Company code: Liaoning Fu-An Heavy Industry Co.Ltd(603315) company abbreviation: Liaoning Fu-An Heavy Industry Co.Ltd(603315) Liaoning Fu-An Heavy Industry Co.Ltd(603315)
Summary of 2020 Annual Report
I. important note 1 the summary of this annual report is 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 carefully read the full text of the annual report on the website of Shanghai Stock Exchange and other media designated by the CSRC. 2. The board of directors, the board of supervisors and the directors, supervisors and senior managers of the company guarantee that the contents of the annual report are true, accurate and complete without false records, misleading statements or major omissions, and bear individual and joint legal liabilities. 3. All directors of the company attend the board meeting. 4. Zhitong Certified Public Accountants (special general partnership) has issued a standard unqualified audit report for the company. 5. The profit distribution plan or the plan of converting accumulation fund into share capital in the reporting period reviewed by the board of directors
In order to provide shareholders with a full and reasonable return on investment and in combination with the company's current demand for funds for business development, the board of directors of the company has proposed the following profit distribution plan for 2020: it is proposed to take the total share capital of 307026264 shares on the date of equity registration as the base, pay a cash dividend of 1.50 yuan (tax included) for every 10 shares, and the total profit distribution is 4605393960 yuan, accounting for 46.42% of the net profit attributable to the listed company. If the total share capital of the company changes before the equity registration date of equity distribution, it is proposed to keep the total distribution unchanged and adjust the distribution proportion per share accordingly. The plan has been deliberated and approved by the 5th meeting of the 4th board of directors of the company and needs to be submitted to the 2020 general meeting of shareholders for deliberation. II. Basic information of the company 1 company profile
Company stock profile
Stock type stock exchange stock abbreviation stock abbreviation before stock code change
A-share Shanghai Stock Exchange Liaoning Fu-An Heavy Industry Co.Ltd(603315) Liaoning Fu-An Heavy Industry Co.Ltd(603315) /
Contact person and contact information secretary of the board of directors securities affairs representative
Name: Qin Shuai, Wang Danyang
Office address: No. 8, anzheng Road, Qianshan District, Anshan City, Liaoning Province
Tel: 0412843760804128492100
E-mail [email protected]. [email protected].
2. Introduction to the company's main business in the reporting period (I) main business
The company's subsidiary Liaoning Metallurgical Design and research is mainly engaged in flue gas treatment engineering services and energy management engineering services. Its main business covers two fields: flue gas treatment and energy management. In terms of flue gas treatment, the design and Research Institute mainly provides supporting flue gas treatment engineering design services, general contracting services and operation services for metallurgical system pellets in the iron and steel industry, sintering, coal-fired boilers of municipal heating companies, waste incinerators and coal-fired power plants, mainly involving desulfurization, denitration, dust removal and other fields. In terms of energy management, the design and Research Institute mainly provides engineering design services and general contracting services in cogeneration, waste heat utilization and environmental protection for high energy consuming industries such as chemical industry and steel. At the same time, the design and Research Institute provides design consulting services for steel, municipal, chemical, electric power and other industries. The company is mainly engaged in the production and sales of large steel castings supporting major technical equipment. The company's products can be divided into thermal power equipment castings, hydropower equipment castings and other castings according to their purposes. The main thermal power products are: high / medium pressure inner and outer cylinders; Valve body / cylinder block; Ultra supercritical main steam regulating valve; Gas turbine exhaust cylinder, gas turbine cylinder, etc; Hydropower products: upper crown, lower ring, runner body, thrust head, blade, energy booster, guide vane, etc; Rail transit products: internal combustion engine bogie, mining truck hub, frame body, etc. (II) business model the company's business model has not changed during the reporting period. It adopts the order production mode of "determining production by sales". Sales is the central link of the company's production and operation, and procurement and production are carried out around sales. The subsidiary design and Research Institute is a typical technology-based asset light company, which has formed the competitiveness with R & D and design as the core. The business modes in the field of environmental protection engineering mainly include EPC mode, trusteeship operation mode and design consulting mode. 1. Sales mode (1) bidding mode the design and research institute obtains the project by bidding and direct entrustment. For the projects that must be subject to bidding in accordance with the bidding law, the sales process of the design and Research Institute is as follows: after analyzing and screening the project bidding information, the design and Research Institute will bid according to the EPC project general contracting mode according to the bidding documents and technical requirements. After winning the bid, the design and Research Institute will sign the contract and design, purchase, installation and commissioning of the overall system. As a EPC enterprise with R & D and design as its core competitiveness, the marketing mode of EPC of design and Research Institute is a typical technical marketing mode. The specific process is divided into project contact period and project bidding period. (2) The trusteeship operation mode design and Research Institute provides the owner with the operation services of desulfurization, denitration and dust removal devices. The service content mainly includes the operation and routine maintenance of the owner's flue gas treatment devices, mainly including the comprehensive operation, overhaul, upgrading and maintenance of the owner's flue gas treatment system, so as to meet the indicators of flue gas emission. After signing the operation contract with the owner, the design and Research Institute will establish a project department on the project site according to different flue gas treatment devices and relevant flue gas emission requirements. The design and Research Institute will appoint the project manager and be authorized to be fully responsible for the management of the operation of the project. The project manager shall transfer corresponding personnel from the procurement department and the engineering department to the project department to be responsible for material procurement, operation and other businesses. All departments of the design and Research Institute shall timely allocate relevant personnel to form a working group to cooperate with the project operation according to the project requirements. After the operation project is carried out, the project site needs to arrange personnel to observe the operation data and material consumption every day. According to the material requirements and personnel arrangement requirements of the operation, the procurement personnel shall purchase externally and outsource some manpower. (3) Design consulting mode design and Research Institute also provides design consulting services. The personnel of the design and Research Institute shall provide design services according to the requirements of customers, and carry out detailed design services for the project according to the signed technical agreement and engineering requirements. 2. Procurement mode design and Research Institute currently has two procurement modes: material procurement and engineering subcontracting.
