Zhuoyi Technology (002369)’s 2020 semi-annual board of directors operating review contains the following content:
1. Overview
During the reporting period, due to the new crown epidemic and the company’s core Due to factors such as domestic substitution of customer supply chains, the company's industry as a whole showed a trend of first decline and then increase in the first half of 2020. In the first quarter of 2020, although sales orders increased thanks to the rebound in demand in areas such as network communications, the overall industry situation is still not optimistic due to the impact of the COVID-19 epidemic. Starting from the end of the first quarter, as the domestic epidemic situation was effectively controlled, production in various domestic industries was able to quickly resume, and sales gradually returned to normal.
During the reporting period, the company followed the relevant guidelines of the State Council and the Ministry of Industry and Information Technology, closely focused on the country's strategic layout in new infrastructure fields such as "intelligent manufacturing" and "industrial Internet", and continued to implement the annual business plan formulated by the board of directors. Implement the business development strategy of "big manufacturing, big customers, big innovation", create a "1+N+X" product development system, and carry out various business and management activities in an orderly manner. The specific work is as follows:
1. Actively fight against the epidemic and promote the resumption of work and production in an orderly manner
In the face of the sudden new crown epidemic, the company, as a labor-intensive enterprise, shoulders the huge task of fighting the epidemic. pressure. On the one hand, the company quickly established an emergency response and responsibility mechanism in accordance with relevant requirements, stocked up on anti-epidemic materials, and focused on controlling the more than 3,000 employees who stayed in the factory. During the anti-epidemic process, no one was infected or diagnosed. While fighting the battle against the epidemic, we are actively preparing to resume work and production. On the other hand, it actively fulfilled its obligations as a listed company, paid full wages to all employees, and recruited a number of new Hubei migrant workers stranded in Shenzhen. Many media such as China Labor and Social Security News and Shenzhen Special Zone News reported this Reported and won social recognition.
The company's rapid response mechanism has completed the set delivery targets with high quality and quantity, and has been highly recognized by core customers, which has also brought about half-year revenue growth.
2. Seize opportunities and deeply explore potential markets
On May 22, 2020, the "2020 State Council Government Work Report" proposed to focus on supporting the "two new and one heavy" (new Infrastructure, new urbanization, transportation, water conservancy and other major projects) construction. New infrastructure construction mainly includes seven major areas, including 5G base station construction, artificial intelligence, and industrial Internet. The company seizes the opportunities of the times given by national policies and the market, accelerates the layout of 5G peripheral products, emerging intelligent hardware, etc., and introduced WIFI6 in the first quarter Routers, 5G mobile phones and other cutting-edge products, and become the core supplier or even the exclusive supplier to strategic customers.
Thanks to the company's forward-looking layout and deep cultivation of strategic customers, under the impact of the epidemic, the company achieved revenue of 1.547 billion yuan in the first half of 2020, an increase of 16.4% over the same period last year, a strong performance.
3. Driven by innovation, activate new momentum for development
The company continues to increase investment in research and development, and the technology research and development work in 2020 will still focus on products and fields such as 5G, Internet of Things, and TWS headsets. At the same time, the company is equipped with R&D project awards to form a continuous innovation mechanism. It currently has more than 170 invention patents and utility models.
Advanced production equipment, excellent engineering and technical capabilities and a complete R&D system help the company continue to maintain its leading position in technology and products among domestic peers, and constantly activate new momentum for the company's development. At the same time, the company is targeting the huge growth space in the smart wearable market. In the second quarter of 2020, the company independently developed and produced TWS headsets. The main customers served in the future will focus on first-line mobile phone brand customers, smart wearable e-commerce customers and professional audio manufacturer customers. , is expected to achieve good market performance.
4. Parallel capital to help the company expand steadily
In May 2020, the company launched the "2020 Non-public Issuance of A Shares Plan" and planned to issue no more than 173,372,011 shares. The raised funds will not exceed 1.22 billion yuan, which will be used for Wuhan production base construction projects and Xiamen TWS headsets and other IoT product production base construction projects. Wuhan Jiangxia District Government and Xiamen Torch Group each plan to subscribe for 300 million yuan of the company's shares through their investment platforms to promote the smooth implementation of the company's investment projects.
On the one hand, this financing can solve the company's production capacity bottleneck, improve supply capacity, and further expand its business scale. On the other hand, it can effectively boost the economic construction of the epidemic area and drive local economic development.
