[中报]拓邦股份:2021年半年度报告(英文版)
原标题:拓邦股份:2021年半年度报告(英文版) Shenzhen Topband Co., Ltd. Semiannual Report 2021 Topband investor relations applet July 2021 Section I Important Notes, Contents and Definitions The Board of Directors, the Board of Supervisors and directors, supervisors and senior executives of the Company hereby assure that the content set out in the Semiannual Report is true, accurate and complete, and free from any false from any false record, misleading representation or material omission, and are individually and jointly responsible for the content set out therein. Wu Yongqiang, the principal of the Company, Xiang Wei, accounting head, and Xiang Wei, accounting department head (the person in charge of accounting department) hereby certify that the financial report in the Semiannual Report is true, accurate and complete. All directors have attended the Board meeting at which the Report was scrutinized. If the Report involves forward-looking statements such as future plans, they do not constitute the Company's substantive commitments to investors, and investors and relevant persons shall maintain sufficient risk awareness and understand the differences between plans, forecasts and commitments. There is no significant risk affecting the financial condition and sustainable profitability of the Company, but there may be risks of declining market demand, increased competition in the industry, raw material price fluctuations, changes in export tax rebate policy and foreign exchange rate fluctuations due to the macro environment home and abroad. For detailed risk warnings, please refer to the “Possible Risk Factors” in Section III of the Report and investors are advised to pay attention to investment risks. The Company plans not to distribute cash dividends or bonus shares or increase share capital with the provident fund. Contents Section I Important Notes, Contents and Definitions .......................................................................... 2 Section II Company Profile and Main Financial Indicators................................................................. 6 Section III Discussion and Analysis of the Management................................................................... 10 Section IV Corporate Governance ..................................................................................................... 37 Section V Environmental and Social Responsibility ......................................................................... 39 Section VI Important Matters............................................................................................................. 40 Section VII Share Change and Shareholders ..................................................................................... 49 Section VIII Information on Preferred Shares ................................................................................... 58 Section IX Relevant Information of Bonds ........................................................................................ 59 Section X Financial Report ................................................................................................................ 60 Section XI Other Data Submitted .................................................................................................... 225 Directory of documents for future reference I. Accounting statements containing the signatures and seals of the legal representative, the financial head and the accounting department head. II. The originals of all the company documents publicly disclosed in newspapers designated by the CSRC during the reporting period and the original manuscripts of announcements. III. The original of the Semiannual Report 2021 indicating the signature of the chairman. All the above documents are ready and complete, and are available for reference at the office of the Board of Directors of the Company. Definitions Term Definitions Company, the Company, Topband shares Refers to Shenzhen Topband Co., Ltd. Yuan, 10,000 yuan Refers to Yuan, RMB 10,000 CSRC Refers to China Securities Regulatory Commission Exchange Refers to Shenzhen Stock Exchange Reporting period Refers to January 1, 2021 - June 30, 2021 Articles of Association Refers to Articles of Association of Shenzhen Topband Co., Ltd. ORVIBO Refers to Shenzhen ORVIBO Technology Co., Ltd. Chongqing Yiyuan Refers to Chongqing Topband Industrial Co., Ltd. Meanstone Intelligent Refers to Shenzhen Meanstone Intelligent Technology Co., Ltd. Topband Lithium Battery Refers to Shenzhen Topband Lithium Battery Co., Ltd. Ninghui Lithium Battery Refers to Taixing Ninghui Lithium Battery Co., Ltd. Huizhou Topband Refers to Huizhou Topband Electrical Technology Co., Ltd. ICT Refers to Information Communications Technology T-SMART Refers to Topband One-Stop Smart Home Solution AI Refers to Artificial Intelligence BLDC Refers to Brushless DC Motor CELL Refers to Lithium battery monomer BMS Refers to Battery Management System PACK Refers to The packaging, encapsulation and assembly of batteries IPD Refers to Integrated Product Development APP Refers to An application program PaaS Refers to Platform-as-a-Service SaaS Refers to Software-as-a-Service Section II Company Profile and Main Financial Indicators I. Company information Stock abbreviation Topband Stock code 002139 Listed stock exchange Shenzhen Stock Exchange Chinese name of the Company 深圳拓邦股份有限公司 Chinese abbreviation of the Company (if any) 拓邦股份 Name of the Company in foreign language (if any) Shenzhen Topband Co.,Ltd Legal representative of the Company Wu Yongqiang II. Contact person and contact information Secretary of the Board of Directors Representative of securities affairs Name Wen Zhaohui Yang Qiaoqiao Address Topband Industrial Park, Keji Second Road, Shiyan Subdistrict, Baoan District, Shenzhen Topband Industrial Park, Keji Second Road, Shiyan Subdistrict, Baoan District, Shenzhen Tel 0755-26957035 0755-26957035 Fax 0755-26957440 0755-26957440 [email protected] [email protected] III. Other situations 1. Company's contact information Were the Company's registered address, office address and postal code, website and e-mail address changed during the reporting period □ applicable √ not applicable The Company's registered address, office address and postal code, website and e-mail address remained unchanged during the reporting period. For details, please refer to the Annual Report 2020. 