For material procurement, the procurement mode of the design and Research Institute is as follows: the procurement department of the design and Research Institute formulates the procurement plan according to the procurement needs of construction projects and operations, and purchases from the market. The main procurement methods are as follows: (1) price comparison procurement: for small quantities of raw materials such as repair and maintenance and small standard parts and equipment such as spare parts, the design and research institute adopts price comparison procurement, That is, within the scope of qualified suppliers, the company determines suppliers by comparing goods with other suppliers according to price, quality and service. (2) Bidding procurement mode: for non-standard equipment, large amount of general equipment and bulk materials, the design and research institute adopts bidding procurement when there are multiple suppliers. (3) Directional procurement mode: in order to ensure equipment quality and project duration, the design and Research Institute has long-term cooperation with some core equipment suppliers to ensure the quality, price, delivery period and after-sales service of purchased equipment. For engineering subcontracting, the procurement method of the design and Research Institute is as follows: the construction subcontractor of the design and Research Institute is determined through bid invitation and negotiation. According to the recent market price situation, the design and Research Institute first calculates the construction subcontracting price to form the construction subcontracting reference price. During bidding invitation / negotiation, on the premise that the construction unit meets the qualification and qualification conditions of bidding invitation / negotiation, the design and Research Institute will conduct professional review on the bidding materials of the construction unit, comprehensively consider the quotation of the subcontractor on the basis of the reference price of construction subcontracting, and finally determine the construction subcontractor to ensure that the construction price is fair and reasonable. 3. Production mode (1) general contracting (EPC mode) EPC is a general mode of general contracting business in environmental protection engineering industry. EPC is the service provider that undertakes the planning and design, civil construction, equipment procurement, equipment installation, system commissioning and trial operation of the system, and is fully responsible for the quality, safety, construction period and cost of the construction project. Finally, the whole system is handed over to the owner for operation. EPC refers to that the design and Research Institute completes the overall scheme design, material procurement, project construction and commissioning of the project contracting according to the specific needs of users, and finally delivers it to users for operation after passing the acceptance, so as to achieve the purpose of emission reduction and energy saving.
