From 2012 to 2022, 10 years later, Citic Heavy Industries Co.Ltd(601608) revenue returned to 7 billion.
On March 26, Citic Heavy Industries Co.Ltd(601608) disclosed the annual report of 2021, which said that the operating revenue in 2021 was 7.55 billion yuan, an increase of 19.5% year-on-year; The total profit was 243 million yuan, a year-on-year increase of 15.17%; The net profit attributable to the shareholders of the listed company was 227 million yuan, a year-on-year increase of 16.13%; The net cash flow from operating activities was 682 million yuan.
on March 31, Yu Zhangfa, Secretary of Citic Heavy Industries Co.Ltd(601608) Party committee and chairman of the board of directors, said that the Shanghai Securities roadshow center had fully exceeded all budget indicators and achieved year-on-year growth.
For the reasons for the change of operating income, Citic Heavy Industries Co.Ltd(601608) said that driven by incremental businesses such as offshore wind power projects and special equipment, the operating income increased by 19.50% year-on-year, and vigorously expanded the offshore wind power business around “carbon peak” and “carbon neutralization”.
Citic Heavy Industries Co.Ltd(601608) chief financial officer Wang Qingchun told Huaxia times at the Shanghai Securities roadshow Center: “new energy equipment is one of the key business sectors of the company during the 14th Five Year Plan period. In 2021, the operating revenue of the company’s new energy equipment was 1.228 billion yuan, accounting for more than 16% of the total operating revenue, an increase of 138% over the previous year, and the gross profit margin was 11%, lower than the average level of the company.”
new energy equipment revenue increased by 138%
At present, Citic Heavy Industries Co.Ltd(601608) business is divided into four sectors – mining and heavy equipment, Siasun Robot&Automation Co.Ltd(300024) and intelligent equipment, new energy equipment and special materials. Among them, the operating revenue of the mining heavy equipment sector was 3.698 billion, accounting for 48.99% of the revenue and 24.35% of the gross profit margin Siasun Robot&Automation Co.Ltd(300024) and intelligent equipment revenue is 822 million, accounting for 10.9% of revenue and 35.29% of gross profit margin; The operating revenue of new energy equipment is 1.227 billion, accounting for 16.26% of the revenue and 10.97% of the gross profit margin; The operating revenue of special materials was 1.801 billion, accounting for 23.86% of the revenue and 14.19% of the gross profit marginp align=”center” style=”text-align:center;”> picture source
From the perspective of business structure, “mining and heavy equipment” is the main source of Citic Heavy Industries Co.Ltd(601608) operating revenue, but its new energy equipment business revenue is more brilliant.
Citic Heavy Industries Co.Ltd(601608) said that during the reporting period, the new energy equipment sector focused on clean energy equipment such as offshore wind power, and undertook projects such as SDIC Shenquan, SDIC Xuwen, Longyuan Zhenhua Xuwen, Tianjin Port Co.Ltd(600717) hangyangjiang, cccc-1 and cccc-3, and Funeng Changle. Nearly 100 sets of products were delivered on schedule, providing offshore foundation for 627.50mw offshore wind power projects.
Wang Qingchun said: “Through cooperation with China’s leading wind power development operator and wind power host manufacturer, China National Power Investment Corporation, China Nuclear Corporation, Ming Yang Smart Energy Group Limited(601615) , China Energy Engineering Corporation Limited(601868) Guangdong Institute, we will jointly tap the resource potential of offshore wind power ‘dark blue’, and plan to layout the R & D and processing of large gears and speed increasers, automatic control, hydraulic lubrication and other core parts for offshore wind power host on the basis of mass production of offshore wind power construction equipment and foundation piles Base to realize the continuous, batch and intelligent production of offshore wind power core equipment. “
At the same time, Wang Qingchun also said that we will continue to expand high-speed and high-efficiency steam turbine generator sets, as well as new energy equipment such as energy storage batteries and power batteries with high magnification, wide temperature range and high safety.
It is understood that Citic Heavy Industries Co.Ltd(601608) has signed a batch of orders with major customers such as Chongqing Sanfeng, Beijing Pioneer environment, City Development Environment Co.Ltd(000885) , CITIC environment and China energy conservation, and reached strategic cooperation with Sinoma Energy Conservation Ltd(603126) , jianlongchuan pot.
The other business ” Siasun Robot&Automation Co.Ltd(300024) and intelligent equipment” grew poorly, with a revenue of 822 million yuan, a year-on-year increase of only 1.09%, a year-on-year increase of 13.66% in operating costs and a decrease of 7.16% in gross profit margin over the previous year.
