Section 4 Implementation and evaluation of the budget
1. Budget implementation (familiarization)
Once the budget is approved and issued, the budget implementation unit should conscientiously organize the implementation of the company's strategic budget management, decompose the budget indicators layer by layer, and implement them to all departments, units, links and positions of the enterprise, so as to form a comprehensive budget implementation responsibility system.
(1) Installment budget control
The budget should be taken as the basic basis for organizing and coordinating various business activities during the budget period, and the annual budget should be refined to ensure the realization of the annual budget target with phased budget control.
(2) Strengthen cash budget management
Strictly control the disbursement of budget funds and adjust the balance between the receipt and payment of funds; the allocation of funds within the budget shall be carried out in accordance with the procedures for authorization and approval; the payment procedures for extra-budgetary project expenditures shall be standardized in accordance with the budget management system; and the expenditure of projects without contracts, vouchers, and procedures shall not be disbursed.
(3) Budget risk management
Strengthen employees' risk awareness, take individuals as the object of budget risk review and form a corresponding reward and punishment mechanism, and control the risks in the budget process through information technology and information management systems.
(4) Strictly implement the sales, production and cost budgets, and strive to complete the profit target
Improve voucher records, improve rules and regulations, strictly implement the monthly plan for production and operation and the fixed rate standards for costs and expenses, strengthen timely monitoring, and promptly identify the causes of abnormalities and propose solutions.
(5) Establish a budget reporting system
All budget implementation units are required to report on budget implementation on a regular basis; with regard to new situations, new problems, and major projects with large deviations discovered in the course of implementation, the relevant budget implementation units should be instructed to find out the causes and put forward improvement measures and suggestions.
(6) Financial statement monitoring
The financial management department should use the financial statements to monitor the implementation of the budget, and provide financial information such as the progress of the implementation of the financial budget, the implementation difference and its impact on the budget target of the enterprise in a timely manner.
【Past Exam Replay】
1. The financial management department of the enterprise shall use the report to monitor the implementation of the budget, and provide information on the progress of budget implementation and the difference in implementation in a timely manner. ( ) (Judgment of Question 37 in 2012)
【Answer】√
【Analysis】The financial management department of an enterprise shall use the financial statements to monitor the implementation of the budget, and provide financial information such as the implementation progress, implementation differences and its impact on the budget objectives to the budget implementation unit, the enterprise budget committee, and the board of directors or the manager's office in a timely manner, so as to promote the enterprise to achieve the budget objectives.
2. Adjustment of the budget (familiarization)
The budget officially issued by the enterprise for implementation is generally not adjusted.
Adjustable situations
Major changes in the market environment, business conditions, policies and regulations, etc., resulting in the failure of the basis for budget preparation, or will lead to major deviations in the results of budget implementation
Adjustment mechanism
An internal flexible budget mechanism should be established, and adjustments that do not affect budget targets can be implemented through an internal authorization and approval system, and effective countermeasures should be encouraged to ensure the achievement of budget targets.
Adjust the program
The budget implementation unit shall submit a written report to the budget management committee, explaining the situation→ and the financial management department shall review and analyze the adjustment report, prepare the annual adjustment plan in a centralized manner, and submit it to the budget management committee→ the board of directors or the manager's office meeting for review and approval→ and issue for implementation
Adjust decision-making requirements
(1) Budget adjustment items should not deviate from the enterprise development strategy; (2) The budget adjustment plan should be economically optimized; (3) The budget adjustment should focus on the important, abnormal and non-routine key differences in budget implementation.
【Past Exam Replay】
1. The enterprise formally issues the budget for implementation, and the executive department generally cannot adjust it. However, if there are major changes in the market environment, policies and regulations, etc., which will lead to a major deviation in the budget implementation results, it can be adjusted after approval at each level. ( ) (Judgment of Question 45 of 2015 Past Papers)
【Answer】√
【Analysis】The budget officially issued by the enterprise for implementation is generally not adjusted. Where, in the course of implementation, the budget implementation unit has major changes in the market environment, business conditions, policies and regulations, etc., resulting in the basis for the preparation of the budget is not established, or will lead to major deviations in the results of budget implementation, the budget may be adjusted.
