On May 16, Huayang variable speed (839946, BJ; yesterday’s closing price was 3.89 yuan) released the record of investor relations activities at the performance presentation of 2021 annual report.
In 2021, Huayang variable speed achieved an operating revenue of about 280 million yuan, a year-on-year decrease of 14.33%; The net profit attributable to the shareholders of the listed company was about 22.1 million yuan, a year-on-year decrease of 58.22%.
The reporter of the daily economic news noted that while the operating revenue decreased, the cost and expense decreased slightly, which is the main reason for the large decline in the net profit of Huayang transmission in 2021.
Huayang variable speed said that the company has been actively striving for product price increases with customers, and a small number of product customers have replied to price adjustments.
raw material prices remain high
At the performance presentation meeting, some investors asked whether the actual controllers of Huayang transmission currently hold only about 25% of the total shares after the issuance of new shares. Does the actual controllers of the company have an increase plan to maintain sufficient control over the company. Huayang variable speed said that at present, the total shareholding ratio of the company’s actual controllers and persons acting in concert is 257274%, and the total shareholding ratio of the actual controllers and persons acting in concert is not high. The company has made a risk prompt and has not received the notice of the actual controllers’ intention to increase their shares recently.
Some investors also raised questions about Huayang’s variable speed business, involving customer stability, hydrogen energy vehicle parts, two series of new energy products and the lightweight field of auto parts. For the application of hydrogen energy, Huayang variable speed said: “it is a mounting part supporting the hydrogen energy models of Dongfeng commercial vehicles.” For the two series of new energy products, Huayang transmission explained that the two series of products specifically refer to pure electric electric control box and hybrid housing. At present, the road test has been completed and small batch supply is under way.
In addition, the decline of gross profit margin is one of the reasons for the decline of Huayang variable speed performance in 2021. Huayang variable speed explained in its 2021 annual report: “affected by factors such as the rise in the price of raw materials, the cost of direct materials required by the company to produce products has increased.”
An investor asked: “has the cost of raw materials decreased at present? How does the company control the cost of raw materials? Is there room for the price of the company’s products to rise in response to the price rise of raw materials? What is the situation of the company in the second quarter?” Huayang variable speed replied: “according to the market information, the market price of raw materials is still high. The company has been actively striving for product price increase with customers. A small number of product customers have replied to price adjustment, and the company continues to strive to apply to customers for product price increase.”
first quarter performance decreased year on year
In the first quarter of 2022, Huayang variable speed achieved an operating revenue of about 34.72 million yuan, a year-on-year decrease of 65.49%; The net profit attributable to the shareholders of the listed company was about 2.93 million yuan, a year-on-year decrease of 78.34%.
For performance changes, Huayang variable speed said: “according to the report of the first commercial vehicle network, due to multiple factors such as environmental protection, limited production, insufficient supply of goods, more vehicles and less goods, low freight rates and insufficient commencement of infrastructure projects, the heavy commercial vehicles decreased by 68.14% year-on-year in the first quarter. Affected by the above changes in the commercial vehicle industry, the company’s operating revenue decreased by 65.49% year-on-year in the first quarter, and the impact of the substantial price rise of raw materials, the company’s profitability decreased in the first quarter.”
The reporter of the daily economic news noted that in May 2021, during the third round of examination and inquiry listed on the selection layer of Huayang transmission, he was asked whether the performance growth is sustainable, the specific impact of the rapid development of new energy vehicles on the company’s production and operation, and whether the main business of the company has limited market space. At that time, Huayang transmission was full of confidence in future performance growth. The company replied: “the state has higher requirements for automobile energy conservation and environmental protection, which provides a better development opportunity for the company’s lightweight products.”
At the performance presentation meeting, some investors also asked: “are there many competitors engaged in the lightweight industry of auto parts in China? What is the competitive situation? What is the status of the company?” Huayang variable speed said: “In recent years, with the rapid development of China’s automobile industry, the amount of aluminum used in vehicles has also increased year by year. Therefore, the application of lightweight has become an inevitable trend in the development of automobile and parts industry. With the upgrading of national energy conservation and emission reduction and emission regulations, the prospect of lightweight has been promising for a long time. At present, China’s enterprises entering the lightweight industry of automobile parts are gradually increasing, and the company’s lightweight products have gradually replaced the traditional products in the field of medium and heavy commercial vehicle transmission Cast iron and cast steel products. “
