I. Discussion and analysis of operating conditions
In the first half of 2020, a sudden COVID-19 epidemic brought unprecedented impact to China's economy. Under the strong leadership of the CPC Central Committee, although the epidemic situation in COVID-19 in China has been repeated in some areas, it has been generally controlled, and the focus of work has gradually shifted to economic construction. The economy has obviously rebounded, and the basic pattern of stability and improvement has not changed.
Faced with the changes in the international and domestic economic environment brought about by the COVID-19 epidemic, under the leadership of the board of directors and management, all employees of the company, Qi Xin, worked together to overcome the difficulties, continued to focus on the main packaging industry and further promoted the transformation and upgrading of the enterprise. In the first half of 2020, the company's operating income was 574,837,097.79 yuan, a year-on-year decrease of 5.70%; The net profit attributable to shareholders of listed companies was102,978,665.43 yuan, up 42.28% year-on-year. During the reporting period, the company achieved steady recovery and steady operation. In the first half of 2020, we mainly did the following work:
(1) Win the battle against epidemic prevention and realize the safe and orderly resumption of production of enterprises.
In the first half of 2020, in the face of the sudden epidemic in COVID-19, the company showed the ability of rapid response to emergencies, good management and control, ensuring the safe and stable operation of production and strong adaptability to the rapid changes of market and social demand. The company took timely and effective prevention and control measures, and no employees were infected, ensuring the safe and stable operation of production. In February, when the epidemic situation was most seriously affected, the company actively responded to the call of the government, resumed work ahead of schedule, and produced the packaging needed for medical materials to fully meet the production needs of epidemic prevention and control materials and important customers. In view of the fundraising project in Hanchuan, Hubei Province, the company has taken strict protective measures and played a strict, accurate, meticulous and pragmatic management style to ensure the safety of all employees and the smooth resumption of fundraising projects.
(2) Embrace the digital economy and promote the digitalization, platformization and intelligence of enterprises.
In the first half of 2020, the company continued to promote lean digital projects and ERP upgrade projects to promote digitalization, platform and intelligence of enterprises. At present, the Internet of Things systems such as Hope, Taiwan Trade and Endurance Factory introduced by the company have been running normally and are being promoted to various factories simultaneously. The company uses big data, implements new management, and manages enterprises with modern and scientific concepts. Introduce modern and digital technology, change the extensive management thinking that relied on experience, feeling and mood in the past, take data as the basis, achieve standardized disposal, well-founded management and self-confidence in decision-making, manage enterprises with modern and scientific concepts, and improve productivity, efficiency and per capita output.
(3) Issuing convertible bonds of the company to provide sufficient cash flow for the subsequent development of the company.
On April 30th, 2020, the company's application for public offering of convertible bonds was approved by China Securities Regulatory Commission and listed on Shanghai Stock Exchange on July 23rd. The issuance of convertible bonds raised about 550 million yuan for the company. On the one hand, the fund can promote the construction of the company's fundraising projects and accelerate the company's regional layout and transformation and upgrading; On the other hand, it effectively supplemented the company's cash flow and laid a cash foundation for the company's subsequent development and strategic layout.
(4) Strengthen personnel training and improve system construction.
By establishing a multi-channel talent introduction mechanism, the company improves the self-improvement mechanism of employees and constantly improves the company's human resources system to meet the company's leap-forward human resources needs. Strengthen personnel training, around the company's strategy, provide
Targeted professional training. At the same time, the company's human resources management department continuously optimizes the human resources management system and process on the basis of fully considering the internal development and external competition situation, and sorts out the relationship between the group headquarters and the human resources lines of its subsidiaries. In addition, the company strengthens employee care and party building culture to promote employee welfare.
Second, possible risks
1, risk of raw material price fluctuation
The main raw material for our company to produce corrugated boxes and cardboard is base paper. During the reporting period, the cost of base paper accounted for more than 70% of the cost of corrugated boxes, which was the most important operating cost of our company. The price change of base paper will have a great impact on the company's operating performance. As a large number of small and medium-sized paper mills are forced to shut down due to environmental pressure, and the country further restricts the import of waste paper, the supply side of base paper will continue to bear great pressure, the relationship between supply and demand may still be unbalanced, and the price of base paper may still rise. If the price of base paper fluctuates greatly in the future, it will put some pressure on the purchasing cost of base paper, which may have a negative impact on the company's production and operation and cash flow.
2. Management risks brought by the rapid growth of the company.
According to the company's national regional layout development strategy, in recent years, the company has a number of large-scale integrated packaging factories that have been put into operation in Hangzhou, Zhejiang, Meishan, Sichuan, Yancheng, Suzhou, Jiangsu and Xinjiang. With the expansion of the company's business and scale, especially after the implementation of this fund-raising investment project, the company will face challenges in management mode, talent reserve, market development and corporate culture integration brought by cross-regional operation. If the company's management level and talent pool cannot meet the needs of the rapid expansion of the company's scale, and the organizational model and management system cannot be adjusted and improved in time with the expansion of the company's scale, it may weaken the company's market competitiveness.
3. Risk of intensified market competition
Primary corrugated box manufacturers have low entry barriers and wide downstream industries. A large number of small carton factories rely on local demand to survive, and there are many small and medium carton factories at the bottom of the industry, forming an extremely decentralized industry pattern. Judging from the composition of manufacturers in corrugated box industry, the situation of "small, scattered and chaotic" has existed for a long time, with low industry concentration and insufficient integration, and disorderly competition has occurred from time to time. The product homogeneity of low-end corrugated box manufacturers in the industry is serious, and the market price competition of low-end corrugated boxes is fierce. The company mainly operates medium and high-grade corrugated boxes for leading enterprises in food and beverage, household appliances, daily chemicals and other industries. The medium and high-grade corrugated box enterprises with a certain scale and strength in the industry all aim at further expanding the scale of production and marketing and improving the market share, and the market competition is fierce. In addition, under the trend of consumption upgrading, customers put forward higher requirements for the order response ability, carton performance and appearance of supporting carton manufacturers, and the competition in the middle and high-end carton market intensified. To sum up, the intensified market competition will bring certain risks to the company's future production and operation. If the company can not effectively improve its competitiveness, it will lead to a decline in future profitability.
