The net profit of East Sunshine in 2021 increased by 110.26% compared to the same period last year

2022-07-05 0 By

This article is transferred from: Economic Information Daily East Sunshine (600673.sh) announced on March 28, 2021, the company achieved operating revenue of 127.98 billion yuan, a year-on-year growth of 23.40%;The net profit attributable to the owner of the parent company was 874 million yuan, up 110.26% year on year;Net profit after deducting non-recurring gains and losses was 225 million yuan, an increase of 326 million yuan year-on-year, turning losses into profits.Net cash flow from operating activities was 1.864 billion yuan, up 44.35% year-on-year.East Sunshine is the largest medium and high pressure foil producing enterprise in China. During the reporting period, the main business of the company includes electronic new materials, alloy materials, chemical products and pharmaceutical manufacturing.During the reporting period, with the recovery of domestic economy and the recovery of market demand driven by downstream industries, the orders of the company’s major products in the three major industries of electronic new materials, alloy materials and chemical products increased significantly, and the volume and price of some products rose together. The comprehensive income of main business increased 48.28% compared with the same period last year.As a result of the novel Coronavirus outbreak and other factors, the overall operating revenue of The pharmaceutical manufacturing sector of East Sunshine decreased by 61.81% year-on-year.In the first three quarters of the company, the net profit of the pharmaceutical sector was -500 million yuan, down 199% year on year, while the net profit of the non-pharmaceutical sector was 550 million yuan, up 558% year on year. The pharmaceutical sector was a drag on the overall company performance.In the pharmaceutical sector, due to destocking and sharp decline in sales, the company’s net profit fell sharply year-on-year. The company sold no more than 51.41% of the shares of Changjiang Pharmaceutical to guangdong East Sunshine Pharmaceutical, a subsidiary of the controlling shareholder, and the company’s performance improved significantly after the completion of the divest.In terms of products, during the reporting period, electrode foil and air conditioning foil were the main sources of the company’s operating revenue, accounting for 46.41% in total.The total operating revenue of electrode foil was 3.063 billion yuan, up 54.31% year on year, and the gross margin was 29.81%, 1.47 percentage points lower than the previous year.Air conditioning foil operating revenue totaled 2.877 billion yuan, up 25.11% year on year, gross margin was 2.63%, 0.34 percentage points lower than the previous year;The total operating revenue of chemical products was 2.188 billion yuan, up 67.69% year-on-year, and the gross margin was 19.48%, up 16.26 percentage points.Source: The company’s annual report 2021, the company’s operating cost of 10.045 billion yuan, a year-on-year growth of 38.87%, higher than the growth of 23.40% of operating revenue, resulting in sales gross margin reduced 10.69 percentage points than the previous year.The main reason for the change of operating cost is that the sales revenue of electronic new materials industry increased significantly during the reporting period, and operating cost kept increasing synchronously.At the same time, due to the substantial decline in the revenue of pharmaceutical preparation products, the structure of operating income changed greatly, leading to the difference in operating cost and operating income.According to the company, the gross margin of related products in 2021 was lower than the gross margin in the first half of 2021, mainly because: at the end of 2021, the company reclassified all related transportation expenses to operating costs in accordance with the q&A on the Implementation of accounting Standards for Business Enterprises;In the second half of 2021, the cost of raw materials and electricity of related products rose rapidly, while the price increase of related products lagged behind the cost increase of raw materials and electricity.The gross profit margin of products showed an inconsistent trend of rise and fall, mainly due to the comprehensive factors such as the rise in the sales prices of some products is not enough to make up for the rise in the prices of bulk materials such as aluminum ingots and coal, which leads to the rise in the cost of main consumables, and the price transmission of upstream and downstream industries takes a certain period.Figure: Sales gross margin of East SunshineWind costs during the reporting period, the company’s sales cost is 618 million yuan, down 49.20% year on year, mainly is influenced by domestic outbreak repeatedly, this report period limited academic promotion activities, academic promotion activity session sharply reduced, at the same time optimize the medicine marketing channels, pharmaceutical sales staff pay and promotion costs decline caused by the comprehensive;In addition, the company adjusted transportation expenses from selling expenses to operating costs in accordance with the q&A on the Implementation of accounting Standards for Business Enterprises.During the reporting period, the company’s asset impairment loss increased by 638.64% year-on-year, totaling 201 million yuan, and its credit impairment loss increased by 112.84% year-on-year, totaling 86.018,700 yuan.According to the company, the change in credit impairment loss compared with the same period last year is mainly caused by the provision for bad debts for customers with weak payment collection ability in accordance with accounting policies during the reporting period.The change of asset impairment loss compared with the same period of last year was mainly caused by the provision of inventory depreciation of drugs nearing their expiration date during the reporting period.In terms of cash flow, the net cash flow generated by the company’s investment activities was -722 million yuan, a year-on-year decrease of 69.50%, mainly due to the sale of 51.41% equity of East Sunshine Medicine held by the company during the reporting period, the receipt of equity transfer payment, and the decrease in payment for drug patent technology, and the ongoing construction of insulin and generic drugs entered the middle and late stage.A combination of reduced capital input requirements;Net cash flow generated from financing activities was -1.912 billion yuan, 772.52% lower than last year, mainly due to the company’s initiative to reduce the size of interest-bearing liabilities during the reporting period, and the increase in repayment of maturing bank loans and bonds.The company said that in 2022, in the electronic new materials sector, the company will dig into the segmented product segment market, grasp the current market opportunities, with the help of project expansion, expand production scale, seize market share;In alloy plate, the company will optimize the product structure, and adjust the proportion of production according to the market situation, focus on advancing the global original 0.06 mm slim finned MB monolayer brazing foil, batteries, aluminum foil market development work, by focusing on the core customers at the same time, the promotion of high-quality customers, resolutely eliminate low value customer, improve the level of product profit;In the chemical products sector, the company will closely follow the downstream competitive industries, layout the planning and structure of products at all levels, and actively seek to intervene in high-end markets such as new energy.At the same time, further tap the potential of customers, reduce the payment collection cycle, improve the proportion of end customers.