2021 financial results will be released. Where will Huijintong be in the future with policy support?


On the evening of March 24, Huijintong disclosed the 2021 annual report, during the reporting period, the company achieved operating revenue of 2.498 billion yuan, a year-on-year increase of 28.98%;Net profit attributable to shareholders of listed companies was 66.2433 million yuan, down 37.49% year-on-year.Under the background of increasing revenue and production capacity, Huijintong is also actively adjusting and making strategic plans for enterprise development.On the evening of March 24, Huijintong disclosed 2021 annual report, reporting period, the company achieved operating revenue of 2.498 billion yuan, a year-on-year growth of 28.98%;Net profit attributable to shareholders of listed companies was 66.2433 million yuan, down 37.49% year-on-year.The company intends to distribute a cash dividend of RMB 0.60 (tax included) to all shareholders for every 10 shares.Despite the decline in net profit, Huijintong’s sales of its main products increased 19.86 percent, its total revenue rose nearly 30 percent, and its production capacity increased to 450,000 tons.Under the background of soaring raw material prices and pressure on profits, Huijintong will still achieve both revenue and production capacity growth in 2021.Since 2022, Huijintong has received two orders of “100 million yuan”, one from China Southern Power Grid and the other from State Grid.On March 22, Huijintong announced that it had won 164 million yuan of orders from State Grid, accounting for 6.56% of the operating revenue in 2021. The pre-won products included steel tube towers, Angle steel towers and substation construction supports, with the winning amounts of about 84 million yuan, 63 million yuan and 17 million yuan respectively.This is huijintong’s second “hundred-million-yuan” order after winning a 501-million-yuan order from China Southern Power Grid in January.The two orders will bring Huijintong 665 million yuan in revenue.In terms of revenue share, 665 million yuan accounted for 26.62 percent of the total revenue in 2021, and the figure does not include orders that Huijintong did not meet the 50 million yuan public disclosure standard.According to huijintong’s latest revised disclosure rules on March 24, the minimum amount of orders huijintong needs to disclose has been raised to 100 million yuan.In addition, the quarterly report of 2021 shows that huijintong’s total revenue in a single quarter last year was 502 million yuan, and the China Southern Power Grid project won the bid in January this year almost reached the order amount in the first quarter of last year.Behind the growth of operating income is huijintong’s decision making and successful operation.Next, under the background of good industry trend and policy support, what is the planning layout of Huijintong in 2022?Huijintong is one of the enterprises that can produce the highest voltage grade 1000KV transmission line iron tower in China, and the competitiveness of related products has been at a high level in the industry.Its main product transmission line tower is an important infrastructure for UHV construction, and its demand is directly affected by the domestic power grid construction, especially the uHV construction scale.Huijintong’s production capacity and technology are in the “first echelon” of domestic private enterprises in the same industry.Since the “fourteenth Five-year plan” proposed the “dual carbon” goal, the construction of new power system has become a new wind outlet, and the transmission line tower industry represented by Huijintong and Oriental Tower has ushered in a new round of development opportunities.After years of development and strategy implementation, the company has adhered to the strategic path of combining endogenous growth and extension development. Through mergers and acquisitions, strategic cooperation and other ways, the company has formed the layout of “three bases” in Qingdao, Chongqing and Taizhou, and the capacity has been increased to 450,000 tons.In 2021, Huijintong will step on the track of “new infrastructure” and continue to expand application fields, improve 5G infrastructure, photovoltaic, rail transit and other incremental markets, and actively expand to new application fields by using the technology, brand, customer and other resources accumulated in the transmission line tower market.The company has obtained the Construction Safety Production License, laying a foundation for the expansion of 5G communication field.Its wholly-owned subsidiaries Qingdao Qianggu and Huadian Ocean have won the title of “Specialized and special new” enterprises in Qingdao.With its professional testing technology and equipment, Huadian Testing Co., LTD, a wholly-owned subsidiary of huadian Testing Co., LTD, has obtained the Certificate of Qualification for Inspection and Testing Institutions, shaping the company’s integrated advantage of “R&D + manufacturing + inspection and testing service”.In 2021, the company will continue to increase investment in RESEARCH and development, enrich the product matrix, maintain the technical advantages of products through continuous iteration and