Securities code: 002506 securities abbreviation: Gcl System Integration Technology Co.Ltd(002506) Announcement No.: 2022-006 Gcl System Integration Technology Co.Ltd(002506)
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
On February 7, 2022, Gcl System Integration Technology Co.Ltd(002506) (hereinafter referred to as “the company” or ” Gcl System Integration Technology Co.Ltd(002506) “) received the notice on Gcl System Integration Technology Co.Ltd(002506) issued by the second Department of management of listed companies of Shenzhen Stock Exchange (company Department notice [2022] No. 121). The company has replied to the relevant issues concerned in the letter, which is hereby announced as follows:
(unless otherwise specified, the financial data quoted in this announcement shall be in 10000 yuan; if there is any difference in the mantissa between the sum of part of the total and each detailed number, it is due to rounding.)
1. Please explain the specific impact amount, calculation process and recognition basis of various factors leading to the expected large loss in 2021.
Reply: the main factors of the company’s losses in 2021 are as follows:
(1) In 2021, the supply of silicon materials in the upstream of the whole photovoltaic industry was tight, which led to the continuous high price operation of the company’s main raw materials silicon chips and battery chips. The prices of superimposed EVA, backplane, glass, frame, silica gel and other auxiliary materials increased in varying degrees. The production cost of the company’s components increased rapidly, and the increase of the sales price of the terminal components was less than that of the raw materials, The gross profit margin of components decreased significantly to about 4.5%. Affected by covid-19 epidemic, the shipping price of overseas orders has increased continuously, and the logistics cost has further eroded the profit, affecting the shipment of components. The company took the initiative to make strategic adjustments, preferred high margin orders and abandoned low-cost orders. The annual component sales volume was about 2.2gw, a decrease of about 26.67% compared with the same period last year.
Due to the impact of rising component prices, the prices of superimposed inverters, supports and other prices rise, the prices of industrial chain products are in the adjustment period, the terminal pressure leads to the reduction or delay of project construction, the progress of the company’s EPC project is delayed, and the grid connection volume is reduced by about 350MW compared with the previous year.
Due to the above reasons, the company’s operating revenue and profit decreased, with a loss of about 735.622 million yuan, but the loss decreased compared with the same period in 2021.
(2) In 2021, 182 / 210 large-size batteries and components became the mainstream of the industry. In line with the development trend of large-size batteries in the industry, the company plans to dispose of the production capacity of small-size batteries and components that do not meet the conditions for technological transformation and upgrading. Among them, if the signed equipment sales contract has not been delivered, the asset impairment amount shall be withdrawn according to the contract amount. For other equipment that has not signed the sales contract, the management estimates the impairment amount based on the industry development trend, market demand judgment and the principle of prudence, combined with the preliminary evaluation opinions of the evaluation institution, and the asset impairment loss is estimated to be about 629847800 yuan to 983484100 yuan.
(3) During the reporting period, the company completed the sale of all or part of the equity of 9 home appliance stations, and recognized the investment income of about -17353200 yuan according to the difference between the sum of the consideration obtained from the disposal of equity and the fair value of the remaining equity minus the share of net assets calculated according to the original shareholding ratio.
2. For the provision of asset impairment, your company is requested to clarify the asset scope, reasons for impairment, estimated impairment amount of each asset, etc., and explain whether there is any situation that the impairment has been accrued in the previous period and reversed in the current period. At the same time, please explain whether the accounting policy and determination basis of the provision for asset impairment have changed significantly compared with the same period of last year, and whether the relevant asset impairment complies with the relevant provisions of the accounting standards for business enterprises. On this basis, please explain whether the provision for asset impairment of your company in previous years is sufficient and whether there is any situation of earnings management through asset impairment provision.
Reply: in line with the development trend of large-scale in the industry, the company plans to dispose of the capacity of small-scale batteries and components that do not meet the conditions for technological transformation and upgrading. If the signed equipment sales contract has not been delivered, the asset impairment shall be accrued according to the contract amount. For other equipment that has not signed the sales contract, the management has estimated the impairment amount in combination with the industry development trend, market demand judgment and the principle of prudence, as well as the preliminary evaluation opinions of the evaluation agency. The estimated impairment amount is as follows:
Reasons for impairment of asset category and estimated impairment amount (10000 yuan)
The capacity of small-size battery chips to be disposed of ranges from 29847.99 to 34863.91
Capacity of small-size components to be disposed 33136.79 to 63484.50
When the small-size battery piece equipment with impairment withdrawn in the previous period is sold in the current period, the disposal price is slightly higher than the net amount after impairment withdrawn in the previous period, resulting in asset disposal income of about 3.6373 million yuan, accounting for 1.01% of the impairment amount in the previous period, and the overall proportion is very small.
