Dayang Electric (002249)’s 2020 semi-annual board of directors operating review contains the following content:
1. Overview
During the reporting period, affected by the new coronavirus pneumonia epidemic, the global Trade has shrunk, the world economy has been in severe recession, the economic growth rate of most economies has dropped significantly, or even experienced negative growth, national protectionism and unilateralism have become prevalent, and geopolitical risks have increased. Faced with the severe test brought by the COVID-19 epidemic and the complex and ever-changing domestic and international environment, our country has coordinated efforts to promote epidemic prevention and control and economic and social development. Under the influence of a series of strong policies, our country's economy first declined and then increased in the first half of the year. The economy is recovering steadily, and market expectations are generally improving. However, the global epidemic is still spreading, external risks and challenges have increased significantly, and domestic economic recovery is still facing greater pressure.
(1) Industry Analysis and Review
1. Home Appliances Industry
In the first half of 2020, the retail sales of my country’s home appliance market was 369 billion yuan, which was 369 billion yuan compared with last year. During the same period, it fell by 14.13%. Home appliance consumption was significantly affected by the epidemic. Among them, the air conditioner market also suffered a major impact. The cumulative output of air conditioners in the first half of the year was 104.149 million units, a cumulative decrease of 16.4%. With the improvement of the epidemic prevention and control situation and the implementation of various consumption-promoting policies, market sales have improved significantly. In the second quarter, the total retail sales of my country's home appliance market reached 248.6 billion yuan, twice that of the first quarter, a year-on-year increase of 2.64%. Generally speaking, we remain cautiously optimistic about the future of the home appliance market. With the implementation of policies such as sending home appliances to the countryside, replacing old ones with new ones, and upgrading consumption, the market potential will be further tapped, and the market size is expected to be the same as last year.
2. Automobile industry
(1) Traditional automobiles
(2) New energy automobiles
In recent years, the new energy automobile industry Facing problems such as subsidy reduction, loosening of fuel vehicle purchase restrictions, imperfect waste power battery recycling system, and overcapacity, the development speed is slower than expected. At the beginning of 2020, the outbreak of the new coronavirus pneumonia epidemic caused a sharp decline in the sales of new energy vehicles in my country. According to data from the China Association of Automobile Manufacturers, the production and sales of new energy vehicles in my country in the first half of 2020 were 397,000 and 393,000 respectively, a year-on-year decrease of 36.5% and 393,000 respectively. 37.4%. In order to support the high-quality development of the new energy vehicle industry, promote the promotion and application of new energy vehicles, and promote the consumption of new energy vehicles, in April 2020, the Ministry of Finance, the Ministry of Industry and Information Technology, the Ministry of Science and Technology, and the National Development and Reform Commission jointly issued the "About Improving the "Notice on the Financial Subsidy Policy for the Promotion and Application of New Energy Vehicles" further clarifies the time and coverage of the financial subsidy policy for the promotion and application of new energy vehicles in the next two years, and extends the new energy vehicle purchase subsidy policy originally planned to expire at the end of 2020 for 2 years. , at the same time, the intensity and pace of subsidy reduction have also slowed down. With the improvement of the dual-point system for new energy vehicles, the continuous maturation of power battery technology and supporting recycling systems, and product innovation elements including intelligent network connection, voice recognition, gesture recognition, face recognition and other functions, the application and promotion of new energy vehicles It is expected to be further accelerated.
In the first half of 2020, affected by policy changes and the COVID-19 epidemic, the production and sales of fuel cell vehicles were 390 and 403 units respectively, a year-on-year decrease of 66.5% and 63.4% respectively. But from an overall perspective, the country is increasingly willing to develop the hydrogen energy industry as a whole. "Energy Technology Revolution and Innovation Action Plan (2016-2030)", "13th Five-Year Plan for National Strategic Emerging Industries Development", "13th Five-Year Plan for National Science and Technology Innovation" and "National Innovation-Driven Development Strategy Outline" etc. have listed hydrogen energy development and fuel cell technology innovation as key development tasks. Hydrogen fuel cell vehicles, with their advantages of zero emissions, high cruising range, and short refueling time, have broad prospects, especially in the medium- and heavy-duty power market and the cross-regional transportation market. As the only energy source of hydrogen fuel cells, hydrogen can truly achieve zero emissions and no pollution, so it is regarded as the ultimate form of future energy use. At present, most fuel cell raw materials in the domestic market are imported from abroad, and the cost is high. Therefore, breaking through technical barriers and accelerating the localization of fuel cell components have become the main problems faced by Chinese hydrogen fuel cell vehicle manufacturers.
