Digby Annual Report
[pic] C55847 – Digby Annual Report By Yan Lang, Ching-Hsiang Lin, Shu Ou-Yang, Nuo Xu Shareholder Letter To Our Shareholder, Customers, and Employees: The past eight years have marked an extraordinary level of progress for Digby Electric Sensors and its shareholders. In the past eight years, the company was able to turn its stocks from $34. 25 per share into $45. 77, plus issuing a total of $10 dividends per share along the way.
While this level of performance is very rarely rivaled by any type of investment, our company is most proud of the sustainable within the environment and continues growth rate in the electric sensor industry.
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Eight years ago, our management team touted the importance of the following four guiding principles that helped to make Digby’s success today: 1. Cost leadership: By bringing labor and raw material costs down years ahead of the competition, our company has able to enjoy the prevailing market price and generating excess profits. 2. Low price products: By taking aggressive actions early to bring down the costs of production, our company has been able to output the highest quality line of electric sensors and offer low selling price in the industry.
Aggressive marketing: Aggressive spending in marketing every year has helped the company to gain customer awareness in preparation for eventual lower per unit production costs. This immediately helped Digby to sales in high volumes. 4. Board diversified products: In each segment, our company keeps trying to become the product leader. We spent heavily in TQM in order to reduce R cycle also increase market demand.
The level of return on investments our company has been able to deliver by following the four listed principles is not only a tribute to our past success, but also serves as a source of optimism for Digby’s future.
In the following pages you will find more detailed information on the dominate positioning our company holds in the industry as well as adjustments to be made to further increase shareholder value. Best Regards, Digby Corp. Corporation Profile: Overall about the company Lang, Yan- Chief Executive Office and Chief Operations Officer established Digby, Inc. on January 22nd, 2013. The company’s headquarters are located in center Arlington, TX.
Digby, Corp. is currently one of the leading manufacturers of high quality sensor chips in the United States.
Yan founded the company on the premise that it would successfully produce and sell sensors of highest quality and reliability to various segments of consumers with all type of needs, such as those for newness and affordability, and would continue to place a strong focus on research and innovation to persistently cater to these changing needs and maintain a substantial amount of market share in the growing market. Digby’s product line includes Daze, Dell, Dixie, Dot and Dune, which are sold online, as well as through local technology retailers nationwide.
Digby has provided quality products for many successful applications and has helped many companies achieve their project objectives with the highest standards of quality and reliability.
Our Mission & Vision “At Digby, Corp. , we are dedicated to providing optimal sensors for our customer’s needs and wants. Our guiding objectives are customer satisfaction and continuous improvement. Our overall goal is to consistently strive to deliver the highest quality products and technology and offer competitive pricing in each and every target segment of users. Culture “We want employees to be proud of the work they do, and to remember that they are part of Digby, Corp. committed to providing excellent service and exceptional products to the public,” Core Values Integrity — Build mutual trust through ethical and responsible thoughts, words, and actions.
Teamwork — Collaborate, share information openly, leverage our diversity, be transparent. Speak up, debate, and disagree, but decide, commit to the decision, and make it a success. Winning Mindset — Be positive, adaptable, and competitive.
Deliver results to ensure the success of Altera and our customers. Accountability — Define, own, and answer to your area of responsibility.
Innovation — Think forward, take calculated risks, be agents of change, adapt quickly. Create a learning environment where we develop our skills and invest in our employees. Executive Leader [pic] [pic] [pic] [pic] Strategies: Digby, Corp. takes pride as a broad cost leadership and broad differentiation strategies to develop competitive advantages in the sensor industry.
In the past eight years, Digby sensors were designed to fit a wider array of preferences, such as those for a brand new product, known as the Traditional segment; a premium priced product that offers both high performance and desirable size, known as the High End segment; an extraordinary performing product, known as the High Performance segment; a smaller sized product, known as Size segment; and finally, a lower priced product, which is referred to as the Low End segment.
However, once the company executives began to recognize which stood out amongst the rest as the most promising for increasing revenues and producing maximum returns, Digby’s overall strategy was shifted to emphasize only on the Traditional, Performance, and Low End segments and in improving existing products in these categories while also creating new. In the first five years, we invest generous amount in TQM in order to reduce material, labor and administrative costs, shorten the length of time required for R&D projects to complete and increase demand for the product line enable for us to make more profits in short term.
Further, we believes that wise use of resources and increasing efficiency are key in building long term success and that pinpointing the most effective outlets for accessing target consumers and utilizing a large marketing and promotional budget are essential for creating and maintaining awareness of Digby, Corp. and its products. Financial Highlights: (In Thousands of Dollars, except Per Share Data) | | | |Revenue | |Net Cash Flow | |Operating Activities | |Closing Financial Position | |Total Equity | |Per Common Share | |Market Value | |Financial Ratios | |% ROS |13.
| |Cost leadership strategy |Low market share | |Board diversified products |Less diversity | |Strong brand equity |Low customer awareness and accessibility | |Strong financial position |High stock price | |Competitive wages and profit sharing | | |Loyalty customers | | |Opportunities |Threats | |Emerging markets and expansion abroad |Severe competition | |Innovation |Cheaper technology | |Product and services expansion |Reduction in demand from economic regression | |Increase customer satisfaction scores |Lower cost competitors or imports. |Aggressive spending in advertisement. |Maturing categories, products, or services | Risk& Uncertainty: Digby faces the uncertainty and risks of the competitive market in the sensor industry and the reduction in demand from economic regression, the top management team still dedicated to increase the market share and the stock price in the sensor industry. These results emphasize the role of uncertainty as a determinant of investment spending, and suggest that policies that reduce volatility may lower the required cost of capital. By using SWOT analysis, our management team figures out that add value to our products and decrease our product’s weakness.
Digby using the cost leadership strategy to attract the target customers and also tries to decrease the labor and raw material costs, relative to that of competitors. Although cost leadership implies keeping costs as low as possible, our products and services still have qualities and features that customer find acceptable. On the other hand, our company keeps trying to become the product leader in each segment, we spent heavily investment in the TQM in order to reduce R cycle also increase market demand. Future of the company: Digby is a company has lots of growing potential and energy. In the past eight years, we have just set a strong foundation for our company’s future grows. We will keep expanding its manufacture plants and focusing on board diversified products that meet customers’ need.
With the “AAA” investment rating, we will invest heavily with low interest payments in R and TQM departments, so we would keep its low cost advantage within the industry. In the next five years, our targeted market share is 25%, and our targeted stock price is $65 with an overall $15 per share dividend payment. In the near future, we will start to use our best effort to develop, to expand, and to grow. And then, we will become the industry leader and enjoy the profits that we made. ———————– Lang, Yan Founder Chief Executive Officer Chief Operations Officer Lin, Ching-Hsiang Vice President of Marketing and Sales Shu, Ou-yang Chief Financial Officer Xu, Nuo Vice President of Human Resources