Reporter of the Economic Business: Huang Xinlei Editor of the Economic Business: Wei Guanhong
On October 18, Zhenjiang Co., Ltd. (SH603507, stock price 33.16 yuan, market value 4.7 billion yuan) held the second extraordinary shareholders' meeting in 2022.
During the shareholder exchange session, Hu Zhen, the company's chairman, told the reporter of " Daily Economic News " that Zhenjiang shares mainly focuses on export business. According to this year's performance, the original profit of was expected to reach 200 million yuan, but due to the depreciation of euro exchange rate, the profit may not meet expectations.
Regarding the response measures, Hu Zhen introduced that the company has strengthened its awareness of locking the exchange , and in June this year it has reached an agreement with some overseas customers such as Siemens (Siemens), and from now to the next few years, it will switch euro settlement to RMB settlement to control the risks of exchange rate changes.
Zhenjiang Co., Ltd.'s second extraordinary shareholders' meeting in 2022 Photo source: reporter Huang Xinlei of Meike
Some overseas customers agreed to settle in RMB
According to Zhenjiang Co., Ltd.'s 2022 semi-annual report, the company's revenue from January to June was 1.286 billion yuan, increased by 2.70% year-on-year, and net profit attributable to shareholders was 39.5175 million yuan, a year-on-year decrease of 55.06%. The net cash flow generated by operating activities was 52.8056 million yuan, a year-on-year decrease of 35.86%.
Company explained that during the reporting period, due to the impact of the epidemic and rising freight rates in some regions, the company and its major subsidiaries were greatly affected; due to the end of the domestic offshore wind power rush to install rush at the end of last year, domestic offshore wind power product orders fell in the first half of this year; due to the external environmental factors, the price of raw materials increased, the exchange rate of the euro depreciated significantly, product costs increased year-on-year, and the overall gross profit margin decreased.
Hu Zhen said that the euro depreciation has the greatest impact among the above reasons. Since Zhenjiang shares mainly focus on export business, they generally negotiate the purchase share and price for the next year one year in advance, and lock in the exchange rate in advance. During the negotiations in 2021, the exchange rate of the euro against RMB was about 7.75. This year, affected by the international situation, the euro exchange rate depreciated sharply in the short term, falling to around 6.85, with a depreciation of about 12%.
"The contract amount of our two European customers, Siemens and Enercon, is about 1 billion yuan, and the depreciation at a 12% exchange rate is equivalent to a shrinking profit of 100 million yuan." Hu Zhen said.
In addition, Hu Zhen said that during the negotiations in June this year, the price of raw materials was at a relatively high level, and starting from the end of June, the price of raw materials declined. He judged that the possibility of rising raw materials prices in the next one or two years is relatively small. "We think that the factors that affect the company's gross profit in the future have basically been avoided, and the overall performance next year may grow on the basis of this year."
Wind power will usher in domestic and foreign demand resonance in the second half of the year
Zhenjiang Co., Ltd.'s 2022 semi-annual report shows that at present, the company has sufficient orders in hand, with 2.345 billion yuan in hand orders as of the end of the reporting period, of which 1.854 billion yuan in wind power equipment product orders, 170 million yuan in photovoltaic /photothermal equipment product orders 170 million yuan, wind power installation services 244 million yuan, and fasteners 57 million yuan.
According to statistics from National Energy Administration , the domestic installed wind power capacity from January to June 2022 was 12.94GW, an increase of 2.1GW year-on-year. At present, due to the good economics of wind power projects and the installation targets of central state-owned enterprises in the 14th Five-Year Plan, it is estimated that the installed capacity of wind power in 2022 can reach 50GW-60GW, most of which will be carried out in the second half of 2022. Overseas, European sea breeze favorable policies are frequently occurring. The four countries of the European Union (Denmark, Netherlands , Germany, Belgium ) plan to reach 150GW by 2050, and wind power will usher in a resonance of domestic and foreign demand in the second half of the year.
Hu Zhen said that the company's wind power and photovoltaic businesses are mainly overseas, especially the wind power business. The company accounts for 60%-70% of the supply of Siemens, Enercon and General Electric (GE), which means that the future growth of customers' is also the company's future growth.
According to it, based on information from all parties, in 2030, the scale of offshore wind power in Europe will increase by 100GW, the United States will increase by 30GW, Japan and Taiwan will increase by 10GW respectively, and South Korea will increase by 20GW, with a total growth of about 170GW.Specifically for offshore wind power companies, the market share of Vestas will be about 20%, and the remaining 80% will be occupied by Siemens and General Electric.
"Combined with the above-mentioned information pushed by customers, Siemens' shipments are expected to grow from the current 4GW/year to 15GW/year by 2030; by 2026, General Electric's annual shipments will grow to 500-600 units, about 13MW." Hu Zhen said.
Daily Economic News
