Value leads investment, 2021 investors enter the listed company series program - 3.15 consumer rights protection day theme event and investors enter the listed company New Star special program. (Source: Panorama.com, Shanghai Listed Companies Association)

The event is jointly sponsored by Shanghai Listed Companies Association, Panorama Network, and Shanghai Insurance Alliance. Leaders from Shanghai Securities Regulatory Bureau, Shanghai Association of Listed Companies, Shanghai Securities Association, Shanghai Fund Association, Shanghai Futures Association, senior executives from New Star, and representatives of individual investors, securities firms, funds, and listed companies attended the event.

Event site

Yang Lisha, deputy general manager and secretary of the board of directors of New Star, presided over the event. First of all, she thanked the 3.15 Protection of Investors’ Legal Rights and Interests, which was directed by the Shanghai Securities Regulatory Bureau and hosted by Shanghai Investment Insurance Alliance, Shanghai Listed Companies Association, and Panorama. We are in action-entering listed companies.

Tong Wei, director of the Insurance Division of the Shanghai Securities Regulatory Bureau, said in a speech that Shanghai, as an international financial center, has always attached great importance to investor protection. 31 units, including industry associations, jointly established the Shanghai Insurance Alliance, aiming to build a normalized communication platform for investor education and publicity. In December 2020, the Shanghai Municipal Government officially issued "Several Measures to Promote the Improvement of the Quality of Listed Companies in Shanghai". A really nice move in conservation efforts.

Ji Yi, chairman of STEP, welcomed the visit of investors and representatives from all parties. She said that New Star is a leading enterprise in domestic intelligent manufacturing, closely following the national policy guidance, and based on the technical accumulation and experience of the original elevator frequency conversion and control, to expand and extend its business, deploy robots and intelligent manufacturing, It is transforming to the high-quality development of informatization and intelligence. In terms of management, STEP continues to improve the level of management, operating efficiency and profitability, hoping to repay the shareholders and investors of STEP through better performance, and repay the society.

Wu Yuhui, director and general manager of New Star, introduced the development of New Star to investors. He said that STEP has gradually entered the process of starting a second business. In 2020, both sales revenue and operating profit will achieve double-digit growth. STEP is a world leader in the elevator control system sector, and has gradually become a leading brand in China's intelligent manufacturing. Our desktop robots maintain the top three positions in the world, especially playing a huge role in the 3C market.

Since its listing, the total R&D investment of STEP has exceeded 1.3 billion, and in recent years, the annual scale has exceeded 200 million. It is precisely because of years of continuous investment that STEP has been at the forefront of the products and technologies required for the development of China's manufacturing industry. When China did not have a dedicated computer for elevators, STEP developed China's first dedicated computer for CAN bus elevators with independent intellectual property rights; when there was no inverter dedicated for elevators in China, STEP was also the first to develop independently; the source code is all its own of. Now, with the rapid development of motion control servo technology, STEP has invested heavily in independent research and development to benchmark against international brands. In the field of robotics, STEP is also one of the earliest companies to invest heavily. Currently, the pace of palletizing robots has exceeded 1200 packages per hour, and its technology is running alongside international first-line brands.

We have gradually formed the layout of the global market, especially in the relatively active coastal areas. We have established our own offices and sold all over the core industrial cities across the country to promote our entire market. Dada's products can be found in more than 100 countries around the world. The construction of our entire intelligent manufacturing technology has been formed as a whole. Last year, China announced the layout of the intelligent manufacturing industry in 31 cities. STEP will closely follow such a layout to achieve rapid development in the field of intelligent manufacturing.

The goal of Xinshida is to build a century-old enterprise, which is also a feeling of our founder. In the process of transforming from the founder running the company to the manager running the business, we take the corporate governance structure as the first responsibility. According to the requirements of national laws and regulations, we have been constantly improving the company's governance system. We welcome your valuable suggestions in this regard.

Zhao Zhiyong, a gold medal analyst in the machinery industry and Changjiang Securities, made a speech. Since I joined the work in 2007, the entire structural system has undergone relatively large changes. If at that time, Xinshida gave us the impression that it was a leader in the elevator industry, or an enterprise in automation and industrial control, in fact, I think it should be defined as a domestic core leader in the intelligent manufacturing sector.

Because in the A-share market, it is rare to see a company that can cover everything from core components, to robot bodies, to downstream application integration. STEP should be relatively one of the few companies in the entire A-share market that has complete coverage from components to final application integration.

Zhuang Wei from Haitong Securities Co., Ltd. made a speech. Under the active promotion of our Shanghai Bureau and the Listed Companies Association, the activity of entering listed companies is from shallow to deep. About 5 or 6 years ago, we started to participate in this activity, from basic industries to high-end industries, so that our investors can not only open their eyes to invest in this market, but also make investments clearly.

