Cistar Limited By Share Ltd Strives For The World'S First Class Intelligent Knitting Equipment Manufacturer.

Guest introduction

Sun Pingfan, chairman of Ningbo Cixing Limited by Share Ltd

Ningbo Cixing Limited by Share Ltd director, deputy general manager, Secretary of the board of directors

Hu Xing, director, deputy general manager and chief financial officer of Ningbo Cixing Limited by Share Ltd

Fu Guiping, chairman of Ningbo Cixing Limited by Share Ltd, and representative of securities affairs

Guo Ximin, sponsor representative of Guoxin Securities Company, Limited by Share Ltd

Issue related

Question: what benefits will the listing bring to Cixing stock?

Fu Guiping: the company issues A shares and is listed on the Shenzhen Stock Exchange.

Question: please introduce the issuing time and issuing quantity of Cixing stock. What kind of distribution method is adopted? What are the percentage of online and online distribution?

Fu Guiping: the issue time is March 20th, the issue quantity is 61 million shares.

This issue is based on the combination of the online distribution of the cumulative bid inquiries and the issuance of online funds.

For details, please refer to the preliminary inquiry and recommendation announcement, which has been disclosed by the Shenzhen stock exchange.

Question: 1. the proportion of incremental issuance of general new shares is 25% of the shares issued after the issue.

Guo Ximin: regarding the issue proportion, the issuer based on the business plan and strategic objectives and based on the feasibility analysis, drew up the investment and investment projects, and made reasonable calculations according to the amount of fund-raising required by the investment projects. There are no other considerations you mentioned.

Cixing stock is mainly engaged in the research, production and sales of computer knitting machinery. Computer knitting machinery belongs to the knitting machinery category of textile machinery. It belongs to the mechanical and electrical integration and intelligent knitting clothing equipment. It has high technology content and has been the largest import textile machinery before the localization. At present, there are no listed companies in the A stock market in China. The products of other textile machinery listed companies are mainly concentrated in textile machinery and dyeing and finishing machinery in textile machinery.

For specific differences, please refer to the introduction of the "business and technology" part of the prospectus.

Question: what is the main purpose of this listing fund?

Fang Fang: Actually

Main business

Question: please briefly introduce the basic situation of the industry of Cixing stock.

Sun Pingfan: at present, the main production and sales of computerized flat knitting machines ranks first in the world, breaking the monopoly of foreign enterprises and occupying more than 20% of the market share. Since the successful acquisition of Switzerland in 2010, Stanger has enriched the products of high-end knitting machinery.

Question: what are the selling points of seamless textiles in textile products?

Guo Ximin: issuers are mainly engaged in R & D, production and sales of knitting models. The main products are

Question: please introduce the main business of Cixing stock and its changes.

Hu Democratic: the company is mainly engaged in R & D, production and sales of computer knitting machinery. It is a high-tech enterprise dedicated to improving the technical level of knitting machinery in China, promoting the development of knitting technology, and upgrading the knitting industry.

The company's main products include computerized flat knitting machine and computer seamless knitted underwear machine, of which computerized flat knitting machine is mainly used for sweater production, and computerized seamless knitted underwear machine is used for seamless knitted underwear production.

After many years of development, the company has become a leading enterprise in the field of computer knitting machinery in China. The main product of the computer knitting flat knitting machine has the largest market share, and the computer seamless knitted underwear machine occupies the second place in the market of our country.

Since its establishment, the main business has not changed significantly.

Question: please introduce the sales area and capacity of the knitting machine of Cixing stock.

Fang heard: sales area throughout the country, but due to the downstream industry cluster characteristics, in Guangdong, Zhejiang, Jiangsu, Fujian and other places are more concentrated.

In foreign markets, the company has selected 11 distributors in Bangladesh, India, Russia, Mexico, Turkey, South Korea, Salvatore, Columbia, Chile, Tunisia and Iran, which are responsible for the sale of overseas countries and regions. Other countries are directly responsible for direct selling by the Ministry of foreign trade, which is set up by the company.

In 2011, the company produced 22000 flat knitting machines, producing 28682 units, producing 28682 units, and selling 28463 units, with a capacity utilization rate of 130.37% and a sales and marketing rate of 99.24%. In 2011, the computer seamless knitted underwear machine produced 1000 units, 737 units, 890 sales units, 73.70% production capacity, and 120.76% sales.

Question: please introduce the sales channel of Cixing stock.

