TU-TESL

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On December 7, it was announced that a total of 1 billion yuan of convertible bonds would be issued to raise funds for the annual production of 2000 capacitors, photovoltaic modules, special lithium automation equipment projects, construction projects of the leading research institute, information intelligent upgrading and transformation projects, and replenishment of working capital. The fund-raising project has been approved by China Securities Regulatory Commission for issuance. Among them, the annual output of 2000 capacitors, photovoltaic modules, lithium battery automation special equipment project is planned to build an intelligent factory to produce high-end special equipment, to alleviate the current capacity bottleneck, and in the future, it can achieve an annual operating revenue of 2.364 billion yuan, an annual net profit of 500 million yuan, and an annual gross profit rate of 40.00%. The construction project of the leading research institute is dedicated to the research and development and innovation of forward-looking technologies such as lithium battery, photovoltaic, 3C, automobile production line equipment and overall solutions, which will help to further enhance the R & D strength of the company. It is understood that leading intelligence invests in R & D with over 11% of sales revenue every year. In the first three quarters, R & D expenses reached 356 million yuan, up 101.82% year on year. The embodiment of leading intelligence adhering to independent innovation and R & D is that with the overall solution of intelligent manufacturing of lithium battery, leading intelligence has been successfully selected and become the fourth batch of manufacturing single champion demonstration enterprises of Ministry of industry and information technology in 2019. In recent years, the production capacity of lithium battery manufacturers has been expanding continuously, and the production line of lithium battery has been newly built or rebuilt, which has driven the high-speed growth of the demand for lithium battery automation related equipment. Thanks to this, the sales scale of leading intelligent lithium battery equipment continues to rise, which has become the largest part of the company's revenue, and the market share of lithium battery equipment has reached the first in the world. From January to September this year, the company's revenue was 3.2 billion yuan, a year-on-year increase of 19.33%; its net profit was 635 million yuan, a year-on-year increase of 16.14%. In terms of customers, the whole line procurement contract of 536 million lithium battery intelligent production signed with taineng new energy in 2018 is in the process of equipment delivery; the project of 915 million yuan won by Titan new power has been delivered and partially accepted; the contract of 43 million yuan lithium battery equipment signed with taineng new energy has been delivered. In addition to the above-mentioned in-depth cooperation with customers, leading intelligence is constantly accelerating the expansion of overseas markets. In February of this year, leading intelligence signed a lithium battery production equipment supply cooperation of about 1.939 billion with northvolt, and kept close contact with overseas customers such as Tesla and apple. The demand for overseas equipment in the fields of lithium battery and 3C is relatively strong, and the proportion of orders from overseas customers is constantly increasing. In order to be closer to overseas customers, forerunner intelligence plans to set up a wholly-owned subsidiary in Sweden with its own capital, with a provisional registered capital of SEK 5 million (about 3.64 million yuan). According to forerunner intelligence, in recent years, the production line scale of downstream lithium battery manufacturers has expanded rapidly, and the purchase volume of upstream special equipment has been increasing. However, there are sufficient orders in hand at present. With the increasing number of global customers, the current production mode will affect the rapid development of the company to a certain extent. The implementation of this fund-raising project will help the company to improve product quality, efficiently develop and penetrate into overseas markets, and achieve sustainable growth of performance.