2. Risks faced by the company and countermeasures 1. Risks of intensified market competition In recent years, international trade frictions have occurred from time to time, and trade protectionism and unilateralism have been on the rise; in the first half of 2020, the new crown epidemic The raging pneumonia epidemic around the world has further catalyzed conflicts in international trade and disrupted the allocation of resources on an international scale. In the context of changing international trade situations and increasing uncertainty, other companies in the same industry that originally implemented globalization strategies may focus more on domestic development, thus intensifying competition in the domestic market. If the company fails to adjust its business strategy, business structure, etc. in a timely manner to cope with fierce market competition, the company's domestic market share may face certain challenges. In order to deal with this risk, the company will comprehensively optimize the company's organizational structure internally, improve operational efficiency, and formulate a scientific incentive system to introduce and retain talents to meet the company's needs to participate in market competition and develop itself; externally, the company will actively expand its business boundaries and continue to strengthen Technology research and development, improving quality control capabilities, enhancing the core competitiveness of technology, products, and services, and enhancing customer stickiness with high-quality and efficient services. 2. Human resources risk The business involved in the company is labor-intensive and technology-intensive. The steady expansion of the company's business scale and the expansion of new businesses will require greater demand for production labor and business-related technical personnel. If the implementation results of the company's recruitment plan are not consistent with If the company's business development is not suitable, it may lead to the risk of insufficient supply of human resources. In addition, the company's production requires a large number of front-line production workers. If labor prices rise in the future, it may face the risk of rising labor costs. The company will scientifically formulate human resources planning, formulate corresponding human resources organization and development plans based on the company's development goals, and reasonably allocate and arrange the quantity, quality, and structure of human resources; rationally formulate performance management, fully mobilize work enthusiasm, and improve Work efficiency; improve the incentive system to attract and retain talents; at the same time, improve the automation level of the production workshop, improve and refine the cost control system, implement refined management of the production line, control costs and prevent risks. 3. Operation and management risks The company has many subsidiaries, and its business coverage continues to expand. After early technology accumulation and reserves, the company has released the classic China Red true wireless Bluetooth headset ZT101, and the company's business will expand into the field of true wireless Bluetooth headsets. As a new manufacturer in the TWS field, the company faces strong competition from existing manufacturers in the TWS field. If the company fails to effectively respond to market competition and fails to win among many TWS manufacturers in the customer development and contact stage, the company's new products will face greater operating risks. At the same time, as the company scale expands, it brings certain challenges to corporate governance, management systems, operating systems and other aspects. If the company's management cannot adapt to the needs of scale expansion in a timely manner, the company's market competitiveness will be weakened and may have a negative impact on the company's operating performance. The company will maintain a stable operating style, strive to add value to products and services, actively develop customers, create value for customers with products and services, and impress customers with sincerity and details; actively manage and control its own operating risks, and through management intensification and informatization, Institutionalization of production management and optimization of processes will further improve the company's operation and management level. At the same time, the company will continue to improve its internal organizational structure, optimize human resource allocation and process systems, and strengthen internal control and risk management.
3. Analysis of core competitiveness After more than ten years of development and accumulation, the company focuses on customer service, adheres to the central idea of ??"big customers, big manufacturing, and big innovation", and relies on core capabilities to form a company Competitive advantages are mainly reflected in the following aspects: 1. Core customer service advantages The company has been deeply engaged in intelligent manufacturing for more than ten years, and has formed a good reputation in the industry for technological leadership and stable quality, and has formed a customer base mainly composed of H customers and Xiaomi. The company attaches great importance to customer relationship management, stays close to its core customers, promptly responds to customer needs, optimizes the company's resource allocation, and adds value through multiple channels to provide customers with branded, differentiated, innovative and high-quality services.
Through in-depth understanding of customer needs, in-depth exploration of new product research and development and high-end manufacturing, we assist customers in shortening product development cycles, and rely on advanced technology, high-quality products and professional services to meet customer needs and gain widespread recognition from customers. The company's products , technology, service, delivery and other aspects have been highly recognized by customers, such as the "Quality Guardian Award" awarded by H customers in 2019. 2. Leading products gather advantages. The company is committed to building a product development system with "1+N+X" as the core, focusing on the main communications business and the "1" leader in mobile phones, and leading the "N" hot products in peripheral IoT products. , and at the same time proactively lay out "X" future emerging industries. While adhering to its main business, the company proactively deploys emerging industries and extends the possibility of more technological innovation in the future. The overall context of the company's operations is in line with industry development trends. As products, customers and the company's core capabilities change, the company has been facing the future, making advanced layouts to match customer needs, and forming a product cluster focusing on communications and mobile phones. The company's 5G products, such as Wi-Fi6 routers, 5GCPE, 5G mobile phones and other hot products, have performed brilliantly in the market, driving up the company's business growth, and the convergence of leading products has obvious advantages. 3. Intelligent manufacturing driving advantages The company takes decades of manufacturing experience as the cornerstone and strong technical strength as the starting point to lead the high-quality development of intelligent manufacturing. It has more than 70 advanced SMT production lines and an industry-leading high-speed and high-precision dual-track patch line, which can complete double-sided patching of products in a "one-stop" manner. It can carry out large-scale, high-standard, standardized product manufacturing to satisfy customers. The demand for high-volume product production. The company has specially set up an automation division and a robot company, and has developed a series of automation equipment by itself to replace manual labor in various aspects such as assembly, testing, and packaging, and to realize intelligent production lines. At the same time, the company has a self-developed MES smart factory system, which can realize efficient operation between production information and automation equipment under the Internet mode. It has established a transmission data link between production information and fully automated production line equipment, integrating scientific and reasonable production. Instructions are issued directly to the fully automatic production line, and the overall manufacturing capacity is at the leading level in the industry. 4. Innovation technology leads the advantage. As an efficiency-driven one-stop intelligent terminal product solution provider, the company has excellent R&D and design capabilities, from R&D and design, new product development, small batch trial production, large-volume mass production, to Global logistics services. The company gives full play to its advantages in resource integration, vertically integrates design and manufacturing, achieves rapid mass production and efficient supply, and responds quickly and efficiently to customer needs. As a national high-tech enterprise, the company has set up R&D centers in Shenzhen, Xiamen, Xi'an, Tianjin and Wuhan, and has more than 170 invention patents, utility models and software monographs. With its deep technical reserves and leading R&D capabilities, we ensure existing customer resources and long-term and stable strategic cooperative relationships. Proactively deploying emerging technologies such as 5G, industrial robots, mobile wearables, and intelligent hardware. With the increase in R&D investment and accumulation of R&D experience, the company has established a complete core technology system and has become one of the company's core competitive advantages.