To sum up: compared with the same period of last year, the accounting policies and determination basis of the company’s provision for asset impairment have not changed significantly, and the relevant asset impairment complies with the relevant provisions of the accounting standards for business enterprises. At the same time, the company’s provision for asset impairment in previous years is sufficient, and there is no case of earnings management through asset impairment provision.
3. The performance forecast shows that your company’s annual operating revenue and profit decreased due to the sharp decline in the gross profit margin of components, the company’s active strategic adjustment, the continuous rise in the freight price of overseas orders, and the significant delay in the construction commencement and grid connection process of EPC projects in the photovoltaic industry. Please explain whether your company’s external business environment is subject to continuous pressure risk, whether the decline of main business income is sustainable, and whether there are major uncertainties and reasons for your company’s sustainable operation ability in combination with the development trend of the industry in which your main business is located and the changes of market demand; If yes, please timely and fully disclose the risk tips.
reply:
(I) the company’s external business environment is not under pressure
From the development trend of the industry, with the international pursuit of carbon neutrality becoming more active, most major countries have set the goal of achieving carbon neutrality from 2050 to 2060, making the energy transformation become the international mainstream will and the market demand more optimistic. According to PV InfoLink, the demand of the Chinese market is expected to reach more than 65gw to 75gw in 2022. The growth is due to a number of favorable policies issued by the Chinese government, such as new energy financing, promotion of the whole county, large-scale projects of 100gw in desert, etc. Among them, the promotion policies of the whole county will significantly stimulate China’s industrial and commercial roof Market in the second half of the year after more supporting facilities are mature. Some large-scale projects in deserts and other places have also been carried out in the initial stage. It is expected to be implemented on a large scale in 2023, and the huge project scale will greatly boost China’s overall demand. The demand of European and American markets is expected to continue to grow, with 45gw and 31gw respectively.
The rest of the countries showed steady and slow growth. It is conservatively estimated that the global component demand will grow by nearly 24%, reaching the level of more than 214gw. Moreover, the overall demand will change dynamically with the formation cost and actual demand of material and module prices. If the product price of photovoltaic upstream and downstream industry chain can restore a reasonable range, it can support 230-240gw of module output, and the annual demand is expected to fall between 210-226gw.
To sum up, there is no continuous pressure risk in the external business environment of the company.
(II) the decline of the company’s main business income is not sustainable
In 2021, the supply of silicon materials in the upstream of the whole photovoltaic industry was tight, resulting in the continuous high price operation of the company’s main raw materials, silicon wafers and cells. The prices of auxiliary materials such as EVA, backplane, glass, frame and silica gel increased in varying degrees. The production cost of the company’s components increased rapidly, the increase of the terminal sales price of components was less than that of raw materials, and the gross profit margin of components decreased significantly. The company will adjust the sales volume, give up the order, and take the initiative to optimize the sales volume. In addition, affected by covid-19 epidemic, the freight price of overseas orders has increased continuously, and the logistics cost has further eroded the profit, affecting the shipment volume of the industry. Due to the impact of the rising price of components and the rising price of superimposed inverters and supports, the construction commencement and grid connection process of EPC projects in the photovoltaic industry have been greatly delayed, affecting the bid winning and grid connection scale of the company’s EPC business. The above comprehensive reasons lead to the phased pressure of the whole industry and the decline of the company’s annual operating revenue and profit.
China’s distributed demand and overseas demand may exceed expectations in 2022. In China, the increase of electricity price and the decrease of green loan interest rate stimulate the explosive growth of distributed photovoltaic. In 2022, the promotion of distributed photovoltaic is in full swing. It is expected to continue to maintain the development scale with installed capacity accounting for more than 50% throughout the year. The centralized procurement of central enterprises has been started one after another, and the subsequent price reduction of industrial chain further stimulates the starting volume of ground power stations, It is estimated that China’s demand will reach more than 65gw to 75gw in 2022; Overseas, in 2022, overseas markets such as India, Japan and Poland will rush for equipment goods, especially India’s installed capacity in the first quarter may be 8-10gw. Under the double carbon target in the future, the photovoltaic industry has entered a period of vigorous development, with strong market demand, and the prices of all links of the photovoltaic industry chain are gradually tending to a reasonable range, which is expected to have a positive impact on the module links. The global epidemic prevention and anti epidemic has accumulated rich experience to gradually alleviate the impact and impact of the epidemic on the economy. The company also actively reduces the impact of shipping costs on the company’s order gross profit by signing long orders with shipping companies and changing logistics modes. Superposition company has the advantages of large-scale component capacity and advanced technology, and has reserved sufficient orders, which will support the resumption of growth of the company’s operating revenue.
