Our reporter Chen Hong

On November 16, Suzhou Wanxiang Technology Co., Ltd. (stock abbreviation "Wanxiang Technology", stock code "301180") was officially listed on the Growth Enterprise Market of Shenzhen Stock Exchange.

As of the close of the day, Wanxiang Technology reported 37.33 yuan, an increase of 205.98%, an amplitude of 36.23%, a turnover of 1.053 billion yuan, a turnover rate of 73.49%, and a total market value of 14.932 billion yuan.

A brokerage analyst said in an interview with the Securities Daily: "The successful listing of Wanxiang Technology will accelerate the implementation of projects such as the production of micro-lithium-ion batteries and precision components, and will also help enhance its R&D and innovation capabilities. The company's main services In the consumer electronics industry, the consumer electronics sector has been booming in recent years and has broad development prospects. After this listing, the company is expected to start a new growth cycle with the blessing of the capital market."

Steady growth in operating performance

It is understood that after nearly 20 years of development, Wanxiang Technology has gradually grown from a mold factory to a comprehensive consumer electronics precision component manufacturer, which is mainly engaged in the research and development, production and sales of consumer electronics precision components.

At present, Wanxiang Technology has formed stable cooperation with well-known consumer electronic terminal brands such as Apple, HP, Dell, Huawei, and Microsoft. Its products are widely used in mainstream consumer electronic products such as notebook computers, tablet computers, mobile phones and smart wearable devices. As of the end of September 2021, the company's total assets reached 1.338 billion yuan.

Judging from the financial data compiled by a reporter from the Securities Daily, from 2018 to 2020 and January to September 2021, the company's operating income was 701 million yuan, 710 million yuan, 1.111 billion yuan and 988 million yuan, respectively; net profit They were 37.809 million yuan, 73.523 million yuan, 117 million yuan and 136 million yuan respectively, showing a trend of steady growth.

Among them, from 2018 to 2020 and the first half of 2021, the main products thermal protection components and digital transmission control integrated components together accounted for 76.25%, 74.67%, 70.60% and 70.56% of the company's total revenue, all exceeding 70% .

Behind the performance growth is inseparable from the continuous investment in research and development. The "Securities Daily" reporter noted that through years of continuous innovation, Wanxiang Technology has mastered a number of core technologies in the field of precision component manufacturing, including precision mold manufacturing technology, in-mold manipulator technology, and straight-through packaging technology, etc.; At the same time, the company has gradually realized the automated production of core processes through continuous process design, process verification and automated introduction; in addition, the company actively further extends the industry chain and independently develops micro-lithium-ion battery products that can be applied to smart wearable devices, etc. Miniature smart terminal.

According to Huang Jun, Chairman of Wanxiang Technology, introduced to reporters: “At this stage, the company’s first-generation micro-lithium-ion battery products have been fully tested, and the product performance has reached the mainstream market level. As of the signing date of the prospectus, the wholly-owned subsidiary Changzhou Micro Zhou has begun mass production and product delivery of micro-lithium-ion batteries."

Up to now, Wanxiang Technology and its holding subsidiaries have a total of 99 domestic patents, including 9 invention patents, 87 utility models, 3 design patents, and 3 overseas patents.

It is worth mentioning that with its excellent R&D and production capabilities, Wanxiang Technology has been assessed as a "high-tech enterprise", "Jiangsu Engineering Technology Research Center", "Jiangsu Province Informatization and Industrialization Pilot Enterprise" and "Suzhou "City-level Enterprise Technology Center", and was included in the Suzhou "Gazelle Project" business directory.

The industry has a broad market prospect

In recent years, with the rapid rise of emerging electronic products such as 5G mobile phones, smart homes, Internet of Things, mobile medical care, and wearable devices, people’s demand for electronic products continues to rise, and my country's consumer electronics precision component manufacturing industry is also ushering in new opportunities .

In order to seize industry development opportunities, Wanxiang Technology raised a total of 488 million yuan this time, which will be used for new micro-lithium-ion battery and precision parts production projects, notebook computer appearance structural parts industrialization projects, and consumer electronics precision components processing automation Upgrade projects and supplement working capital.

Precision component manufacturing is one of the important links in the consumer electronics industry chain. Talking about the development prospects of the industry, Bu Rixin, a partner of InnoPath Investment Consulting, said in an interview with a reporter from Securities Daily: "With the development of 5G, the consumer electronics precision market has a very broad prospect. 5G means high-speed network transmission capabilities Efficient data processing capabilities have further improved the number and performance of terminal chips and devices. Especially with the development trend of ultra-thin, full-screen, low power consumption, and large battery capacity in mobile phones and laptops, the structural parts of terminal equipment must also be adapted This trend has higher requirements for compactness and precision; at the same time, mainstream consumer electronics terminal brands usually exercise necessary control over the supply chain system including precision component manufacturers, and they will have higher requirements for suppliers in the future. Access requirements."

Zhang Xiaorong, Dean of Deepin Technology Research Institute, believes: “The entire industry is highly competitive. There are as many as thousands of precision component companies in the world, and the number of leading companies is small. Although the shipment of smart terminals has declined slightly in the past two years, the number of smart phones Shipments remain at more than 1.37 billion units, and the total shipments of tablets and notebooks remain at more than 300 million units. The market fundamentals are still improving. With the development of 5G, the future industry space is still huge."

Song Qinghui, the founder of Qinghui Think Tank, told a reporter from the Securities Daily: “Due to the many characteristics of consumer electronics products such as multiple brands and fast performance updates, coupled with the strong demand for electronic products from homes in the global epidemic, the company is in The development prospects of the consumer electronics precision components industry are broad and it is worth looking forward to. Wanxiang Technology currently intends to deploy micro-lithium-ion batteries. The prospects in this field are also extremely broad and the market scale is large. Especially with the level of wireless communications and consumer electronic products. With the improvement of the market, the market demand for micro-lithium-ion batteries continues to expand."

Looking forward to the future, Wanxiang Technology said: "To further consolidate the market position of consumer electronics precision components manufacturing industry and enhance its comprehensive competitiveness, it plans to carry out industrial expansion and process upgrades around core technologies; at the same time, it will strengthen the overall linkage with customers. Enhance the depth of cooperation with customers and the breadth of coverage, and form a precision manufacturing business covering various consumer electronics products, smart wearable products, power batteries and other fields."

It is worth mentioning that, thanks to the scale effect brought by the increase in demand for notebook computers and the expansion of the company’s production and sales scale, Wanxiang Technology predicts that the achievable operating income range in 2021 will be between 1.26 billion yuan and 1.54 billion yuan, compared with the previous year. The range of change over the same period is 13.42% to 38.62%; it is expected that the net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses will be realized in 2021 to be between 167 million yuan and 204 million yuan, which is a change from the same period last year. From 76.73% to 116.01%.

(Edit Sun Qian)