2. Information disclosure and storage place Was the location of information disclosure and storage changed during the reporting period □ applicable √ not applicable The name of the information disclosure newspaper selected by the Company, and the website designated by the CSRC that publishes the semiannual report. There was no change in the reporting period of the Company's semiannual report. For details, please refer to the Annual Report 2020. IV. Key accounting data and financial indicators Whether the Company is required to retroactively adjust or restate the accounting data of previous years □ Yes √ No Current reporting period Corresponding period of last year Y-o-y increase /decrease Operating income (yuan) 3,644,045,612.40 1,997,427,900.70 82.44% Net profit attributable to shareholders of listed companies (yuan) 428,185,704.03 208,913,599.16 104.96% Net profit attributable to shareholders of listed company after deducting non-recurring profit and loss (yuan) 319,714,520.44 133,416,997.04 139.64% Net cash flow from operating activities (yuan) -225,705,738.12 119,136,253.19 -289.45% Basic earnings per share (yuan / share) 0.38 0.20 90.00% Diluted earnings per share (yuan / share) 0.37 0.19 94.74% Weighted average return on net assets 11.13% 8.01% 3.12% At the end of the reporting period End of last year Increase or decrease at the end of the reporting period over the same period of last year Total assets (yuan) 8,619,107,470.07 6,808,735,037.28 26.59% Net assets attributable to shareholders of listed companies (yuan) 4,923,684,343.80 3,463,681,980.54 42.15% V. Differences in accounting data under domestic and foreign accounting standards 1. Differences in net profit and net assets between financial reports disclosed in accordance with International Accounting Standards and those disclosed in accordance with PRC GAAP simultaneously □ applicable √ not applicable There is no difference in net profit and net assets between financial reports disclosed in accordance with International Accounting Standards and those disclosed in accordance with PRC GAAP during the reporting period. 2. Differences in net profit and net assets between financial reports disclosed in accordance with foreign accounting standards and those disclosed in accordance with PRC GAAP simultaneously □ applicable √ not applicable There is no difference in net profit and net assets between financial reports disclosed in accordance with foreign accounting standards and those disclosed in accordance with PRC GAAP during the reporting period. VI. Items and amount of non-recurring profit and loss √ applicable □ not applicable Unit: Yuan Items Amount Description Profit and loss on disposal of non-current assets (including the write-off portion of the provision for asset impairment) -465,795.21 Government subsidies recognized in the current profits and losses (except those closely related to the business of the enterprise and enjoyed in a fixed or quantitative amount according to the national uniform standard) 6,479,445.63 Profit and loss from changes in fair value of trading financial assets, derivative financial assets, trading financial liabilities and derivative financial liabilities, and investment income from disposal of trading financial assets, derivative financial assets, trading financial liabilities, derivative financial liabilities and other creditor's rights investments, except for effective hedging business related to the normal business of the Company 122,379,119.84 Other non-operating income and expenses other than those mentioned above -1,672,760.04 Other profit and loss items that meet the definition of non-recurring profit and loss 1,200,855.83 Financing income Less: amount affected by income tax 19,200,380.11 Amount affected by minority shareholder’s interest (after tax) 249,302.35 Total 108,471,183.59 -- For the items of non-recurring profit and loss defined by the Company in accordance with the definition of Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Securities to Public - Non-Recurring Profits and Losses, the reasons why the items of non-recurring profit and loss listed as non-recurring in Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Securities to Public - Non-Recurring Profits and Losses to be defined as recurring profit and loss should be explained. □ applicable √ not applicable During the reporting period, the items of non-recurring profit and loss defined and listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Securities to Public - Non-Recurring Profits and Losses are not defined as the recurring profit and loss. Section III Discussion and Analysis of the Management I. Main businesses during the reporting period (1) Major business scope The Company mainly engages in R&D, production and sales of intelligent control system solutions, i.e., providing diversified customized solutions for four industries of home appliances, tools, industry and new energy, with the “three electrics and one network” technology of electric control, motor, battery and IoT platform as its core. The Company is a global leading provider of intelligent control technology, a pioneer of intelligent control solutions for the home appliances and tool industries, and an innovator in intelligent control solutions for the industry and lithium battery industry. IoT platform Battery technology Motor technology Electric control technology Lithium battery industry Industry sector Tool sector Home appliance sector Core technology layout of "three electrics and one network" Intelligent control business application in "four industries" 1. Core technology of the Company: “three electrics and one network”: electric control, motor, battery technology and IoT platform. 