KAIFA(SZ:000021)2022-12-03 09:52Company Overview - Shenzhen Changcheng Development Technology Co., Ltd. was established in 1985, initially focusing on hard disk components and later diversifying into semiconductor storage, smart meters, automation equipment, and LED chips [2] - The company ranks among the top twelve global EMS (Electronic Manufacturing Services) providers for five consecutive years [2] Business Segments Hard Disk Business - The demand for personal computers is declining, leading to a decrease in traditional hard disk shipments. However, the growth of the solid-state drive (SSD) market is offsetting some of this decline [2] - The company’s hard disk head and related products have seen varying degrees of decline due to market changes [2] Smart Meter Business - The smart meter segment has experienced rapid growth, aligning with the national "Belt and Road" initiative, expanding into Europe, Southeast Asia, Central Asia, and Africa [3] - The company has established strategic partnerships and secured pilot orders in multiple countries [3] Automation Business - The company has expanded its automation equipment offerings beyond computing and storage to include high-precision assembly, automatic labeling, and non-standard automation [3] Industrial IoT - The company is developing IoT products, including real-time electrostatic protection systems, which have been recognized by clients [4] - The focus is on enhancing competitiveness through the development of core components and platform technologies for industrial IoT [4] Medical Products - The company has shifted production to Malaysia, introducing new medical products and participating in the design and development of various components [4] Solid-State Storage - The company is optimizing production efficiency and reducing operational costs through lean manufacturing and automation [5] Supercapacitors and LED Business - The company has over ten years of experience in supercapacitor production and is expanding its LED product lines, achieving high efficiency levels [5][6] Financial Insights - The company has a negative cash flow from investment activities primarily due to construction investments in Shenzhen and Dongguan [8] - The urban renewal project in Shenzhen is expected to generate substantial cash flow once completed [8] Core Competitiveness - The company’s core strengths include advanced manufacturing technology, a robust quality management system, and a strong international management team [7] - It has maintained a leading position in the EMS industry, consistently ranking among the top twelve globally [7] Future Directions - The company aims to enhance its existing manufacturing services while expanding into telecommunications, consumer electronics, and medical devices [7] - Strategic investments and acquisitions will be pursued to optimize the industrial structure and focus on emerging industries like integrated circuits and new energy vehicles [7] Acquisition and Subsidiary Information - The company acquired Payton Technology in 2015, which provides complete chip testing services for DRAM and Flash products [6][9] - Payton is the only domestic company with a complete industry chain from high-end DRAM/Flash packaging to module production [9]