Affected by rising costs, lack of cores and other factors, the performance of many “fruit chain” enterprises, including Shenzhen Everwin Precision Technology Co.Ltd(300115) ( Shenzhen Everwin Precision Technology Co.Ltd(300115) . SZ), Lens Technology Co.Ltd(300433) ( Lens Technology Co.Ltd(300433) . SZ), did not meet expectations.
The total operating revenue was 11.47 billion yuan, up from the same period last year; The net profit was a loss of 579 million yuan, a decrease of 196.43% over the same period last year. The net profit loss after deducting non-profit was 769 million yuan, a decrease of 260.61% over the same period last year.
The reporter of China business daily noted that the third quarterly report of 2021 showed that Shenzhen Everwin Precision Technology Co.Ltd(300115) achieved an operating revenue of 7.366 billion yuan and a net profit attributable to the parent company of 157 million yuan in the first three quarters, that is, the company lost more than 700 million yuan in the fourth quarter of last year, which is also the largest loss in a single quarter since Shenzhen Everwin Precision Technology Co.Ltd(300115) listing.
Due to the aggravation of performance fluctuation in recent years, Shenzhen Everwin Precision Technology Co.Ltd(300115) is also actively looking for a new way out, but the progress of new business is slow, so it is difficult to support the overall performance at present.
After combing, the reporter found that not only Shenzhen Everwin Precision Technology Co.Ltd(300115) , Lens Technology Co.Ltd(300433) , Luxshare Precision Industry Co.Ltd(002475) and other fruit chain giants also increased their income without increasing profits or even losses. In contrast, Apple’s profit hit an all-time high against the background of big sales such as iPhone 13. According to the research report recently released by counter point, a well-known market research organization, Apple’s mobile phone revenue reached US $196 billion in 2021, accounting for 44% of the total global smartphone revenue.
increasing income without increasing profit still faces pressure in the short term
According to relevant data, Shenzhen Everwin Precision Technology Co.Ltd(300115) is an apple supplier, responsible for producing MacBook metal case, iPad external keyboard and apple watch structural components for apple. In addition to apple, Shenzhen Everwin Precision Technology Co.Ltd(300115) ‘s customers also include Samsung, oppo, vivo and other mobile phone brands outside China. However, the performance of Shenzhen Everwin Precision Technology Co.Ltd(300115) was directly dragged down by factors such as lack of core and rising prices of raw materials.
In the performance express, Shenzhen Everwin Precision Technology Co.Ltd(300115) attributed the poor performance to two points.
First, the R & D investment of strategic products of major customers further increased, and the layout and R & D investment of new energy components increased, with a year-on-year increase of about 300 million yuan.
Second, the key products of major customers are in the climbing period of mass production, and the yield is low; Some production and manufacturing bases are affected by the epidemic, the shortage of customer chips, and some new energy product lines are in the early stage of production. The capacity utilization rate is not as expected and the production cost is rising; The prices of the company’s main raw materials such as copper and aluminum have increased significantly, which is difficult to digest in the short term; The change of exchange rate and the rise of labor cost have a certain impact on the gross profit margin. Affected by the above reasons, the annual gross profit margin decreased by about 10 percentage points year-on-year in 2021. At the end of the period, some inventories were impaired due to the above reasons, and the impairment provision was withdrawn.
In fact, Shenzhen Everwin Precision Technology Co.Ltd(300115) performance decline has long been a sign. Previously, the third quarterly report of Shenzhen Everwin Precision Technology Co.Ltd(300115) 2021 disclosed that the operating revenue in the first three quarters was 7.366 billion yuan, a year-on-year increase of 9.20%; The net profit was 157 million yuan, a year-on-year decrease of 62.05%. In the first three quarters, it increased revenue without increasing profit, and so did its semi annual results.
Chairman Chen Qixing said: “The performance in the first half of the year was mainly affected by three aspects: the first was that the shortage of chips in the second quarter was more serious; the second was the impact of raw materials, and the prices of bulk commodities such as copper and aluminum used in production continued to rise; the third was that the human cost increased by more than doubled in the first half of the year due to the epidemic, but it may not be available.”
Shenzhen Everwin Precision Technology Co.Ltd(300115) 2021 semi annual report shows that the proportion of inventory increased by 4.06% in the first half of the year, mainly due to the delay of goods transfer of mass production projects of key customers and the arrangement of new projects for production due to the epidemic and chips.
Taking into account the rising prices of raw materials and the lack of cores, some institutions lowered the profit forecast of Shenzhen Everwin Precision Technology Co.Ltd(300115) and China Industrial Securities Co.Ltd(601377) estimated that the net profit attributable to the parent company from 2021 to 2023 was 710 million yuan, 1.25 billion yuan and 1.75 billion yuan respectively, with a year-on-year increase of 18%, 76% and 40% respectively. However, the actual net profit in 2021 was lower than expected.
In order to find new performance growth points, Shenzhen Everwin Precision Technology Co.Ltd(300115) has made a big bet on the new energy vehicle business in recent years, but the business is currently in the investment stage.
