I. Discussion and analysis of operating conditions
At the beginning of 2020, the epidemic situation in COVID-19 swept through, the growth rate of national economy slowed down, and the sanitary ware industry was under great pressure. While doing a good job in epidemic prevention, the company quickly resumed work and resumed production, aided the construction of Huoshenmiao Mountain and Xiaotangshan Hospital, and reduced the adverse impact of the epidemic on the company by implementing brand strategy, actively carrying out marketing, promoting project construction and optimizing internal management. During the reporting period, the company achieved an operating income of 65,438+0.310.70 billion yuan, a year-on-year decrease of 65,438+0.10.6%; The net profit attributable to shareholders of listed companies was 65.438+0.28 billion yuan, a year-on-year decrease of 9.99%. During this period, the company mainly carried out the following work:
(A) increase brand investment, enhance brand image
During the reporting period, the company's brand investment scale was unprecedented, including shooting brand films with China women's volleyball team, rescuing the epidemic situation and being selected as a brand of a big country. And became one of the three enterprises that Premier Li Keqiang visited online at the opening ceremony of the127th Canton Fair. At the same time, the company integrated brand promotion forms, focused on target consumer groups, focused on national mainstream media such as "Voice of the Central Broadcasting" and CCTV advertisements, and high-end passenger transport media such as airports and high-speed rail, and combined with mainstream Internet new media forms such as "Double Micro Shake" and self-media matrix, promoted brand promotion in an all-round and three-dimensional way, effectively enhanced the cognition of the new generation of mainstream consumers, further strengthened the impression of "Huida" brand in consumers' hearts, and continuously and steadily enhanced its brand influence.
(2) Domestic growth recovered and export pressure moved forward.
The combination of internal and external sales is a major feature that distinguishes the company from other enterprises in the same industry. During the epidemic, the company's domestic sales and international sales complement each other and forge ahead.
1. Domestic sales resumed growth.
During the reporting period, domestic sales basically stopped in February and March due to the epidemic situation. The company concentrated the wisdom and efforts of all parties, actively promoted the development of new retail, increased the expansion of terminal sales capacity, optimized and adjusted offline specialty stores, launched online retail business, integrated resources, and realized the interoperability of online and offline resources. By June 30, 2020, the company had 283 1 store, with a total area of 484,800 square meters, including "Huida" brand bathroom products store 1.799, with a total area of 332,400 square meters; There are 396 stores of "Huida" brand ceramic tile products, with a total area of 910.3 million square meters; There are 636 "Dufini" brand stores with a total area of 6. 1 1 10,000 square meters.
At the same time, the company insists on "internal and external repair", adheres to market demand-oriented, and independently innovates product design and research and development. During the reporting period, 75 new patents were granted, including 24 utility model patents and 5 1 appearance patents. At present, the company has 395 valid patents. As of June 30, 2020, the company has participated in the compilation of 36 effective standards, including national standards 13.
The project channel adopts the mode of self-management by the company and landing in the dealer area. The company has reached strategic cooperation with R&F Real Estate, Poly Development Holdings, Cambridge Real Estate, Aoyuan Group, Wanda Group, Ocean Holdings, Capital Property and Zhongang Real Estate. In addition, the company signed cooperation agreements with Jiangsu Jinma Transportation, Xinjiang Huayuan Holdings (002787) and other construction real estate enterprises, officially launched Huida Sanitary Ware and New Infrastructure Industry Alliance, helped build a platform for upstream and downstream industrial cooperation with consistent interests, and launched multi-channel and all-round strategic cooperation.
2. Outlet pressure forward
During the domestic epidemic, international sales shoulder the heavy responsibility, expand the market, grab orders and open up a new sales situation. In mid-March, an overseas epidemic broke out and the international trade environment was complicated and changeable. By using online resources to promote existing customers and develop new business, the company has stabilized sales and expanded channels, thus stabilizing international business. By June 30, 2020, the company had obtained 15 product, packaging and accessories certifications and 3 engineering certifications from the United States, Canada and Europe.
3. Sales situation
During the reporting period, the company achieved an operating income of13170,000 yuan, of which the sales income of sanitary ceramics was 7120,000 yuan, accounting for 54%. Among sanitary ceramics, the sales revenue of smart bathroom is 93 million yuan.
By region and channel, the sales details are as follows:
Unit: 100 million yuan
(C) to promote project construction, improve the comprehensive strength
During the reporting period, the company steadily promoted the project construction. While improving the production automation level of bathroom products and ensuring the product quality, the production cost is further reduced and the production efficiency is improved through the improvement of scale effect.
Huida residential workers actively responded to the call of "the 13th Five-Year Plan for Assembled Buildings", and devoted themselves to promoting the development of the intelligent and standardized industrial revolution of the whole bathroom, providing customers with a systematic whole bathroom solution integrating the whole bathroom design, product manufacturing and supporting, installation and after-sales service. According to the needs of the company's business development, Huida Jugong will gradually introduce ceramic tile system integrated bathroom products and integrated kitchen products to enrich the product system and improve the comprehensive competitiveness of the market. During the reporting period, the overall bathroom sales revenue was 654.38+0,654.38+0.66 million yuan.
