2) In 2021, the company signed a total of 43 new EPC contracts, achieving operating income of 4.168 billion yuan, accounting for 27.89% of the main business income.

(report producer/author: Guosen Securities, Ren He, Zhu Jiaqi)

Prefabricated Construction Industry Overview

Permeability There is sufficient room for upward, concrete and steel structures are the main structural types

Prefabricated construction refers to a building formed by transporting prefabricated components and accessories to the construction site in the factory and assembled and installed on the site through reliable connection. Because it adopts standardized design, factory production, assembly construction, information management, and intelligent applications, it is a representative of modern industrial production methods and is in line with the development direction of modernization, intelligence and greening of the construction industry. According to the different material forms, it is mainly divided into three categories: prefabricated concrete structure buildings (PC), prefabricated steel structure building (PS) and prefabricated wooden structure buildings. Compared with PS components, PCs are heavier, have poor environmental protection, lower material costs, but higher late transportation and lifting costs, and more complex on-site construction. PCs are more suitable for residential buildings and PSs are suitable for public buildings. Wooden structures are more used in small public buildings such as tourism facilities.

my country has sufficient room for the penetration rate of prefabricated buildings to increase. In 2021, the newly started prefabricated building area across the country reached 740 million square meters, an increase of 18% over 2020, accounting for 24.5% of the newly built building area. In 2020, 630 million square meters of newly started prefabricated buildings nationwide, an increase of 50.7% over 2019, with a compound growth rate of more than 50% in the past four years, accounting for 20.5% of the newly built building area, achieving the goal of reaching more than 15% by 2020 as determined by the "13th Five-Year Plan for Prefabricated Buildings". Foreign countries started early in prefabricated buildings. The penetration rate of prefabricated buildings in developed countries such as the United States, Japan, and Europe has now reached more than 70%. The domestic prefabricated buildings are just starting out, and there is plenty of room for penetration to increase in the future.

At present, concrete structures and steel structures are the main structural types of prefabricated buildings in my country. In 2021, 490 million square meters of prefabricated concrete structures were newly started, accounting for 67.7%, and 210 million square meters of steel structures were newly started, accounting for 28.8%; in 2020, 430 million square meters of concrete structures were newly started, accounting for 68.3%; 190 million square meters of steel structures were newly started, accounting for 30.2%.

has obvious advantages over traditional buildings, and its policy support is strong. Prefabricated buildings are shorter than traditional buildings, less labor, and energy-saving and emission-reducing, but their costs are high and their applications are limited. Prefabricated buildings use prefabricated components in large quantities, which has significant advantages compared with the traditional building model that mainly adopts on-site casting: shorten construction period, reduce manpower, reduce most of the raw material usage, reduce energy consumption and reduce environmental pollution. However, prefabricated buildings also have disadvantages such as high cost, narrow application areas, and poor seismic resistance. With the widespread application of intelligent prefabricated buildings, the advantages of prefabricated buildings in environmental protection, time and economy will be further highlighted.

Prefabricated buildings have obvious savings or improvements in material usage, resource consumption and construction period labor compared to traditional buildings, and the higher the prefabrication rate, the more obvious the cost and environmental protection advantages. Specifically, take the 30-story concrete prefabricated residential projects with an assembly rate of about 35% and traditional construction projects of the same scale as examples. Compared with traditional buildings: in terms of material usage, the amount of concrete and steel for prefabricated buildings is at least 2%, and the amount of other wood, insulation materials , cement mortar , etc. is reduced by about 50%. In terms of resource consumption, water resource consumption is reduced by about 35%, and energy consumption is reduced by about 20%. In terms of pollution emissions, the emission of construction waste is reduced by 65%, and the dust level is reduced by 20%; the construction period is shortened by 20%-45%, and the number of on-site construction workers is reduced by at least 60%.

We believe that the long-term direction of the prefabricated construction industry is clear: From the demand side, under the catalysis of related energy-saving and emission reduction policies such as "double carbon" and other related energy-saving and emission reduction policies, prefabricated buildings with significant advantages in green and environmental protection are the most effective way to achieve carbon reduction in construction stage at present; at the same time, affordable rental housing is about to usher in a period of rapid growth, which can bring stable growth to prefabricated buildings. It is estimated that the prefabricated building area in newly built affordable rental housing can reach about 540 million square meters, with a market size of about 1.2 trillion yuan, accounting for about 12% of the total area of ​​newly built prefabricated buildings.From the cost side, on construction cost , the decline in demographic dividend will force the labor-intensive traditional construction industry to transform into prefabricated buildings with lower labor costs. We predict that in the next 8-15 years, the cost balance between traditional buildings and prefabricated buildings will be expected to reach the cost balance point between traditional buildings and prefabricated buildings. In addition, the recycling rate of prefabricated building materials is higher, and as time goes by, its material cost advantages will be reflected year by year, and as the specifications and standards gradually unify, incremental costs are expected to be further reduced.

