Zonsen Power's Revenue Grows 20% in 9.1 billion yuan Last Year, Sold 5.2 billion yuan

On April 1, Zonsen Power (001696) announced its 2021 annual report. Last year, the company achieved operating income of 9.177 billion yuan

On April 1, Zonsen Power (001696) announced its 2021 annual report. Last year, the company achieved operating income of 9.177 billion yuan, an increase of 20.27 percent over the same period last year; net profit attributable to shareholders of listed companies was 0.481 billion yuan, a decrease of 18.17 percent over the same period last year; net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 0.369 billion yuan, a decrease of 12.58 percent, basic earnings per share was 0.42 yuan, and a cash dividend of 2.50 yuan (including tax).

According to reports, Zonsen's power machine business achieved revenue of 5.256 billion yuan, up 27.27 year-on-year, with a net profit of 0.238 billion yuan.

On April 6, as of press time, Zonsen Power reported 6.08 yuan, up 1.84 percent. Total market value 6.962 billion yuan.

Last year, sales of 5.17 million sets of general machinery products increased by 10%

The report shows that in 2021, in the face of multiple adverse factors, we will actively promote the transformation and upgrading of power system integration service providers that are "digital, technological, and intelligent.

On the one hand, we will persist in focusing on the core main business and strengthening risk control, speed up the adjustment of product structure and the development of emerging markets, and consolidate the leading position of the two traditional main businesses of "motorcycle engine" and "general machinery"; on the other hand, good progress has also been made in the industrial transformation of emerging businesses such as "aero engine", "new energy" and "high-end parts.

The net cash flow from operating activities was 0.631 billion yuan, basically the same as 0.654 billion yuan in the previous year.

In terms of sectors, the motorcycle engine business achieved product sales of 3.098 million units, an increase of 7.62 percent over the same period last year, revenue of 3.409 billion yuan, an increase of 17.08 percent over the same period last year, and a net profit of 0.129 billion yuan. General Dynamics and terminal products business, sales totaled 5.1752 million units, an increase of 10.01 percent over the same period last year, revenue of 5.256 billion yuan, an increase of 27.27 percent over the same period last year, and a net profit of 0.238 billion yuan.

In the aviation power business, the holding subsidiary Zonsen Aviation Development Company introduced strategic investors according to the pre-investment valuation of 1.3 billion yuan, and successfully obtained 5 invention patent certificates, further establishing the industry position and independent intellectual property advantages, and laying a solid foundation for new product research and development, and technological attributes.

New energy and high-end parts business, accelerate product development and industrialization layout in transportation machinery, gardens and other fields, including breakthroughs in the research and development and sales of card issuing motors, controllers, bridge series, integrated systems and other products, and cooperate with well-known domestic and foreign enterprises such as FAW, Natif, Norma, GKN, BorgWarner, Dana, Huayu Magna, and have purchased new land to invest in the construction of new die-casting factory projects, it is used for the research and development, trial production and mass production of key aluminum alloy parts and lightweight structural parts of new energy vehicles.

Promote the upgrading of aviation power, high-end parts and new energy industries

Looking forward to 2022, Zonsen Power stated that it will adhere to the business policy of "maintaining growth, strong transformation, and value", continue to consolidate the dominant position of the two traditional manufacturing businesses of "motorcycle engine" and "general machinery", and actively promote aviation power, The industrial upgrading of the three major businesses of high-end parts and new energy will strive to promote the company's transformation from a traditional manufacturing enterprise to a "digital, technological, and intelligent" power system integration service provider.

To this end, the company will focus on promoting five measures this year to ensure the smooth completion of the annual business objectives.

The first is to adjust production capacity, focus on the core main business, increase the liquidation of non-main business assets, and optimize the business, asset and product structure; the second is to optimize inventory, further strengthen inventory management, order management and fund management, increase turnover rate, and ensure cash flow Healthy and stable; the third is to deleverage, reduce the scale of existing financial business, strictly control external financial management and external guarantees, optimize the credit structure and asset-liability structure, and enhance long-liability structure, and enhance the ability; the fourth is to reduce costs, continue to strengthen the control of procurement costs and operating costs, accelerate the layout of intelligent production lines, and improve product quality stability and per capita efficiency; the fifth is to make up for shortcomings, which will optimize the management structure and business processes, and improve management level and work efficiency. Strengthen professional training and improve the overall quality of human resources.

At the end of last year, the number of shareholders was 77179, up from 78684 on March 31 this year.

(Reprinted from April 6, 2022 Upstream News)