I. Overview
In the first half of 2020, the global economy and financial system continued to be impacted by the impact of the new Crown Pneumonia epidemic, trade disputes, geopolitics and other factors. The U.S., Europe and Japan after the bottom of the economy now slow recovery trend, but the road to recovery is still facing difficulties; emerging economies, the economy is severely hit, monetary policy is substantially loosened; China's control of the epidemic is effective, the economy has shown a rapid repair trend.
In the face of the spread of the epidemic at home and abroad and the severe economic and political situation, the business pressure and operating difficulties of enterprises continue to increase, the company in the face of adversity to seek development, vitality and promote growth, and promote the resumption of multiple initiatives to resume production, not only to protect the supply of domestic and foreign customers in times of crisis, but also to enhance the customer's trust in us, which allows the company to achieve a double increase in revenue and profit.
1, the current situation of industry development
The stage of development and future trends of the industry to which the company belongs has not changed significantly from what the company stated in the 2019 annual report. The development status of magnetic materials, new energy and device industries in the first half of 2020 is analyzed as follows:
(1) Magnetic materials industry
In the first half of 2020, the demand for traditional applications in the magnetic materials industry, such as home appliances and automobiles, continued to decline, and the demand for new infrastructure and other areas, such as 5G base stations, new energy, big data centers, Internet of Things, artificial intelligence, etc., maintained Good growth. According to the Magnetic Materials Industry Association statistics, in the first half of 2020, affected by the new Crown pneumonia epidemic, the magnetic materials industry as a whole, total sales fell by about 12% year-on-year, the output fell by about 15% year-on-year, the industry shows that the strong are always strong, the weak are getting weaker; specialization is strong, the traditional is weak; new products are strong, the old products are weak competitive pattern, the industry has a comprehensive competitiveness of the enterprise showed a strong anti-risk ability, to achieve steady development against the trend. The industry has comprehensive competitiveness enterprises show strong anti-risk ability, against the trend to achieve steady development.
Looking ahead to the full year, the magnetic materials industry, the traditional application areas of shrinking demand, new infrastructure and other areas of demand growth will continue, price competition will be passed from low-end products to high-end products. At the same time, with the industry's continuous expansion of enterprises will make part of the product overcapacity.
Industry enterprises need to improve management capabilities, promote intelligent manufacturing, optimize product structure, enhance the new infrastructure and other applications to expand market capacity to cultivate new performance growth points.
(2) New energy industry
1) Solar photovoltaic industry
In the first half of 2020, in the face of the new Crown pneumonia epidemic spreading around the world, the photovoltaic industry, with its strong resilience, still maintained a relatively stable development trend. According to the Photovoltaic Industry Association statistics show that in the first half of 2020, China's photovoltaic industry chain links have maintained a certain degree of growth, polysilicon, silicon wafers, cell wafers, module production of 205,000 tons, 75GW, 59GW, 53.3GW, year-on-year growth of 32.3%, 19.0%, 15.7% and 13.4%, respectively. From the technology side, China's PV enterprises continue to increase investment in R & D and technological transformation, the pace of technological innovation has accelerated significantly. PERC monocrystalline cell production average conversion efficiency of 22.4%-22.5%, the highest production conversion efficiency of close to 23%, the N-type HJT batteries on the enterprise more and more, 600W high-power components of the new products have been released; technology development, chalcocite photovoltaic small group conversion efficiency of 18.04%, N-type photovoltaic panel, the conversion efficiency of 18.04%. Reached 18.04%, N-type monocrystalline silicon single junction battery conversion efficiency reached 24.79%. From the market point of view, the overseas epidemic on the export impact is lower than expected, January-May module exports amounted to 27.7GW, with the same period last year (28.2GW) basically flat; epidemic led to February-March domestic application market basically stagnant, the first half of the domestic photovoltaic power generation new grid-connected installed capacity of 11.5GW, an increase of 0.88%. Among them, centralized PV installed new
7.07GW, accounting for 61.48%; distributed PV installed new 4.43GW, accounting for 38.52%.
Looking forward to the whole year, with the continuous progress of technology, PV power generation cost of kWh continues to decline, coupled with the technology, capital and other advantages of the industry's head enterprises, the manufacturing end of the industry concentration continues to rise, highlighting the situation of the "big ones are always bigger"; the product structure will be further adjusted to the direction of the large size; flat-rate / competitive bidding projects to declare a better growth, which will help the domestic market. All have good growth, help domestic PV installed capacity to resume growth. In addition, the trend of cross-border integration of industry is becoming more and more obvious, seven new infrastructure projects involving many industrial chain, such as 5G + PV, charging pile + PV, UHV + PV, big data center + PV, etc., for the development of photovoltaic development to provide more opportunities for development.
2) New energy battery industry
In the first half of 2020, in the market demand and the new national standard of the dual-wheel drive, takeaway / express / **** enjoy the rise of emerging industries such as travel, superimposed on the impact of some of the epidemic factors, electric two-wheeled vehicles with lithium battery market demand showed rapid growth. According to statistics from the Ministry of Industry and Information Technology, in the first half of 2020, the domestic production of 11.701 million electric bicycles, a year-on-year increase of 10.3%, lithium batteries for electric two-wheeled vehicles shipments have reached 3.55GWh.
In addition, the lithium battery demand for power tools, portable energy storage, small appliances and other segments of the market is also experiencing significant growth.
Looking ahead to the whole year, the market demand for lithium batteries for electric two-wheeled vehicles and power tools is expected to grow. According to GGII, in 2020, the national electric two-wheeled vehicle lithium battery shipments will increase to 8.45GWh, an increase of 55% year-on-year. The global power tools market is expected to reach $33.57 billion in 2020, a year-on-year growth of 5.57%, of which the Asia-Pacific region's power tools market or the fastest growing.