Demand side: Helping buildings to save energy and reduce emissions, affordable housing provides stable increments

Under the goal of "dual carbon", prefabricated buildings are more in line with the concept of "green"

my country has been actively responding to global climate change for a long time:

1998 my country signed the Kyoto Agreement and approved the agreement in 2002. This agreement is the first time in human history to limit greenhouse gas emissions in the form of regulations;

2007 my country released the first national bill for developing countries to respond to climate change, " China's national plan for responding to climate change ";

2009 my country announced at the Copenhagen Conference that by 2020 The annual unit GDP carbon dioxide emissions decreased by 40%-45% compared with 2005;

Published the National Climate Change Strategy in 2013; 2015 UNFCCC proposed the target of a unit 60%-65% decrease in CO2 in 2030;

signed the " Paris Agreement " in 2016, and more than 170 countries, including my country, jointly promised to control the increase in global temperatures in 2050 to the range of 2℃, and make independent decisions of countries (NDC);

2017 年我国启动全国碳排放交易体系建设；

2020 年碳减排政策推进加速，我国先后在联合国大会发言和中央经济工作会议中提出碳达峰、碳中和发展目标——二氧化碳排放力争2030 年前达到峰值，力争 2060 年前实现碳中和；2020 年底中央全面深化改革委员会第十七次会议中再次强调要建立健全绿色低碳循环发展经济体系，要有效控制温室气体排放；

2021 The 2019 central bank’s working meeting clearly required that the major decisions and deployments for carbon peak and carbon neutrality should be implemented, the framework and incentive mechanism of green finance should be improved, and the construction of a carbon emission trading market should be priced reasonably for carbon emissions. The subsequent construction of my country’s carbon emission trading market is expected to accelerate.

The energy consumption and carbon emissions in the entire process of construction are both high, accounting for about 50% of the total national volume. According to the definition of China Construction Energy Conservation Association , the entire construction process is divided into four stages: building materials production stage, building construction stage, building operation stage, building demolition and waste treatment stage. Building carbon emissions and energy consumption mainly occur in the "building materials production and construction" and "building operation". According to the association's calculations,

The total carbon emissions of the whole construction process in the country in 2019 were 5 billion tons of CO2, accounting for 50.6% of the national carbon emissions. Among them, the carbon emissions of 2.87 billion tons of CO2 in the "building materials production and construction" stage were 29% of the national carbon emissions; the carbon emissions of 2.1 billion tons of CO2 in the "building operation" stage were 22% of the national carbon emissions.

In 2019, the total energy consumption of the whole construction process in the country was 2.2 billion tce, accounting for 46% of the national energy consumption. Among them, the energy consumption in the "building materials production and construction" stage was 1.2 billion tce, accounting for 25% of the national energy consumption; the energy consumption in the "building operation" stage was 1 billion tce, accounting for 21% of the national energy consumption.

Under the background of "dual carbon", the construction industry needs to be transformed and upgraded urgently. Prefabricated buildings are the most effective main means of energy conservation and emission reduction in the construction stage. The GDP of the construction industry accounts for an average of 7% of the national GDP, while the energy consumption and carbon emissions of the entire construction process account for about 50% of the total national volume. The "14th Five-Year Plan" period is a critical period for implementing the "dual carbon" goal. Green buildings will usher in important development opportunities, including prefabricated buildings, manufacturing energy conservation and emission reduction, carbon sink, energy-saving construction , etc.In addition to the technical advantages of prefabricated buildings are reflected in the efficiency and construction quality level of engineering construction, the core advantage lies in the fact that it can effectively reduce the pollution to the environment caused by the "building materials production and construction" stage, and better realize the concept of "green building", which is mainly reflected in the following two aspects:

effectively reduces the total emissions of environmental pollutants; modular production, adopts the production model of on-site assembly of prefabricated components. During the on-site construction process, the transformation of building materials is small, and the construction process and process are relatively short. It effectively shortens the flow of on-site construction process and improves on-site construction efficiency, which can reduce on-site environmental pollutants to a certain extent, such as noise, air pollution, solid waste materials, etc.;

adopts green building material in a large range, which helps environmental protection; the rapid development of green building materials provides a better foundation for low-carbon energy saving of prefabricated building technology. The green insulation material used in building walls and roofs can reduce environmental pollution in addition to the environmental protection properties of the materials.

