Company code: 688021 company abbreviation: Aofu Environmental Technology Co.Ltd(688021) Aofu Environmental Technology Co.Ltd(688021)
Summary of annual report 2021
Section I important tips
1 the summary of this annual report comes from the full text of the annual report. In order to fully understand the company’s operating results, financial status and future development plan, investors should http://www.sse.com.cn. The website carefully reads the full text of the annual report. 2. Major risks: the company has described the risks faced by the company in this report. Please refer to the relevant contents of Article 4 risk factors in the discussion and analysis of management in Section III of this report for investors’ attention. 3 the board of directors, the board of supervisors and the directors, supervisors and senior managers of the company guarantee the authenticity, accuracy and completeness of the contents of the annual report, and there are no false records, misleading statements or major omissions, and bear individual and joint legal liabilities. 4. All directors of the company attended the board meeting. 5 Rongcheng Certified Public Accountants (special general partnership) issued a standard unqualified audit report for the company. 6. The company is not profitable and has not yet achieved profitability when it is listed □ yes √ No 7. The profit distribution plan or the plan for the conversion of provident fund into share capital in the reporting period adopted by the resolution of the board of directors
After deliberation at the ninth meeting of the third board of directors, the profit distribution plan of the company for 2021 is as follows: Based on the total share capital of 77283584 shares on December 31, 2021, the company will distribute cash dividends of RMB 2.6 (including tax) to all shareholders for every 10 shares, with a total dividend of 20093731.84 yuan, accounting for 30.53% of the net profit of 65824900.64 yuan of the listed company in the current year. The company has no plan to transfer capital reserve to increase this year.
The above profit distribution plan has been independently commented by independent directors, and the profit distribution plan shall be implemented after being deliberated and approved by the company’s 2021 annual general meeting of shareholders. 8. Whether there are important matters such as special arrangements for corporate governance □ applicable √ not applicable
Section II basic information of the company
1 company profile company stock profile √ applicable □ not applicable
Company stock profile
Stock type stock exchange stock abbreviation before stock code change stock abbreviation and sector
A-share Shanghai Stock Exchange Aofu Environmental Technology Co.Ltd(688021) 688021/
Scientific innovation board
Profile of company depositary receipts □ applicable √ not applicable
Contact person and contact information
Contact person and contact information secretary of the board of directors (domestic representative of information disclosure) securities affairs representative
Name: Pan Jieyu, Zhang Fengzhen
Office address: North of East section of Huayuan street, Linyi County, De Zhou City
Tel: 0534-4260688
E-mail [email protected]. [email protected].
2. Introduction to the company’s main business in the reporting period (I) main business, main products or services
The company focuses on the R & D and application of honeycomb ceramic technology, and provides customers with honeycomb ceramic series products in the field of air pollution control. The company’s main products are honeycomb ceramic carriers used in the post-treatment system of internal combustion engine exhaust (road vehicles, non road mobile machinery, ships, etc.) to carry coated catalysts or capture particles. According to the reaction or filtration principle of tail gas post-treatment, honeycomb ceramic carrier is mainly divided into straight through carrier and wall flow carrier, in which straight through carrier mainly includes SCR carrier, Doc carrier, ASC carrier and TWC carrier; Wall flow carriers include DPF (act-dpf, SiC DPF) and GPF. Gasoline, non diesel and DOC carriers, used in the above-mentioned GPF vehicles and DPF vehicles. In the field of internal combustion engine exhaust gas treatment, the company has realized the full use of DOC, DPF, SCR, ASC, TWC and GPF carriers, and is in a leading position in China’s honeycomb ceramic carrier manufacturing enterprises.
Honeycomb ceramic carrier is in the core and dominant position in the mobile source tail gas post-treatment system, which affects the technical route of tail gas treatment and largely determines the effect of the implementation of tail gas emission regulations. The company has made remarkable technical and market achievements in the fifth stage of China. With the implementation of the national VI emission standard for heavy-duty diesel vehicles on July 1, 2021, China’s motor vehicle exhaust emission has fully entered the national VI era. The company is deeply engaged in the R & D and production of honeycomb ceramic carrier for diesel vehicles, and has obvious competitive advantages in large-size honeycomb ceramic carrier for heavy commercial trucks.