1.1 Electric control technology. The electric control technology is a technology to achieve intelligent control with the microcomputer as the core, including: sensing technology, power electronics, signal processing technology, communication technology, interactive technology, power and energy conversion technology, electromagnetic compatibility and so on. The Company has established hundreds of electric control technology platforms, which completely cover the demand range of products in four major industries. 1.2 Motor technology. The motor technology is a technology that converts electrical energy into kinetic energy. The Company has built dozens of advanced motor technology platforms around various types of motors such as brushless DC motors (BLDC), stepper motors, and servo motors. Among them, the Company takes the lead in the tool motor and motion control industries. Motion control refers to the real-time control of the position, speed and direction of mechanical moving parts, so that such mechanical moving parts move in accordance with the expected trajectory and the specified motion parameters. The motion control system is generally composed of man-machine interaction interface, controller, driver, motor and other components, which are the core components of intelligent manufacturing equipment, and is the premise and basis for the realization of intelligent manufacturing. 1.3 Battery technology. The battery technology is a technology for energy storage and management. The Company has complete design, development customization and production capacities from cell technology (CELL), battery management technology (BMS) to battery pack (PACK). 1.4 IoT platform. The IoT platform is a technology that integrates perception layer, connection layer and application layer, mainly including connection management, device management and application. The Company has formed a complete technical capability from IoT module, intelligent terminal to APP, and PaaS IoT platform, and has developed solutions for more than ten business scenarios. 2. Main products of the Company: customized system solutions to “home appliances, tools, and industry and lithium battery” industries 2.1 Intelligent control of home appliances The Company provides brand customers in the home appliance industry with customized product concepts, design, development, manufacturing and delivery services, including the master control, power control, motor drive and control and display control of home appliances. 2.2 Tool intelligent control The tool industry mainly includes electric tools, garden tools and other professional tools. The Company provides its customers with customized product concepts, design, development, manufacturing and delivery services. The business scope covers electronic controls, motors and batteries, and product forms include controllers, modules and complete machines. 2.3 Lithium battery and its intelligent control The Company mainly provides products and system solutions, including battery cells, battery management system (BMS), battery packs and charging cabinets for communication base station energy storage, home energy storage, power batteries for two- or three- wheeled vehicles and other special vehicles, mobile charging power and IoT. 2.4 Industrial intelligent control In the industrial control industry, the Company’s main business includes research and development, production, sales of step and servo drives and control products with focus on special industrial intelligent control solutions. The Company mainly provides controllers, drivers and motors for downstream automation equipment customers, which are widely used in 3C electronics, robotics, medical equipment, semiconductor equipment, textile machinery, packaging machinery, etc. The Company is committed to helping automation equipment manufacturers improve equipment design performance, reduce equipment manufacturing costs, and speed up the development of new equipment. (2) Industry development prospect, competition situation and industry status The future will be an intelligent society, and intelligentization will be a long-term, lasting and far-reaching change having a wide influence, and will deeply affect modern life, and change product forms at the same time. Intelligent control is the core technology of the future intelligent society and the brain and nervous system of intelligent equipment, and will become the necessity of the intelligent society. We think that the intelligent control industry is a big industry without a ceiling and the next gold mine of the intelligent society. There are currently three trends of shift, concentration and growth in the industry: 1. There is an obvious trend that international market is shifting to China. The shift is accelerated by industrial clusters and the advantages of the engineer bonus in China as products become increasingly complex, individualized and differentiated, requiring fast R&D and product delivery, as well as reliable and consistent quality. 