“Science and Technology Innovation Board Daily”, May 13 (Reporter Yu Jiaxin) “Currently, the company has normal orders, which can meet customer delivery needs. Overall revenue is expected to perform well this year.” At the 2023 and 2024 first quarter results briefing held today (May 13), Tu Conghuan, Chairman and General Manager of Sinseon Electric, said.

In 2023, Sine Electric achieved revenue of 373 million yuan, an increase of 7.40% year on year; realized net profit to mother was 51.124 million yuan, an increase of 11.51% year on year.

However, in the first quarter of this year, the company experienced a decline in both revenue and net profit. Among them, revenue was 82.502 million yuan, a year-on-year decrease of 16.40%; net profit was 8.0812 million yuan, a year-on-year decrease of 52.37%.

At the results meeting, Tu Conghuan explained, “The decline in the company's performance in the first quarter was mainly controlled by the domestic real estate industry. The company's customer demand in the construction machinery industry contracted, and sales revenue declined. On the other hand, considering long-term development, the company implemented equity incentive plans, formed overseas and project departments, introduced high-quality talents, and continued to increase R&D investment, etc., which led to a year-on-year increase in operating expenses, which led to a decline in net profit, which led to a decline in the company's performance in the first quarter.”

Sine Electric is a high-tech enterprise engaged in R&D, production and sales of motor drive and control system products in the field of industrial automation. The company's main business products are general inverters, integrated special planes and servo systems; the annual report shows that in 2023, the company added controllers and energy storage products, which are currently in the promotion stage.

Yang Long, head of finance at Sine Sine Electric, said that in the first quarter of this year, the company's gross profit margin was 34.66%, an increase of 4.83 percentage points over the previous year. “This year's overall gross margin is expected to be the same as last year.”

On May 12, Sine Electric issued a relevant announcement on the adjustment of the fund-raising project. This includes adjusting the time for the “Production Base Technical Improvement and Production Expansion Project”, the “Shenzhen R&D Center Construction Project”, and the “Wuhan R&D Center Construction Project” to reach the scheduled state of use.

The “Science and Technology Innovation Board Daily” reporter noticed that the Sine Electric fund-raising project has been postponed several times. The above projects have already undergone a round of adjustments as early as 2022.

Furthermore, the company has also repeatedly adjusted the internal investment structure of fund-raising projects, changed implementation methods, and added implementing entities.

In response, some investors asked why the fundraising project was delayed and postponed, and indicated whether there was a strategic problem?

Tu Conghuan, Chairman and General Manager of Sine Sine Electric, explained that due to market and business adjustments in the original plan, based on careful use of raised capital to improve the efficiency of the use of funds raised, the company is slowing down the overall planning, procurement, expansion of production lines, labor quotas, and industrial control product business planning at the Wuhan R&D Center, market research in the field of new energy, introduction of advanced R&D software and hardware systems and equipment, and experimental platform construction. As a result, the overall fundraising project is progressing slowly.

Among them, Zou Min, the company's deputy general manager and secretary of the board of directors, further stated that the property purchased by the company from Shenzhen Runxue Industrial Co., Ltd. located at the intersection of Liuxian Avenue and Chuangye 2nd Road, Xin'an Street, Bao'an District, Shenzhen, is currently awaiting delivery. “After the property is delivered, the company will begin work related to renovation and relocation as soon as possible, and complete the construction of the Shenzhen headquarters R&D center site, equipment procurement, laboratory platform upgrade, and recruitment of R&D personnel.”

According to information, Sine Electric has now set up a controller product line and a new energy business development team to simultaneously support the construction of motion controllers and energy storage product development and verification platforms. According to the annual report, in 2024, the company will invest in the construction of a rooftop photovoltaic, energy storage and charging integrated new energy project in the Wuhan Industrial Park; develop site energy storage application scenario products and be applied in small batches; and implement at least one project of small-scale industrial and commercial energy storage and general industrial and commercial energy storage solutions.

Zou Min told the “Science and Technology Innovation Board Daily” reporter that the company's new energy business focuses on the design, development and sale of user-side energy storage solutions and their key components, while actively expanding businesses and products related to energy storage+drive and power quality improvement. Operating revenue is expected to increase significantly from 2023. “The company's current new energy customers are mainly concentrated in the fields of microgrid energy storage and construction machinery. ”

In terms of overseas markets, Tu Conghuan, chairman and general manager of Sine Electric, said that in the first quarter of 2024, Sine Electric's overseas sales increased. Mainly, the company improved overseas sales and promotion members through talent introduction, etc., and met the customized needs of overseas customers and promoted the development of overseas business by increasing investment in research and development of products specific to overseas customers. “In the future, the company's overseas market layout will be mainly in Southeast Asia, South Asia, the Middle East, Africa, the CIS, etc., and the export products are mainly inverters and servo systems.”