Yangtze River Business Daily News ● Yangtze River Business Daily reporter Shen Yourong
Family-owned company Powerway Alloys (601137. SH) has seen a significant increase in operating performance.
On the evening of April 22, Powerway Alloy released its 2023 annual report. In that year, the company's operating income was close to 18 billion yuan, an increase of more than 30% year-on-year, and the net profit attributable to shareholders of the parent company (hereinafter referred to as "net profit") exceeded 1.1 billion yuan, more than doubled year-on-year.
In the past few years, Powerway Alloy's net profit has stood still, but from 2022, it has increased sharply one after another.
In view of the substantial growth in performance in 2023, Powerway Alloy explained that the international new energy business is improving, and the sales volume has increased significantly. The new materials business improved quarter-on-quarter, and profitability improved.
In 2023, Powerway Alloy's operating cash flow will exceed 1.4 billion yuan, a year-on-year increase of 1.73 times.
Powerway Alloy accelerates the global business layout. On April 22, the company announced that it plans to invest a total of 3.15 billion yuan to build related projects in Vietnam and the United States.
Overseas business income has become an important part of Powerway Alloy's revenue. In 2023, the company's overseas business revenue will account for 55.79% of the company's main business income.
Since 2011, Powerway Alloy has raised more than 6 billion yuan for industrial layout.
Revenue and net profit increased for two consecutive years
Powerway Alloy achieved its best annual results ever.
According to the latest annual report, in 2023, Powerway Alloy will achieve operating income of 17.756 billion yuan, a year-on-year increase of 32.03%, and net profit and net profit after deducting non-recurring gains and losses (hereinafter referred to as "non-net profit") will be 1.124 billion yuan and 1.140 billion yuan respectively, a year-on-year increase of 109.14% and 106.27%.
From the perspective of a single quarter, in the first, second, third and fourth quarters of 2023, the company's operating income was 3.384 billion yuan, 4.361 billion yuan, 4.780 billion yuan and 5.232 billion yuan respectively, a year-on-year increase of 1.72%, 31.38%, 53.54% and 41.81%, and the net profit was 190 million yuan, 270 million yuan, 331 million yuan and 333 million yuan, a year-on-year increase of 39.5%, 90.90%, 129.71% and 187.33%.
Quarterly data shows that both operating income and net profit are accelerating year-on-year and quarter-on-quarter. The performance of quarterly deduction of non-net profit was basically consistent with the performance of net profit.
Powerway alloy in early 2011 landed in the A-share market, in 2011, the company's operating income, net profit were 2.38 billion yuan, 134 million yuan, in the following years, operating income showed a growth trend, net profit is in a state of adjustment.
From 2017 to 2021, the company's operating income was 5.758 billion yuan, 6.065 billion yuan, 7.592 billion yuan, 7.589 billion yuan, and 10.038 billion yuan respectively, and the operating income in the interval almost doubled. In the same period, the company's net profit was 306 million yuan, 341 million yuan, 440 million yuan, 429 million yuan and 310 million yuan respectively, which fluctuated and the growth rate was significantly lower than the operating income.
In 2022, the company made a breakthrough, with operating income and net profit of 13.448 billion yuan and 537 million yuan respectively, a year-on-year increase of 33.89% and 73.11%, and a non-net profit of 552 million yuan, a year-on-year increase of 122.47%.
The above data shows that in the past two years, the non-net profit of Powerway Alloy has doubled continuously, and the operation has continued to improve.
In view of the strong growth of operating performance in 2023, Powerway Alloy explained that in terms of new energy business, the company has established long-term, deep, stable and reliable cooperative relations with major customers in the US market through differentiated services, forming a unique competitive advantage in the US market. In terms of new materials business, the company's new projects such as 50,000 tons of special alloy strips have been put into operation one after another, and the production and sales have improved quarter by quarter, and the sales volume and profitability have improved greatly month-on-month.
More than 6 billion yuan has been raised to increase the industrial layout
Powerway Alloy's operating performance has reached a new high, which is directly related to the previous industrial layout.
In 2011, Powerway Alloy raised 1.485 billion yuan when it was listed on the IPO, which was used for an annual output of 10,000 tons of lead-free free-cutting brass rod and wire production line project, an annual output of 20,000 tons of high-performance and high-precision copper alloy strip production line project, and an annual output of 18,000 tons of deformed zinc alloy material production line project, as well as to replenish working capital and repay bank loans.
In 2016, Powerway Alloy acquired 100% of the shares of Ningbo Connet through a combination of issuing shares and paying cash, with a transaction price of 1.5 billion yuan. Through the acquisition of Ningbo Connette photovoltaic assets with unique competitive advantages, Powerway Alloy will introduce talents and allocate resources from a global perspective to further enhance the core competitiveness of Powerway Alloy in the future. At the same time, the company raised 1.5 billion yuan.
In 2019, the company once again acquired assets at a price of 495 million yuan through the issuance of shares, and the target company is 93% of the shares of Bode Hi-Tech.
In 2020 and 2023, Powerway Alloy has raised 1.2 billion yuan and 1.7 billion yuan through the issuance of convertible bonds, which will be used for the expansion project of 30,000 tons of special alloy electronic material strip, the expansion project of 20,000 tons of special alloy electronic material wire, and the expansion project of 1GW cells.
On April 22 this year, Powerway Alloy announced that the company plans to invest in the construction of a 3GW TopCon solar cell expansion project in Vietnam and a 4GW TopCon module expansion project in the United States, with a total investment of 3.15 billion yuan.
In the 2023 annual report, Powerway Alloy said that through years of marketing and promotion accumulation in the United States and Europe, the company has been ranked in the list of first-class suppliers of bank loanability of global photovoltaic module manufacturers in Bloomberg New Energy (BNEF) for 7 consecutive years, and in the list of top performance suppliers for global photovoltaic module reliability testing of PVEL in the United States for 5 consecutive years, maintaining the competitive advantage of the company's products in the US photovoltaic market by providing customers with differentiated value-added services.
Powerway Alloy's business revenue in overseas markets has grown steadily. In 2022, the company's overseas market business revenue will be 6.189 billion yuan, accounting for 46.02% of the company's main business income. In 2023, the business revenue of overseas markets will increase to 9.906 billion yuan, accounting for 55.79%, surpassing the domestic market for the first time.