2. Domestic shares are concentrated in the top enterprises. In the past three years, the growth rate and order concentration of leading enterprises have been better than those of other peers. With the development trend of "desinicization" under the trade war, leading enterprises with global operation ability have taken the lead in global layout and accelerated the secondary concentration of the industry; 3. New technology and application development has created space for growth. The expansion of industry applications and the upgrades of technology have accelerated the process of human intelligence, and new technologies such as 5G, IoT, and AI are driving the development of intelligent society, providing the intelligent control industry a historic opportunity. As a global leading provider of intelligent control technology, the Company focuses on the field of intelligent control, adheres to the concept of value creation, and constantly strengthens its technical capabilities, and has formed a comprehensive technology system of “three electrics and one network” for four industries of home appliances, tools, lithium battery application and industry, providing intelligent control solutions for downstream machine manufacturers. Intelligent controllers are technology-intensive products including algorithm and hardware. With the continuous and in-depth development of intelligentization, the rapid iteration of technology will improve intelligent controller ODM (original design manufacturer) customization demands, and brand owners' requirements for technological innovation ability of suppliers will become increasingly higher. Relying on 25 years of continued R&D investment, the Company has core competitiveness in terms of technology and product innovation, and it has become a leader in intelligent control solutions for the home appliance and tool industries, and an innovator in the industry and lithium battery application industry. 1. Home appliance industry The Company is the pioneer and leader in the home appliance control segment in China. In recent years, the global home appliances show a trend of accelerated concentration of brands, and the “head effect” is more and more obvious; on the other hand, a trend of increasingly mature of the IoT technology, accelerated infrastructure construction, and accelerated “intelligent” penetration rate can be found. As the total growth of the global home appliance market is slowing down, in order to gain stronger market competitiveness, major home appliance brand owners are putting forward higher and more comprehensive requirements for upstream solution providers, such as differentiated and innovative solutions, high-quality and low-cost products, and stable and reliable delivery, etc. In addition, international big customers require upstream with multinational localization service capabilities because of increased international trade protectionism. In order to seize the opportunities mentioned above, the Company has adopted a multi-dimensional structured change strategy for customer structure, product structure, cost structure and operation structure to achieve sustained and stable high growth in performance. 1.1 Customer structure: The Company has made some adjustments and optimization on the basis of the “spindle shaped” customer structure, increased the development of global integrated customers (big customers) and actively cultivated innovative customers (sci-tech innovation customers) on the basis of deep cultivation of top customers (strategic customers) in segments. 1.2 Product structure: The Company has increased its investment in product platform and IoT platform, adopted the strategy of “technology platform + product platform + customized solutions”, systematically sorted out hundreds of electric control technology platforms and home appliance product platforms, and increased the efforts of platform reuse to maintain the agility and efficiency of innovation while reducing the marginal cost of customized R&D. The Company can now quickly provide customers with customized services in different application scenarios, gradually playing the pooling effect of the platform, while ensuring the innovation of the solutions. In addition, the IoT platform of the Company can offer customers with one-stop, scenario-based and customizable services, and has now accumulated nearly 100 projects, some of which have already entered the mass production stage. 1.3 Cost structure: After the implementation of centralized purchase, the Company has strengthened the control of key categories and general categories and given full play to the advantages of batch purchase. At the same time, on the basis of ensuring quality and delivery reliability, the Company increased the efforts of cost reduction of solution design and material procurement by using batch production to ensure that customers are provided with high-quality and low-cost products to enhance the overall competitiveness in the customer end. 1.4 Operation structure: In order to meet the demand for localized and agile services for internationalized big customers, the Company has accelerated the construction of domestic operation bases in Yangtze River Delta (Ningbo) and Vietnam (Dong Nai), and sped up the introduction of customers and mass production in India (Pune). 2. Tool industry The tool industry mainly includes electric tools, gardening tools and other professional tools. The user market is mainly concentrated in Europe, the United States and other developed countries and regions, with high brand concentration and high requirements for quality. In recent years, the tool industry has ushered in the opportunity of “oil to electricity” and “cordless” technology upgrading. Many products powered by fuel before have been gradually powered by lithium batteries instead. The battery, electric control and electric of the products motor also need to be upgraded. At the same time, some domestic traditional OEMs start to conduct industrial upgrading and branding operations, and gradually show up prominently. In addition, since the tools are mainly exported to developed regions such as Europe and the United States, and they are greatly affected by trade policies and tariffs, the Company is also required to have overseas delivery capabilities. As the leader of the subdivided tool control industry in China, the Company has the unique competitive advantage of "electric control + motor + battery", playing a unique value in promoting the development of the tool industry. In terms of customer strategy, the Company adopts the strategy of "international big customers as the main, regional customers as a supplement". Customers are mainly divided into American, European, Japanese and domestic customers. At