2. In the process of budget implementation, there are ( ) situations that may lead to budget adjustments. (Question 7 of 2016 past papers)
A. The market demand for major products has dropped sharply B. The VAT reform has led to a significant decrease in the company's tax burden
C. The price of raw materials has risen sharply D. The company has carried out key asset restructuring
【答案】 ABCD
【Analysis】The budget officially issued by the enterprise for implementation is generally not adjusted. Where, in the course of implementation, the budget implementation unit has major changes in the market environment, business conditions, policies and regulations, etc., resulting in the basis for the preparation of the budget is not established, or will lead to major deviations in the results of budget implementation, the budget may be adjusted.
3. Budget analysis and assessment (familiar)
analysis
(1) A budget analysis system should be established, and the budget management committee should hold regular budget implementation analysis meetings;
(2) Each department should fully collect information and adopt different analysis methods to reflect the current situation, development trend and potential of the budget implementation unit from both quantitative and qualitative aspects;
(3) Each department shall fully and objectively analyze the reasons for the deviation in implementation, put forward suggestions or measures, and report to the board of directors or the manager's office for research and decision;
(4) The budget management committee shall organize budget audits on a regular basis, and may adopt comprehensive audits or sample audits, and may also adopt irregular audits under special circumstances;
Nucleus
(1) At the end of the budget year, the budget management committee shall report the implementation of the budget to the board of directors or the manager's office meeting, and evaluate the budget implementation unit;
(2) The budget implementation report submitted by the internal budget implementation unit shall be reviewed and approved by the person in charge of the department and the company's strategic budget management, as the basic basis for financial assessment;
(3) The assessment of enterprise budget implementation is the main content of enterprise performance evaluation, which should be assessed in combination with the annual internal economic responsibility system, linked to the rewards and punishments of the person in charge of the budget implementation unit, and used as a reference for human resource management.
Analysis of the company's business strategy, Pioneer Electronics' 2023 annual board of directors business reviewPioneer Electronics' ()2023 annual board of directors business review is as follows:
1. The industry situation of the company during the reporting period
(1) The development status and trend of the industry and the impact of the Internet of Things on the industry
In 2023, under the background of "dual carbon", "green, energy-saving, and low-carbon" will become the new slogan of the energy structure at this stage. The "dual carbon goal" further promotes the adjustment of the energy structure, increases the proportion of natural gas in primary energy consumption, and promotes the "dual carbon" strategy from the plan to the substantive implementation of the company's business strategy analysis, so as to promote the steady growth of natural gas-related intelligent terminals.
At the same time, with the frequent occurrence of gas safety accidents in recent years, the safety of the natural gas industry has been improved to a new height, and the use of intelligent equipment with sensors and embedded data transmission units can greatly improve predictive maintenance and reduce safety risks.
Based on the development needs of smart gas, the demand for smart terminals has grown steadily, and the growth of smart gas meters in the Internet of Things has grown rapidly. On the other hand, the state has successively introduced a number of policies to promote the digital and intelligent transformation of municipal infrastructure, promote the comprehensive development of the Internet of Things, and increase the demand for smart gas solutions for the Internet of Things. From the perspective of the same industry, the market competition of smart gas meters is fierce, and the Internet of Things smart gas meters are mainly dominated by the competition of domestic leading manufacturers due to their high requirements for pre-sale, in-sale and after-sale. Therefore, in order to maintain market share, enterprises need continuous investment and optimization in software and hardware, research and development, marketing, manufacturing, quality and service to maintain their core competitiveness.
