On April 22, Zhejiang Fenglong Electric Co.Ltd(002931) ( Zhejiang Fenglong Electric Co.Ltd(002931) ) announced the annual report of 2021. The annual operating revenue and net profit were 720 million yuan and 792151 million yuan respectively, with a year-on-year increase of 31.3% and 2.68% Zhejiang Fenglong Electric Co.Ltd(002931) said that due to the company’s public issuance of convertible bonds, the implementation of employee stock ownership plan and other expense accounting treatment, the total net profit was 6.3812 million yuan. It is worth mentioning that Zhejiang Fenglong Electric Co.Ltd(002931) 2021 received 18 surveys, of which more than half were field surveys.
Zhejiang Fenglong Electric Co.Ltd(002931) is mainly engaged in the R & D, production and sales of garden machinery parts, auto parts and hydraulic parts. The products are widely used in the end products of garden machinery, as well as the precision control units of automobile transmission, braking, temperature regulation systems and new energy vehicles, engineering machinery and industrial machinery.
Zhejiang Fenglong Electric Co.Ltd(002931) said that since 2016, the operating revenue has achieved a compound growth of 23.4% for five consecutive years. In 2021, Zhejiang Fenglong Electric Co.Ltd(002931) based on its main business, electric control and machinery business went hand in hand, and the business gradually extended from garden machinery parts to automobile parts and hydraulic parts.
In terms of hydraulic parts, Zhejiang Fenglong Electric Co.Ltd(002931) on the basis of acquiring 51% equity of Dushang Jingji in 2019, further signed the remaining 49% equity transfer agreement with its original shareholders in July 2021, and completed the 100% equity acquisition. Under the test of raw materials and exchange rate in 2021, Dushang Jingji still maintained a gross profit margin similar to that in 2020, achieved the rapid development of single operating income and net profit of more than 50%, and completed all the performance gambling indicators agreed upon when acquiring 51% of the controlling interest for three consecutive years.
According to the annual report, Dushang precision machinery has become a new force of “import substitution” in the field of hydraulic parts in China by virtue of its R & D, management and operation team and its supporting experience, process guarantee and independent and controllable technical advantages of supplying world-class giants of construction machinery and hydraulic systems such as caterpillar for decades.
It is worth mentioning that Zhejiang Fenglong Electric Co.Ltd(002931) 2021 paid more attention to investor exchanges, continued to make full use of the announcement of the exchange and the “interactive and easy” platform of the Shenzhen Stock Exchange, participated in the online performance briefings held by the regulatory jurisdiction and independently, and actively connected with the securities firm research Institute, public funds, private funds and other relevant institutions. In the whole year, 18 research activity records were completed and released, with nearly 200 participating institutions. The annual report shows that more than half of them are field research companies, including Boshi fund, The People’S Insurance Company (Group) Of China Limited(601319) Asset Management Co., Ltd., ICBC Credit Suisse, Nord fund and other institutions, while China International Capital Corporation Limited(601995) , China Merchants Fund and other institutions communicated by telephone.
For the business plan for 2022, Zhejiang Fenglong Electric Co.Ltd(002931) said that it would continue to focus on the main business, actively pay attention to the frontier fields related to the main business and emerging directions similar to the process, pay attention to technology research and development, talent introduction and training, and focus on promoting professional digital ignition system, electric intelligent garden machinery and intelligent mowing Siasun Robot&Automation Co.Ltd(300024) electric control system, electro-hydraulic integrated hydraulic valve group R & D and expansion of new energy and lightweight auto parts.
