New energy vehicle business cuts revenue by nearly 70% in the first quarter

New energy vehicle business cuts revenue by nearly 70% in the first quarter
Affected by the impairment of the goodwill formed by the acquisition of Shanghai Dajun Power Control Technology Co., Ltd. (hereinafter referred to as “Shanghai Dajun”) in 2018, the listed company Yantai Zhenghai Magnetic Materials Co., Ltd. (stock abbreviation: Zhenghai Magnetic Materials 300224)) It was expected to exceed 80 million in that year. Today, the company will turn a profit in 2019.On the evening of March 23, Zhenghai Magnetic Materials disclosed that its 2019 annual report showed that the company achieved operating income of 17.9.9 billion, an annual increase of 7.06%; achieved net profit attributable to shareholders of listed companies of 93.12 million yuan, an increase of 214 per year.18%, 2018 is expected to be 81.56 million yuan; net profit attributable to shareholders of listed companies after deduction of non-refunds is 84.28 million yuan, an annual increase of 218.50%.In addition, in 2019, the net cash flow generated by Zhenghai Magnetic Materials’ operating activities was 65.11 million yuan, a year-on-year decrease of 52.23%; monetary fund surplus at the end of the year 4.8 billion yuan, 4 at the end of 2018.4.8 billion yuan.Simple, Zhenghai Magnetics has launched a profit distribution plan for 2019, and plans to use the company’s total share capital at the end of the year8.2 billion shares deducted 20 million shares of the company’s repurchased special account8.With a base of 20 billion shares, a gold dividend of 2 will be distributed for every 10 shares.RMB 00 (including tax) will be distributed to all shareholders and a total of cash dividends will be distributed1.6 billion.Also disclosed with the annual report is the first quarter of 2020 performance forecast. Zhenghai Magnetics expects the net profit attributable to shareholders of listed companies in the first quarter of this year to be 1036.490 thousand yuan to 1243.Between 780,000 yuan and a profit of 690 in the same period in 2018.990,000 yuan, an annual increase of 50% to 80%.Opening on March 24, Zhenghai Magnetic Materials merged to open more than 5 copies, and blocked the daily limit after 20 minutes, and then briefly opened until the lunch break, which increased by 10.03%, reported 8.12 yuan / share, with a total market value of 66.6 billion.For the Air Force, Zhenghai Magnetic Materials has entered a downward trend since February 19, from 10.58 yuan / share fell to the closing price of 7 on March 23.38 yuan / share, gradually falling by 30%.Note: The screenshots are from the same flower straight market-Zhenghai magnetic materials development trend: June 14, 2019 to March 24, 2020. The data shows that Zhenghai magnetic materials landed on the Shenzhen Stock Exchange’s GEM listing and trading on May 31, 2011, since 2015Since the beginning of the year, the main business of Zhenghai Magnetic Materials has changed from high-performance NdFeB permanent magnet materials to a dual main business model of “new NdFeB permanent magnet materials + new energy automotive motor drive systems.”In the same year, Zhenghai Magnet acquired Shanghai Dajun 81, a military new energy vehicle drive motor and its control system, by issuing shares and paying cash.53% equity, total transaction value is 3.9.2 billion yuan.Regarding the reasons for the profit growth in 2019, Zhenghai Magnetic Materials pointed out that the sales revenue and net profit of the company’s new NdFeB permanent magnet materials business have increased significantly over the same period of the previous year, mainly due to the continuous expansion of the company’s sales in the automotive and home appliance fields.Obviously, in 2018, the company accrued impairment losses on the goodwill formed by the acquisition of equity in Shanghai Dajun.4.9 billion yuan, reducing the company ‘s net profit for the year1.2.6 billion.The annual report shows that in 2019, the neodymium iron boron permanent magnet materials and components, and the new energy vehicle motor drive system business respectively brought revenue to Zhenghai Magnetic Materials.2.3 billion and 1.US $ 7.5 billion, 44 changes each year.09% and -68.33%.In addition, domestic and foreign business revenue accounted for 73% of total revenue, respectively.18% and 26.82%, of which, 1 appears domestically.37%.While abroad it is growing 37.74%.Regarding the decrease in the revenue of the motor drive system business of new energy vehicles by nearly 70%, Zhenghai Magnetics pointed out the related operational risks in its annual report.Influenced by factors, the gross profit margin of its products has continued to decline.If it fails to promptly and effectively respond to changes in the surrounding environment in terms of continuous innovation, technical route selection, market promotion and other business decisions, the company’s supplementary business, the new energy vehicle motor drive system, may continue to present adverse operational risks.In addition, Zhenghai Magnetic Materials pointed out the risk of fluctuations in the price of rare earth raw materials. It pointed out that the upstream of the new NdFeB permanent magnet material business is the rare earth industry.The sharp fluctuations in raw material prices will adversely affect the company’s production and sales in the short term.As of the end of 2019, Zhenghai Magnetic Materials had a total of 34,012 shareholders, Zhenghai Group Co., Ltd. (hereinafter referred to as “Zhenghai Group”), Great Wall Capital Management Co., Ltd. and Zheng Jian held 51 shares respectively.08%, 2.16% and 2.12%, ranking the company’s top three shareholders, of which Zhenghai Group was established in 1992 and is controlled by Mibohai 44.77%, Mibohai is also the actual controller of Zhenghai magnetic materials.Currently, Zhenghai Magnetics Chairman Wang Qingkai, Director and General Manager Li Zhiqiang, Director and Deputy General Manager Zhao Juntao, Deputy General Manager Peng Buzhuang, Deputy General Manager Wang Yulin, Deputy General Manager and Secretary of the Board Song Kan, Financial Director Gao Bo and Deputy General Manager Shi Bingqiang are stillDuring the reduction plan period, it repeated the reduction plan on November 28 last year, and planned to reduce the total amount of 278 within 6 months after 15 trading days from the date of the announcement.460,000 shares.On March 19 this year, Zhenghai Magnetic Materials announced that on the monthly announcement day, the above directors and senior management did not reduce their shares in the company by any means.Sauna, Ye Wang Xiao Wei Li Yunqi editor Chen Li proofreading Wei Zhuo reporter contact email: xiaowei @ xjbnews.com