Create Century(SZ:300083)2020-04-27 16:00Smart Equipment Strategy - The company has implemented a comprehensive smart equipment strategy, focusing on the development of high-end smart equipment business, with a particular emphasis on the high-speed drilling and milling tapping processing centers [8]. - The company is diversifying its product offerings by introducing non-3C general-purpose models and enhancing its capabilities in precision processing for 5G base station components [8]. - The company has established a comprehensive R&D, production, supply, sales, and service system for its CNC machine tool business, targeting sectors such as 5G, 3C consumer electronics, and medical devices [45]. - The company has developed CNC machine tools suitable for 5G base station components, responding quickly to market demands [70]. - The company launched a series of new products for the 5G industry, including high-speed drilling and milling centers, vertical machining centers, and laser cutting machines, receiving positive market feedback [78]. Financial Performance - The company reported a total revenue of RMB 150 million for the fiscal year 2019, representing a year-over-year increase of 15% [27]. - The company reported a basic earnings per share of ¥0.0088 for 2019, compared to a loss of ¥2.01 in 2018 [35]. - The company’s total revenue from raw materials was ¥1,473,847,162.12, which accounted for 95.70% of the operating costs in 2019 [109]. - The company reported a net profit attributable to shareholders in 2019 was ¥12,575,045.19, a significant increase of 100.44% from a loss of ¥2,865,631,424.05 in 2018 [34]. - The company’s total distributable profit for 2019 was -3,699,383,877.64 yuan, resulting in no cash dividends or stock bonuses being issued [185]. Market Expansion and Sales - The company is actively expanding its marketing channels both domestically and internationally, utilizing a combination of direct sales and distribution agents [8]. - Market expansion efforts in Southeast Asia have resulted in a 25% increase in sales in that region [27]. - The company completed the acquisition of a 51% stake in a local competitor, enhancing its market share in the precision components sector [27]. - The company has established a flexible market response mechanism to effectively counter challenges posed by changes in the market environment [8]. - The company aims to enhance its organizational structure and management processes while focusing on talent cultivation and retention to support sustainable development [12]. Research and Development - The company is investing RMB 50 million in R&D for new technologies in smart manufacturing systems [27]. - The company added 159 valid patents in 2019, including 17 invention patents, 121 utility model patents, and 16 design patents [83]. - The company has developed 12 software copyrights and 37 utility model patents in its intelligent manufacturing service business, showcasing its commitment to innovation [58]. - The company has over 300 R&D personnel dedicated to high-end intelligent equipment, providing strong support for sustainable development [77]. - The company emphasizes technology-driven operations, supported by multiple high-end R&D innovation platforms [71]. Organizational Management - The company has faced challenges in organizational and human resource management due to its large scale and ongoing integration of different business segments [9]. - The company plans to maintain a reasonable control over sales, management, and financial expenses, aiming to mitigate risks associated with rising costs and expenses [13]. - The company plans to strengthen group management and optimize its operational structure, focusing on high-end intelligent equipment and intelligent manufacturing services while gradually divesting from the consumer electronics sector [169]. - The company will enhance internal management and talent development, aiming to improve institutional, procedural, and informational management levels in 2020 [172]. - The company has launched a PDM management system to improve data management and collaborative design processes [83]. Investment and Financing - The company is actively pursuing capital market financing to enhance liquidity and operational stability, with plans for non-public stock issuance pending regulatory approval [179]. - The company initiated a non-public stock issuance in February 2020 to optimize its capital structure and enhance core competitiveness, with funds primarily used for repaying bank loans and supplementing working capital [168]. - Cash and cash equivalents increased by 216.88 million yuan, a growth of 46.08%, mainly due to financing received during the reporting period [63]. - The company reported a net cash flow from operating activities of -¥324,897,975.50, a decline of 268.65% compared to -¥88,133,002.44 in 2018 [34]. - The company plans to raise funds through a non-public offering of A-shares, as approved in the board meeting on February 20, 2020, and the subsequent shareholders' meeting on March 9, 2020 [197]. Risk Management - The company faced risks from macroeconomic downturns, including impacts from the US-China trade war and COVID-19, but expects limited effects on its business due to strategic adjustments and new product launches like automated mask machines [173]. - The high-end intelligent equipment sector is experiencing intensified competition and potential technological obsolescence, necessitating timely product strategy adjustments to maintain market demand [174]. - The company is diversifying its high-end intelligent equipment product offerings to mitigate risks associated with customer concentration and market fluctuations, leveraging opportunities from the 5G industry [178]. - The company plans to focus on high-end intelligent equipment and smart manufacturing, which are key areas supported by national policies [151]. - The company is committed to enhancing its technological capabilities and expanding its market presence in the high-end manufacturing sector [150].