2. China's power grid investment in the 12th Five-Year Plan is estimated to be 2.55 trillion yuan, an increase of 70% over the 11th Five-Year Plan. With the smart grid entering the stage of comprehensive construction, the intelligent upgrading of equipment will promote the demand for epoxy insulation products. At the same time, railway construction has also brought good development prospects for the company. 20 1 1 At the end of the year, the operating mileage of China railway was 93,000 kilometers, and the electrification rate was 49.4%. According to the plan of the Ministry of Railways, by the end of 438+05 in 2065, the operating mileage of China's railways will exceed10.2 million kilometers, and the electrification rate will be 60%, which will drive the demand for epoxy insulation parts in electrical equipment such as circuit breakers and switches. Because the quality of epoxy insulation is related to the performance of power transmission and distribution equipment and has a great influence on the safe operation of major projects such as power grid, power station and high-speed rail, a good equipment manufacturer has very high requirements on the quality of products. Once the products are confirmed to be qualified, it is not easy to change manufacturers.
With excellent technical level, the company has formed a high proportion of supply relations with world-renowned enterprises, contributing 3/4 of the company's sales for ABB and Schneider, and will grow together with the growth of these internationally renowned enterprises in the future, with strong performance certainty.
3. From 2009 to 20 1 1 year, the company's main business income was 223 million yuan, 266 million yuan and 33 1 10,000 yuan respectively, maintaining a steady growth trend. In the same period, the net profit attributable to shareholders of the parent company was RMB 38 million, RMB 43 million and RMB 49 million respectively, and the gross profit margin was 36,5438+0.00%, 36,5438+0.05% and 29,65438+09% respectively. The decline in the company's gross profit margin was mainly due to the serious decline in the gross profit margin of high-pressure products. On the one hand, due to high gross profit margin, orders from China xd decreased. In 2009, china xd's order revenue was 28,790,800 yuan, accounting for 40.96% of the high-pressure revenue. Since then, China xd has reduced its purchasing volume due to its own capacity problems.
On the other hand, due to the slowdown of economic growth after the financial crisis in 2008, the company followed the trend and took price reduction measures.
However, the company has mastered the mature manufacturing technology of insulating tie rods, which can improve the quality level of domestic 126kV and 252kV insulating tie rods, fill the gap of insulating tie rods above 363kV, and new products are expected to increase the company's gross profit margin. In addition, the company actively expands new customers, and the expansion of Siemens business will bear fruit early next year, which is also expected to bring about performance growth.
4. The funds raised in this issuance will be mainly used for the expansion of epoxy insulation products, high-voltage switch insulation pull rods and metal parts processing supporting projects. In addition to capacity expansion, the fundraising project is the expansion of new exhibits by the company according to the policy situation, and the metal supporting project is an extension to the upstream of the industrial chain. It is estimated that the new sales revenue will be 250 million yuan and the new net profit will be 44 million yuan.