The company has developed and mass produced a full range of honeycomb ceramic carriers suitable for national six standards, which are directly supplied to major catalyst manufacturers at home and abroad, such as Johnson Matthey, meimeike, Weifu environmental protection, Guiyan catalysis, Sinocat Environmental Technology Co.Ltd(688737) , and successfully entered the supplier list of well-known vehicle or host manufacturers at home and abroad, including Sinotruk Jinan Truck Co.Ltd(000951) , Weichai Power Co.Ltd(000338) , Yuchai power, Kunming Yunnei Power Co.Ltd(000903) , Jiangling Motors Corporation Ltd(000550) , Shangchai power, etc. In addition, relying on its excellent product technical performance, the company took the lead in entering the post market of commercial trucks in North America and South Korea, and became a qualified supplier for ceracomb, HCC, AP, skyline and other foreign customers. Relying on the core technology and customer resource advantages established by continuous R & D investment in the early stage and market development, the company has continuously carried out bench test and road test with relevant major catalyst manufacturers, engines and vehicle manufacturers at home and abroad, and has obtained a number of type inspection announcements. （2） Main business model 1 Procurement mode
The main raw materials of honeycomb ceramic products of the company are talc, kaolin, alumina, cellulose, etc. The main energy sources are natural gas and electricity. The company mainly adopts the mode of “order by production” for procurement, and considers safety inventory according to market conditions.
The procurement of main raw materials for honeycomb ceramic products adopts the mode of continuous procurement according to the characteristics of continuous production. The logistics department shall formulate the procurement plan according to the production plan, issue the procurement notice to the procurement department, and the procurement department shall conduct centralized procurement. The Logistics Department of the company has safety stock for all main raw materials. When the raw materials in stock are lower than the safety stock, the logistics department notifies the procurement department to purchase according to the procurement application. The purchase is initiated and approved through the ERP system. 2. Production mode
The company adopts the production mode of “production based on sales” and reasonable inventory. The company’s honeycomb ceramic carrier and energy-saving heat storage products are mainly the combination of stock production and order production. The company has established a series of production rules and regulations, passed iatf16949, ISO9001 quality management system, environmental management system, occupational health and safety management, energy management system and other certification, and the production management system is perfect. The production department has formulated clear operation standards for the production process, and carried out self inspection and patrol inspection in the production process to ensure the quality of delivered products. 3. Sales model
The sales of the company adopts the direct sales mode, which is divided into domestic sales and export sales according to different customers in China and abroad. Among them, honeycomb ceramic carrier products are sold to China and abroad respectively, and energy-saving heat accumulators are mainly sold in China.
(1) Domestic sales mode
The Chinese customers of the company’s honeycomb ceramic carrier products are mainly catalyst coating manufacturers, which are mainly sold directly by order. The quotation of the company’s products mainly refers to the market price, and the price of the same product is generally moderately reduced on an annual basis.
(2) Export mode
The customers of honeycomb ceramic carrier products directly sold by the company overseas are mainly companies and ship engine manufacturers that provide products and services for the aftermarket of internal combustion engine exhaust aftertreatment system. At present, they are mainly DPF and ship engine carrier, and the main customers are distributed in the United States, Canada, South Korea, Finland, India and other countries. The export process of honeycomb ceramic carrier products of the company generally includes customer review, agreement, customer order, production organization, packaging, customs declaration and export. At present, the company’s export sales mainly include VMI and non VMI modes:
① VMI mode. Under this mode, the company leases warehouses overseas and delivers goods in batches according to the pre measurement of customers’ demand. After confirming the specification and quantity of products with customers, the company transports and delivers goods to overseas ports, and customers enter VMI warehouse after customs clearance. The customer shall issue the delivery application to the company in stages according to the actual needs. After confirmation, the customer shall go to the warehouse to pick up the goods by himself. The company reconciliates with the customer at the end of the month or at the beginning of the next month according to the quantity of each batch collected by the customer, confirms the quantity and amount collected by the customer in the current period and the inventory in the VMI warehouse, confirms the current sales revenue with the amount collected by the customer, and the uncollected goods are still owned by the company.
② Non VMI mode. In this mode, the company directly sends the goods to the customer by air or sea according to the order placed by the customer. The company shall recognize the income after completing the customs declaration for the exported goods. 4. R & D mode
Based on honeycomb ceramic technology, the company focuses on the research and development of honeycomb ceramic carrier technology and industrialization around motor vehicle emission standards. According to the strategic planning, regulations and technical requirements and in combination with the specific needs of customers, the company carries out research and development projects, carries out product advance planning based on the subject, and carries out sufficient technical communication with downstream automobile host manufacturers to ensure technical coordination and product matching. （3） Industry 1 Development stage, basic characteristics and main technical threshold of the industry
According to the guidelines for Industry Classification of listed companies (revised in 2012) issued by China Securities Regulatory Commission, the company belongs to “manufacturing – special equipment manufacturing” (Code: C35); According to the national economic industry classification (GB / t4754-2017) issued by the National Bureau of statistics, the company belongs to “manufacturing – special equipment manufacturing – environmental protection, social public services and other special equipment manufacturing – special equipment manufacturing for environmental protection” (Code: c3591). According to the requirements of the key recommended areas in the guidelines for the listing of science and Innovation Board enterprises of Shanghai Stock Exchange, the company belongs to the category of “advanced environmental protection technology and equipment and advanced environmental protection products” in the field of “energy conservation and environmental protection”.
