Securities code: Shanghai Welltech Automation Co.Ltd(002058) securities abbreviation: Shanghai Welltech Automation Co.Ltd(002058) Announcement No.: 2022021 Shanghai Welltech Automation Co.Ltd(002058)
Announcement on the reply to the inquiry letter of the 2021 annual report of Shenzhen Stock Exchange
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Shanghai Welltech Automation Co.Ltd(002058) (hereinafter referred to as “the company”) received the inquiry letter on the annual report of Shanghai Welltech Automation Co.Ltd(002058) 2021 (annual report inquiry letter of the company Department [2022] No. 164) issued by the second management department of the company of Shenzhen Stock Exchange on May 4, 2022. The company timely organized relevant personnel to carefully check, and now replies to the questions in the inquiry letter are as follows:
Question 1: in 2019 and 2020, the sales revenue of your company’s original main business automation instrument business was 89.51 million yuan and 82.32 million yuan respectively, and the net profit was – 13.98 million yuan and – 650000 yuan respectively; In 2021, the business segment achieved an operating revenue of 126.29 million yuan and a net profit of 5.01 million yuan. Please make supplementary disclosure:
(1) List the names of the top five customers of the business, sales amount, sales proportion, relationship and accounts receivable balance as of the end of the period.
Company reply:
The top five customers of the company’s automation instrument business are as follows:
Unit: Yuan
Customer name sales amount sales proportion (%) related relationship year-end accounts receivable balance
Guangdong Hengbao Electromechanical Equipment Co., Ltd. 422520357 3.35 non related party 46810200 Jinan Urban Construction Group Co., Ltd. 399248900 3.16 non related party 351124448 Shanghai Shuidun Intelligent Technology Co., Ltd. 355631991 2.82 non related party 395400000 Henan gengxiang Construction Engineering Co., Ltd. 325325046 2.58 non related party Related parties 167617300 Jiaxing Qiuyou Network Technology Co., Ltd. 312522124 2.47 non related parties 15827030 total 1815248418 14.38976778978
(2) If the top five customers have changed compared with the previous years, please specify the sales situation and reasons for the change in the previous years.
Company reply:
The operating revenue of the company’s top five customers from 2021 to 2019 is as follows:
Unit: Yuan
20212020 2019
Customer Name: business income change: business income change: business income
Name rate name rate name
Guangdong Hengbao Electromechanical Equipment Co., Ltd. 1422520357
Jinan Urban Construction Group Co., Ltd. 2399248900 214% 127114000
Shanghai Shuidun Intelligent Technology Co., Ltd. 3355631991
Henan gengxiang Construction Engineering Co., Ltd. 4 325046
Jiaxing Qiuyou Network Technology Co., Ltd. 5312522124 280% 82166818 158% 31880531 Guangzhou automation equipment Co., Ltd. 267944599 10% 2243308455 32% 3183822582 Zhejiang Automation Technology Co., Ltd. 221487863 0% 5221599783
Sichuan Technology Co., Ltd. 205296457 – 10% 4227365042 50% 5151463277 Jinan automation equipment Co., Ltd. 192189651 19% 161102832 6% 4152403166 Shanghai Water Meter Factory Co., Ltd. 190843451 – 41% 1325496461 – 14% 2377945549 Hangzhou Automation System Engineering Co., Ltd 151757001 – 20% 189906786 – 66% 1551412924 Shanghai Zijiang International Trade Co., Ltd. 104716459 – 55% 3233755221 55% 151176050 total 314948389918118118153981 Saic Motor Corporation Limited(600104) 079
In 2021, compared with 2020, three new customers were added to the top five customers.
Among them, the company has been established in 2020
In, it delivered goods to Guangdong Hengbao Electromechanical Equipment Co., Ltd., but it did not meet the conditions for revenue recognition at the end of 2020,
Revenue is not recognized in the current year. The company will recognize the revenue when the revenue recognition conditions are met in 2021. Therefore, 2021
In, the company actually added 2 new customers among the top five customers, and these customers achieved a total operating income of 680.96 yuan
Million yuan, accounting for 5.39% of the operating revenue of the automation instrument division this year.
The reasons for the changes of the company’s top five customers are as follows:
1) Downstream customers are scattered, stable and less large customers can be relied on
Different from other manufacturing enterprises, the order continuity characteristics of the company’s project-based customers are not obvious. Company production
Our automatic instruments and meters are used in petrochemical industry, metallurgy, electric power, coal, municipal public utilities and environmental protection
Industries and fields meet the investment needs of downstream enterprises in project construction, technical transformation, equipment renewal and so on
The quantity of products and order amount required by customers fluctuate due to the implementation progress of the project. The company is in the industry
The market share is low and the business volume is relatively small. In order to continuously develop the automation instrument business, the company needs to
We should constantly develop new customers. Therefore, the sales amount of the company’s single customer changes greatly, and the changes of the top five customers
Also more frequent.