upgrading, strengthen innovation drive, stimulate endogenous power;Continue to promote digital transformation, relying on intelligent manufacturing management platform, try out intelligent online inspection and monitoring system, realize the real-time online data monitoring, automatic control and data collection functions of part of the production process, effectively guarantee the whole process quality stability of products;The operation of the intelligent three-dimensional warehouse under construction will also realize the digitalization and automatic storage management of inventory, and realize the effective traceability of inventory data.China’s resource endowment characteristics and realistic environmental pressure determine the necessity of UHV construction, and the acceleration of domestic power grid construction, especially uHV construction, is expected to continue to bring development opportunities for the company’s main business.In the future, China Power Construction will explore the application of mobile Internet technology in market information disclosure, data declaration, transaction negotiation, transaction settlement and market supervision, innovate the participation mode of the electricity market, reduce the time cost and capital cost of market participation of various market entities, and improve the user satisfaction of each market entity.The paper studies the power market operation mode under the extensive participation of new power market main body and the extensive application of new technology.With the development of new technologies in the energy industry, such as the continuous maturity of solar thermal technology, new power market subjects will emerge widely and constantly promote the reform and development of the power market.In the future, the role of green platform of power grid will be further highlighted, the level of intelligence will be gradually improved, the flexibility of system operation and service mode will be gradually improved, and the interconnection with neighboring countries will be developed with a more open attitude, so as to realize the optimal allocation of resources in a wider range.At the same time, the emphasis of power grid development will gradually shift to the development of low and medium voltage distribution network.According to the “White Paper on uHV Industry Development and Investment Opportunities of” New Infrastructure “by CDI Consulting, the total investment scale driven by China’s UHV industry and its upstream and downstream supporting links will reach 414 billion yuan by 2022.By 2025, the total investment scale of uHV industry and its driving industry will reach 587 billion yuan.The white paper points out that uHV industry, as the core development focus of the transmission link in the smart grid industry chain, will greatly drive the distributed energy generation in the upstream of the industry chain, and the power grid digital construction of energy flow, business flow and data flow in the downstream “transformation-distribution-power side”.We will guide social capital to focus on new energy power generation, microgrid, energy storage system access, inspection DRONES, smart meters and other market hotspots, and promote the rapid development of the whole smart grid industry chain.This is undoubtedly a great opportunity for Huijintong.But while operating income is growing, Huijintong’s profits are declining.In this regard, Huijintong said, upstream raw material prices run high, product sales price adjustment has a certain lag, main product income growth is less than the cost growth, leading to the company’s main product gross margin decline.As many of the company’s customers are large customers such as China Resources Power Co., LTD., Shaanxi Provincial Electric Power Co., LTD. (Group) and China Energy Construction Group Co., LTD., accounts receivable are relatively large.As of December 31, 2021, Huijintong’s accounts receivable reached 793 million yuan.In addition to more receivables, the company is not rich in capital.As of December 31, 2021, the company has monetary funds of 310 million yuan and financial management funds of 10.05 million yuan, but short-term borrowings of 903 million yuan and long-term borrowings of 92 million yuan.The huge amount of borrowing resulted in the company’s interest expense reaching 56.628,900 yuan last year.In the face of profit problems and industry trends, Huijintong said that it would actively grasp the strategic opportunities brought by the construction of new power system under the dual carbon target, continue to deepen the main business, extend the industrial chain vertically, expand the industrial area horizontally, and steadily promote the industrial layout.With the strategic guarantee of professional guidance, capital empowerment and industrial collaboration, the company will accelerate the pace of upgrading and transformation from intelligent manufacturer to intelligent manufacturer service provider, and is committed to building the company into a leading enterprise in the segmented market.Welcome to forward more, share business cooperation please call/wechat contact: 0532-88707398/15275282167

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