As a high-tech enterprise specializing in precision components, what are the considerations for Green Precision’s listing? What is the future development direction? What are the layouts for technology research and development and talent introduction? Recently, Southern Daily and Southern+ reporters interviewed Wu Baoyu, Chairman and General Manager of Green Precision, on these topics.
Southern Daily: The company mentioned in its prospectus that it plans to raise about 599 million yuan this time. In addition to supplementing working capital, it will also invest in the intelligent manufacturing technology transformation and expansion projects of precision structural parts. Why does the company need to invest in this project? What have you done in the intelligent transformation of production lines in recent years?
Wu Baoyu : Green Precision is positioned as a one-stop institutional component solution provider, so over the years, it has invested a lot of money in hardware development of smart devices, and has carried out industry-university-research cooperation with relevant universities and research institutions. These achievements can be seen everywhere in the company. For example, in the assembly automation production line workshop, a production line used to require 36 workers, but now 4 robots plus 2 workers form a line. Comparing the front and back, the current production line is definitely more accurate than manual installation. The yield rate was about 90% in the past, but now it reaches more than 99%. Not only has the quality of the product improved, but also has reduced labor costs.
In addition, the company has also made a lot of improvements in modularization, saving intermediate links such as warehouse entry, improving material turnover efficiency, and workers have also saved a lot. Considering the continuous progress of industry technology, in order to further improve productivity and ensure the growing production capacity, the largest part of the funds to be raised will be used for intelligent transformation and production expansion, with an estimated 379 million yuan.
Southern Daily: Another purpose of this fundraising is the expansion of the R&D center. Can you introduce what position R&D occupies in the company's development? What impact did it have on the company?
Wu Baoyu: The competitiveness of a company actually comes from the competition between technology and talents, especially for technology companies, which everyone can feel now. Whether a company can be invincible in the competition in the future depends on the company's attention to R&D, as well as R&D input and output.
The company was initially developing to imitate other people's products, but by around 2010, it was obvious that it could not continue this path and its gross profit margin gradually declined, so it had to engage in research and development. By 2019, the company's R&D investment intensity was 6.13%, and in the first half of 2020 it was 8.42%, both higher than the industry average during the same period. R&D personnel account for about 10% of the total number of people, which is also a relatively high proportion. Therefore, over the years, the company has continuously increased its investment in R&D, which has enhanced its viscosity with customers, and enhanced its added value and competitiveness, which can also be seen from financial data. It can be said that the company has tasted the sweetness from R&D.
Southern Daily: In recent years, with the rapid development of technology, competition among technology companies has become increasingly fierce. What considerations will the company have in attracting talents in the future?
Wu Baoyu : This is true for . The development of emerging technologies such as artificial intelligence has promoted cross-border integration, resulting in increasingly fierce competition, and ultimately bringing more and more fierce competition between technology and talents. Therefore, R&D must be put first, technology investment must be increased, and we will also recruit more high-end talents.
In fact, the attractions of talents by going public are very obvious. In the past, we wanted to recruit some international talents, but because we were not public companies, some information was not transparent and it was not attractive enough to international talents. After listing, the company's popularity will greatly increase. Of course, listing can also indicate that the company's management system and benefits are good, which is very attractive to all kinds of talents. In the future, the company will also make some arrangements in equity incentives and other aspects to allow more high-end talents to share the results of the company's development, and hope to make Green Precision a more competitive enterprise.
[Reporter] Liu Guangmingbao
[Author] Liu Guangmingbao
[Source] Southern Media Group Southern + Client
Source: Southern + - Create more value
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