January 16 evening, fine research science and technology (300709) announced the termination of fund-raising to expand production plans, consumer electronics downstream customers to cut orders, cut the price of fine research science and technology operation of the negative impact continues to appear.
This is following last Friday (January 13), the fine research science and technology forecast 2022 annual results from profit to loss after the release of the second negative news. Although the management of Fine Tech has apologized for the significant fluctuations in performance, but still failed to reverse the pessimism of investors, Fine Tech on January 16 released a 14.76% plunge.
Termination of fund-raising to expand production
Jingyan Technology disclosed on the evening of January 16 announced that the termination of the issue of convertible bonds to unspecified objects.
According to the company's previous disclosure of the program, the fine research and technology of the issue of convertible bonds originally intended to raise 594 million yuan, invested in the "new high-precision, high-performance drivetrain components production project" "MIM production line intelligent informationization upgrade and transformation project "as well as" supplementary working capital ".
Of these, the main products corresponding to the "new high-precision, high-performance drive system components production project" include smartphone flexible screen spindle, smart TV camera lifting mechanism. The upgrading of the MIM production line is aimed at improving the flexible production capacity of MIM products and strengthening the manufacturing level of MIM components including tungsten alloy base materials, etc. MIM technology is a kind of powder metallurgy near-net-forming technology mainly used in the consumer electronics industry, which is an area that JingRan Science and Technology has been y engaged in for a long time.
The convertible bond fund-raising program as early as August last year through the Shenzhen Stock Exchange audit, in September last year that was approved by the Securities and Futures Commission, but the delay in the implementation of the project on the ground.
Talking about the termination of the fund-raising reasons, fine research technology explained that: after obtaining the approval of the Securities and Futures Commission, the company actively work with intermediaries to promote the issue of the work. However, in the context of changes in the macroeconomic environment at home and abroad, affected by customer design changes, supply chain management strategy, end demand decline and other factors, the follow-up demand for some projects there is great uncertainty. Combined with the current capital market policy, macroeconomic environment and the actual situation of the company, in order to safeguard the interests of the majority of investors, after full communication with all parties, decided to terminate the issue of convertible bonds.
Jingyan Technology emphasizes that the company's decision to terminate the issue is based on the overall market environment and the actual situation of the company, after full discussion with all parties, and will not have a significant adverse impact on the normal production and operation of the company, and there is no damage to the company and all the shareholders, in particular the interests of small and medium-sized shareholders.
2022 customers cut orders, cut prices
Termination of fund-raising to expand production, what to maintain the interests of the majority of investors? The answer is that the consumer electronics business, which Precision Technology originally planned to ramp up, is facing an unfavorable situation in which downstream customers are cutting orders and prices.
Scientific Research Technology on January 13th disclosed performance forecast, the company is expected to 2022 annual loss of 190 million yuan to 245 million yuan, the company made a profit of 197 million yuan in the same period last year. This performance guide greatly exceeded the market expectations, after all, the company also realized a profit of 151 million yuan in the first three quarters, there is a small increase of 11.24%. Results after the disclosure of the first trading day, the fine research and technology on January 16, volume plummeted 14.76%, the maximum intraday drop once close to 18%.
Scientific Research Technology held a conference call yesterday, the company's chairman, general manager Wang Mingxi and other appearances on the performance of the large fluctuations "solemn apology" and make a detailed explanation.
According to the management of JingRen Technology, the company's loss in 2022 is mainly due to three aspects, two of which are related to the core business MIM segment:
One is that the MIM segment to make up for the provision for the decline in the value of inventories of 100 million yuan to 120 million yuan, the fixed assets impairment provision of 170 million yuan to 177 million yuan, the total impact of the projected 27 million yuan to 297 million yuan;
Another reason is that the company's performance is so volatile that the company has to make a solemn apology and make a detailed explanation. billion;
The second is that the MIM business declined significantly in the fourth quarter, resulting in a single-quarter profit loss.
In addition, Fine Tech also made up inventory write-downs and goodwill impairment provisions for acoustic business company Antec, with a combined impact of 50 million yuan to 65 million yuan.
Fine Research Technology originally had high expectations for 2022, with a goal set at the beginning of the year of completing sales of 3 billion yuan, and as a comparison, the company's total operating income in 2021 was 2.4 billion yuan. But against the backdrop of weak global consumption and weaker-than-expected end-customer demand, Seiken Technology failed to meet its performance target.
Jingyan Technology said that some customers in 2022 appeared to cut orders or even project cancellation. Since the third quarter, the industry competition is intense, frequent bidding after the product unit price drop significantly. 2022 overseas customers continued price reduction strategy seriously affect the company's profitability. At the same time, the consumer electronics industry customers to price share, the share of orders after the successive bidding changes, the continuity and stability of the order there is also uncertainty.
What about 2023?
Since the end of 2022, consumer electronics downstream enterprises to the upper reaches of the cut orders, cut the price of the rumors are endless. since January Desai batteries, Lixin Precision have stepped forward to pass the cooperation with large customers is still normal to carry out the positive information. However, Geer shares in December last year disclosed performance forecast revision announcement, said a major customer suspended production of one of its intelligent acoustic machine products, the company's 2022 annual operating income reduction of not more than 3.3 billion yuan, and the direct loss of about 900 million yuan related to it.
The general environment is not good, Jingyan Technology is still trying to convey positive signals. Fine Tech emphasizes that although the profitability of the main MIM business has declined, the transmission business (spindles, motors + gearboxes business) maintains a healthy growth trend, and has obtained orders from well-known domestic head customers and achieved mass production in both cell phone spindles and smart home transmission parts.
Jingyan Technology's management further explained on the conference call that it hopes to take FY2023 as a new starting point for the company, and that the company will focus on four areas of work:
(1) in the development of cutting-edge technology and research, and continue to maintain cooperative relationships with customers;
(2) to increase the development of other customers, including domestic head customers and overseas
(3) We will increase the development and resources for non-consumer electronics industry, including automotive and medical industry;
(4) We will vigorously develop business segments other than MIM, especially transmission mechanism, folding screen pivot, heat dissipation module, automation equipment and other asset-light business segments, which are inclined to design and assembly.
In addition, JingRen Technology especially mentioned the optimism of the folding screen field. Fine Tech management said, from the current forecast of consulting organizations, combined with the information the company has learned, 2023 year folding screen shipments are still expected to continue to maintain substantial growth. Business development, mainstream Android customers, in addition to the existing mass production customers, there have been other customers to determine the cooperation, is expected to realize the mass production shipments in 2023. Other mainstream Android customers, the company are in the project pre-research and preparation.