Incident 1. The company released its 2018 annual report and 2019 first quarter report on April 29. The company achieved sales revenue of 3.258 billion yuan in 2018, an increase of 6.06% over the previous year, and net profit attributable to shareholders of listed companies of 149 million yuan, a year-on-year decrease of 13.92%; the company achieved sales revenue of 860 million yuan in Q1 in 2019, an increase of 4.94% over the previous year, and net profit attributable to shareholders of listed companies of 48 million yuan, an increase of 12.33% over the previous year. 2. The company acquired 39% of the shares of Zhejiang Qianjiang Robotics Co., Ltd. held by Zhejiang Qianjiang Motor Co., Ltd. with its own capital of 137.28 million yuan. Report summary In 2018, the home appliance business was stable, and industrial robots exploded. The company's home appliance business was basically flat for 18 years, and the robot business exploded. By segment, the company's cookware, home appliances, robots, and others were 26.08, 3.7, 2.09, and 71 million yuan respectively, compared to -0.02%, 1.88%, 335.81%, and 36.87% over the previous year. In terms of gross margin, the company's comprehensive gross margin reached 37.12%, which is a decline compared to the gross profit margin of 39.48% in 2017, mainly due to business restructuring. The gross margins of cookware, home appliances, and robots were 41.68% (y-0.97pct), 19.13% (y-5.5pct), and 20.51% (y-8.8pct), respectively. The robot business is growing rapidly, creating another growth pole... On April 30, 2019, the company announced that it plans to acquire 39% of Zhejiang Qianjiang Robotics's shares held by Qianjiang Motor at a price of 137.28 million yuan of its own capital. The company is firmly optimistic about the development prospects of the Qianjiang robot body industry. After the completion of this acquisition, the company holds a total of 90% of Qianjiang Robotics's shares. The company will fully integrate robot resources to form a synergistic effect and enhance the company's overall strength and competitive advantage in the market. Since the acquisition of Zhejiang Qianjiang Robotics Co., Ltd. in September 2016, the company has continued to deepen its business in the intelligent manufacturing sector. Through mergers and acquisitions, Shanghai Aishida Robotics Co., Ltd., it has successively acquired Shanghai Songsheng Robotics Systems Co., Ltd., Labor Logistics (Shanghai) Co., Ltd., Shanghai Soluxin Automation Co., Ltd., and has participated in Ningbo Jiangchen Intelligent Equipment Co., Ltd. In 2018, the company achieved a major breakthrough in the field of intelligent manufacturing, achieving sales revenue of 208 million yuan (excluding internal sales), an increase of about 300% over 2017, and sales of 1,500 robots (including internal sales), an increase of 50% over 2017. The company's subsidiary, Zhejiang Qianjiang, has reached the highest sales volume of robot bodies in the country and won the Chapek Award 2018 Robot Quality Award. In terms of body manufacturing, new models have been further expanded, and many products have been submitted to the relevant authorities for relevant certification. The company is progressing smoothly in application promotion. Hangzhou Qianjiang Robotics Co., Ltd., a subsidiary of the company, has completed its entry into Xiaoshan Robotics Town. The company's subsidiary Songsheng Robotics Business has expanded to northern cities and set up a branch in Tianjin. The main customers include Today International, Kunming Kunchuan, Tianhai Oukang, Beijing Lifting, Shenzhen Zhongji, Shanxi Dongjie, Schlumberger, Dongfulong, HKUST Intelligence, Shandong Lanjian, etc. In terms of technology, Songsheng Robotics has five major technical points: rectangular coordinate intelligent picking system, robot quick storage system, intelligent 3D decoding system, robot track system, and intelligent order sorting system. The main body robot of Qianjiang Robotics has been successfully applied by Soluxin, a subsidiary of the company, and Soluxin has developed the industry's first set of multiple collaborative robot deburring systems for Tesla transmissions and clutch housings. It has developed an overall solution for automating+intelligent digitization of the entire process process in the die-casting workshop, a purification system for harmful substances generated by die-casting machines, etc. Labor Logistics Robotics, a subsidiary of the company, is also gradually moving towards industrial development in the e-commerce field. On the other hand, the company set up CSF Robotics PTY LTD (CSF Robotics Ltd.), a wholly-owned subsidiary in Australia, which mainly focuses on polishing technology, representing Axeda's intelligent manufacturing application in the first step into the international market. Global leader in cookware, with steady growth in main business. The company was founded in 1987 and is currently the largest national cookware brand in China. The future of Aishida will be the co-development of smart cookers and intelligent manufacturing. Smart cooking electricity will promote upgrading, and intelligent manufacturing will promote transformation. The work closely focuses on the six major policies of “organizational restructuring, efficiency improvement, scale improvement, operational efficiency, brand promotion, and intelligent manufacturing”. Profitability forecasts and valuations. Optimistic about the gradual implementation of the company's main business strategy, showing results, and the robotics business exploded. It is estimated that the company's net profit attributable to parent company shareholders in 19-21 was 176 million, 205 million, and 260 million respectively, corresponding valuations of 18, 15, and 12 times, maintaining the buying rating. Risk warning: raw materials are rising; robot expansion falls short of expectations; unfavorable channel expansion