Analysis on the Development of Die Casting Mould Enterprises
In 2011, the company achieved a main business income of 1288.3631 million billion yuan, an increase of 44.1 percent over the same period last year, and a net profit of 88.3365 million billion yuan attributable to shareholders of listed companies, an increase of 3.56 percent over the same period last year. Sales of automobile and communication products continued to maintain high growth, with sales revenue increasing by 50.52 and 72.44 respectively compared with the same period last year. This is mainly due to the company's increasing investment in production and technological transformation in recent years, strengthening internal management, and improving production capacity, production efficiency and product quality at the same time. At the same time, the company has increased its marketing efforts and market development efforts, Sales continue to maintain a good situation, product orders increase, and revenue increase accordingly. Although there is a large increase in revenue, there is a slowdown in profit growth, and the growth rate cannot keep pace with revenue. During the reporting period of the 2011 Annual report of Guangdong Hongtu Science and Technology Co., Ltd., released before the 4th, the net profit attributable to shareholders of listed companies was 88.3365 million yuan, an increase of 3.56 percent over the same period last year. This is mainly due to the influence of the following factors:
During the reporting period, the company continued to implement the business model of "automotive precision die castings as the leading products and international brand automobile manufacturers as the main customers". The company's business has maintained a stable growth, especially the export business to international brand automobile manufacturers, which continues to maintain rapid development, but with the expansion of export product sales, as a result, the cost of product packaging, delivery and exchange rate losses have increased significantly. The total export volume of this year was 499.48 million billion yuan, an increase of 65% over the same period last year, accounting for 40% of the main business income, making the company more obviously affected by the appreciation of the RMB and rising losses.
Domestic raw material-aluminum alloy ingot price fluctuation frequency is still large, especially the price in the third quarter reached the high level in recent years, and the annual average purchase price increased by 8% compared with last year. Although the risk of aluminum alloy ingot price fluctuation can be transferred by adjusting the product price, there is a certain lag in time between the company's aluminum alloy ingot price and the product price change, and there are also certain differences in the change range; at the same time, in order to obtain new product orders from important customers and fulfill the promise of annual price reduction of mass-produced products; in addition, the increase in processing costs, especially labor costs, continued to rise, squeezed by the above three items, brought greater cost pressure to the company, resulting in a decline in gross profit.
In order to speed up the investment progress of the wholly-owned subsidiary and make the project put into production as soon as possible, the expenses during the preparation period will inevitably affect the overall performance of the company. The main reasons are (1) The company reserves corresponding management personnel and technical workers during the reporting period, but it takes time for the project to reach production. During this period, it is impossible to avoid the idle of corresponding human resources reserves, this results in an increase in labor costs;(2) an increase in the cost of overhead expenses during the start-up of the subsidiary and the cost of capital incurred to raise invested capital; and an increase in the overall cost of the company, which affects profits.
Last year, thanks to the national tax preferential policies, the company enjoyed the "technological transformation of domestic equipment investment credit corporate income tax" tax incentives, resulting in a reduction in income tax expenses, while this year's preferential reduction, income tax expenses increased significantly year-on-year, affecting net profit.
2011 is the first year of the "Twelfth Five-Year Plan" and a year of extremely complicated economic situation. The international environment is changing, and many new situations and problems have emerged in the domestic economic operation. Luo Baihui, secretary-general of the International Model Association, pointed out that due to the severe overdraft of domestic auto market demand in the past two years, the macroeconomic downturn in 2011, high inflation and other factors, the domestic auto market sales have only slightly increased. The earthquake in Japan caused a greater impact on the sales of domestic Japanese car companies, which was detrimental to the company's sales in 2011. The earthquake in Japan has greatly affected the sales of Japanese car companies in the United States, which has increased the sales growth of American car companies, which is good for the sales of mold companies, and because mold companies have obtained more product upgrading projects from some customers in the previous year, resulting in a significant increase in 2011 sales. Looking forward to the future, from the domestic situation, the car ownership is low, the per capita disposable income is increasing, and the urbanization process continues to advance. It is expected that the growth rate of automobile sales will pick up slightly in 2012, which will help the domestic customer sales growth of automobile mold enterprises.
RMB exchange rate rose by 5.1 in 2011. The sharp appreciation of RMB exchange rate has a great impact on the export business of mold enterprises. In the future, the RMB is still expected to appreciate, which will weaken the competitiveness of export products to a certain extent. In the future, mold companies should continue to carry out foreign exchange hedging business, actively develop new products to avoid exchange rate risks, and increase the development of domestic customers to reduce the impact of RMB appreciation on the company's performance.
Aluminum prices fluctuated significantly in 2011, which is also an important factor affecting the performance of die-casting mold companies. In the future, aluminum alloy die-casting mold enterprises should strengthen communication with customers and adjust product prices in time with aluminum price fluctuations to reduce losses.
Guangdong Hongtu Technology Co., Ltd. steadily promoted the implementation progress of the investment projects with raised funds in 2011 based on the continuous and stable operation policy. While continuously expanding the domestic and foreign markets and expanding the sales scale of products, it strengthened the internal management of the company, continuously promoted the implementation of lean six sigma projects, implemented a series of measures such as workshop cost assessment, increased R & D investment, and actively improved and improved the original process technology level, the ability to tap the potential, save consumption and reduce costs, and strive to expand the profit space, so that the company's main business has risen steadily and its operating performance has continued to grow.