present, the Company has cooperated with most leading customers in the industry; in terms of the industrial chain, the Company has a unique technological combination of "electric control + motor + battery + Internet of Things platform", provides diversified services from "controller + motor + battery pack" components to "module" and "whole machine", and continuously introduces products and solutions with high added value to meet the rapid innovation needs of the industry; in terms of product structure, in the mode of "technology platform + product platform + customized solutions", the Company has focused on increasing the development and promotion of "oil to electricity" and "cordless" solutions, and formed a deep cooperation relationship with customers; in terms of regional operation, the Company has accelerated the delivery of overseas bases such as Vietnam and India, and actively cooperated with the needs of some overseas customers for international and domestic delivery. 3. Lithium battery application industry In the context of global energy revolution, new energy represented by lithium battery is rapidly replacing traditional fossil energy and lead-acid batteries, etc. The lithium battery industry is divided into general and specialized segments. The general segment mainly refers to new energy vehicle batteries, standard batteries, etc. Due to continuous progress of technology, increased competition and economies of scale, the cost of lithium batteries in the general segment continues to decrease, with serious homogenization and fierce price competition. The specialized segment is for a large number of customized batteries for various industries, such as communications, power conversion, IoT, special vehicles, recreational vehicles, home storage and ships. Although the single market size of the specialized lithium battery is relatively small, but the added value is also relatively high. The prospect of lithium battery for replacing the original fuel power or lead-acid battery is very broad, and opportunities for large-scale applications in many market segments are produced. The Company focuses on the specialized segment of lithium battery, with “energy storage + small-scale power” as the main development direction, and achieves sustained rapid development in a number of market segments relying on safe and innovative technology and products. In the field of communications, with the construction of 5G and other “new infrastructure” information infrastructures, a large number of equipment that originally achieve energy storage for electricity with lead-acid batteries need to be provided with lithium batteries instead; in the field of electricity, due to the high volatility of PV, wind power and other new energy generation, new energy power stations are required to be provided with a certain proportion of lithium battery energy storage, bringing opportunities for market growth of energy storage on the power generation side; in the field of individuals and families, as a portable and environmentally friendly source of energy, lithium battery offers convenient and intelligent experience for home energy management and use, low-speed vehicle power and consumer electronics, and its scope of application is gradually expanded. In terms of technology and products, based on the comprehensive advantages of "battery + electronic control + Internet of Things platform", the Company has the ability of R&D, manufacturing and packing of multiple types of cells, and provides solutions from cells and the battery management system (BMS) to the Internet of Things system. 4. Industrial control industry In recent years, the efforts of policy support and industrial support for the intelligent manufacturing equipment industry have been further strengthened in China, the domestic substitution has accelerated, the capacity of domestic industrial control market has increased significantly, and the industry maintains the momentum of sound development. At present, there is still a large space for improving the overall degree of localization of industrial and automation equipment, and there are medium- and long-term opportunities to develop domestic substitution for core control components. Compared to the giant companies of foreign industrial control, there are absolute advantages for the localization solution in terms of cost. At present, the breakthroughs of core technology and product reliability verification have gradually matured, and the domestic substitution trend is irreversible and has great prospects. The Company has a leading domestic market share in the field of stepper motor industrial control and is in the first echelon in the field of servo motor industrial control. The Company now has more than 3,000 automation equipment manufacturer customers, with whom it has established and maintained continuous and stable cooperative relationships directly. The Company has advanced technology in servo motor control solution, and has made the products pass three iterations to achieve large-scale applications. The Company actively promotes servo products based on existing customers, and continues to develop 3C, semiconductor equipment, textile machinery, medical devices and other segments. II. Core competitiveness analysis 1. Platform-based technological innovation capability. With the technology as DNA and the innovation as the gene of development, the Company has formed a unique innovation leading capability. The Company has accumulated and formed the most complete technology platform in the industry, with capabilities for in-depth understanding of various control mechanisms, independent implementation and industry leading, covering all aspects of core technologies of intelligent control integration solutions, such as: intelligent control algorithms, motor electric control, sensing, man-machine interaction, image recognition, power technology, Android technology, temperature control technology, heating, cooling, etc. The Company has the most abundant product lines in its industry, each of which has accumulated and formed a complete, mass-production-proven product platform covering white home appliances, small home appliances, power tools, gardening tools, intelligent hardware, smart campus, consumer electronics and other fields, and can quickly provide customers with the best and most guaranteed customized solutions. In addition, the Company has a unique overall solution capacity of “intelligent controller + high efficiency motor + lithium battery” in industry, further strengthening the capacity of the Company to lead the technology. 