Fang Guo listen: the company attracts customers and promotes sales through the collection of customer information, such as industry exhibition, advertising, after-sales service personnel, customer application and word of mouth.

In the domestic market, the direct selling mode is adopted, and the sales area is all over the country. However, due to the characteristics of downstream industry clusters, it is more concentrated in Guangdong, Zhejiang, Jiangsu, Fujian and other places.

At the same time, in order to further expand the scale of sales, the company in some important areas choose qualified personnel who meet the company's qualification requirements as sales consultants to assist the company in sales.

In the international market, we undertake the sales channels of acquiring company Swiss Stanger, and sell through two ways: direct selling and distributor.

Its annual cooperative distributors include Uni Asia (responsible for Bangladesh), Damatex and Icotessile (responsible for Italy area) and 22 other distributors.

Operation and management

Question: how much of the financing of listed companies is used for R & D? Innovation is accompanied by greater risks. How does the company avoid risks in the future?

Fang Guo: we have 190 million of the investment projects in R & D centers, and in addition, more than 3% of the sales proportion will be used for R & D each year.

We have been engaged in the research and manufacture of knitting machinery for a long time. We have a deep understanding of the industry. At present, we have two domestic and international R & D platforms, and we have an excellent R & D team. We will continue to pursue this industry and have better planning and control capabilities for future research and development.

Of course, R & D innovation has some risks, but we have the ability to avoid and resolve these risks reasonably.

Question: does the profit source of Cixing share depend on the risk of a single enterprise?

Hu Democracy: the main consumer groups of the company are downstream knitting enterprises, mainly including enterprises producing sweaters, scarf caps, seamless knitted underwear and other products.

After years of accumulation, the company already has a steady number of customers. As of December 31, 2011, about 5 knitting enterprises in sweater industry have accumulated about 5000 customers.

During the reporting period, there was no single customer sales ratio exceeding 50%, and the first 5 customers had no issuer related party.

Question: Excuse me, chairman, how do you understand entrepreneur's social responsibility as an entrepreneur?

Sun Pingfan: I think entrepreneurs' social responsibility does not mean that they no longer pursue profits, because entrepreneurs are responsible for their own businesses first.

The standard of doing a good job is to make profits and profit to fulfill their social responsibilities, such as donating money, helping students and creating jobs.

While creating wealth, we should fulfill the responsibilities of citizens more, for the sake of social harmony, for the sustainable development of civilization, for public welfare undertakings, and to make better use of the influence of entrepreneurs to promote social progress and prosperity.

Question: how can we ensure the company's ability to continuously utilize the capital market?

Fu Guiping: through the use of fund-raising funds, the company will rapidly expand the financing channels, break the funding bottleneck caused by the single financing channel, further pform and optimize the company's financial structure, enhance the company's financial strength, and enhance the company's ability to resist risks.

With the help of this public offering and listing, the company will rely on various resource advantages of the capital market to increase investment, and strive to create a public corporate image, and strive to enhance the brand value of the company.

At the same time, the company will effectively accept the supervision from all walks of life, further improve the corporate governance structure, realize the upgrading of enterprise management mechanism, and lay a solid institutional foundation for the further development of the company.

financial analysis

Question: please give a brief account of the company's advance payment.

Hu Democracy: at the end of 2011, at the end of 2010 and the end of 2009, the company's prepaid balance was 197 million 699 thousand and 900 yuan, 628 million 981 thousand and 900 yuan and 232 million 223 thousand and 800 yuan respectively, accounting for 17.46%, 44.59%, 44.22% of the total liabilities at the end of the year.

Before the end of 2010, due to the company's capacity could not meet the needs of the market, before the end of 2010, the amount of advance receipts was larger.

In 2011, our capacity has been able to meet the needs of timely delivery.

The advance receipts in 2011 have reached a normal level, because we have to receive a down payment from customers 30%-50% in advance.

Question: what is the main reason for the doubling of the company's revenue in 2010? What is the future gross profit margin of the main computer knitting flat knitting machine?

Sun Pingfan: in recent years, the rapid growth of labor cost has accelerated the upgrading of downstream customers' production equipment. The main computer flat knitting machine is to replace the original production mode to save production costs. With the large-scale production of the company leading to the decline of procurement cost, especially the decline of electronic parts, the new products with new functions are continuously introduced every year, and the sales price of the market is maintained, so that gross profit margin keeps rising.

Question: what is the reason for the sharp rise in the capacity of the company during the reporting period?

Hu Democracy: from a scale perspective, the company is in a period of rapid development, and its operating revenue has been growing rapidly in the past three years.