The Internet of Things is undoubtedly of great help to the daily management, emergency repair and business decision-making of city gas customers, but it is different from the simple and easy to use, cost advantage and management convenience of IC card smart gas meters, and more powerful functions often bring about the improvement of procurement costs and management requirements. Therefore, with the development of smart gas Internet of Things, the living space of small smart gas meter suppliers will gradually be squeezed, and the industry will further integrate.
(2) The company's industry status
The company focuses on providing smart, safe and efficient solutions and services for the gas industry. Combined with its own experience accumulation of more than 30 years in the field of smart gas meters, it actively promotes the development of smart gas IoT in the digital era, expands and deepens the layout in the field of smart gas, and deploys city gas monitoring and early warning platforms in many places across the country to improve the company's core competitiveness and profitability, and realize the diversification of product categories. During the reporting period, the company achieved operating income of 624.0022 million yuan, a year-on-year increase of 10.91%, and its market share ranked among the top smart gas meter enterprises in China.
2. The main business engaged in by the company during the reporting period
Pioneer Electronics is a comprehensive solution provider that integrates gas metering terminals, safety monitoring terminals, Internet of Things big data platforms, city gas monitoring and early warning platforms and metering network charging systems. During the reporting period, the company focused on providing smart, safe and efficient solutions and services for the gas industry.
From the perspective of the development of the smart gas industry, the demand for smart terminals has grown steadily, and the proportion of smart gas meters in the total purchase volume of gas meters has further expanded. Under the 14th Five-Year Plan, governments at all levels will continue to increase the renovation and renewal of old pipelines, and the importance of gas safety has been raised to a new height.
During the reporting period, the company deployed a city gas monitoring and early warning platform in many places across the country, providing a complete set of solutions from software to hardware, covering the gas safety management of all application scenarios of the industry, and providing a comprehensive guarantee for city gas safety. The number of confirmed sales terminals of the company's Internet of Things products increased by 21% year-on-year, and the confirmed sales revenue increased by 18% year-on-year, of which the sales of Internet of Things smart meters accounted for 82% of the total sales revenue, ranking in the forefront of domestic smart gas meter enterprises.
Combined with its own experience accumulation in the field of smart gas meters for more than 30 years, the company has adopted cloud design and established the iBS integrated business management platform, IoT-Cloud collection platform, Fengyunhui payment platform and Fengyun easy-to-repair service platform, actively promoting the development of smart gas IoT in the digital era.
During the reporting period, the company continued to strengthen its investment in the field of measurement and testing, and widely applied ultrasonic metering technology, laser semiconductor spectral absorption technology (TDLAS) and gas big data cloud platform to urban gas metering. At present, it has completed the serialization of mechanical membrane gas meters, mechanical flowmeters, ultrasonic and other products, and the IPO expansion capacity and automation transformation project has been put into use, with Zhejiang Provincial Enterprise Research Institute and National CNAS Laboratory, and the company's comprehensive strength has been significantly improved. In order to ensure the company's comprehensive competitiveness and market share, the company continues to invest and improve in raw material stocking, domestic substitution, supply chain management, marketing, R&D cost reduction, intelligent manufacturing, quality and service, and strives to reduce the impact on net profit through business growth and internal efficiency.
3. Analysis of core competitiveness
1. Brand advantage
As one of the largest smart gas meter manufacturers and system suppliers in China, the company has won the honorary titles of "CMMI3 Certification", "National Gas Metering Industry Quality Leading Brand", "High-tech Enterprise", "Hangzhou Headquarters Enterprise" and "Hangzhou High-tech Zone (Binjiang) Gazelle Enterprise" during the reporting period. At present, the company has more than 1,300 domestic cooperative customers, and its market share ranks among the top smart gas meter companies in China. Based on the principle of "industry pioneer and main force of innovation", the company has established the brand concept of "pioneer electronics, your trustworthy partner", and the brand awareness has been further enhanced.