(1) Industry development stage
Since Corning Corporation of the United States started the honeycomb ceramic carrier industry in the 1970s, a monopoly pattern with Corning and NGK Corporation of Japan as oligarchs has gradually formed in the industry, leading the automobile exhaust aftertreatment industry. On the one hand, the situation of air pollution control in China is still grim, and people pay more and more attention to motor vehicle emission pollution; On the other hand, the core technologies and products for controlling exhaust pollution have long been in the hands of foreign monopoly giants, and China’s automobile industry still needs to abide by environmental protection regulations and standards. The development of China’s automobile industry is in a relatively passive situation.
Corning and NGK enjoy the first dividend of the rapid development of the automobile industry, while Chinese carrier manufacturers will fully benefit from the penetration improvement brought by environmental protection regulations. After the implementation of national six emission standards for natural gas vehicles on July 1, 2019, light vehicles, heavy vehicles and urban vehicles on July 1, 2020, heavy diesel vehicles on July 1, 2021, With the technological breakthrough and market share improvement of Chinese honeycomb ceramic carrier manufacturers, Chinese host and vehicle manufacturers have gradually started the localization and substitution process of honeycomb ceramic carrier. Under this background, the situation that China’s honeycomb ceramic carrier market is monopolized by foreign oligarchs is being gradually broken. At the same time, with the deepening of the Chinese government’s air pollution control, stricter emission standards for ship machinery and non road mobile machinery will be implemented one after another, which will bring new market opportunities to the honeycomb ceramic carrier industry.
(2) Basic characteristics of the industry
In the 1970s, the federal government of the United States tightened the automobile emission control standards. In this context, Corning invented cordierite honeycomb ceramics as the carrier of catalyst coating for tail gas post-treatment, which provides an efficient reaction center for chemical reaction of tail gas post-treatment. The automobile exhaust after treatment system is gradually developed with honeycomb ceramic carrier as the core. After more than 40 years of development, the honeycomb ceramic carrier industry presents the following industry characteristics:
① Interaction between emission regulations and honeycomb ceramic carrier technology
Emission standards are generally mandatory standards, so that the honeycomb ceramic carrier required by the emission technology involved in the regulations becomes a de facto regulation. The upgrading of emission regulations and the innovation of honeycomb ceramic carrier technology affect each other. On the one hand, the technological innovation of honeycomb ceramic carrier provides technical support and guarantee for the upgrading of laws and regulations; On the other hand, emission regulations determine the technical route of emission purification, and then promote the development of honeycomb ceramic carrier technology. 1. Upgrading of laws and regulations to promote technological innovation of ceramic carrier
Since 2000, in order to control the emission of automobile exhaust pollutants and reduce the pollution of automobile exhaust to the environment, China has successively formulated a series of Chinese emission regulations in accordance with the EU automobile emission standard system, completing the leap from country one to country five. The current national six standard is an independent innovation based on the implementation of the current national five standards and the actual situation of motor vehicles in China. It is also one of the most stringent automobile emission regulations in the world, which puts forward higher technical requirements for honeycomb ceramic carriers.
In order to meet higher emission standards, honeycomb ceramic carriers need to improve the efficiency of treating tail gas and continuously improve various performance indicators. SCR, DOC and TWC carriers are developing towards high pore density and ultra-thin wall; DPF and GPF are increasing towards the direction of high porosity, narrow pore size distribution and high heat shock resistance. 2. Honeycomb ceramic carrier is the basis of emission control technology route
When the main engine or vehicle manufacturer implements the emission regulations, it is necessary to clarify the technical route of the relevant tail gas post-treatment system. Because of its structure, physical and chemical properties and other characteristics, honeycomb ceramics are naturally suitable as catalyst carrier. Its development also helps to upgrade emission regulations and affects the determination of emission control technical route. Generally, the carrier is also a treatment link in the technical route