points of structure, prefabricated concrete structure buildings reduce emissions by about 11% compared with traditional cast-in-place carbon, and the advantages of energy-saving and emission reduction in steel structure buildings are more significant. In terms of concrete structure construction, according to the "Study on Evaluation of Carbon Emissions in Prefabricated Buildings" of Shenyang University of Architecture and the Shenyang Honghuiyuan project is an example. The project is planned and designed by the Shanghai Design Institute of China Architecture, with a total construction area of ​​61,000 square meters. It is estimated that the carbon emission per unit area of ​​Building 7 of the project is 257Kg/㎡. If it is built in the traditional cast-in-place method, the emission per unit area will be 290Kg/㎡, a decrease of about 11%. Among them, the main emission reduction parts are wood, insulation materials, masonry, and mortar. In terms of steel structure construction, according to the calculated data of the Chinese Academy of Engineering’s strategic consulting report, taking multi-story buildings as an example, the carbon dioxide emissions during the construction of steel structure construction are 200Kg/㎡, and the traditional concrete plan under the same diameter is 234Kg/㎡, with an emission reduction of 15%; at the same time, the water consumption is reduced by 39% and the energy consumption is reduced by 12%.

affordable rental housing provides stable growth for prefabricated buildings growth

affordable rental housing policy support is strong, and the scale is expected to continue to expand in the future. Since the Central Economic Work Conference mentioned that it attached great importance to the construction of affordable rental housing in December 2020, the policies have been continuously strengthened, ensuring implementation from the perspectives of key cities and target groups; the "Opinions on Accelerating the Development of affordable rental housing" in July 2021 emphasized the need to accelerate the improvement of the housing security system with public rental housing, affordable rental housing and shared-ownership housing as the main body; the Political Bureau of the Central Committee and the Central Economic Work Conference in December 2021 both mentioned the construction of affordable housing , and placed it at the forefront of real estate policies. In March 2022, the Government Work Report once again emphasized the promotion of the construction of affordable rental housing.

新增保障性租赁住房目标明确。 According to data from the Ministry of Housing and Urban-Rural Development, in 2021, 40 key cities across the country planned to raise 936,000 new affordable rental housing units. In the first three quarters, 40 cities have started construction of 720,000 affordable rental housing units, accounting for 76.9% of the annual plan, and completed an investment of 77.5 billion yuan. In the whole year, 40 cities have raised 942,000 new affordable rental housing units. On January 11, 2022, the Ministry of Housing and Urban-Rural Development once again emphasized in the "14th Five-Year Plan" Public Service Plan to increase policy support for finance, land, public services, and expand the supply of affordable rental housing. It also stated that during the "14th Five-Year Plan", 40 key cities initially planned to add 6.5 million affordable rental housing units. On January 20, the Ministry of Housing and Urban-Rural Development held a working meeting, emphasizing the promotion of structural reform on the supply side of housing, vigorously increasing the supply of affordable rental housing, focusing on large cities with net population inflows, and 2.4 million affordable rental housing units were raised throughout 2022.

From the perspective of characteristics, affordable rental housing and prefabricated buildings have high adaptability. Affordable rental housing is generally coordinated by the government. The project is large in size and is mainly built in batches. The larger the construction scale of prefabricated buildings, the more obvious the cost advantage. Therefore, the cost advantage of affordable rental housing adopts prefabricated buildings.In addition, affordable rental housing aims to meet basic housing needs. The degree of personalization of the house is low, and the architectural design and structural design are relatively standard, which is consistent with the standardized characteristics of prefabricated buildings.

According to calculations, in terms of the newly built area, the area of ​​newly built affordable rental housing was about 640 million square meters during the 14th Five-Year Plan period, the building area of ​​newly built prefabricated was about 4.46 billion square meters, and the prefabricated building area of ​​newly built affordable rental housing was about 540 million square meters, accounting for about 12% of the total area of ​​newly built prefabricated buildings. The calculation process is as follows:

Step 1, the area of ​​newly built affordable rental housing: It is expected that this year and next year will be the peak period for the construction of affordable rental housing. Assuming that the proportion of newly built affordable rental housing in 2021 to 2025 will be 15%, 25%, 25%, 20%, and 15% of the total new construction during the 14th Five-Year Plan period will be 15%, 25%, 25%, 20%, and 15% respectively; in addition, according to the "Opinions on Accelerating the Development of Affordable Rental Housing" of the Ministry of Housing and Urban-Rural Development, the maximum area of ​​a single affordable rental housing shall not exceed 70 square meters, and we assume that the average area of ​​a single unit is 70 square meters; according to the affordable rental housing construction plan given by each province and city, we expect that 9.1 million new units/room will be added to the national affordable rental housing during the 14th Five-Year Plan period. It is estimated that the area of ​​newly built affordable rental housing from 2021 to 2025 will be 9554, 15923, 15923, 12738 and 95.54 million square meters, respectively, with a total of about 640 million square meters during the 14th Five-Year Plan period.