2. R&D advantages
As one of the earliest manufacturers to commercialize NB-IoT smart gas projects in China, Pioneer Electronics has a national CNAS laboratory and a Zhejiang Provincial Enterprise Research Institute. During the reporting period, the company participated in the formulation of a number of standards such as "Optical Interface and Communication Protocol for Gas Meter Detection", "Ultrasonic Gas Meter Application Evaluation and Testing Specification", "Ultrasonic Smart Gas Meter", etc., which promoted the standardization and high-quality development of the industry. The company further encourages R&D and innovation, strengthens the transformation of achievements, actively participates in the preparation of standards, and improves the certification of R&D system.
3. Manufacturing advantage
Digital empowerment is the current trend of economic development, and sustainable and high-quality development is the company's goal. Since 2014, the company has started to build a digital workshop, successively launched an information system, and has achieved digital management and control in planning and scheduling, production process, material distribution, lean manufacturing, production equipment, safety and environmental protection, etc., and has been identified as Hangzhou "Digital Workshop" cultivation enterprise (the first batch) and Hangzhou "Smart Factory" cultivation enterprise. Based on the deep integration of informatization and industrialization, the company improves intelligent production and operation capabilities through digital technology to improve production efficiency, improve product quality, improve labor productivity and reduce manufacturing costs.
Fourth, the main business analysis
1. Overview
From the perspective of the development of the smart gas industry, the overall growth trend of the domestic natural gas market has not changed. As the country promotes the construction of new urbanization, accelerate 5G, The construction and application of new infrastructure such as the Internet of Things and other multiple policies are superimposed, the demand for smart terminals has grown steadily, and the proportion of smart gas meters in the total purchase volume of gas meters has been further expanded, especially the Internet of Things smart gas meters have played their unique advantages, users can complete remote payment without leaving home, gas companies can remotely grasp the user's gas consumption status, and solve user problems in a timely and targeted manner, which further promotes the application of smart gas meters of the Internet of Things and helps the public service capacity to continue to improve. According to the characteristics of the main product lines, the company continues to be committed to the goal of improving the revenue structure of the main business, focusing on increasing the sales of IoT smart gas meters, and expanding the proportion of the sales revenue of IoT smart gas meters in the main business income, in 2023, the number of confirmed sales terminals of the company's IoT products will increase by 21% year-on-year, and the confirmed sales revenue will increase by 18% year-on-year, laying a good foundation for subsequent development.
In 2023, the company strengthened its investment in the field of metering and ultrasonic, and took the lead in obtaining the type approval certificate of full-specification ultrasonic gas meter, aiming to maintain its own R&D capabilities and experience accumulation in the field of basic metering, and achieved good results and honors. The company's ultrasonic series products have been applied to more than 100 gas companies such as Kunlun Gas, Towngas China, Beijing Gas, Hefei Gas, Hangzhou Natural Gas, Meineng Energy () and have been widely praised.
In 2023, the company will deploy the iGRM city gas monitoring and early warning platform in Dongying, Baoji, Jiujiang and other places across the country, providing customers with a complete set of solutions from software to hardware, and carrying out full application and all-round coverage from gas power plants, gas pipelines, pressure regulating facilities, gas users and other scenarios, effectively improving the safety risk management and control capabilities of the "lifeline" of city gas.
In 2023, the company will continue to build a solution department based on the management model of regionalization, integration of sales and services, and mobility, further strengthen the contact between R&D and marketing and customers, accurately grasp customer needs, improve the efficiency of marketing, manufacturing, and R&D, and improve customer satisfaction.
In 2024, the company will mainly focus on expanding the market, improving the R&D system and product system, giving full play to its quality advantages, further improving service quality, strengthening post-investment management, creating profits for shareholders, creating a platform for employees, and creating value for society.