2. Partnership-based customer service capability. The Company takes “agile innovation partner” as its technology value proposition, and develops partnership with customers with the development concept of value co-creation and value co-win. Relying on the advantage of leading technology capacity and based on the deep insight of customer needs, the Company has formed the partnership-based customer service capacity with the fastest response and the most powerful value creation, established in-depth cooperation partnership with domestic and foreign excellent brand customers in various business fields, and formed a good reputation and brand reputation in the industry. The partnership-based customer service capacity is widely recognized and praised by customers. 3. Systematic rapid response capability. With the development of ICT technology and the accelerated speed of global innovation iteration, the services provided by the Company to customers increasingly need to be more agile in terms of operation. Based on a deep understanding of the intelligent control business, the Company has created a strong platform system from the implementation of IPD concept of R&D and design process, ISC reform of core customers of supply chain system, laboratory and quality assurance system, and intelligent manufacturing platform system, internalizing the strengths and capabilities of the Company into agile capabilities of operation, thus further strengthening the differentiated capabilities of rapid innovation and response, and guarantee sustainable and high-speed growth of the Company. III. Main business analysis Refer to "I. Main businesses during the reporting period" for the main business contents of the Company. The analysis of the operation in the reporting period is as follows: (1) Semiannual operating performance and core operating indicators in 2021 The year 2021 is the beginning of the 14th five-year plan. Scientific and technological innovation, peak carbon dioxide emissions and carbon neutralization will be the two important factors in the next stage of economic growth. The Company's intelligent control and lithium battery application business complied with national economic development and achieved good growth during the reporting period. In the first half of 2021, the epidemic at home and abroad still recurred, sometimes had a local rebound, and was not fundamentally controlled yet. In the face of the complex and changeable business environment such as the rise in the price of raw materials and the shortage of goods under the influence of the epidemic and inflation, the Company's management actively responded, and seized the opportunity of intelligent upgrading and demand concentration enhancement depending on its product power, technology platform innovation power, ISC integrated supply chain and strong systematic management ability accumulated for many years. In the face of risks and difficulties, we chose to face them together with our customers and overcome difficulties together with our upstream and downstream partners, and obtained the trust of downstream customers, the opportunity of incremental orders, and the supply support of upstream suppliers. In the first half of 2021, with the efforts of all Topband people, the performance achieved relatively high-speed growth, and various business indicators continued to be improved. During the reporting period, the Company realized an operating income of 3.644 billion yuan with a year-on-year growth of 82.44%, a net profit attributable to the listed company in the amount of 428 million yuan with a year-on-year growth of 104.96%, and a net profit attributable to the shareholders of the listed company in the amount of 320 million yuan after deduction of non-recurring profit and loss with a year-on-year growth of 139.64%. During the semiannual period of 2021, focusing on the business objectives set at the beginning of the year, the Company has made breakthroughs in the following aspects: 1. Demand side: With the accelerated arrival of the intelligent society, the industry development has entered the fast lane and will be a long-term process, the application scenarios of intelligent controllers continue to expand, and the downstream demand still maintains a high degree of prosperity. The competitive advantage of China’s supply chain in the world has been revealed, and overseas production capacity has continued to transfer to China and Southeast Asia. At the same time, the industry is centralizing to the top. As a leading enterprise of intelligent controller, the Company’s industry position and market share are increasing year by year. In the first half of 2021, the Company's operating income increased by 82.44% on a year-on-year basis. After deduction of the low base during the epidemic in the first half of last year, the compound growth rate of income in the past three years reached 44.10%. In the first half of 2021, the four major industries achieved rapid growth on a year-on-year basis, and the advantageous sector still maintained a strong growth trend. The operating income of home appliances accounted for 45% of operating income, with a year-on-year growth rate of 90%, and the proportion of innovative intelligent devices increased rapidly; the operating income of the tool sector accounted for 37% of operating income, which doubled year-on-year. The leading position and advantages in the industry have been further reflected. 