2021-08-30 China Secret Holdings (300470) issued an announcement that: Chongyang Investment Wu Weirong, Chen Fentao, Sino-Italian Asset Liu Jia, Zhou Lu, Industrial Fund Xu Yuliang, Qianhai Open Source Fund Dong Zhiguo, Fosun Group Wang Shuting, ICBC Credit Suisse Li Yu, Yan Yanrong, Shibei Investment Li Changqiang, Value Partners VanLiu, Shanghai Securities Source Asset Chen Peng, Zijin Insurance Xiao Baichen, Pengtai Investment Zhu Karen, Zheng Wei, Chuangjin Hexin Fund Li Han, Caitong Asset Management Zhou Yitao, Everbright Prudential Ugly Kailiang, Guojun Asset Management Shi Xiaoyu, Maodian Investment Tang Zhongjie, Chen Ying, Zhongying Life Luo Zhibai, Xinfu yue Su Kai, Schroder Fund Zhang Xiaoying, CICC Asset Management Li Chen, Fuguo Fund Xu Yingzhen, Pu Shilin, Xinhua Fund Fu Wei, Juming Investment Huang Yang, Huatai Asset Management Yu Tianjia, Hongde Fund Wang Keyu, Yuanxin Yongfeng Chen Chen Chen, Taikang Asset Wang Dong, China Merchants Fund Liu Li, Dacheng Fund Zhu Qian, Lei Jun Asset Guo Jie, Guo Life Pension Yu Lei, Debon Self-operated Luan Zhao, Xinhua Fund Zhou Xiaodong, China Merchants Securities Shi Wenbo, Liu Rong, Guo life security Li Dan, Life Asset Management Liu Zhuowei, Anxin Fund Chen Si, Guohua Xingyi Insurance Asset Management Liu Xuming, Xusong Capital Yan Beina, Kaiyu Investment Yang Lin, Huaxia Future Ding Xin, Beijing Hanhe Hanhua Wu Yizhou, GreenCourt, Xingju Capital Bi Muchao, Yuancheng Investment Manager Zhang Xinyi, Xiaoshan Zequan Investment Li Qiwen investigated our company on 2021-08-27, and this survey was received by Director, Deputy General Manager, Secretary of the Board of Directors and Financial Director Chen Hong.
The main contents of this survey are:
1. What is the company's situation in the first half of 2021? A: In the first half of 2021, the company's overall business was very good, with operating income and net profit reaching new highs. The mechanical seals segment hit a record high in revenue and profit in the first half of the year. In the petrochemical field, as the company's brand influence becomes stronger and stronger, new large-scale projects have received more orders, and the company's import substitution work in the first half of the year is also in full swing. In addition, many customers arranged overhaul work in the first half of the year, and the company's stock business gradually returned to normal. In the pipeline field, the company won two new and large project orders in the first half of the year. The nuclear power sector is currently in the midst of rapid localization, and almost all nuclear power sealing businesses are opening their doors to companies. In terms of international business, although there are still obstacles to the flow of personnel, communication is smooth, and after the epidemic situation abroad is gradually controlled, the business picks up, and the number of orders in hand in international business has increased, especially in the business of some international famous OEMs, such as signing the first dry air seal body supporting order with Elliott and participating in the exchange and inquiry of its multiple overseas projects. In addition, the company completed the matching of Siemens' million tons of ethylene three machines in the first half of the year. In terms of production capacity, the company's production and manufacturing has been at full load, and employees have worked overtime. In this regard, the company has expanded production of bottlenecks according to the actual production situation, and the overall production capacity has increased to a certain extent. The subsidiary, UTEC, is also in a very good stage of development. The market share of UTEC's shield sealing products has increased rapidly in the past one or two years, and it is expanding production for shield sealing products. The business of this landmark product of Youtaike Pure Water Hydraulic Bracket Seal in the coal mining industry is also expanding, and it has received the fourth set of orders. Puli Seals (a high-end sealing material research enterprise) invested by Youtaike has produced the first batch of materials, is testing various performances, and is confident that it can meet the requirements of international high-end materials. According to the company's understanding, due to the performance of domestic product materials can not meet the requirements, the rubber and plastic seals used in high-end heavy-duty construction machinery at this stage are basically imported. If the material development of Puli seal is smooth, it can provide a very great boost for Youtek to enter the field of construction machinery. Yotec's revenue and profit in the first half of the year also hit a record high, and future development is expected to maintain stable relative growth. The company officially merged with SHKP Pell on February 1, 2021, and the revenue and profit of SHKP Pell in the first half of the year were ideal, and the revenue of SHKP Pell was 38.2 million yuan and the net profit was 11.42 million yuan in the consolidated table (February-June). Singdy Pell has sufficient orders in hand, and from the current situation, SHKP Pell can complete the performance bet. In order to alleviate the tight production capacity, SHKP Pell ordered more than 10 million equipment before the Spring Festival, and the general equipment has basically arrived at the factory acceptance to form a production capacity, and some key equipment such as the processing center imported from Japan is expected to be in place at the end of September. In the first quarter, the company increased its capital to SHKP Pell by 38 million yuan, mainly for the construction of valve research and development centers and intelligent transformation. The valve R&D center is mainly aimed at expanding new categories in the petrochemical field, especially the research and development of control valves. According to the understanding of the company and SHKP Pell, the gap between the domestic control valve and foreign countries is more obvious, most of them rely on imports, SHKP Pell to enter the field can give full play to its research and development advantages, and provide strong support for the long-term sustainable development of SHKP Pell.