During the reporting period, the company achieved operating income of 624.0022 million yuan, a year-on-year increase of 10.91%, operating costs of 412.3262 million yuan, a year-on-year increase of 8.48%, sales expenses of 80.8239 million yuan, a year-on-year increase of 13.49%, administrative expenses of 50.0461 million yuan, a year-on-year increase of 14.39%, research and development expenses of 40.436 million yuan, a year-on-year increase of 22.57%, and financial expenses of -1.105 million yuan, a year-on-year decrease of 1447.77%. Income tax expense was -620,900 yuan, a year-on-year decrease of 140.92%, and net profit attributable to owners of the parent company was 7.6206 million yuan, a year-on-year decrease of 77.19%.
Fifth, the company's future development prospects
(1) The company's future development strategy and 2024 business plan
As a pioneer in the gas industry and the main force of scientific and technological innovation, the company has been adhering to the corporate vision of "wisdom, safety and efficiency" for more than 30 years, the business philosophy of "science and technology marks the rise and fall of enterprises, and quality determines the survival of enterprises".
1. Business management
The company's overall goal in 2024 is to ensure that the company operates legally and compliantly, strengthens the construction of the social responsibility system, straightens out internal and external resources, adheres to comprehensive budget management, and ensures the health of business indicators.
2. Marketing
Strengthening the cultivation of sales force, strengthening brand value, deepening customers, expanding main business income, expanding the proportion of sales revenue of Internet of Things intelligent terminals The company's business strategy analysis, strengthening the recovery of accounts receivable, and creating a benchmark project for gas safety monitoring and early warning are the key tasks of the company's marketing center in 2024.
3. Technology research and development
It is the company's key task for the R&D center in 2024 to continue to encourage R&D and innovation, keep up with the transformation of cutting-edge technological achievements, actively participate in the formulation of standards, strengthen the acquisition of independent intellectual property rights, improve the platform design and product line, strengthen the construction of software platforms, and actively obtain overseas certifications.
4. Supply and quality
On the premise of ensuring quality, reducing procurement costs, ensuring that the supply chain is not significantly affected by the external environment, continuing to promote the construction of the quality system, and strengthening the extension and early warning of quality management are the key tasks of the company's supply chain and quality management in 2024.
5. Intelligent manufacturing
According to the time schedule and planning indicators, further promoting the development of intelligence, improving production efficiency, and reducing manufacturing costs are the key tasks of the company's manufacturing center in 2024.
6. Human resources
Strengthening the construction and improvement of the employee performance appraisal system, strengthening the construction of corporate culture, enhancing employees' sense of belonging and responsibility, and enhancing corporate cohesion are the key tasks of the company for human resources in 2024.
(2) The company's strategic layout and planning
While the company adheres to the consolidation of its main business + industrial chain mergers and acquisitions, it also lays out the underlying hard technology of the Internet of Things + high-end precision manufacturing. In the future, the integration of the industrial chain with "smart gas" as the core and the dual development of the secondary industry of "underlying hard technology + high-end precision manufacturing" will be realized.
Focusing on the upstream and downstream of the main industrial chain, the company invested in Fujian Hade Instrument Co., Ltd. in 2019, Zhejiang Mitte Metrology Co., Ltd. in 2019, and Ningbo Celine Instrument Co., Ltd. in 2022 to optimize the product structure and enrich the company's product line. A smart, safe and efficient package solution that integrates information security and Internet of Things technology.
The national 14th Five-Year Plan and the long-term goals for 2035 mentioned that a number of major scientific and technological research projects will be deployed in key areas and key links such as high-end equipment manufacturing, and efforts will be made to overcome a number of key core technologies and "stuck neck" technologies, and accelerate the localization and substitution of key components.