Step 2: Prefabricated building area in newly built affordable rental housing that year: According to relevant policies, the main application position of prefabricated buildings in affordable rental housing has been clarified. We assume that the penetration rate of prefabricated buildings in affordable rental housing has increased year by year, with the penetration rate from 2021 to 2025 being 75%, 89%, 85%, 90%, and 95%, respectively. Then, the prefabricated building area in newly built affordable rental housing that year was 7165, 12738, 13534, 11464, and 90.76 million square meters, with a total of about 540 million square meters during the 14th Five-Year Plan period.

Step 3, newly built prefabricated building area for that year: According to the average target given by each province and city, the proportion of prefabricated buildings to account for new building area by 2025 is about 37%. We assume that the proportion of newly built prefabricated building area for new building area in that year will be 23%, 26%, 29%, 32%, and 35% respectively; assuming that the new building area in the future will be the same as in 2020. It is estimated that the newly built prefabricated building area from 2021 to 2025 will be approximately 7, 8, 9, 10, and 1.1 billion square meters each year, and a total of approximately 4.46 billion square meters during the 14th Five-Year Plan period.

Step 4, pull ratio calculation results: From 2021 to 2025, the proportion of prefabricated building area of ​​affordable rental housing to pull the prefabricated building area will be 10%, 16%, 15%, 12%, and 8%, respectively. During the 14th Five-Year Plan period, the pull of prefabricated building area of ​​affordable rental housing will be about 12%.

In terms of market size, the market size of prefabricated construction in newly built affordable rental housing during the 14th Five-Year Plan period is expected to reach 1.2 trillion yuan, and the total market size of newly built prefabricated construction can reach 9.7 trillion yuan. According to the proportion of concrete structures (PC) and steel structures (PS) in newly started prefabricated buildings in 2020, we assume that the proportion of steel structures will gradually increase in the future; according to the Ministry of Housing and Urban-Rural Development's "Consumption Quota for Prefabricated Construction Projects", the average unit cost of prefabricated concrete structures is 2,053 yuan, and the average cost of prefabricated steel structures is 2,360 yuan.

Cost end: The gap is gradually narrowing, and it is expected to remain flat in the next 8-15 years

demographic dividend fades, costs gradually flattening

labor reduction, and labor costs increase may force the traditional construction industry to seek transformation and upgrading. The traditional construction industry is a labor-intensive industry with a large number of workers, a long construction period, and a high dependence on labor. Against the backdrop of factors such as the steady advancement of my country's industrialization level, the rapid increase in urbanization rate, and the decline of demographic dividends, the number of migrant workers in my country has almost no growth, while the proportion of migrant workers in the construction industry in the total number of migrant workers is declining year by year. At the same time, the average monthly income of migrant workers has continued to rise. In 2021, the average monthly income of migrant workers has reached 4,341.5 yuan, an increase of 12.5% ​​year-on-year, and the average annual growth rate from 2013 to the present is 7.8%.

At present, although the construction cost of prefabricated buildings is higher than that of traditional buildings, as labor costs continue to rise, regardless of other cost changes, we predict that within the next 8-15 years, the cost balance point between traditional buildings and prefabricated buildings is expected to reach. The calculation process is as follows:

Construction and maintenance costs summary: According to the Ministry of Housing and Urban-Rural Development's "Consumption Quota for Prefabricated Construction Projects", the average unit construction and maintenance cost of prefabricated concrete structure buildings is 2,053 yuan, and the unit labor cost of prefabricated steel structure buildings is 302 yuan, accounting for about 15%. The average unit construction and maintenance cost of prefabricated steel structure buildings is 2,360 yuan, and the unit labor cost is 193 yuan, accounting for about 8%. According to the cost composition of Shanghai Construction , the average unit construction and maintenance cost of traditional buildings is 1,800 yuan, and the unit labor cost is 396 yuan, accounting for about 22%.

Single-level construction cost vs Single-level labor cost: From the perspective of single-level construction cost, the construction cost of prefabricated concrete structures is 253 yuan higher than that of traditional buildings, while the labor cost is 94 yuan lower; the construction cost of prefabricated steel structures is 560 yuan higher than that of traditional buildings, while the labor cost is 203 yuan lower. Taking into account the government's financial rewards, tax incentives, credit support and other factors for prefabricated buildings and the scale effect of prefabricated buildings, we believe that when the labor cost of traditional buildings is 220 yuan higher than that of prefabricated concrete structures and 500 yuan higher than that of prefabricated steel structures, the overall construction and maintenance cost of its unit can be basically the same.