2) This year, the company increased sales and opened up other instruments, environmental protection projects and customers
In March 2021, the company adjusted the sales incentive policy and increased the support to the sales department and sales department
On the basis of maintaining existing customers, the incentive of personnel focuses on customer development, product promotion and so on
My job. In this context, the company added Henan gengxiang Construction Engineering Co., Ltd., one of the top five customers this year. In addition, the company has been engaged in the integration business of environmental monitoring equipment since 2017 and realized the sales of relevant products in 2018. In 2021, the company increased the market development of this business and developed a new customer, Shanghai Shuidun Intelligent Technology Co., Ltd.
Compared with the changes of the company’s top five customers over the years, it also shows the characteristics of large changes in sales amount and frequent changes in customers. Therefore, it is reasonable for the company’s top five customers this year to change compared with the previous year.
(3) Combined with the situation of downstream industries and comparable listed companies in the same industry, this paper analyzes in detail the reasons and rationality of the substantial increase in operating revenue in 2021 compared with the previous years and the reasons for turning loss into profit according to the product classification.
Company reply:
1) Downstream industries of the company
Downstream customers of the company are widely distributed in petrochemical, metallurgy, electric power, coal, municipal public utilities, environmental protection and other industries. In 2021, the national economy will continue to recover, and the markets of petrochemical, metallurgy, electric power and other industries will generally operate well. For example, in the petroleum and petrochemical industry, the operating revenue of the whole industry was 14.45 trillion yuan in 2021, with a year-on-year increase of 30%, and the total profit was 1.16 trillion yuan, with a year-on-year increase of 126.8%. The revenue profit margin of the whole industry was 8.04%, the highest level since 2010; In the iron and steel industry, in 2021, key large and medium-sized iron and steel enterprises achieved a total operating revenue of 6.93 trillion yuan, a year-on-year increase of 32.7%, and a total profit of 352.4 billion yuan, a year-on-year increase of 59.7%, a record high; In the power industry, the installed capacity of power generation in China in 2021 was about 2.38 billion kw, a year-on-year increase of 7.9%, of which the installed capacity of thermal power with high correlation with the company’s products was about 1.297 billion kw, a year-on-year increase of 4.1%. (the above industry data are quoted from the National Bureau of statistics and the National Energy Administration)
Thanks to the sound development of downstream industries, driven by multiple factors such as capacity replacement, technological transformation and equipment renewal, it has stimulated the new demand for instruments and meters. According to Mir databank data, the growth rate of China’s automation market reached a new high in recent years in the first half of 2021, and the overall market scale reached 152.9 billion yuan. Affected by this positive impact, the instrument industry also has a good market performance in 2021. According to the statistical data released by Shanghai Instrument Industry Association, the instrument industry achieved a sales revenue of 910.1 billion yuan in 2021, an increase of 15.90% over the previous year, and the total profit was 95.7 billion yuan, an increase of 10.99% over the previous year.
Benefiting from the rapid development of the industry and adopting active sales policies, the company’s operating revenue increased significantly in 2021.
2) Comparable listed companies in the same industry
We selected three listed companies in the same industry Chongqing Chuanyi Automation Co.Ltd(603100) ( Chongqing Chuanyi Automation Co.Ltd(603100) ), Suntront Technolocy Co.Ltd(300259) ( Suntront Technolocy Co.Ltd(300259) ), Shenzhen Maxonic Automation Control Co.Ltd(300112) ( Shenzhen Maxonic Automation Control Co.Ltd(300112) ), and made statistics on the changes of their operating revenue in 2021 compared with the previous year as follows:
Unit: 10000 yuan
Year on year changes of comparable companies in 2021 and 2020
Chongqing Chuanyi Automation Co.Ltd(603100) ( Chongqing Chuanyi Automation Co.Ltd(603100) ) 5486608742533800 28.99% Suntront Technolocy Co.Ltd(300259) ( Suntront Technolocy Co.Ltd(300259) ) 1193181911945037 -0.11% Shenzhen Maxonic Automation Control Co.Ltd(300112) ( Shenzhen Maxonic Automation Control Co.Ltd(300112) ) 94763387322022 29.42% company 1262898823233 53.41%
It can be seen from the above table that except Suntront Technolocy Co.Ltd(300259) , other industries are comparable