In 2021, the company invested in Hangzhou Tiemei Zhonglian Technology Co., Ltd., which is a supplier of electric system solutions such as axial flux motors, integrated servo motors, and servo drives, and merged with "Dongguan Benmo Technology Co., Ltd." in January 2024. Since its establishment, Benmo Technology has successively received seed round financing from Professor Li Zexiang, and invested in Rice Venture Capital, MiraclePlus Ventures, Lenovo Venture Capital, Shunxi Fund under Beijing State Management, and Yizhuang Venture Capital. It is committed to providing direct-drive precision power solutions without reducer, and its products are widely used in household robots, industrial and commercial robots, fitness and other industries, and maintain good cooperative relations with customers such as Ecovacs, Dreame and Juefei. On the premise of industrial synergy, the company will continue to look for high-quality enterprises with core technologies and independent intellectual property rights in the field of urban life safety lines for investment layout. Finally, a joint force will be formed to contribute to the industrial upgrading of listed companies, and the company will become a high-tech enterprise with core technology competitiveness and a wider range of product application fields.
(3) Risks faced by the company and countermeasures
1. Macroeconomic risks
In the face of the current complex domestic and foreign political and economic environment, the development of the real economy and the development and growth of the natural gas market have slowed down.
2. Raw material price fluctuations and supply risks
In 2023, the price of bulk raw materials is still at a high level, imported raw materials (such as chips) have not been completely solved, and there is a risk of rising procurement costs and untimely supply due to deviations in the procurement plan.
3. Competition risk in the same industry
Affected by the overall growth risk of the industry, market competition is further intensified, in order to ensure market share, the company will make greater investment in the market, research and development, production and service, product prices may decline due to competition, which will affect the overall profitability of the company, the company will fully combine the external market environment and its own business characteristics, and prepare for market competition.
4. The risk of loss of new technology and core technical personnel
With the continuous innovation of Internet of Things technology, the update and iteration of new technologies is accelerating, the new technology lacks a unified national standard, with great uncertainty, and the company is in an industry that belongs to the national economy and people's livelihood industry, which is related to the daily life of the people, although the company has always adhered to the "advanced, practical and reliable" R & D concept, but there may still be a risk of technical judgment error.
The company has been engaged in the smart gas meter industry for more than 30 years, and has accumulated and established an industry R&D elite team, and the company will further attract and retain talents through a scientific performance appraisal mechanism, so as to reduce the risk of R&D cycle growth, core technology leakage, and personnel cost increase that may be caused by the loss of core technical personnel.
5. Product quality risk
The company will continue to deepen the quality work, minimize the user complaints and claims caused by product quality problems, and avoid the negative impact on the company's brand, business and operation.
6. Acquisition and integration risks
On the premise of industrial synergy, the company will carry out an integration plan around the field of urban life safety line, and strengthen the preliminary research, analysis, training and integration of the target, but due to the influence of macroeconomic and industry policy changes, market risks, operation and management and other factors, there is uncertainty in the integration of the acquired assets, and there may be risks such as insufficient integration, unsatisfactory target profits, and inability to achieve synergies.
7. Investment risk
The world economic growth is slowing down, and in the face of complex and severe situations at home and abroad, the downward pressure on the national economy is greater. Because the investment process will be affected by various factors such as macroeconomy, industry cycle, project development, etc., there is a risk that the investment benefit will not meet expectations or losses, which will have an adverse impact on the company's performance.
8. Other risks
Any future plans and performance forecasts contained in this report do not constitute a commitment by the Company to any investors and related persons. Investors and relevant parties should be fully aware of the risks involved and should understand the differences between plans, forecasts and commitments.
In the face of the above risks, our company will continue to strengthen investment in R&D, market and quality, improve the company's product and service level, enhance the comprehensive competitiveness of the market, and establish brand barriers. At the same time, in the company's internal management, we will further develop ideas, improve the enterprise management system, and strengthen the training of management personnel and improve management efficiency through internal training and external introduction. Through the appropriate incentive mechanism, enhance the subjective initiative of employees. At the same time, the company will invest prudently, and for new projects, carefully demonstrate the feasibility of the investment plan. For the invested projects, do a good job of tracking and analysis, evaluate the progress of investment in a timely manner, feedback the results of analysis and evaluation, and adjust the investment strategy or formulate an investment exit strategy in a timely manner.