(3) device industry
In the first half of 2020, the smartphone head brand siphon effect faster, small and medium-sized cell phone manufacturers production space continues to become smaller. At the same time, coupled with the difficult economic times under the influence of the epidemic, consumer spending willingness is low, the cell phone supply chain labor costs and raw material costs but continue to improve, so that the overall smartphone market is still in a downward trend, synchronized with the impact of the vibrator device shipments. According to IDC data, the first half of 2020 global smartphone shipments 581 million, down 10.61% year-on-year, China's smartphone shipments of about 153 million, a year-on-year decline of 17.7%.
Due to the increasing requirements for tactile feedback, gaming experience, user experience, etc., the demand for vibration devices is increasing in areas such as smart wear, automotive touch, health care, beauty and medical, and fast-consumption, in addition to cell phones, for touch-based electronic products and devices.
Looking ahead throughout the year, the supply chain for the cell phone market will become more complex in 2020, and the expansion of non-cell phone business will be a new growth point for the device industry.
The ringer/isolator is mainly used in base stations, and is an isolation function device that ensures unidirectional transmission of base station antenna signals.5G base stations began to issue commercial licenses to put into construction in 2019. According to the statistics of the Ministry of Industry and Information Technology, China built 153,000 new 5G base stations in 2019. 257,000 new 5G base stations were built in the first half of 2020. It is expected that China will build more than 600,000 5G base stations throughout the year, covering cities above the prefecture level across the country. With the increase in the construction of 5G base stations, the use of circulators/isolators will increase significantly.
2, the company's operating conditions
According to the company's "stronger magnetic, energy development, appropriate investment" development strategy, at the beginning of the year, the company put forward the 2020 business objectives: to achieve sales revenue of 712,000.00 million yuan, a year-on-year increase of 8.48%, net profit of 69,200.00 million yuan, attributable to shareholders of the parent company. Net profit of 692 million yuan, an increase of 0.14%.
In the face of the epidemic, the company set up an epidemic prevention and control leading group at the first time, on the one hand, to strengthen the epidemic prevention and control work, and to do a good job in personnel control, environmental disinfection, epidemic publicity, material preparation and so on. On the other hand, the company became one of the first batch of foreign trade enterprises in Zhejiang Province that were authorized to resume work on a priority basis, and then quickly pushed forward the resumption of work and production. At the same time, the company in accordance with the established development strategy and business plan, management level through the team building, enhance the strength of business operations; expanding new products, the accumulation of the company's development momentum; toughness and hard work, highlighting the connotation of the corporate culture; the total amount of optimization, strict control of non-production staffing; and to promote the triad, enhance the company's production efficiency. Industrial level by promoting the horizontal and vertical extension of the magnetic materials industry; increase the solar photovoltaic production line upgrading and globalization of market expansion; strategic adjustment of the new energy battery market positioning and customer groups; increase the related industry investment to expand market space.
In summary, the balanced layout of various industries highlights the company's strong anti-risk ability and strong development momentum. During the reporting period, the company realized sales revenue of RMB 3,173,119,000, which was 44.57% of the target at the beginning of the year, and net profit attributable to shareholders of the listed company of RMB 343,741,700, which was 49.67% of the target at the beginning of the year.
Third, the core competitiveness analysis 1, the leading edge of technology The company has a strong R & D strength, is a platform for international exchange of magnetic materials technology, with a national enterprise postdoctoral workstations, the National Magnetic Materials Technology Center, the provincial academician expert workstations, the provincial high-tech enterprise R & D center, the provincial key laboratory of magnetic materials, the provincial key enterprise research institute, the provincial enterprise technology center, Zhejiang Provincial Scientific and Technological Literature***Construction***Hanging Platform, Provincial Solar Photovoltaic Cells and Modules Engineering Research Center and other innovation platforms. Meanwhile, the company has established close cooperation with scientific research institutes, universities and colleges. As of June 30, 2020, the company has led the development of 4 IEC international standards, participated in the development of 9 IEC international standards, led the development of 1 national standard, led the development of 7 industry standards, 2 alliance standards, 4 team standards in the field of magnetic materials. The company has 640 valid patents, including 291 invention patents, 299 utility model patents and 50 design patents. 2, scale and market advantages The company is the largest domestic ferrite magnetic material manufacturer with the most complete industrial chain and product series, the leading domestic vibrator parts manufacturer, and also a more complete and competitive manufacturer of solar photovoltaic industry chain. In addition, high-quality customers are the cornerstone of the company's stable operation and sustainable development. The company's core customers in the magnetic materials industry to the world's top 500 companies or industry-leading enterprises, such as Apple, Huawei, Tesla, Bosch, Valeo, Denso, etc.; the company's vibration device industry customers are mainly for Huawei, Samsung, Xiaomi, vivo, Oppo, etc.; most of the customers of the solar energy industry is also the industry's leading enterprises, the company and they promote each other, **** with the growth. 3, business management advantages The company in manufacturing management after 40 years of experience, the introduction of lean management, excellent performance management, 6S management and other advanced management methods, and created a number of proven management methods, such as H management, 131K management, 910 project management, a little bit of philosophy, the learning power of the three questions, N +1 management and a number of other characteristics of management methods, so that the company has a distinctive advantage in the lean manufacturing, on-site management, cost control and other operational management. The company has unique advantages in lean manufacturing, on-site management, cost control and other operations. 4、Management Team Advantage The company has a professional, rigorous, stable and efficient management team, with a reasonable talent echelon structure, a hardworking, tough and hardworking work style, strong industry trend research and judgment ability and teamwork ability, which provides a strong guarantee for the company's sustainable development. During the reporting period, there was no significant change in the core competitiveness of the company.