On June 2, 2017, Jiangsu Leili (300660, SZ) officially went public on the GEM, publicly issued 25.27 million shares, accounting for 25% of the total issued share capital, and raised about 1.27 billion yuan for the construction of micro-motors. Construction.
Motors, commonly known as "motors", are widely used in petrochemicals, household appliances, new energy vehicles and other fields. According to the information, Jiangsu Leili, which was established in 2006, is mainly engaged in the R&D, production and sales of “Micro-motors and intelligent components for household appliances”. The main products are air-conditioning motors and components, washing machine motors and components, refrigerator motors and There are three major categories of components.
In 2014-2016, the company achieved total revenue of 1.46 billion yuan, 1.45 billion yuan and 1.62 billion yuan, mainly from 7 kinds of products such as stepper motors, pumps and drainage motors.
Rapid development of overseas business
During the reporting period, half of Jiangsu Leili’s revenue came from overseas markets. In 2014-2016, overseas sales revenue was 70.84 million yuan, 70.815 million yuan, and 869.43 million yuan, accounting for 48%, 49.4%, and 54.5% of the main business income, respectively. The overseas sales revenue and the proportion of revenue from the main business showed a double growth trend, and the market share of the company's products in overseas markets continued to increase.
Jiangsu Leili's main customers are Gree, Midea, Haier, Electrolux, Whirlpool, LG, Samsung, Panasonic, Sharp, Fujitsu and other well-known home appliance manufacturers at home and abroad, as well as the world-renowned sports health equipment manufacturer Ikang. According to the same control caliber, the sales amount of the company's top five customers in the past three years accounted for 46.9%, 47.6% and 44% of the total battalion.
In terms of sales model, Jiangsu Leili's products are mainly direct sales. The main method is to sign a framework agreement with customers on the basis of long-term cooperation, and then determine the specific product types, prices, delivery and other terms in the form of orders. However, considering the market development, especially the cost and efficiency factors of overseas market development, some of the company's products are mainly exported to the United States, Europe, Mexico, Brazil, South Korea through dealers such as JoeunGsCo., Ltd., Genoint Co., LTD. Home appliance manufacturing enterprises in countries and regions such as Southeast Asia. In the past three years, direct sales and distribution models have generated revenues of approximately 90% and 10% of the company's total revenue.
Strong core R&D strength
As a high-tech enterprise and a private technology enterprise in Jiangsu Province, the company has been continuously improving its core technology competitiveness through a combination of independent innovation and external technical cooperation for many years, and with the world-renowned home appliance manufacturers, Southeast University, Nanjing University of Aeronautics and Astronautics, In-depth technical cooperation has been carried out by external research and development institutions such as Changzhou Institute of Technology, Yancheng Institute of Technology, Jiangsu University, and Japan First Chemical Co., Ltd. The company has 336 invention patents, utility model patents and appearance patents, such as hybrid stepper motor rotor, drain valve device, drain pipe assembly, cover and washing device, three-phase brushless DC motor steering control system, traction motor recovery control system. .
Not only that, the company led the drafting of the national standard "General Specification for Deceleration Permanent Magnet Stepper Motors", which plays an increasingly important role in the industry standard setting process.
With the continuous improvement of the requirements for intelligent, energy-saving and noise-reducing performance of household appliances, and the continuous improvement of the requirements for the simultaneous research and development of core component suppliers by home appliance manufacturers. Technological innovation capability, application capability and new product development capability have become the key factors for Jiangsu Leily to win future competition. In 2014-2016, R&D expenses accounted for 3.59%, 4.37%, and 4.38% of the company's revenue, respectively, and R&D investment increased year by year.
According to the prospectus, the gross profit margin of the company in the past three years was 29.4%, 25.9%, and 26.9%, respectively, which was slightly higher than the average of 25.6% of comparable companies in the same industry.
Raised funds for the construction of four major projects
According to the prospectus, Jiangsu Leili’s nearly 1.27 billion yuan of funds will be used for micro-motor manufacturing, energy-saving motor and pump product expansion, R&D center construction, intelligent home appliance construction and mobile data. supplement.
It is understood that the micro-motor manufacturing project mainly improves the production response capability, manufacturing efficiency and product quality by building an information management platform covering production management, intelligent manufacturing, supply chain management, customer relationship management, product development and decision support.
The energy-saving motor and pump product expansion project is mainly to expand the company's business to the high-end washing machine and dishwasher market through the new production workshop and purchase automatic equipment such as automatic winding machine, paper inserter and dynamic balancing machine. The business structure and product line are enriched to increase production capacity and foster new profit growth points.
The R&D center construction project is mainly to build a new R&D center building, purchase advanced software and hardware equipment such as R&D, testing and testing, introduce excellent technical talents, strengthen technical cooperation with scientific research institutions, etc., which will enable the company to introduce and absorb technology. The ability to innovate is further strengthened.
The intelligent building project of home appliances mainly extends the company's product line by expanding the production workshop, quality control area, turnover warehouse, and purchasing advanced production equipment, deepening the cooperation relationship with customers and consolidating the company's market position.
The supplement of working capital is mainly to meet the capital demand brought by the company's business development, enhance the company's production response capability, optimize the company's capital structure, reduce financial costs, and improve the company's ability to resist risks and profitability.
Jiangsu Leily pointed out in the prospectus that the commissioning of this fundraising project will increase the company's simultaneous design and development, test and testing capabilities and technological achievements, and increase its profitability and overall competitiveness. After the company's listing, it will continue to develop new product applications and regional markets through continuous technological innovation and product development based on the development trend of the motor industry, and gradually build the company into an internationally renowned R&D and design of micro-motors and intelligent components. And manufacturing companies.