooperate with well-known EMS manufacturers in the industry, such as Foxconn, Luxshare Precision Industry Co.Ltd(002475) , Goethe Jabil and others have established stable cooperative relations.
MIM products of the company are mainly divided into precision metal structural parts and appearance parts according to their functions. Specific products include structural parts such as power support, volume support, camera support, threading sleeve and plug, as well as external parts such as exquisite power interface parts, smart watch case, smart ring inner case, UAV remote control shaft support and headset accessories. The products are mainly used in tablet computers Portable intelligent terminal consumer electronics such as intelligent touch capacitive pen, as well as emerging consumer electronics such as intelligent wearable devices and aerial photography UAVs. Specifically, it is as follows:
(1) MIM products for portable intelligent terminals
Portable intelligent terminal is one of the most important application fields of the company’s products. The main application scenarios include tablet computer, intelligent touch capacitive pen, etc. the products include volume support, power support, camera support, power interface, SIM card paddle, threading sleeve, plug, etc.
(2) MIM products for smart wearable devices
In recent years, thanks to the increase of types of intelligent wearable devices, the gradual maturity of product technology, the improvement of user experience, the decline of product prices and the active investment of major manufacturers, the development of intelligent wearable devices has entered a stage of rapid development. At present, the company’s MIM products for smart wearable devices mainly include smart watch case, smart watch button, smart ring inner case, headset accessories, etc.
(3) MIM products for aerial photography UAV
The MIM products provided by the company for UAV customers mainly include remote control rotating shaft components, remote control keys, remote control battery cover, camera accessories, positioning pins, PTZ accessories, mobile phone clamping accessories and other structural parts with reliable strength and exquisite appearance parts.
(4) Other MIM products
With the technical advantages of MIM process, the application field of MIM products continues to expand. At present, the company’s MIM products also include electronic cigarette shell, USB charging interface shell, ring cavity for 5g base station, automobile shift knob, etc. With the implementation of the company’s fund-raising projects, the company’s large-scale production capacity of MIM will be expanded, and the field boundary of the company’s products, services and applications will be expanded. During the reporting period, in order to meet the product needs of customers, based on the stable development of MIM business, the company continued to integrate processes with materials, and gradually expanded its business to other manufacturing processes, such as precision injection molding, laser processing, CNC and other processing processes. Relevant businesses have been developed as planned, and will gradually realize mass production and generate relevant income. （2） Main business model
1. Profit model
Combined with the attribute of product customization, the company began to participate in and cooperate with customers in the overall scheme and design review of products at the early stage of customer design, cooperate with customers in mold and product development, complete product verification at all stages, and promote the mass production of products. In the mass production stage, the company provides precision metal parts with reliable performance and stable quality in batches according to customer needs, so as to realize sales revenue and generate profits.
2. R & D mode
The R & D mode of the company is the R & D mechanism combining independent technology R & D and customer demand technology R & D.
Independent technology R & D is the company’s R & D and innovation of products, technologies and processes based on the analysis and judgment of industry development trends, as well as new and cutting-edge technologies, and in combination with the understanding of customer and market demand changes, so as to continuously improve the technology and process level, meet or create market demand, and maintain the progressiveness of the technology level.
Customer demand technology R & D is to meet customer demand through ESI (early supplier involvement), EVT (Engineering Verification Test), DVT (design verification test) and PVT (production verification test) according to customers’ iterative and innovative product design and development requirements, Realize the stable mass production of products. MIM products are mainly developed according to the customized needs of customers, and the R & D cycle generally lasts from half a year to one year. In addition, the company will participate in the research and development carried out by customers for cost control of products that have been mass-produced by climbing through PRQ (post rampqualification). PRQ process generally goes through DFM (Design for manufacturing), PRQ sample delivery, EMS manufacturer assembly and whole machine test. Only after passing the whole machine test can all parts and related processes involved in the PRQ process be recognized by customers and can be imported into formal mass production. Generally speaking, the R & D process of PRQ will be controlled in about half a year.
