On March 18, Henan Tong-Da Cable Co.Ltd(002560) released the annual report for 2021. During the reporting period, the company achieved a total operating revenue of 2.363 billion yuan, an increase of 22.01% over the same period last year; The net profit attributable to shareholders of listed companies was 24 million yuan, a decrease of 80.39% over the same period last year. The revenue and profit of Chengdu Hangfei, a subsidiary, increased rapidly, and the net profit increased by 27.10% over the same period last year. However, due to the impact of the macroeconomic environment, the prices of bulk commodities such as copper and aluminum, the main raw materials for cable business, rose sharply to an all-time high, resulting in a significant decline in the company’s net profit. In the future, the company will organically integrate the cable business and the aluminum based new material business according to the production and sales mode, continue to pay attention to the price trend of copper, aluminum and other raw materials, actively carry out futures hedging business, implement many cost reduction and efficiency enhancement measures, strengthen marketing and procurement management control, avoid the risks caused by the sharp fluctuation of raw material prices to the greatest extent, and lay a solid foundation for the long-term, sustainable and stable development of the company.
Henan Tong-Da Cable Co.Ltd(002560) subsidiary Chengdu Hangfei focuses on precision machining services of aircraft structural parts. From 2016 to 2020, the company focused on cultivating and empowering Chengdu Hangfei, so that the net assets of Chengdu Hangfei increased from less than 20 million yuan to more than 800 million yuan in five years.
During the reporting period, Chengdu Hangfei actively carried out the construction of aviation parts base and aviation structural parts R & D project in Xindu District, becoming the first private enterprise in China’s aviation parts industry to introduce the most advanced German DST intelligent aviation parts flexible processing production line. After the completion of the project, it will fundamentally change the traditional mode of single person, dense personnel and low efficiency in China’s aircraft parts processing, and then realize digital, unmanned, intensive and efficient intelligent and efficient production. Chengdu Hangfei’s production mode is mainly processing with supplied materials. The purchase of raw materials will not occupy the funds, so the gross profit margin and net profit margin are high. At the same time, due to Chengdu Hangfei’s strong technical ability and advanced technology, the gross profit margin and net profit margin are at the leading level in the same industry.
Henan Tong-Da Cable Co.Ltd(002560) said that the company will continue to promote the established strategy of “based on the main industry and deeply cultivating military industry”. In terms of cables, with the promotion of the national “new infrastructure”, while consolidating the position of UHV conductor industry, relying on the newly built special cable workshop and the newly established Tongda Jiutong, the company will increase the research, development and production of photovoltaic cables, long-life halogen-free low smoke flame retardant medium and low-voltage cables and other cable products, and expand the customers of large general contracting enterprise groups with high popularity at home and abroad and other civil products markets. In terms of military industry, we will continue to promote the construction of the wholly-owned subsidiary Chengdu Hangfei “aviation parts manufacturing base construction project” and “Xindu Hangfei aviation structural parts research and development project”, continue to look for high-quality targets in the military industry, strengthen cooperation through mergers and acquisitions, equity participation and other ways, and strive to build the company into a high-quality military civilian integration platform as soon as possible. Meanwhile, Tongda new materials will be included in the consolidated statements in 2022, which will further enhance Henan Tong-Da Cable Co.Ltd(002560) anti risk ability and profitability. (Wang Lei)
