Hongfa Technology Co.Ltd(600885) 426 disclosed the annual report of 2021, and realized an operating revenue of 10.023 billion yuan in 2021, with a year-on-year increase of 28.18%; The net profit attributable to shareholders of listed companies was 1.063 billion yuan, a year-on-year increase of 27.69%. It is proposed to distribute a cash dividend of 4.29 yuan (including tax) for every 10 shares to all shareholders and increase 4 shares for every 10 shares to all shareholders with capital reserve.
The company will continue to expand its core product quality and efficiency, and continue to improve its core product quality and efficiency in 2025.
In 2021, focusing on the quality improvement of key products, the company organized and completed 77 Six Sigma projects, 697 QCC projects and 15 weekly inspection failure improvement projects. The proportion of production lines passing the “threshold crossing” standard increased steadily to 90.1%, of which the proportion of medium and high-grade production lines reached 69%. The one-time pass rate of weekly inspection is 95.1%. The key defects of relay products have continued to decline steadily to 1.9ppm. The quality performance of contactors, miniature circuit breakers, high and low voltage cabinets and three box cabinets has improved significantly at the client, and the market competitiveness has continued to improve.
During the reporting period, the investment of the company’s automatic production line reached the highest level in history. In 2021, the company invested more than 1 billion yuan in technological transformation for the first time, and a total of 38 automatic production lines were put into use, which was the year in which the company invested the most automatic production lines over the years.
Specifically, the company firmly adheres to the concept of “five in one” in the development of automatic production line, gives full play to the collaborative innovation ability of internal industrial chain, and the quality and speed of production line development have been significantly improved. The average period from start-up development to quality acceptance of general relay automatic production line to mass production is shortened to 3-5 months, and the input period of some automatic lines is only about 2 months; A total of 10 full-automatic lines have been invested in Automobile Relays, and the per capita output value of some automatic lines is planned to reach 2.5 million yuan. The investment in technical transformation of high-voltage DC relay, signal relay, industrial control relay and sealed relay has also greatly improved product quality and production efficiency, and achieved good benefits.
In addition, in 2021, the company’s relay products will further expand the high-end market, and the new categories represented by switches will develop steadily.
During the reporting period, the company’s general relay became the main supplier and reliable strategic partner of many high-end brands, including Miller, Whirlpool (China) Co.Ltd(600983) , Electrolux, Bosch, etc., and its global market share increased by 3 percentage points; In the field of rail transit, it successfully won the bid for many projects of CRRC group, installed China’s first standardized subway as a core component, and landed on Zheng Xu line in June 2021.
In the new energy vehicle market, we have established cooperative relations with the world’s mainstream new energy vehicle manufacturers, including Tesla, Mercedes Benz, BMW and other high-end vehicle manufacturers, and the global market share of HVDC products has reached 36%; Photovoltaic relay keeps up with the development trend of the industry. Its products have been recognized by benchmark customers such as Huawei and Sungrow Power Supply Co.Ltd(300274) and have a market share of more than 50% in high-end customers. Low voltage electrical appliances are gradually on the right track, and the annual market sales and per capita payment collection have increased by more than 20%.