As market demand and the production capacity of related manufacturers continue to increase, the hydrogen fuel cell industry will gradually achieve economies of scale and related costs will drop significantly. According to calculations in the "Hydrogen Energy and Fuel Cell Transportation Solutions White Paper Series" report jointly released by Deloitte and Ballard, it is expected that by 2027, the total cost of ownership (TCO) of fuel cell vehicles will begin to be lower than that of fuel vehicles. The TCO of hydrogen fuel vehicles is expected to drop by 50% during the year, with the cost of hydrogen fuel cell systems and the decline in hydrogen prices being the main driving factors.
(2) Company Business Review
In the first half of 2020, in the face of the severe new coronavirus epidemic and the complex economic situation at home and abroad, the company actively resumed work and production and made solid progress In various tasks, while completing various epidemic prevention and control tasks, we conscientiously implemented the company's development strategy, effectively improved the company's lean production and management capabilities, and achieved the company's ability to deduct non-recurring expenses despite the decline in operating income affected by the epidemic. Profit and loss net profit increased significantly.
During the reporting period, the company achieved operating income of 3.5053468 million yuan, a year-on-year decrease of 26.13%, operating profit of 96.2008 million yuan, total profit of 95.2555 million yuan, and net profit of 70.5995 million yuan, of which the net profit attributable to shareholders of the listed company was The profit was 76.335 million yuan, a decrease of 70.58%, 71.19%, 72.98%, and 72.09% respectively compared with the same period last year; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 66.6946 million yuan, a year-on-year increase of 26.07% .
1. Business situation of BHM Division
(1) Overall situation
During the reporting period, BHM Division continued to promote lean production, cost reduction and efficiency improvement, etc. The measures have achieved remarkable results, further improving product gross profit margin and market competitiveness. During the COVID-19 epidemic, the BHM Division actively coordinated production resources across the company and made every effort to ensure the timely delivery of relevant customer orders, winning recognition from customers. Among them, the company's Vietnam factory once again exerted its important strategic layout advantages. In order to adapt to the requirements of my country's new national standards for air-conditioning energy efficiency, the BHM Division responded quickly, adjusted product layout in a timely manner, promoted the expansion of BLDC products, accelerated the research and development and production of related products, seized the opportunity of energy efficiency upgrades, and laid the foundation for product upgrading. Solid foundation.
In terms of external rotor fan systems, the company's product advantages of combining motors and fans are gradually being reflected. Related products can be widely used in big data centers, high-speed rail, light rail, fresh air purification and other fields, and have gained many development opportunities. . During the reporting period, the company cooperated with customers to win bids for related product projects in centralized procurement projects such as China Mobile and China Unicom, and conducted comprehensive cooperation with customers in computer room air conditioners, cabinet air conditioners, etc. In addition, the company's waste exhaust fans used in high-speed rail and light rail have also entered the reliability testing stage, and the market space will be further expanded in the future.
Affected by the COVID-19 epidemic, the Hubei factory of the company's BHM division and some customers have suspended production to varying degrees during the reporting period, which has affected the release of the company's production capacity and the issuance of customer orders, thus affecting the company Achievement of operating income of BHM business unit. During the reporting period, the company's BHM division achieved operating income of 1,925.9255 million yuan, a decrease of 23.73% compared with the same period last year.