4, the risk of macroeconomic cycle fluctuations
The company is located in the packaging industry, and the downstream of the packaging industry involves all walks of life in the national economy, including electronic information, microcomputer manufacturing, communication, mechanical and electrical equipment manufacturing, automobile and automobile parts manufacturing, food and beverage, furniture, daily use and so on.
Workers, etc. Therefore, the supply and demand situation of packaging industry is closely related to the demand situation of downstream industries. Affected by the national macroeconomic development situation and the growth rate of the national economy, the business volume of several downstream industries of the company fluctuates to some extent, which may adversely affect the demand for corrugated packaging products and services of the company.
5. Risk of COVID-19 epidemic.
Three. Analysis of core competitiveness during the reporting period
(A) the high-quality brand and platform advantages of listed companies
Since its establishment 10 years ago, the company has focused on the development of corrugated paper packaging industry, formed a complete product quality system involving quality, environmental protection and safety, and won a series of honors. The company was recognized by China Packaging Federation as one of the "leading packaging enterprises in China" and "paper packaging development and production bases in China", and was selected as "Top 100 Packaging Enterprises in China" and "Top 50 Paper Packaging Enterprises in China" by China Packaging Federation for many times. Shengda trademark is a well-known trademark in China and a famous brand product in Zhejiang province. The company's brand has become one of the important advantages in obtaining customer resources.
(B) Customer brand and resource advantages
Customer value determines the value of suppliers. The brand and competitiveness of paper packaging enterprises depend more on the brand awareness and market position of corporate customers. Having a group of high-quality customers is one of the most important advantages of the company. The company's long-term cooperation customers cover beer, beverage, tobacco, electronics, household appliances, furniture, machinery, express logistics, chemical industry, clothing and other industries with high concentration. Cooperative enterprises include Panasonic, Samsung Electronics, Bosch, Wahaha, Nongfu Spring, China Resources Beer, Boss Electric (002508), Supor (002032), SF Express, etc.
The advantages of the above-mentioned brand customer resources provide a guarantee for the company to continuously develop new customers and continuously improve the sales scale of the company. On the one hand, with the help of the influence of brand customers in various industries, the company further expands and strengthens its brand advantages and develops more high-quality customers. On the other hand, most brand customers have great demand for packaging, strict evaluation criteria for carton suppliers, and tend to maintain long-term and stable cooperative relations with qualified carton suppliers. The company's subscription to packaging services is conducive to maintaining the continuity and stability of income.
(C) Lean production and intelligent advantages
In the years of development, the company has established a strict lean production management system, standardized management of cardboard production lines, printing lines, molding workshops, warehousing and logistics in various factories and workshops, quantified assessment of equipment utilization rate, per capita output and efficiency creation, and horizontally compared the indicators of various factories and workshops every month to maximize efficiency and minimize loss in continuous efficiency optimization, highlighting the company's cost competitive advantage.
In order to promote lean production and smart factory construction, the company has cooperated to develop the Internet of Things system of paper packaging production line since 20 15, and built a resource-based basic database based on ERP platform, covering the main production processes, collecting data in real time and feeding it back to the production control terminal, which can finely coordinate the whole process from order release, production planning, material allocation, process management, equipment management, delivery management, logistics distribution to receipt confirmation. The company's main printing equipment and follow-up equipment are configured according to the requirements of "integration of industrialization and modernization", with a high degree of automation, and the relevant data interfaces meet the requirements of the Internet of Things. Internet of Things coverage not only improves the quality and efficiency of production, but also realizes faster order response speed through reasonable scheduling and lean production, making customer-centered flexible production possible.
(four) advanced production technology and technology research and development advantages.
In terms of production technology, the company has the world-advanced German BHS2800 high-speed corrugated cardboard production line, the world-advanced Swedish EMBA carton linkage line integrating printing, slotting, molding and packaging, the world-advanced various printing machines and post-press processing equipment, watermarking, offset printing, preprinting and other printing processes, which can meet the production and processing of various cartons, color boxes and paper trays.
The company is a national high-tech enterprise and the "China Paper Products R&D Center" awarded by China Packaging Federation. It has provincial enterprise technology center, provincial industrial design center, provincial key enterprise research institute and provincial enterprise design institute. The technical R&D center under the company has domestic advanced standardization laboratories, a batch of domestic advanced paper packaging R&D and testing equipment, and an experienced professional R&D team. In recent years, the company has achieved fruitful research and development results. By the end of the reporting period, we have obtained 14 invention patents, 1 0 utility model patents,/kloc-0 appearance patents and/kloc-0 software copyrights.
(E) Advantages of management team and talents
The company has gathered a series of talents in carton manufacturing, printing technology and quality control. The company's management team is stable. Most of the main managers, core technicians and main business backbones have worked in the company for more than 10 years, and they have obvious advantages in carton technology, industry experience and management experience. Most of the company's key management personnel, core technicians and business backbones all hold the company's equity, which has achieved the greatest fit with the company's strategic planning and business development goals. The company has established a good talent training mechanism, and the experienced management team and outstanding talents have laid a solid foundation for the company's sustained and stable development.