Operating income in 2011 increased by 44.35% compared with 2010, while operating income in 2010 increased by 169.18% over the 2009 year.

The rapid growth of the company's revenue was mainly due to the substantial increase in the number of products sold during the reporting period.

There are two main reasons: on the one hand, the industry factor: in recent years, China's sweater industry has encountered bottlenecks in its development, so it is urgent to eliminate backward hand-held flat knitting machines, and greatly stimulate the demand for computerized flat knitting machines. On the other hand, the company's own competitive advantage is mainly due to the fact that Cixing shares, as the first domestic computer knitting flat knitting machine development and production enterprises, is in the preemption of the industry, while the product quality is stable, the design is reasonable, it can effectively meet customer needs, get market recognition with a high cost performance advantage, and quickly launch sales with localized, timely response services, and won the market reputation, so that the company can seize the market opportunities of the industry and seize the market opportunities for the development of the industry, and has laid the leading and growing foundation of the company. During the reporting period, the sales volume of the main products increased rapidly.

Future development

Question: please briefly introduce the relationship between Cixing share development plan and existing business.

Fu Guiping: compared with other knitting machinery enterprises in our country, our company already has certain advantages in technology, products, market, talent and management.

At present, the company is a leading company in China's computer knitting machinery industry. Its main products are in the leading position in technology and market. The company aims to consolidate the dominant position of the company's existing main products through the implementation of the above business development plan, and continuously enrich the product categories and further improve the product structure of the company.

The above business development plan of the company is consistent with the existing business mode, and is the deepening and development of the existing business mode of the company.

The above business development plan will enrich and enhance the existing business and product structure. Through the implementation of the above business development plan, we can create more wealth for shareholders and generate positive social benefits, and promote the company's existing business to develop at a higher level.

Question: what are the markets that cistar shares will focus on in the future?

Sun Pingfan: the company's market development will continue to adhere to the principle of "foothold in China, steadily expand overseas markets", and adhere to the direct selling mode.

At home, the computerized knitting flat knitting machine has achieved the sales coverage area "gradually expanding from south to North", focusing on the southern regions such as Fujian, Guangxi and Hunan, as well as the main provinces in the north, such as Shandong and Inner Mongolia. The computer seamless knitting underwear machine mainly focuses on the main gathering place of seamless knitting underwear production enterprises such as Shantou, Guangzhou, Yiwu and Fujian.

In the overseas market, the company will mainly push the products with computerized flat knitting machines, and gradually expand other major sweater producers in Bangladesh, India, Pakistan, Jordan, Vietnam and other Asian countries.

Question: what plans does Cixing share have in terms of capacity expansion?

Sun Pingfan: as the first market share of computerized flat knitting machine, the company has a strong demand for products, and the existing capacity is no longer able to meet the further growth of market demand.

Although the company has taken many ways to increase the rental plant and expand the assembly workshop, it is still unable to fundamentally solve the problem of insufficient capacity.

Lack of capacity has become a bottleneck restricting the company's profitability. In order to seize market development opportunities, improve market share and raise profitability, the capacity expansion is more urgent.

It mainly includes: 1. Annual production of 20000 computer flat knitting machine industrialization projects; 2, annual production of 5000 computer seamless knitted underwear machine industrialization projects; 3, annual production of 5000 sets of computerized mosaic knitting machine industrialization projects; 4, annual production of 6000 computer knitting stockings machine industrialization project.

Question: what are the development goals and Strategies of Cixing share?

Sun Pingfan: the company will continue to enhance and maintain the market leading edge of the core technology, speed up the development of new products and expand the production capacity of the products. Besides keeping the leading position in the existing computerized flat knitting machine industry, the company will actively integrate the high-end technology resources of the industry, and further develop and produce high reliability and high stability knitting machinery products to meet the production and development needs of the downstream knitting enterprises.

The company will seize the opportunity of the rapid development of the knitting machinery industry, make full use of the various advantages that have been accumulated, and further enhance the R & D strength. Based on the core technology, we should further intensify the research and development of technology, integrate technological resources, and innovate the use of Technology, so as to ensure the leading industry and ensure the superiority of product performance.

The company will continuously improve the market response speed, consolidate the existing marketing channels and service system, actively explore new marketing channels and carry out consultative marketing services, provide good production solutions for customers and partners, and enhance the company's comprehensive competitiveness.

The company will make use of the opportunity of listing and financing to further improve the product structure of computerized knitting machinery and achieve the goal of internationalized management.