The substantial expansion of production and huge investment in new energy business have also become one of the reasons that “drag down” Shenzhen Everwin Precision Technology Co.Ltd(300115) performance.
Shenzhen Everwin Precision Technology Co.Ltd(300115) said that due to the increased investment in the layout and R & D of new energy components and parts, and some product lines of new energy are in the early stage of production, the capacity utilization rate is lower than expected and the production cost is rising.
In November 2020, Shenzhen Everwin Precision Technology Co.Ltd(300115) completed the issue of shares to specific objects, raising a net fund of 1.88 billion yuan, including the investment in Shanghai Lingang Holdings Co.Ltd(600848) new energy vehicle components (phase I) project. In the first half of 2021, in order to meet the needs of the company’s new energy business development and market expansion, Shenzhen Everwin Precision Technology Co.Ltd(300115) carried out large-scale production expansion. In the field of power battery structural parts, it has invested and built three power battery structural parts production bases in Yibin, Sichuan, Changzhou, Jiangsu and Ningde, Fujian, with an investment scale of 2.5 billion yuan, of which Ningde Changying and Changzhou Changying have been put into operation successively in the first half of the year.
As of the first half of 2021, Shenzhen Everwin Precision Technology Co.Ltd(300115) main source of revenue is still consumer electronics business, accounting for more than 85% of revenue.
Shenzhen Everwin Precision Technology Co.Ltd(300115) faces not only the pressure of rising costs brought by the whole industry, but also the transformation pains of not getting enough return on investment in new fields.
cost rise, overall pressure on fruit chain
Although the performance of fruit chain enterprises is under pressure, Apple’s own profit has reached a new high. In 2021, the iPhone 13 released by Apple can be described as making a lot of money. According to the research report released by the well-known market research agency counterpoint on February 25, 2022, the total revenue of the global smartphone market achieved a year-on-year growth of 7% in 2021, exceeding US $448 billion. Apple’s revenue reached $196 billion in 2021, accounting for 44% of the total global smartphone revenue. The revenue growth of Shenzhen Everwin Precision Technology Co.Ltd(300115) 12.74% can also be seen. Although the supply is affected by “lack of core and short material”, the sales of apple computer products are also good. However, labor-intensive upstream companies need to bear greater pressure. Under the influence of core shortage and epidemic, the life of fruit chain enterprises is not easy.
In addition to Shenzhen Everwin Precision Technology Co.Ltd(300115) , the performance express disclosed by Lens Technology Co.Ltd(300433) of Guolian listed company is not ideal.
The company disclosed that in 2021, it achieved an operating revenue of 45.286 billion yuan, a year-on-year increase of 22.60%; The net profit attributable to shareholders of listed companies was 2.088 billion yuan, a year-on-year decrease of 57.36%; The net profit deducted from non profit was 1.317 billion yuan, a year-on-year decrease of 70.64%. There is also a situation of increasing income without increasing profit.
The epidemic situation has increased the cost of production, and the cost of manufacturing has increased Lens Technology Co.Ltd(300433) said that during the reporting period, the comprehensive factors such as the rise of human costs, the increase of R & D projects, the operation of new parks, supply chain fluctuations, epidemic situation and power restriction had a certain impact on the business performance. At the same time, the company’s provision for asset impairment has increased based on prudent and consistent accounting principles.
Previously, the semi annual report of fruit chain giant Luxshare Precision Industry Co.Ltd(002475) 2021 also showed an obvious mismatch between the growth rate of operating revenue and the growth rate of deducting non net profit, which was accused of being lower than expected. The rise in the price of raw materials is also one of the important reasons for the decline in the gross profit margin of Luxshare Precision Industry Co.Ltd(002475) first half annual report. In this regard, the company also said that the global chip supply shortage, the price rise of some raw materials and the continuous rise of labor costs have had a certain impact on the industry under the joint influence of many external environmental factors, and have also brought varying degrees of delay to the landing time of some businesses of the company.
Another fruit chain enterprise Shenzhen Deren Electronic Co.Ltd(002055) ( Shenzhen Deren Electronic Co.Ltd(002055) . SZ) predicts that the net loss attributable to the shareholders of the listed company will be 480 million yuan to 680 million yuan in 2021, from profit to loss. The reasons for performance changes include the impact of adverse factors such as the epidemic situation, and the operation and benefits of the newly established industrial base did not meet the expectations; The cost of materials in the supply chain has generally risen, and the shortage of core raw materials such as chips has caused fluctuations in customer orders and delivery delays, and the operating cost has increased.
Although Apple’s performance and order volume are good, the pressure of upstream enterprises in the supply chain can not be avoided.
Lin Zhi, chief analyst of wit display, pointed out that factors such as the epidemic, lack of core and materials, and rising prices are increasing Apple’s production costs. In addition to chips, Apple may depress the profit space of Apple’s supply chain enterprises, so the performance prospect of fruit chain enterprises in 2022 is not good.