2. How is the company's development in new areas such as papermaking? A: With the establishment of the company's brand image in China, the company has made good progress in the fields of papermaking, water treatment, food and medicine. A number of paper industry enterprises to the company to visit, exchange, and reached a cooperation intention with the company, the company has signed a number of important product application orders.
3. What is the company's stock business? A: Affected by the epidemic last year, the company's stock business declined, mainly due to the end customer's control of the current purchase volume and almost no overhaul. Since the beginning of this year, these two factors have been basically eliminated, especially in the first half of the year, there are many arrangements for overhaul, and the growth of stock business orders has also been more, and in the revenue structure of the first half of the year, the income from stock business orders has rebounded significantly. From the perspective of the growth of orders in hand, the growth of existing business orders in hand is relatively fast, and the future will inevitably be reflected in the growth of the revenue side. According to the company's understanding, the current production and operation of end customers are basically in a normal state, and the arrangement of major overhaul is still in progress. On the whole, the company believes that the stock business will continue to return to the level of normal and stable development. In addition, this year's localization work has been carried out more comprehensively and extensively, and a considerable part of the growth of stock business has come from import substitution orders in the stock market.
4. How does the company view import substitution? A: Import substitution has brought more orders for high-gross margin products to the company, and more importantly, it has provided the company with opportunities for research and development in high-end fields and applications. From the perspective of the company's past development, in the past, after the development of high-end new products, the company often needs to spend a lot of time and energy when looking for application opportunities, but in the context of the current import substitution, customers usually have a strong willingness to import substitution, and the time and energy required for the company to find application opportunities are greatly reduced, which brings great opportunities for the company to occupy the high-end market in the future.
5. Does the company have any plans for mergers and acquisitions in the near future? A: Mergers and acquisitions are the company's long-term strategy. The company has always maintained attention and communication on the appropriate target. At present, the changes in the international and domestic situation have a certain impact on mergers and acquisitions, such as the implementation of the domestic registration system has brought listing opportunities to more enterprises, which has affected their enthusiasm for mergers and acquisitions, and the international epidemic has brought great impact on mergers and acquisitions, such as entry-exit control, which makes it difficult to carry out on-site due diligence and other work. The company has high requirements for the M&A target, and the target must have sufficient strategic significance and strategic value, be in the strategic framework of the company, and have a high degree of synergy with the company.
The main business of Zhongmi Holdings: business service industry; General parts manufacturing and mechanical repair; Manufacture of pumps, valves, compressors and similar machinery; Wholesale and retail sale of goods; Scientific and technological exchange and promotion services; Import and export industry; Manufacture of metal pressure vessels; Industrial design services. (The above projects do not include pre-licensed projects, and post-licensed projects operate with licenses or approval documents) (Projects that require approval in accordance with the law can only carry out business activities after approval by the relevant departments).
According to the 2021 interim report of China Secret Holdings, the company's main revenue was 569 million yuan, up 33.38% year-on-year; the net profit attributable to the mother was 138 million yuan, up 44.44% year-on-year; the non-net profit was 128 million yuan, up 46.16% year-on-year; the debt ratio was 14.08%, the investment income was 5.5542 million yuan, the financial expenses were -1.9424 million yuan, and the gross profit margin was 49.87%.