Shandong Hiking International Co.Ltd(600735) 4 the 2021 annual report disclosed on April 28 shows that during the reporting period, the operating revenue was 1.574 billion yuan, an increase of 26.69% year-on-year; The net profit attributable to the parent company was 659712 million yuan, a year-on-year increase of 47.48%, and the basic earnings per share was 0.1755 yuan. The company plans to distribute cash dividends of 0.47 yuan (including tax) to all shareholders for every 10 shares.
While deepening the export of hair products, textile and garment products, the company actively seizes market opportunities, constantly adjusts business structure and asset structure, and promotes business transformation and upgrading. In 2020, the company completed the acquisition of the controlling stake of Qingdao senhui and entered the field of new graphite materials; In 2021, it completed the acquisition of the controlling stake of Shanghai Lizhi and entered the field of cross-border import e-commerce business. At present, the company’s industrial pattern of “new trade and new materials” has basically taken shape.
During the reporting period, the hair products business segment grew steadily, with a revenue of 1.007 billion yuan, a year-on-year increase of 22.92%. The company overcame the problems of labor shortage, rising raw material costs, rising freight and insufficient transportation capacity. Through the development of new overseas processing sites such as Bangladesh, the company Hedged the risk of rising raw material prices and labor shortage, deeply understood customer needs, optimized product structure and stabilized existing customers.
Textile and garment export business: in 2021, the company made great efforts to overcome the impact of various adverse factors such as the occasional outbreak of local epidemic in China, the rise of raw material prices and the appreciation of RMB, and made great efforts to ensure the stability of the company’s production through new product development and new channel construction, expanding the production share of Bangladesh production base, focusing on management and stabilizing production, so as to meet the order demand of the existing market and customers. The annual textile and garment business achieved a revenue of 238 million yuan, A year-on-year increase of 11.23%.
In terms of cross-border import e-commerce business, the company has completed the 60% equity acquisition of Shanghai Lizhi Industrial Co., Ltd. in 2021, Shandong Hiking International Co.Ltd(600735) forming a “import + export” two wing development pattern, which is in line with the national “double cycle” development strategy. Benefiting from the upgrading of Chinese consumption, the rapid development of brand e-commerce service providers, cross-border import e-commerce and other related industries, Shanghai Lizhi achieved a revenue of 524 million yuan in 2021, a year-on-year increase of 29.45%; The net profit was 460941 million yuan, a year-on-year increase of 34.09%; Deduct the non net profit of RMB 460519 million and complete 109.65% of the performance commitment in 2021.
In the graphite new material sector, the company acquired 50% equity of Qingdao senhui graphite Co., Ltd. in February 2020 and entered the field of new materials. In 2021, Qingdao senhui seized the opportunity to ensure production by opening up the market in many aspects and channels, raising sales prices, improving processes, reducing consumption and improving efficiency, and reducing costs. It achieved an operating revenue of 517497 million yuan, a year-on-year increase of 32.29% and a net profit of 113248 million yuan. At the time of M & A, the net profit of Qingdao senhui promised by the performance commitment party in 2021 was 8.15 million yuan, and the actual completion rate was 138.95%.
With the development of cross-border import and graphite business, the company’s domestic business income increased significantly, gradually reversed the imbalance between domestic and foreign trade, and improved the stability of performance. In terms of regions, when Shanghai Lizhi consolidated its statements for only one quarter, the company’s domestic business realized a revenue of 218 million yuan, a year-on-year increase of 118.31%; Overseas business maintained steady growth, with a revenue of 1.356 billion yuan, a year-on-year increase of 18.67%.
According to the judgment of the company, the export business will still face certain pressure in 2022; However, the development prospect of import business is promising. In recent years, China’s cross-border import e-commerce has been in a stage of rapid development, and the transaction scale has maintained an annual growth rate of 20%. Especially after the introduction of China’s e-commerce law and cross-border e-commerce supporting policies, the industry has ushered in healthy development. The repeated epidemic has restrained offline consumption, but brought global opportunities to online consumption. Shanghai Lizhi acquired by the company has rich operation experience and talents. By broadening the agency brand and deepening the service capacity, it can expand and strengthen the cross-border import e-commerce business.
The company said that in the future, on the basis of stabilizing the traditional export business of hair products, textiles and clothing, it will actively comply with the “double cycle” development pattern of China’s economic transformation, vigorously expand cross-border import business, build Chinese sales channels, make full use of foreign and Chinese markets and resources, and further improve import and export trade and Chinese retail business. At the same time, give full play to the advantages of graphite resources and actively layout the field of new graphite materials.