3. Production mode
The company’s products have the characteristics of customization. Different customers, different end products and different product models have different needs for products. Therefore, the company adopts the customized production mode of “production based on sales”.
4. Sales model
The company adopts direct sales mode. Through targeted selection of target customer groups, the company aims to develop new customers, expand existing customers and new product lines, and continue to develop new businesses. The company carries out product research and development according to the innovation needs of end customers, and carries out mass production after passing the product verification and approval of end customers. The company’s direct customers are mainly the assembly and manufacturing service providers of the industrial chain designated by the terminal brand. The company delivers customized products according to the orders or demand plans of direct customers, and then sells them to terminal brands after integration by direct customers. （3） Industry 1 Development stage, basic characteristics and main technical threshold of the industry 1 Development stage of the industry
At present, MIM technology has been widely used in the manufacturing of consumer electronic products such as smart phones, wearable devices, portable terminals and e-cigarettes. It is expected to continue to extend to more categories in the future. As China’s MIM industry took the lead in the outbreak of consumer electronics, the initial technology relied on BASF and other multinational groups to provide a full set of solutions. As the leading enterprises in the industry continue to invest in R & D after becoming bigger and stronger, they have strong technological innovation strength. At present, the independent R & D and production of “feeding” of key raw materials have been realized. The industrial maturity of China’s MIM industry continues to improve, and it is expected to accelerate its penetration into the fields of automobile, medical treatment, tools and so on in the future.
After 2006, benefiting from the innovation of BASF feeding technology, and the three major plants of abog (injection molding machine), BASF (feeding) and Kramer (continuous sintering furnace) provide a complete set of solutions for the MIM industry, the industry threshold is reduced and the number of admission enterprises is increased.
In 2011, as Apple iPhone 4 selected MIM as the manufacturing process of SIM card holder and connector, the boom in the application of MIM process in the field of consumer electronics began, and the MIM industry entered a period of rapid growth. China has also become the region with the highest density of MIM factories in the world.
Since then, with the rise of the trend of rear multi camera and lifting front camera in the smart phone industry, the camera bracket has become the main incremental market in the MIM industry.
Since 2019, the folding screen mobile phone has become a hot spot in the smart phone industry. The complex folding hinge mechanism not only brings new market opportunities to the MIM industry, but also poses great challenges, such as the development of high-strength MIM materials and the guarantee of product accuracy and consistency.
The rapid development of smart wearable products also provides new opportunities for MIM industry, such as smart watch case, VR glasses hinge, etc. in terms of process development, it is necessary to develop stainless steel raw material scheme and process route to ensure high polishing quality for such appearance parts, and develop the application of other lightweight materials such as titanium alloy in the future.
(2) Basic characteristics of the industry
Powder injection molding includes ceramic powder injection molding (PIM) and metal powder injection molding (MIM).
The raw materials upstream of MIM are metal powder and binder. The bonding materials are combined to form a binder, which is mixed with the metal powder according to the proportion of different elements to form a “feed”. It is a process of pressing into the mold cavity through injection molding process, and then sintering at high temperature. It is a typical interdisciplinary product, integrating two completely different processing processes (plastic injection molding and powder metallurgy).
Different from traditional powder metallurgy, metal injection molding (MIM) is an advanced molding technology that combines the advantages of powder metallurgy press molding and plastic injection molding, breaks through the shape limitations of traditional powder metallurgy process, and enables designers to get rid of traditional constraints and obtain low-cost and special-shaped stainless steel, nickel, iron, copper, titanium and other metal parts by plastic molding, Thus, it has greater design freedom than many other production processes.
At the same time, the advantages of plastic injection molding technology can be used to produce precision structural parts with high complexity, high precision, high strength, exquisite appearance and small specifications in large quantities and high efficiency
