A few days ago, Huagong Technology released the report for the third quarter of 2019. In the first three quarters, the company's operating income decreased by 3.71% (3.878 billion yuan) year-on-year, but its net profit increased by 80.43% (463 million yuan) year-on-year. In the subsequent corporate survey, Huagong Technology stated that the sales recovery rate in the first three quarters of this year has increased significantly, and the operating cash flow has reached 115 million yuan, an increase of 186% over the same period last year. The company has entered a high-quality development channel.
Huagong Technology Research: High-power laser equipment business enhancement clearly seizes opportunities in the 5G era and data communication market outlets
In terms of industrial layout, Huagong Technology has focused on the four main businesses of energy lasers, optical communications, sensors and holographic anti-counterfeiting. Huagong Technology said that in the first three quarters of this year, the company's energy laser business was the first to provide intelligent manufacturing solutions with Chinese prefix companies (its benchmarking factories and lighthouse factories) in the field of equipment manufacturing. Therefore, Huagong Technology has quickly become a pioneer in the industry; The implementation and construction of fund-raising projects in the past two years, around the commissioning and scale development of 5G high-speed optical modules, have complied with the national industrial policy and the market demand of industry leaders. The card slot has been successfully developed and good development has been achieved. Good order returns and support.
Energy Laser Business
In the field of energy lasers, the environments facing the two directions are quite different. Among them, the improvement of high-power laser equipment business is more obvious, and the laser precision micro-nano processing business is due to consumer electronics "small years", trade friction, increased homogeneous competition and other adverse effects, leading to decline in orders, gross margin pressure.
Huagong Laser believes that with the rise of a new round of industrial revolution on a global scale, China is transforming from a manufacturing power to a manufacturing power, and strives to form a new competitive advantage in the era of Industry 4.0. The transformation and upgrading of manufacturing is imminent. The company's laser robot system intelligent factory assists the transformation and upgrading of the manufacturing industry, and is experiencing the transformation from providing high-end intelligent equipment to building intelligent production lines and intelligent factories.
In the first three quarters of this year, Huagong Laser integrated resources and cooperated with many important customers, such as China Railway Baoqiao and Shanghai Baosteel, to develop in-depth cooperation around smart workshops, smart production lines, and smart factories, to establish smart factory model points, and to become the industry pioneer. In addition, in the laser intelligent equipment business, the company has dug into key industries such as sheet metal processing, shipbuilding, automotive and parts, rail transportation, and engineering machinery. By combining laser with automation and information technology, the sales revenue of laser cutting products has increased significantly.
In the face of pressure from the precision micro / nano processing business, the company's products transitioned from stand-alone workstations to "laser + automation", and automation contract orders increased significantly year-on-year; welding products successfully entered the soldering application segment market, and in the hydrogen energy industry market A breakthrough was made; the first to propose the concept of standard equipment for glass laser processing series, and introduced a new series of light blades, changed the pattern of the glass cutting industry.
Optical communication business
In the optical communications business, China Industrial Zhengyuan seizes the opportunities in the 5G era and the "wind vent" of the digital communication market. Focusing on the needs for 5G fronthaul, midhaul, and backhaul network construction, it focuses on the full range of high-speed 25G, 50G, 100G, 200G, 400G Optical module products and complete solutions. In the 5G wireless field, by solving the technical problems of high-speed photoelectric signals, full coverage of 5G products is achieved.
At present, the company's 25G optical module products have been successfully introduced into the four major equipment vendors, and have won customer recognition through large shares and high-quality delivery. The sales revenue of active optical module products increased by nearly 30% in the third quarter, and the profit contribution increased significantly. In the next round of bidding for large customers, the amount of 5G fronthaul will be relatively large. The company has made comprehensive preparations in terms of technology, production capacity, market solutions, resource docking and supply chain. At the same time, nearly 600 million of the 1.8 billion funds raised by the company were invested in the direction of optical modules. The operating effects have begun to appear, and the production capacity has been expanded, providing effective guarantee for product delivery.
In the field of data centers, Huagong Zhengyuan has accumulated a lot. Through technical research, 100G dual-rate products have been shipped in batches overseas. At the ECOC exhibition held in Dublin in September, the company launched a full range of 100G and 400G product series. A single channel can achieve 25Gbps / 50Gbps / 100Gbps solution. The company takes advantage of the integration of optoelectronic systems and continues to lead in 400G and future 800G series products through continuous investment in core technologies.
Huagong Zhengyuan said: "The future of optical communications will be the era of big data and the interconnection of all things. Mobile data traffic, managed IP traffic and fixed broadband traffic in global IP traffic will be compounded at 26%, 11% and 46% annually. The growth rate is increasing, and the company's optical communications business can be expected in the future. "
Company R & D and management
Huagong Technology was established in 1999 and listed on the Shenzhen Stock Exchange in 2000. It is a listed company with a college background in Central China. Although the company originated from universities, after 20 years of development, it has completely established its own innovation ability system. At present, there are six national-level R & D platforms that can provide effective guarantee for the company's innovation, make the company's new product output capability, and provide customers with effective and valuable solutions in an industry-leading position.
In terms of optimizing the talent team structure, Huagong Technology's R & D team members account for more than 20% of the total number of employees, forming a super strong R & D ability and an excellent R & D talent structure. The company's annual investment in research and development has increased significantly, from January to September this year, an increase of 27%. These factors are effective support for the company's research and development capabilities.
In terms of management and quality improvement, Huagong Technology implements the annual operating policy of “proactive development, effective management and control, and comprehensive improvement of operating quality” to ensure the safety and efficiency of the supply chain, improve the supplier management mechanism, and expand the upstream and downstream supply chain in conjunction with the main business. The Procurement Management Committee is committed to realizing sunny procurement, safe procurement, and strategic procurement, and consolidating the cost reduction of procurement; by setting up a unified fund management platform for Huagong Technology, centralized management of funds has been achieved, which greatly improved the efficiency and benefits of capital operations, thereby enabling the financial period of this reporting period. Expenses fell sharply year-on-year; the company increased its per capita output by deepening the industry's marketing model, strengthening key customer strategies, and optimizing sales teams. During the reporting period, sales expenses fell by 10% year-on-year, and management improvement was effective.