In the evening of April 28th, Topband (002139.SZ)  discloses its first quarter report for 2020. According to the announcement, the company's revenue from January to March of this year was 770 million yuan, down slightly by 4.11% from the same period last year. The net profit attributable to shareholders of the listed company was 63.02 million yuan, up 21.44% from the same period of last year. It can be seen that, despite the impact of the epidemic, the achievements of the frist quarter of Topband far exceeded the market expectations. Its revenue basically remained stable from a year ago, which also reflects the strong anti-risk ability of Topband itself.

We firmly believe that technology creates value and constantly increase R&D investment to enhance core competitiveness.

       Topband adheres to the concept of "technology has value" and continues to increase R&D investment., which reached 67.67 million yuan in the frist quarter of 2020, with a year-on-year growth of 44.26%. Over the years, the proportion of the company's R&D revenue has increased year by year, and the number of R&D personnel has increased year by year. In the first quarter of this year, the proportion of R&D expenses in the revenue has increased to 8.79%.

       "Grinding a chopper will not hold up the work of cutting firewood". The continuous and intensive R&D investment of Topband has brought the company industry-leading teachnological advantages. The company's products have become increasingly intelligent, interconnected, complex and modular. The added value of products has been continuously improved, and the core competitiveness of the company has been continuously enhanced. The company's large-scale R&D investment will transformed into long-term competitiveness in the future, and it is expected to highlight its first-mover advantage in the gradually increasing industry barriers, undertake most of the outsourced intelligent controller production capacity, and obtain favorable development conditions in the future industrial cluster development.

It will raise 1.05 billion yuan to consolidate the "two wings" and provide sustained impetus for subsequent growth.

      In the evening of April 28th, Topband also disclosed  Plan for non-public Stock issuance in 2020. It is planned that 1.05 billion yuan will be raised from the private placement to be invested in the construction of "Topband Huizhou Second Industrial Park Project" and supplementary working capital. The Topband Huizhou Second Industrial Park project plans to invest 750 million yuan, and the remaining 300 million yuan will be used to supplement the working capital. According to the announcement, the total investment of "Topband Huizhou Second Industrial Park project" is nearly 9 yuan, mainly producing lithium batteries and high-efficiency motor products. After the project is completed, the production capacity of 1.3GWh lithium batteries and 8.6 million high-efficiency motors will be increased.  As for lithium batteries, they will benefit from the vast market space of communication energy storage brought by the upgrading of 4G base stations and the large-scale popularization of 5G base stations. The substantial increase in the power of 5G base station equipment has put forward higher requirements for energy storage batteries, and the supporting use of lithium iron phosphate batteries has been the trend of the irresistable trend. The company is expected to win the development opportunity by increasing the capacity of lithium batteries. In terms of high-efficiency motors, with the rapid development of the backward position applications of micromotors and the replacement of traditional motors by high-efficiency motors, the market scale of micro-special motors in China has been greatly expanded.The company's high-efficiency motor products are mainly micro-special motors, including brushless DC motor and hollow cup motor, etc., with a broad market space in the future, this directional addition will help the company to grasp the industrial opportunities.

        It can be seen that the directional addition will help the company improve its R&D and production capacity, grasp the market opportunities, and comply with the industrial development. Lithium battery and high efficiency motor are important part of "one body two wings " development strategy. In order to have a better product with intelligent controller and customer collaboration, the company based on the existing capacity, expand the" two wings "capacity, improve the product structure, strengthen" two wings "products production and sales ability, the ability to help to promote the combination of services to customers, increase customer stickiness, bring continuous motivation for the performance of subsequent growth.