Jiang Wei from Shanghai Yuyuan Tourist Mart (Group) Co., Ltd. made a speech. As an enterprise, New Star complies with the national industrial policy, is down-to-earth, and devotes all its energy to industrial creation, intelligent development and intelligent manufacturing in line with the national industrial policy. As a peer, I wish Xinshida can have a good development and give investors a good return.

Yuan Yi, secretary-general of the Shanghai Listed Companies Association, delivered a speech. Every year, we organize many activities to invest in listed companies, and this time we feel that we are more satisfied. We mobilized various resources and entered this listed company. The impression I got from New Star is that the most important thing about this company is standardization and a relatively good governance structure.

At the meeting, investor representatives asked questions about STATE's repurchase of shares for equity incentives, 5G and industrial robot industry connections, and STEP's 5G technology reserves, and STEP executives answered them one by one.

STATE robot factory is one of the first batch of 20 intelligent manufacturing factories in Shanghai, and also the first robot manufacturing factory in Shanghai. Investors who participated in the event visited the STEP robotics smart factory.

Visit the STATE robot intelligent factory

Walk into the New Star Activities

Ji Sheng, machinery industry analyst at Haitong Securities. Let me give you a brief introduction to the industry of industrial robots in my country and the company STATE. Our core conclusion is industrial robots, which have four core driving forces, and the downstream is also marginally recovering. In this round of domestic companies, domestic brands are expected to lead import substitution.

The large industry of intelligent manufacturing in our country is a very large scale, probably close to 2 trillion, and 1.75 trillion in 2018. The growth rate is also very fast, about 21.7% from 13 years to 18 years, and industrial robots are the most important application and a component. Industrial robots are in the middle of an industrial chain. The upstream is our so-called three core components: servo system, reducer and controller; the downstream is some corresponding welding, spraying, handling and other application fields; the core of industrial robots is application in the automotive and electronics industries. In 2020, the output of my country's industrial robots will increase by about 26.8%. It can be seen that it is a very good growth. In the case of the epidemic, the market size of my country's industrial robots is about 40 billion, and the annual compound growth is also very fast. , 16% a few points.

The second is the industrial robot industry. The reason for being optimistic about it is mainly the four core driving forces. The first driving force is the machine substitution that everyone may be very familiar with. Due to the disappearance of the demographic dividend and the increase in labor costs, machine substitution in my country has received great attention in recent years. As you can see from our data, the natural population growth rate is decreasing year by year, and in 2019 it is about 0.33%. However, in our country's manufacturing industry, the per capita income continues to increase, and the price of industrial robots is falling rapidly, so a scissors gap has formed. We think that this machine replacement will be a good period in the future, and it will also accelerate. The second point is that the density of industrial robots in my country is still very different from that of developed countries abroad, and the penetration rate of industrial robots in my country is still very low. The third point is import substitution. my country's industrial robot consumption has accounted for about 41% of the world, making it the largest country in the world. However, the localization rate of my country's industrial robots, especially high-end industrial robots, is still very low.

The last one is national policy support. Some leaders related to industrial robots have been listed continuously, and the state has established three large funds, which add up to about 170 billion. Investments include in the field of industrial robots, such as STATE Smart, which is also a subsidiary of STATE. Therefore, the country is very supportive of the development of the industrial robot industry in terms of funds, including the capital market, and financing funds such as equity and debt, so it is also very optimistic. Whether it is import substitution or downstream demand-driven industrial robots, the better thing is that we can see that the automobile and 3C industries have recovered relatively quickly since the epidemic. Therefore, we think that the downstream has already made a very obvious marginal improvement, so domestic companies are very likely to seize this wave of opportunities to grow rapidly and achieve an import substitution.

In the last piece, we see the domestic leading company, which is Xinshida. We think it is the leader of domestic industrial automation, not just industrial robots, because it also deploys upstream core components such as transportation control and industrial control. We think that the business of STEP mainly revolves around intelligent control and variable frequency drive. Its main business covers four segments, including the most important industrial robot segment, elevator segment, and core components of industrial robots, industrial control, and operation control.

STST has also maintained a relatively good growth in the past. The compound growth rate of revenue from 2011 to 2019 is about 23%, which is also a relatively fast growth. It is worth mentioning that the R&D expense rate of the company, New Star, has a very large R&D investment. In recent years, it has been around 5% since 2017. For a manufacturing company, 5% is It is still a relatively large R&D investment. Therefore, we think that the layout of the upstream core components of STATECH’s vigorous investment in research and development is very correct, and we think it is also expected to lead the domestic industrial robot companies we just mentioned to form an import substitution.