2. Supply side: In the first half of 2021, the factors related to the shortage of raw materials and the continuous rise in prices become more severe from both year-on-year and month-on-month perspectives. The Company's management arranged in advance, responded actively, and put ensuring supply safety in the primary position of operation. We ensured the timely delivery of customers’ orders by actively communicating with customers about demand plans, preparing goods in advance, substituting domestic goods for imported ones or otherwise, and hence reduced the impact of the rise in price and the shortage of goods on operating profits in the reporting period. During the reporting period, adversely affected by the appreciation of the RMB exchange rate and the sharp rise in the price of upstream raw materials, the average gross profit rate of the Company was 24.11% with a slight year-on-year increase. The Company's anti-risk ability and management ability have been rapidly improved. 3. Core competitiveness: The Company adheres to the mission of creating value for customers and society, always takes "technological innovation" as its engine, continuously deepens the technological leading ability and constructs a new driving force for enterprise development. During the reporting period, the total R&D investment was 234 million yuan with a year-on-year growth of 40.12%, accounting for 4.74% of the Company's net assets attributable to the parent company and 6.41% of the operating income. While increasing investment in technological innovation, the Company has strengthened the protection of intellectual property rights and technological achievements. By the end of the reporting period, the Company and its subsidiaries had applied for 1,947 patents, including 720 invention patents, 1,002 utility models, 163 appearance designs, 12 foreign patents and 50 PCTs; the Company and its subsidiaries had applied for 73 software copyrights and made 294 trademark applications in total. During the reporting period, the proportion of income from innovative products and high value-added products increased steadily, and the product structure and customer structure continued to be optimized. 4. Progress of core strategy: In the first half of 2021, the Company's five core strategies were promoted simultaneously. The number and share of top customers increased steadily, and the income increased rapidly on a year-on-year basis; the Company's technological innovation and leading ability continued to deepen, and the proportion of income from innovative products and high value-added products increased steadily during the reporting period; the measures for increasing efficiency and reducing cost were continuously promoted, and the organization and the process system were further improved to provide strong support and guarantee for the rapid development of business. 5. Globalization layout and layout of main production capacity: The production capacity was improved steadily, with rapidly boosting globalization layout, ensuring the fast growth of the business. We are an international company with customers all over the world. Focus on the strategy of “customer intimacy”, we serve customers closely and improve the service responsiveness and the service quality further. According to the needs of business development, more than ten regional operation centers, manufacturing centers, R&D centers and representative offices have been established in many places around the world, including the United States, Japan, Germany, India and Vietnam. The globalization layout has been promoted rapidly, and overseas operation centers such as those in Eastern Europe and North America have been actively prepared to accelerate the globalization layout and realize agile delivery. The current main production capacity layout of the Company is as follows: The Pearl River Delta: Include the Shenzhen headquarters and Huizhou. The subsidiary in Huizhou is the main source of production capacity. Through the rapid improvement of production efficiency in 2020, the current production capacity and quality are stable. At the same time, some rented plants have been added to meet the rapidly growing demand; The Yangtze River Delta: The main plant site in Ningbo operation base has been completed, which is estimated to be put into operation service in the second half of 2021. Southeast Asia - Vietnam: In the first half of 2021, although the sub-subsidiary in Binh Duong, Vietnam (Phase I) was affected by the epidemic, the Company overcame many difficulties including those related to personnel and materials, and helped customers realize the agility and security of the supply chain. It only took half a year for the main body of Phase II in Vietnam to be capped in the reporting period, and it is expected to be completed by the end of 2021 and gradually release production capacity; Southeast Asia - India: India is the hardest hit area of the epidemic this year. In the first half of the year, the Company overcame many difficulties and achieved the goal set at the beginning of the reporting period through remote office means such as video and network. During the reporting period, the Indian subsidiary also obtained the BIS product certification certificate of variable frequency air conditioning controllers in India as issued by the Bureau of Indian Standards (BIS).As one of the first enterprises that have passed this certification in the world, Topband has successfully demonstrated its excellent technology and leading position in the field of intelligent control, adding powerful strength to its overseas market expansion. 6. Capital operation: (1) During the reporting period, the Company privately issued 92,105,263 A-share stocks to 14 subscribers, raising 1.05 billion yuan in total, the privately issued shares were listed on Shenzhen Stock Exchange on June 3, (未完) ![]() |