2. EVBG business situation
During the reporting period, the development of the two major business segments of the Vehicle Business Group is as follows:
(1) New energy vehicle powertrain Development of the system
During the reporting period, the company took advantage of the resource advantages of the vehicle business group to further integrate high-quality resources such as technology, channels, and suppliers, and achieved positive results in new product research and development, customer channel development, and cost control. development, completed the design and verification of a number of new products or platforms, successfully entered the supply chain systems of many foreign-funded or joint venture car companies including Renault, Tata of India, Hyundai of South Korea, SAIC-GM, etc., and expanded the supply chain of many domestic provinces and cities. Transit customers. However, affected by the COVID-19 epidemic, the sales of new energy vehicles in the first half of 2020 were dismal, and the production and sales of the car companies supporting the company's products suffered a serious decline. Affected by this, the company's new energy vehicle powertrain system production achieved operating income of 293.2729 million yuan in the first half of the year. , a year-on-year decrease of 65.55%.
The specific development situation is as follows:
A. Powertrain system business situation
a. In terms of 48VBSG products, the company has achieved stable mass production of the 48VBSG assembly developed for SAIC-GM hybrid vehicles. , equipped on SAIC-GM's Buick Yinglang, Regal and other hybrid models, has achieved a cumulative sales of about 70,000 units in the first half of the year. It is a 48VBSG assembly product independently developed by a domestic supplier and the first to achieve mass production; at the same time, this product is in SAIC-GM-Wuling has also achieved mass production and sales.
b. In terms of pure electric drive assembly products for passenger cars, the "three-in-one" electric drive assembly used in different models such as Changan Automobile and Chery Automobile has achieved stable production and sales, and has successfully developed In the Indian market, Tata Motors' pure electric vehicles have been mass-produced; the "two-in-one" electric drive assembly used in Great Wall Motors (601633), Renault and other models, and the motors used in SAIC's pure electric vehicles Controllers, as well as high-efficiency drive motors used in Xpeng Motors and other products have received continuous incremental orders. c. In terms of new product development, the company has completed the design of drive motors for pure electric vehicles developed for BAIC New Energy, generators for hybrid vehicles developed for Hyundai Motor, and series of third-generation motor controller platform products for commercial vehicles. and verification development, further improving product integration and performance while reducing costs; in addition, the second-generation "three-in-one" electric drive assembly platform with a power range of 35~160KW has completed product design verification and has successively obtained Hyundai Motor , Changan Automobile, India's Tata Motors and other customers have designated products. Mass production is expected to begin at the end of 2020, which will continue to bring new business growth points to the company.
d. In terms of commercial vehicle powertrain systems, related products have been successfully installed in special vehicles and engineering vehicles, becoming a supplier of Caterpillar engineering machinery parts; dual planetary hybrid powertrain systems have been launched in batches It is used in cold and high-altitude areas, and has received mass production orders together with pure electric bus direct-drive motors; the high-speed motor and reducer integrated system used in electric logistics vehicles has achieved stable mass production and sales; during the reporting period, the company's commercial vehicle power The assembly system is equipped with Ouhui Bus, Sunward Bus and other models, and has successfully entered markets such as Beijing Bus, Zhangjiakou Bus, Shanghai Bus, and Lhasa Bus.
B. Hydrogen fuel cell system business situation
In terms of hydrogen fuel cell business, during the reporting period, the company continued to focus on product research and development and continuous cost reduction, and actively expanded domestic and foreign markets. , strengthen communication with OEMs on the development of hydrogen fuel cell vehicles and speed up preparations for announcements. The specific business development situation is as follows:
a. Hydrogen fuel cell module development situation
In the first half of 2020, the company selected and verified different key components and completed 46KW, 50KW, and 65KW The product development work of fuel cell modules is to adapt to different commercial vehicles. At the same time, the design and development of 80~120KW high-power fuel cell modules has been started, and the selection and performance verification of key components have been initially completed.
b. Development of key components of hydrogen fuel cells
In the first half of 2020, the company completed its independently developed fuel cell DCDC converter (can match 30~65KW), Roots type Product development and verification work for air compressors (can match 30~100KW). In addition, fuel cell-specific core components such as higher current and power DCDC converters, centrifugal air compressors, and high-pressure water pumps are already in the development stage to match the company's development process of higher-power hydrogen fuel cell modules.
c. Hydrogen fuel cell market expansion and business development
In the first half of 2020, relying on the early hydrogen energy industry layout in key areas, the company cooperated with a number of domestic and foreign vehicle manufacturers The factory has carried out the research and development of hydrogen fuel cell vehicles and preparations for announcements, laying a solid foundation for business development in the second half of the year.