Trusteeship operation means that the service provider providing flue gas treatment signs a trusteeship operation agreement with the owner, and the service provider carries out operation management and daily maintenance in the form of trusteeship, so as to ensure that the system operates normally and the energy-saving and emission reduction indicators meet the relevant standards, and regularly charge the service fee from the owner during the service period. Generally speaking, the hosting operation service is usually carried out on the project where the service provider undertakes the task of system construction. (III) industry situation 1. Casting sector casting industry is the basic industry of manufacturing industry and the basic guarantee for the innovation and development of many products and high-end technical equipment; The core components of automobile, internal combustion engine, mining and metallurgy, engineering machinery, power generation, rail transit, shipbuilding and other manufacturing industries are cast products, and the weight of cast parts accounts for a high proportion of the weight of the whole machine; Foundry industry plays an indispensable role in the development of national economy. During the 14th Five Year Plan period, the national new urbanization and industrialization policy will continue to provide a strong guarantee for the overall development of the foundry industry, and the stable growth of downstream demand will also provide broad space for the development of the industry; Technological progress and the integration of industrialization and industrialization promote industrial development and structural optimization, so that China's foundry industry will also show the characteristics of high concentration and high specialization. At the same time, the backward production capacity of the foundry industry will be eliminated as the government continues to strengthen environmental protection. 2. During the 14th Five Year Plan period in the field of environmental protection, thanks to the encouragement and support of national policies, the rapid development of the industry, the gradual enhancement of public awareness of environmental protection, the implementation of environmental protection policies by public supervision and public opinion, technological innovation, etc., investment in the field of environmental protection is expected to continue to expand. The development direction and investment focus in the field of environmental protection in the next five years are firmly locked in the perspective of national strategy and become a key investment field of the government. The environmental protection industry is facing investment opportunities based on policies. The fields involved in the business of the company's subsidiary design and Research Institute are mainly divided into coal-fired non power field and flue gas treatment in coal-fired power generation field. Among them, the coal-fired non electric field mainly involves the coal-fired industrial boiler transformation, steel, building materials (mainly including flat glass, ceramics, bricks and tiles) and other industries, and the coal-fired power generation field mainly involves the coal-fired power industry. 2.1 market prospect of desulfurization, denitration and dust removal business in non electric field public data show that the total market space of air governance in major non electric industries such as steel, cement, flat glass, ceramics and non electric coal-fired boilers is RMB 1999 billion to RMB 304.4 billion. At present, the development of smoke control in China's non electric industry has just started, and the future market can be said to be very huge. In 2020, the Ministry of ecology and environment revised the working rules of the Ministry of ecology and environment, emphasizing that environmental protection should not be relaxed due to the downward pressure of the economy. With the promotion of relevant environmental protection policies and the recovery of financing, the non electric treatment industry in the field of environmental protection market segmentation has become the main battlefield of flue gas treatment in recent years after the full implementation of the ultra-low emission policy of iron and steel. In line with the changes of policy environment, the company will actively expand the field of flue gas treatment in non electric field in 2020, and the diversified business development will advance steadily. 2021 is the first year of the 14th five year plan, and it is also a key moment in the battle of pollution prevention and control. The environmental protection policy will continue to increase, the demand for environmental governance is still strong, and the fundamentals of the environmental protection industry are expected to improve in the long run. The company benefits from the dividend of environmental protection management industry, and the future growth space can be expected. (1) The transformation of coal-fired industrial boilers in recent years, in order to win the battle of pollution prevention and control, the Chinese government has taken precise measures and an iron fist to control pollution. The effectiveness of China's air pollution prevention and control is closely related to the goal of comprehensive treatment and joint prevention and control in the future. This year's government work report puts forward the key work in 2021, including air pollution prevention and control: strengthening the comprehensive treatment of air pollution and joint prevention and control, and strengthening the coordinated control of fine particulate matter and ozone. Generally speaking, the strategy of air pollution prevention and control in China is joint prevention and control. The specific policy measures include the regulation of coal-fired boilers, ultra-low emission of coal and electricity, upgrading and transformation of industrial emission standards, etc. China's coal-fired industrial boilers have a large number, wide distribution, high energy consumption and heavy pollution. Compared with foreign countries, there is a certain gap in the overall level of energy efficiency and pollution control, and there is great potential for energy conservation and emission reduction. During the 14th Five Year Plan period, with the further development of the transformation of coal-fired boilers and the continuous implementation of the subsidy policies of relevant departments for the users of coal-fired boilers to be transformed on schedule, the environmental protection market of boiler transformation across the country will continue to grow, and the transformation market of coal-fired industrial boilers will continue to flourish, making this green revolution even more fiery. According to the public information released by China industrial information network, the market space for the transformation of coal-fired industrial boilers will reach 46.7 billion yuan by the end of 2021. (2) Industrial furnaces and kilns for the treatment of industries such as steel, flat glass, ceramics, bricks and tiles and cement are widely used in industries such as steel, building materials, petrochemical and machinery manufacturing, which plays an important supporting role in industrial development. At the same time, they are also the main emission source of air pollution in the industrial field. Compared with the thermal power industry, the flue gas treatment in these industries is not paid enough attention by the policy, and the progress of flue gas treatment and transformation is slightly slow. Its treatment measures, emission standards and treatment level are far lower than those of thermal power industry. Recently, the Ministry of iron and steel issued the "three-year action plan on promoting the development of ultra-low emission steel industry", which emphasizes the implementation of the "three-year action plan for promoting the development of ultra-low emission steel industry". The opinions put forward that by the end of 2025, the key areas will be basically completed, and the country will strive to complete the transformation of more than 80% of the production capacity. The company has successively issued policy documents such as the work plan for ultra-low emission transformation of iron and steel enterprises and the comprehensive treatment plan for air pollution of industrial furnaces and kilns, and continuously strengthened the flue gas treatment of non electric industry. The non electric industry will become the next outlet for air pollution control and the focus of large gas environment treatment, and the market demand will show a sustained and rapid growth trend. Its market space is broad and its market scale will reach a new level