To sum up, the company believes that the decline in main business income is not sustainable.
(III) there is no major uncertainty about the company’s ability to continue as a going concern
1. Further optimize the product structure
The No. 1 plant of Hefei large-scale component base of the company has officially reached production in December 2021, the component equipment of No. 2 plant has been successively put into the plant, and it is expected to be put into operation at the end of the first quarter of 2022, and the No. 3 plant is planned to be put into operation in the third quarter of 2022. Superimposing the technical transformation and upgrading of the production line of the company’s original production base, it is expected that the company will have a large-size component capacity of more than 20GW by the end of 2022, and the company’s component product structure will be further optimized.
2. The company has significant technical advantages
The company adheres to the concept of science and technology leading and innovation driven, and continues to improve its scientific research strength and new product transformation ability. Adhering to the strategy of high efficiency and differentiation, the company’s photovoltaic cell and module business actively arranges the battery and module products of large-size silicon wafer, including laminated tile, half wafer, double-sided double glass and transparent backplane products, and completes the technical reserves of high-efficiency battery TOPCON, hjt and so on. The company continues to launch immersible and highly reliable sea surface floating components, BIPV building integrated photovoltaic products, bapv, light components, photothermal PVT components, etc., which will be launched and listed as planned in 2022. 3. Have high-quality customer resources and sufficient orders
The company has actively explored Chinese and overseas customer resources, cultivated potential strategic customers and high value-added market segments, and accumulated high-quality global customer resources, including overseas large distributors and power companies, as well as China’s large central enterprises, state-owned enterprises and county development projects. The company has great brand influence in the global market. It is rated as Tier 1 component supplier by bnef and has passed the French carbon footprint certification. At present, the company has sufficient orders and has established long-term supply relations with China Southwest Electric Power Company, Petrochina Company Limited(601857) project construction bidding project and European customers. At the beginning of 2022, the company has signed a formal component supply order of 1.3gw. With the release of large-scale component capacity of Hefei component base, the company will continue to increase cooperation with high-quality customers and continuously improve market share.
4. Smooth financing channels of the company
Under the dual carbon target, traditional financial institutions have increased financial support for clean energy enterprises. The subsidiaries of the company led by Hefei factory have reached credit intention cooperation with local financial institutions. The company actively expands the bank financing dominated by state-owned and joint-stock commercial banks, saves the amount and introduces the increment. The company actively broadens financing channels and provides financial guarantee for the company’s production and operation through innovative financing tools such as supply chain financing and equity bond financing.
5. National policy support
Under the background of double carbon, photovoltaic has become the new main force of energy. Countries around the world have successively promulgated favorable photovoltaic policies to support the rapid development of photovoltaic industry. Chinese local governments also give support to photovoltaic enterprises in the region in terms of capital investment, subsidies and tax incentives, so as to alleviate the pressure of enterprise operation and accumulate core competitiveness. The company has been deeply engaged in photovoltaic track for many years and will continue to help the development of new energy.
6. The operation efficiency of the company continues to improve
As the problems left over by the company’s history are gradually eliminated, the management efficiency is gradually improved, the cash cycle is continuously shortened and the liquidity is strengthened. The company will continue to take effective measures to optimize the production and operation cycle, improve the efficiency of capital utilization and improve the efficiency of the enterprise.
7. The company’s EPC business has strong industrial competitiveness
The company attaches great importance to the improvement of EPC business qualification, and has the general contracting (grade II) of power engineering construction, engineering design qualification, professional grade B of power industry (new energy power generation and wind power generation), qualification certificate of foreign contracted projects
Professional qualifications such as grade III professional contracting of power transmission and transformation projects, engineering design consulting qualification (filing system), and comprehensive strength
And customer recognition.
To sum up, there is no major uncertainty about the company’s sustainable operation ability.
4. Please describe in detail the specific situation of disposal loss caused by the sale of power station equity by your company during the reporting period.
Reply: during the reporting period, the company’s disposal losses arising from the sale of power station equity are as follows:
Unit: 10000 yuan
Company name equity disposal completed equity disposal remaining equity disposal date book disposal profit and loss time point proportion price fair value net assets
Ulanqab xiangdaoguang 2021 / 01 100% 20000.00 – 25554.39 – 5554.39 V Technology Co., Ltd