In order to further promote and improve the company's hydrogen energy industry planning and layout, during the reporting period, the company signed a strategic cooperation agreement with Xinjin District, Chengdu, and established a wholly-owned subsidiary. It plans to build a hydrogen fuel cell and smart home motor R&D and production base in Xinjin District. To better serve customers in the southwest region; at the same time, it signed a strategic cooperation agreement with Chengdu Yinlong New Energy. The two parties will conduct strategic cooperation in the research and development and production of hydrogen fuel cells, hydrogen fuel vehicles, new energy vehicle powertrain systems and other products, ** *Work together to create a high-quality industrial chain and promote the expansion of the industrial chain. In terms of industrial chain layout, Jiahydro (Shanghai) Industrial Co., Ltd., in which the company has a stake, is stepping up investment and construction of hydrogenation stations in the Pearl River Delta and Yangtze River Delta regions through self-construction and joint construction to serve the promotion of hydrogen fuel cell vehicles. application.
(2) Development of the vehicle rotating electrical appliances business
The vehicle rotating electrical appliances business mainly relies on its subsidiaries Petolai and Genori to carry out business. During the reporting period, the company gave full play to the advantages of Pertila in technology, brand, market channels, after-sales service platform, etc., combined with Wuhu Genori's advantages in cost control and lean production, implemented complementary advantages, highlighted synergy effects, and promoted Integration and development of the vehicle rotating electrical appliance business. Despite the overall downturn in the automobile industry, the company's vehicle rotating electrical appliance business achieved growth against the trend, completing operating income of 1,089.8279 million yuan, an increase of 5.27% over the same period last year.
A. Development of Petola
During the reporting period, faced with the severe test of the COVID-19 epidemic, Petola overcame various difficulties, guaranteed order delivery, and fully met customer needs. , achieving growth against the trend. By establishing Yulin Petola, we will be closer to serving customers. Petola products are equipped in batches as standard in Yuchai's National VI engines, further increasing our product share in Yuchai; high-power alternators are successfully installed in Cummins and Oshkosh ( Oshkosh), Komatsu (heavy equipment) and other large engineering machinery and equipment, while seizing the market opportunities for livestock transportation protection, continue to vigorously expand the livestock and poultry transportation vehicle modification market, and achieve batch sales of high-power generators; multiple models of starters enter The railway train or school bus market has further expanded the market space; in addition, Pateilai has also benchmarked against well-known manufacturers in the industry such as Eberspacher, Valeo, VMMotori and other well-known manufacturers in the urban passenger car generator market in South America, and has achieved a leading position. At the same time, through cooperation with new after-sales dealers, it has made new progress in the after-sales motor market in South America and North America and gained a certain market share.
On January 20, 2020, Beijing Petroleum and Indian Petroleum signed a "Memorandum of Understanding" with Tata Automotive Components Systems in Zhongshan. Tata Automotive Components Systems will increase its investment in India. Come Pate. Through this capital increase, the two parties will establish a joint venture relationship. The company's vehicle rotating electrical appliances and new energy vehicle powertrain systems will use the joint venture to enter the Indian market with huge development potential and further expand its international market business. At present, the two parties are still making further communication and confirmation on the joint venture matters.
B. Genori’s development
In the first half of 2020, despite the impact of the COVID-19 epidemic, Genori continued to promote efficiency with its excellent product quality and lean production control. Improve work, achieve revenue and profit targets excellently, and achieve growth against the trend. In terms of market development, Genori continued to increase its supply share in Geely and Brilliance Xinyuan on the original basis, and began to enter the Great Wall supply chain system; after entering the Russian GAZ supporting system last year, it obtained the generator market of the company in the United States. After admission, during the reporting period, Genori once again made good progress in the development of the international market and joint venture car companies, and received quotation invitations from Nissan and other joint ventures, laying the foundation for subsequent market development; in addition, during the reporting period, for further To increase product platforms and market opportunities, Genori also designed and developed light commercial vehicle products, filling the gaps in related products.
