Event

On March 31, the company released its annual report for 2021, with operating income of 11.672 billion yuan in 2021, an increase of 0.52% over the same period last year, and net profit of 79.3874 million yuan, a decrease of 97.83% over the same period last year.

Brief comment

As a result of the disposal of equity, the return net profit has been greatly reduced, and the actual profitability has been improved. On March 31, the company released its 2021 annual report, showing that the company achieved an annual operating income of 11.672 billion yuan in 2021, an increase of 0.52% over the same period last year and remained stable. The net profit of returning to the mother was 79.3874 million yuan, a decrease of 97.83% over the same period last year, mainly due to the non-recurrent profit and loss of the disposal of Guangzhou Shipping International and Chengxi Yangzhou equity recognized investment income of 3.712 billion yuan. The affected amount is 3.712 billion yuan. After deducting the impact of non-recurrent profit and loss, the net profit deducted from non-return is expected to be-51.4391 million yuan, an increase of 232 million yuan over the same period last year. In 2021, the global new shipbuilding market recovered and the company's operating orders increased significantly, so the net profit belonging to shareholders of listed companies after deducting non-recurring profits and losses increased compared with the same period last year.

From the balance sheet, the contract liability is 9.349 billion yuan, an increase of 80.75% compared with the beginning of the period, mainly due to the increase in advance payment for ships, proving that the company has sufficient orders and guaranteed future performance.

From the perspective of profitability, the company's gross profit margin is 10.23%, an increase of 3.74pcts over the same period last year, and a steady increase in profitability. During the period of the company, the expense rate was 10.22%, which increased 0.39pct compared with the same period last year, of which the sales cost was 132 million yuan (+ 837.23%) and the expense rate was 1.13% (+ 1.01pcts), mainly due to the increase in warranty expenses; the administrative expenses were 484 million yuan (- 5.65%) and the expense rate was 4.15% (- 0.27pct) Financial expenses-41 million yuan (- 270.99%), expense rate-0.35% (- 0.55pct), mainly due to reduced exchange losses; R & D expenses of 617 million yuan (+ 4.59%), expense rate of 5.29% (+ 0.2pct). The R & D investment has increased steadily, the expense rate has remained stable during the company period, the gross profit margin has increased significantly, and the overall management level of the company has remained stable.

The shipbuilding business has obvious advantages, and the signing of major contracts is optimistic about the future. The company's main business includes shipbuilding, marine engineering, steel structure, ship repair, mechanical and electrical products, etc., the company has regional final assembly shipbuilding mode and multi-ship type simultaneous construction capacity, military ships, civil ships, marine engineering and other business construction technical indicators have reached the domestic leading level. It has formed domestic and foreign characteristic products represented by maritime police equipment, official equipment, regional container ships, dredging dredgers and so on. In 2021, the company received 32.524 billion yuan in business orders, an increase of 248.3% over the same period last year, and accepted 85 new shipbuilding orders of 17 types.

In October 2021, the company announced that its subsidiary Huangpu Wenchong had signed a special major contract of approximately US $1 billion, including the construction of 24 container ships of 2 1900TEIU, 11 2300TEU and 11 3000TEU for a period of five years from September 2021 to August 2026. In December 2021, Huangpu Wenchong United China Shipping Trading and Cyprus SCHOELLER HOLDING Group signed an order for 4 ships with 32000 deadweight tons of multi-purpose crane ships. These large orders reflect that the shipbuilding industry may enter a recovery period. as a global leader in the field of military ships, civil ships and marine engineering, the company has obvious advantages in technology, brand and market, and a rich range of products, which can better meet the needs of customers. it is expected to benefit more in the future industry recovery period.

With the recovery of the global shipping market, companies seize the opportunity to accelerate development, and the realization of early delivery of the shipbuilding industry has obvious periodicity, which is affected by the global resumption of production, the recovery of the world economy, the imbalance between economic and trade supply and demand, port congestion and other factors. the overall strength of the shipping market has directly led to the active shipbuilding industry, especially the container ship market. The company keenly seizes this opportunity, focuses on production efficiency, optimizes production processes, improves construction technology, strictly controls the implementation of shipbuilding large node plans, shortens the construction cycle of main ship types, improves production capacity, and completes annual delivery tasks ahead of schedule. Achieve the completion and delivery of 35 ships and 2 marine platforms, totaling 944300 deadweight tons.

Profit forecast: the shipbuilding business is developing steadily, and the profit may be improved in the future. the business scope of the transit company covers many areas such as military ships, civil ships and marine engineering, and the actual profitability will improve in 2021. With the continuous promotion of the internal integration of China Shipping Group, the industry may take a turn for the better in the future. With the changes in the supply and demand level of the industry, the company's revenue is expected to remain stable and profitability will continue to improve in the future. It is estimated that the company's revenue from 2022 to 2024 will be 118.81 yuan, 121.86 yuan and 12.583 billion yuan, respectively, and its net profit will be 0.93,1.36 and 254 million yuan, respectively. the year-on-year growth was 17.72%, 46.24% and 86.76%, respectively.

Risks: civilian market expansion is not as expected; raw material prices have risen sharply; military delivery is not as expected.