"With the gradual release of profits from high value-added projects such as submarine cable, aviation cable, high-voltage cable, nuclear power cable and photovoltaic, the low gross profit margin of the company's products will be gradually improved." On the afternoon of April 11, Wang Xueming, Secretary of the board of directors of Baosheng Science And Technology Innovation Co.Ltd(600973) ( Baosheng Science And Technology Innovation Co.Ltd(600973) . SH), said at the performance presentation meeting.
Baosheng Science And Technology Innovation Co.Ltd(600973) annual report shows that the company achieved an operating revenue of RMB 42.878 billion in 2021, with a year-on-year increase of 25.07%; The net profit attributable to the parent company was -763 million yuan, a year-on-year decrease of 435.91%. The company's net profit attributable to the parent decreased significantly, mainly due to the impact of the provision for credit impairment of RMB 1.299 billion in 2021.
In this regard, Wang Xueming further explained to investors at the performance presentation meeting: "If the company's customers have problems with their funds and the commercial acceptance bill is overdue, the company carefully determines the impairment provision proportion according to the possibility of recovery and the guarantee measures provided by the customers. At the same time, the company has locked in the debt and creditor's rights by means of property preservation, legal proceedings and assets involved in asset offset bills, sought solutions and safeguarded the interests of the company and the majority of investors."
Some investors questioned that the defaulting customer was a Evergrande enterprise, but Baosheng Science And Technology Innovation Co.Ltd(600973) did not respond.
The financial Associated Press reporter found that on September 3, 2021, Baosheng Science And Technology Innovation Co.Ltd(600973) issued the announcement on the company's involvement in litigation, which said that the company filed a lawsuit because Shenzhen Hengda Material Equipment Co., Ltd. and its affiliated enterprises failed to honor the commercial acceptance bill provided to the company due to the overdue payment for wires and cables, Request Shenzhen Evergrande materials and Equipment Co., Ltd., its affiliated enterprises and the guarantor to pay the total loan and liquidated damages owed to the company of about 712 million yuan.
At present, submarine cable business has become an important part of Baosheng Science And Technology Innovation Co.Ltd(600973) . In 2021, the company's submarine cable business achieved a revenue of 1.509 billion yuan, with production and sales of 702 and 627 kilometers respectively. The gross profit margin of the company's submarine cable business is 38.66%, significantly higher than all other main businesses of the company. For the follow-up planning of submarine cable production capacity, Wang Xueming said: "Baosheng Offshore Engineering Cable Co., Ltd., the holding subsidiary of the company, is strengthening market development. The production capacity of submarine cable will gradually increase according to the needs of market development and market order scale, and will develop towards the integration of submarine cable and marine engineering in the future."
Wang Xueming further said that at present, among the company's product segments, the bare conductor business segment accounts for a large proportion, and the sales gross profit of such products is low. However, the product gross profit margin of the company's power cable, communication cable, electrical equipment cable, offshore wind power and other business segments are above the industry average level.
It is reported that in terms of resource endowment, the company has the largest 50000 ton submarine cable Wharf in China and the 201 meter highest cross-linked tower in China in Yangzhou; In terms of capacity, the capacity of Yangzhou submarine cable base of the company will be put into operation in an orderly manner.
The boom of offshore wind power continues, and the prospect of submarine cable market is promising Soochow Securities Co.Ltd(601555) research report believes that the unit value of submarine cable will increase under the trend of far-reaching sea + large-scale, and the market scale is expected to be about 37.5 billion yuan in 2025.
In addition to Baosheng Science And Technology Innovation Co.Ltd(600973) , China's major submarine cable enterprises are actively expanding production capacity and seizing market share. For example, Jiangsu Zhongtian Technology Co.Ltd(600522) ( Jiangsu Zhongtian Technology Co.Ltd(600522) . SH) recently publicly stated in Yi interactive that the company's Jiangsu Dafeng submarine cable project is under construction, and Guangdong Shanwei submarine cable project gradually releases production capacity as planned Ningbo Orient Wires & Cables Co.Ltd(603606) ( Ningbo Orient Wires & Cables Co.Ltd(603606) . SH) the staff of the securities department previously told the financial associated press that in 2021, the East (Beilun) submarine cable base and future plant of the company will be put into operation smoothly, the South (Yangjiang) base will be officially started, and the new production capacity will be gradually released.
It is worth mentioning that at the meeting, investors asked whether the company's cable was applied to C919 large aircraft. In this regard, Wang Xueming said: "the spiral harness and components, braided sleeves (tubes) and other products produced and developed by the company have entered the catalogue of qualified suppliers of COMAC."
In addition, some investors pay more attention to the operation of baolixin, the professional development and operation platform of photovoltaic new energy and the investment operator of photovoltaic distributed power station under Baosheng Science And Technology Innovation Co.Ltd(600973) company. Chairman Yang Zeyuan said that baolixin has developed and held high-yield and high-profit photovoltaic power plants by means of contract energy management, and the company's net profit has maintained continuous growth in recent three years. "Baolixin now holds 100 MW of photovoltaic distributed power station and 20 MW of centralized ground photovoltaic power station. It has successfully realized grid connection of 15 MW in the first quarter of 2022."