The sanitary ceramic production line with an annual output of 800,000 smart bathroom products in the first phase of Chongqing project is under intense construction as planned. The project adopts a series of automation equipment such as production automation and intelligence, and the production data of each process equipment can be collected and analyzed in real time, which is convenient for production data management and quality traceability.
(D) Optimize internal management to stimulate the vitality of enterprises.
1. Improve the level of automation and promote information construction.
The company is committed to the research of mechanization and automation of equipment, replacing manual operation with equipment and reducing the labor intensity of employees. After more than ten years of development, the equipment level is in the leading position in the industry. In the production process, a large number of automatic intelligent production equipment such as high-pressure grouting molding machine, robot glazing, robot trimming, automatic loading and unloading kiln, automatic warehouse opening, AGV, automatic production line, robot packaging and palletizing, product RFID identification technology and so on are adopted. At present, there are 202 robots of all kinds. In recent years, with the rise of production informatization, some automation equipment of the company has been equipped with information management system. In the future, after the MES system is completed, the company can directly complete the information docking of production data and quality.
The company informatization carries out daily work management and business development in strict accordance with the content of the two-in-one integration management system. At the beginning of 2020, more than 10 information projects were established and implemented. By June 30, 2020, the company has completed the construction of intelligent warehouse management system. The on-line system promotes the standardization and standardized management of factory warehouse, enables the mobile system, and improves the efficiency and accuracy of warehouse management. During the reporting period, the company independently developed the energy balance system in the ceramic production system and put it into use, which promoted the fine control of the production plan and played a good role in responding to the market demand quickly.
2. Pay attention to talent introduction and adhere to all-round training.
In June 2020, the company launched the talent strategic planning project for the next three years, recruited outstanding graduates from key universities at home and abroad, set up a team of Guan Peisheng, planned the talent echelon for the middle and senior managers of the company, and realized the comprehensive upgrade of the company's talent strategy. At the same time, the company always adheres to the comprehensive talent training strategy, builds an all-round training mechanism for college students, reserve cadres and skilled workers, constantly optimizes the company's talent echelon structure, and reserves more outstanding young backbones.
(V) Undertaking social responsibilities and highlighting corporate responsibilities.
During the reporting period, the company actively fulfilled its social responsibility, which reflected the social responsibility of big country brands. On New Year's Day, the company donated 593 1 bathroom product to Wuhan Huoshenshan Hospital, becoming the first enterprise in the bathroom industry to arrive in Wuhan. During the epidemic period, the company * * * rushed to 47 state-level emergency hospitals for epidemic prevention and control, donated sanitary ware products 15843 pieces, sent engineering service teams 15 people, and rushed to more than ten cities such as Xi 'an, Beijing and Tang to help Xiaotangshan Hospital with emergency engineering construction. On February 1 2020, the company donated 500,000 yuan to the Red Cross Society in Fengnan District of Tangshan City for the COVID-19 epidemic. On May 12 International Nurses' Day, the company joined forces with Xilin Gol League Central Hospital and other units to donate smart toilets to 30 medical aid workers in Hubei to protect the health of medical staff.
Second, possible risks
1. Macroeconomic risks
In the first half of 2020, the COVID-19 epidemic broke out and spread to the whole world, which had an all-round impact on the whole world. Although China's epidemic prevention work in COVID-19 has achieved initial results, the global spread of the virus is still grim, which has brought great challenges to China's economy and the global economy. Although governments around the world have intensively introduced economic stimulus policies to stabilize economic development, the short-term economy will still be affected by the virus and economic activities will be significantly suppressed.
2. Market competition risk
Under the influence of external environment such as economic downturn, unsalable new houses and uncertain exports, small and medium-sized sanitary ware enterprises do not have the ability to compete with leading enterprises in brand, channel, product quality, service and management. In order to survive and develop, some enterprises with weak competitiveness may adopt strategies such as dumping at low prices and shoddy goods in the short term, which will lead to a decline in the average profit rate of the industry, thus adversely affecting the company's production and operation.
The company will continue to develop and design high-quality products that lead the industry trend, introduce high-quality distributors in various regions to enhance channel competitiveness, carry out online and offline joint marketing, and enhance brand influence. By providing better products, services and better-known brands, the company maintains a profit rate higher than the industry average and increases its market share.
3. Exchange rate risk
The company's products are exported to many overseas countries, and the main foreign currency settlement currency adopted by the company in export trade is US dollars. Because the fluctuation of the US dollar exchange rate will affect the profitability of the company, the company has certain exchange rate risks.