3. Development of new energy vehicle operation business
During the COVID-19 epidemic, the company’s new energy vehicle operation platform actively fulfilled its social responsibilities and implemented tax exemptions, reductions and exemptions for taxi rentals, The leasing business and vehicles for sale on lease have implemented a series of support measures such as rent exemption, rent reduction, and delayed rent collection to tide over the difficult times together with the drivers.
In addition, the travel industry has been affected by the epidemic and market demand has declined, which has also had a certain impact on the normal development of the new energy vehicle operation platform business. Affected by the above factors, during the reporting period, the new energy vehicle operation platform achieved operating income of 45.2039 million yuan, a decrease of 55.42% from the same period last year.
2. For details of the risks and countermeasures faced by the company, please refer to the "Major Risk Warning" chapter of this annual report
3. Analysis of core competitiveness The company attaches great importance to technology research and development and has continuously carried out Technological innovation, improvement of strategic layout, and under the guidance of the general direction of energy conservation, environmental protection, and industrial upgrading, we continue to increase investment in research and development of brushless DC motors, high-efficiency intelligent motors, new energy vehicle powertrain systems, and hydrogen fuel cells. , Beijing, Shanghai, Shenzhen, Wuhu, Wuhan, Detroit and other places have set up R&D centers to keep the company's technology at the forefront of the industry and develop mass-produced related products, such as "EC fans", "constant air volume motors", "three "In-One", new energy vehicle powertrain, 48VBSG motor system, hydrogen fuel cell system and its key components, etc., are all in a leading position in technology in the industry. As of June 30, 2020, the company had applied for a total of 3,030 patents, of which 2,272 were authorized and 1,909 were authorized valid patents (including 488 inventions). The company also has 3 national laboratories, 3 provincial and ministerial level enterprise technology centers and 2 provincial and ministerial level factory technology research centers, and has established postdoctoral workstations and academician expert workstations, becoming a platform for the company to introduce senior technical management talents. In the process of rapid development, the company has continuously attracted technical talents including high-level national talents, experts from the overall expert group of national major projects, and local subject leaders or leading talents. 2. Advantages of industrial transformation and upgrading Since its listing, the company has accelerated industrial transformation and upgrading based on the continuous development and growth of its construction and home appliance and motor business. In 2009, the company entered the new energy vehicle powertrain system industry and successfully took the first step in the company's industrial transformation and upgrading; since 2011, the company has successively acquired Wuhu Genori, Beijing Petroleum and American Petroleum. Fully entering the field of vehicle rotating electrical appliances, laying a solid foundation for the company's industrial transformation and upgrading; the acquisition of Shanghai Electric Drive in 2015 opened a new milestone for the company's new energy vehicle powertrain system business; since 2016, it has cooperated with Ballard and other hydrogen energy industry players Excellent enterprises carry out strategic cooperation to build a complete industrial chain of "motor + electronic control + battery". The precise layout of the global new energy automobile and hydrogen fuel cell industry chain has effectively enhanced the company's position in the global new energy automobile industry and hydrogen fuel cell industry. In the process of industrial transformation and upgrading, the company continues to optimize its industrial layout, actively promotes lean production and automated manufacturing, improves production efficiency, and exerts synergy effects, which provides important development support for the company's mid- to long-term development and the realization of strategic goals. 3. Advantages of resource integration While undergoing industrial transformation and upgrading, the company fully integrates and fully shares its own automotive industry resources. In order to speed up the integration of high-quality resources, give full play to the economies of scale and scope of the company's automotive industry, strengthen the core competitiveness of the group, and promote the promotion and sales of the company's overall solutions for new energy vehicle powertrain systems, the company will combine Shanghai Electric Drive and Beijing Pate The four holding subsidiaries of Lai, Wuhu Genori and Dayang Motor New Power and their affiliated subsidiaries were integrated into Dayang Motor Vehicle Business Group, and the organizational structure, internal management and control model, operating system, business processes, etc. of the vehicle business group were continuously reviewed. Improve and optimize to achieve full sharing of resources and form a long-term development mechanism; at the same time, in order to leverage the expertise and market advantages of the company and OEMs in their respective businesses, we will carry out in-depth strategic cooperation with OEMs to achieve strong alliances . The company has successively established joint ventures with BAIC, Chery, Zhongtong Bus (000957) and Dongfeng Industrial to jointly develop, manufacture and sell key components of new energy vehicles and provide customers with overall solutions for new energy vehicle powertrain systems. , and actively explore the market; in addition, the company also actively integrates and layouts industrial chain resources, forming a complete industrial chain of motor + electronic control + hydrogen fuel cell system and its key components. Through the above-mentioned resource integration and layout, the company has achieved the exchange and expansion of resources such as R&D platforms, sales channels, service systems, talent reserves, and brand building, gradually accelerating the company's internationalization process and injecting new impetus into the company's development.