However, its holding subsidiary Citic Heavy Industries Co.Ltd(601608) Kaicheng Intelligent Equipment Co., Ltd. (hereinafter referred to as “Kaicheng intelligent”) achieved a year-on-year increase of more than 24% in operating revenue and 15% in total profit in 2021.
According to the reporter of Huaxia times, Kaicheng intelligent’s main business is “special Siasun Robot&Automation Co.Ltd(300024) , coal mine intelligent equipment”, with more than 130 products. Kaicheng intelligent and Huawei actively carried out coal mine intelligent cooperation, and determined Hongmeng, F5G, WiFi 6, smart camera and other cooperation projects.
In addition, Citic Heavy Industries Co.Ltd(601608) and lomo group jointly promote the construction of smart mines and promote the intelligent transformation and upgrading of the mining industry.
It is worth noting that raw and auxiliary materials account for a high proportion of Citic Heavy Industries Co.Ltd(601608) production costs. The gross profit margin of Siasun Robot&Automation Co.Ltd(300024) and intelligent equipment, new energy equipment and special materials decreased by 7.16%, 2.36% and 3.1% respectively.
Yu Zhangfa said: “in view of the price fluctuation of raw and auxiliary materials, the company has signed long-term agreements with major suppliers to control the cost side. At the same time, it adheres to the concept of ‘rigid profit and flexible cost’, and reduces the cost in the whole process from design source to marketing, production, procurement, outsourcing and after-sales service.”
revenue returns to 7 billion
The overall growth of business makes Citic Heavy Industries Co.Ltd(601608) revenue exceed 7 billion again, which is nearly 10 years away from the previous revenue of 7 billion.
On July 2, 2012, Citic Heavy Industries Co.Ltd(601608) through the initial public offering of a shares, the total net fund raised was about RMB 3.086 billion, becoming the largest IPO that was held and completed in that year The annual report showed a net profit of RMB 7.2 billion and a net profit of RMB 3.6 billion in 2012.
But it won’t last long. In 2013, Citic Heavy Industries Co.Ltd(601608) ushered in a downward trend in revenue and net profit. Especially in 2016, its revenue was only 3.771 billion yuan, down 47% from 2012, and its net profit was a huge loss of 1.584 billion yuan, down 265607% from 2016p align=”center” style=”text-align:center;”> picture source
The 1.2 billion raised funds for the industrialization project of new energy equipment manufacturing (hereinafter referred to as “new energy project”) were changed after 8 years, and the investment progress of new energy projects was slow.
It is understood that Citic Heavy Industries Co.Ltd(601608) completed the initial public offering of the main board with a net raised capital of 3.086 billion yuan in July 2012, and Sino German securities acted as the sole sponsor and co lead underwriter.
According to Citic Heavy Industries Co.Ltd(601608) : prospectus for initial public offering of shares, the raised funds of 1.6 billion yuan (actually 1.2 billion yuan) are used for new energy projects, which are planned to be available for use by 2016. However, by the end of 2012, the cost of new energy projects was still 0 yuan. In the subsequent special report, the date when the three changed projects reached the expected usable state was continuously extended from 2015 to 2020, and did not explain the relevant situation of major changes in the feasibility of the project, nor did it give corresponding risk tips on the major uncertainty in the follow-up promotion of the project.
In October 2020, in view of this situation, the Shanghai Stock Exchange criticized Liang Huiyu, the then Secretary of the board of directors, and paid regulatory attention to Liang Wei and Liu Ping, the sponsor representatives.
In view of the poor revenue, Citic Heavy Industries Co.Ltd(601608) repeatedly adjusted its business segment. It has changed from the development, development and sales of large equipment in building materials, mining, metallurgy, electric power, energy conservation and environmental protection to the current four major businesses, and promoted the transformation of industrial operation and sector management.
In addition, Citic Heavy Industries Co.Ltd(601608) is stepping up R & D efforts, with R & D expenses of 500 million in 2021, an increase of 21.31%.
Citic Heavy Industries Co.Ltd(601608) general manager and Deputy Secretary of the Party committee Zhang Zhiyong said that during the reporting period, the innovation leading power of the company continued to increase, and the technical project of breaking through the “neck” was fully launched.
Zhang Zhiyong told Huaxia times that R & D investment is mainly used for key R & D projects, such as “research and application verification of key technologies of hydraulic heavy-duty manipulator”, and the acceptance of 8 national key R & D plans has been completed; The implementation of 23 breakthrough “neck” technology projects such as “key technology of high-speed and heavy-duty safety braking of deep well hoisting and database of basic manufacturing hot working process”.