4. Managing risks
With the further expansion of the company's assets and business scale, the company's personnel will also increase accordingly, and the organizational structure and management system will become increasingly complex. It puts forward higher requirements for the company's marketing service, resource integration, product technology development, quality control, human resource management and financial management. If the company's technical management, marketing management, quality control and other capabilities can not meet the requirements of the company's rapid expansion, personnel training, organizational model and management system can not be further improved and improved, it will lead to corresponding management risks. In this regard, the company will continue to improve the corporate governance structure and internal control system, standardize the company's operating system, improve the competitive incentive mechanism, attract outstanding talents, stabilize the talent team, and ensure the company's sustained and healthy development.
5. Risk of overseas litigation
There are related lawsuits between Ayers in the United States and Ayers and Fukai in the United States, but the company's sales to Fukai in the United States have not been affected by the above lawsuits, and the cooperative relationship between the two parties is still relatively stable; At the same time, due to the good performance in product quality and delivery ability for many years, the company has been fully recognized by Fukai's main end customers in the US and Canada markets, and has established a good reputation.
Even so, it cannot be ruled out that the above litigation may affect the future business cooperation between the company and the American merchant Fukai, thus adversely affecting the company's sales performance in the US and Canadian markets.
6. Notes receivable risk
Due to business development and credit approval, the amount of notes receivable increased. At present, the risk of bills receivable mainly comes from the fact that the bills receivable held by enterprises may not be able to cash monetary funds within the payment period stipulated in the bills, which makes enterprises suffer losses and leads to financial risks and legal risks.
Three. Analysis of core competitiveness during the reporting period
(A) brand advantage
After 38 years of precipitation and development, the company has become the promoter and practitioner of China Sanitary Ware to build a world-class brand, and "Huida" brand has become one of the leading brands of national sanitary ware. Adhering to the brand concept of "design for life", the company takes the middle and high-end consumers with strong spending power as the core target group, and has formed a good reputation and credibility. Up to now, the company has been rated as "China 500 Most Valuable Brands" by the World Brand Lab for 17 years. In 2020, the company ranks among the top brands with a brand value of 39.298 billion.
(B) technological research and development advantages
Since its establishment, the company has been insisting on independent research and development, and is in a leading position in the field of technological innovation and industrial design. The company has established the first postdoctoral workstation in the industry, a national industrial design center and a provincial technological innovation center. The company's technology center was jointly recognized by the National Development and Reform Commission, the Ministry of Science and Technology, the Ministry of Finance, the General Administration of Customs and State Taxation Administration of The People's Republic of China as the "nationally recognized enterprise technology center". The company actively participated in the formulation of national and industry standards, and became the drafting unit of several national and industry standards for bathroom industry, actively promoting the development of the industry.
The high-hardness nano self-cleaning glaze technology independently developed by the company is at the leading level in China. The manufacturing technology of fine ceramics and sanitary ceramics is a scientific and technological support project in Hebei Province and a major scientific and technological achievement transformation project in Hebei Province. It won the first prize of technological innovation in national building materials industry and the second prize of scientific and technological progress in Hebei Province. At the same time, based on the technology center, the company continues to strengthen the investment and research and development of smart bathrooms such as ceramic technology and smart toilet technology. The investment project is based on intelligent manufacturing, combined with its own technical advantages, adopts the latest production technology, studies and introduces the latest domestic equipment, and realizes automatic and intelligent production of each process.
(3) Product advantages
The company always carries out the quality policy of "meticulous work, optimized function, pursuit of Excellence and customer satisfaction", and the product quality is stable and reliable. Has a comprehensive quality control system that is stricter than the national standard, and the company's products are all excellent. The company has passed ISO900 1 quality management system certification, ISO 1400 1 environmental management system certification, ISO4500 1 occupational health and safety management system certification, ISO5000 1 energy management system certification and GB/T2300/KLOC. At the same time, it has also obtained the certifications of CUPC from the United States and Canada, CE from the European Union, WRAS from the United Kingdom, ACS from France, KIWA from the Netherlands, SASO from Saudi Arabia, KS from South Korea, CIDB from Malaysia, SIRIM from Australia, Watermark from Wells, SNI from Indonesia, etc.
At present, the company's product range covers a full range of bathroom products, which can meet the different needs of customers at all levels and provide consumers with a one-stop comprehensive solution for bathroom products. The diversified production capacity and supply chain integration ability of the company's products have a strong competitive advantage in the whole bathroom.
(D) Marketing advantages
In the domestic market, with the company's continuous investment, the company has now formed a nationwide marketing network system with comprehensive sales channels, covering multiple channels such as standard specialty stores, KA stores, cabinet franchise stores, e-commerce channels, engineering channels, Internet home improvement, and horizontal alliances. The company's products are mainly sold by offline dealers, supplemented by engineering channels, e-commerce, overall home improvement and Internet home improvement sales, and online and offline marketing activities are also carried out.
In the international market, the company actively explored the international market and established a marketing network covering more than 0/00 countries and regions such as the United States, Britain and Australia.
(E) Location advantages
The company is located in Tangshan, Beijing-Tianjin-Hebei and Bohai Economic Belt, which is the throat area connecting North China and Northeast China and has a broad market. Railways, expressways, highways and ports are interwoven into a network with convenient transportation; Coupled with policy support, the location advantage is obvious.