4. Brand and Marketing Advantages Since its establishment, the company has always adhered to the principle of "independent brand, independent research and development, independent production, and independent sales" and maintained a high level in terms of product technical level, quality control, delivery service, etc., and has won recognition at home and abroad. Widely praised by customers and peers. By implementing strict quality control in the production process and implementing standardized technical standards, the "Dayang Motor" series of building and home appliance motors and new energy vehicle powertrain products produced and sold by the company have become well-known brands in the same industry and are well-known domestically and internationally. It enjoys a certain degree of popularity and reputation in the market. At present, the "Dayang Motor" brand is a famous trademark and export brand in Guangdong Province. At present, the company has the permanent right to use the century-old international brand "Petola". Petola's main customers include Weichai Power (000338), Yuchai Power, Yutong Bus (600066), Cummins, Scania, Caterpillar, Navistar, Pa Paccar and many other world-famous automobile, engine and non-road machinery manufacturers, as well as some military industry companies in the United States and the United Kingdom. Relying on the good reputation of the "Petola" brand among various vehicle manufacturers, the company has gained more opportunities to communicate and cooperate with the above-mentioned high-quality customers to create synergistic effects. In early 2016, the company completed the acquisition of Shanghai Electric Drive, making the "Electric Drive" brand another business card of the company in the new energy vehicle powertrain system, further consolidating the company's leading position in the new energy vehicle powertrain system industry. In recent years, the company has carried out strategic cooperation with Ballard to introduce globally recognized leading fuel cell technology and brands into the country, improve the company's powertrain system layout, enhance the competitiveness of the company's products, and improve the visibility of the company's products among vehicle manufacturers. Contribute to the sales and promotion of company-related products. 5. Advantages of global layout The company is committed to becoming an outstanding supplier of green and environmentally friendly solutions for global motors and drive control systems. With a global vision and way of thinking, it will gradually implement the global layout of the industry and promote the rational and efficient use of global resources within the company. Improve the company's global market competitiveness. After years of development, the company has established subsidiaries and production bases in many countries and regions around the world, including the United States, Mexico, the United Kingdom, Russia, India, Vietnam, etc., constantly improving the company's global layout, getting closer to the company's major customers, and serving customers Provide more convenient services and actively build and consolidate the company's global service capabilities; at the same time, by fully mobilizing and utilizing global resources to achieve high-quality resource allocation, further reduce the company's production costs and improve the company's product competitiveness. In 2019, the company's Vietnam factory was successfully put into production, effectively resolving the challenges posed by the Sino-US trade dispute and winning more customer orders even when competitors failed to take effective countermeasures in a timely manner. While the company's domestic factories were unable to start production during the 2020 novel coronavirus epidemic, overseas factories such as Vietnam and Mexico resumed normal production, ensuring the company's supply capacity and once again leveraging its global layout advantages. At the beginning of 2020, the company took another firm step in the process of globalization and signed a "Memorandum of Understanding" with Tata AutoComp Systems Limited. The two parties will carry out strategic cooperation and deepen the company's market layout in India. Through this, the company will enter the world's second most populous country and the world's fourth largest country. The large automobile market has opened up new space for the company's vehicle business group's international business expansion.