Setting the increase in income of migrant workers: According to the average annual growth rate of monthly income of migrant workers since 2013 to the present, 7.78%. Assume that the future increase in migrant workers' income may be 6%, 8%, and 10%.

calculation result: When the income of migrant workers increases by 6%, 8%, and 10%, the single-level labor cost gap between traditional buildings and prefabricated concrete structures will reach about 225 yuan in 2036, 2032 and 2030, respectively, and the single-level labor cost gap between prefabricated steel structures will reach about 500 yuan in 2037, 2033 and 2031, respectively. Therefore, we believe that from the perspective of labor costs, the construction and maintenance costs of traditional buildings and prefabricated buildings can be basically the same within 8-15 years.

High recovery rate reduces material costs, incremental costs are reduced after industry standardization

Current prefabricated building materials cost is higher than traditional buildings, but prefabricated building materials have higher recycling rates, which are more advantageous in the long run. According to the Ministry of Housing and Urban-Rural Development's "Consumption Quota for Prefabricated Construction Projects", the construction and maintenance costs of prefabricated buildings include labor costs, material costs, machinery costs, organizational measures costs, measures costs, , enterprise management costs, regulations costs, profits and taxes. Among them, the unit material fee for prefabricated concrete building is 1,481 yuan, accounting for 72%, and the unit material fee for prefabricated steel structure is 1,700 yuan, accounting for 72%. In traditional buildings, the unit material fee is 1,089 yuan, accounting for 60%. However, the main steel structure and supporting materials of prefabricated buildings can be recycled and reused, and the average material recycling rate is about 33% higher than that of traditional buildings, promoting resource recycling. Taking prefabricated steel structures as an example, assuming that the recycling rate of traditional buildings is R, then the recycling rate of prefabricated steel structures is R+33%. Excluding the recyclable part, the actual material fee per square meter of traditional buildings is 1089×(1-R), and the actual material fee per square meter of prefabricated steel structures is 1700×(1-(R+33%)), which is approximately equal to 1139×(1-R), which can be basically the same as the material fee per square meter of traditional buildings. The

specification standards are gradually unified, and incremental costs are expected to be further reduced. The incremental cost of prefabricated refers to the additional cost investment required to use prefabricated buildings to build a project than traditional buildings. Comparative analysis of the various stages of prefabricated buildings and traditional buildings, mainly incur incremental costs in the design stage, prefabricated components production and transportation stage, and prefabricated components installation stage.

Therefore, we believe that whether it is labor costs, material costs or incremental costs, the cost gap between prefabricated buildings and traditional buildings will gradually reach a balance. In addition, prefabricated buildings are still in a period of rapid development. Driven by policies and market leadership, industrial supporting facilities are gradually improved, information technology is constantly developing, industry scale is gradually formed, marginal costs will gradually decrease, and there is still a lot of room for decline in all costs.

Key companies analyze

Huayang International

For the past 30 years of hard work, the leader in designing technology in the entire construction industry chain.Huayang International was founded in 1993. Its early days mainly engaged in residential building design, with most of its customers being small and medium-sized real estate developers, and its market was concentrated in Shenzhen and surrounding areas. From 2003 to 2006, it gradually cooperated with large and medium-sized real estate developers, and its business expanded from residential to public buildings, urban complexes and other business formats. Since joining hands with Vanke to jointly plan projects such as Dongguan Songshan Lake Vanke Industrialization Research Base, the company has started research and layout of the entire prefabricated building industry chain; in 2008, it launched the special research on BIM, and established the BIM Research Institute in 2014 to take the lead in carrying out technological innovation in the domestic construction industry; from 2015 to 2016, by completing the acquisition of 37% of Huayang's cost equity and the wholly-owned acquisition of Huataisheng, the company has enhanced its advantages in the cost and construction fields and enriched its industrial chain layout. The company completed the shareholding reform in 2015, listed on on the New Third Board of in April 2016, delisted in July 2017, and completed the listing of the Shenzhen Stock Exchange SME Board on February 13, 2019. After nearly 30 years of dedicated work, Huayang International has developed into a design technology enterprise with first-mover advantages in design technology and competitive advantages in the entire industrial chain.

The company's main business is architectural design, construction technology and its extended business. After years of development and innovation, the company's business scope has covered industrial chain extension businesses such as architectural design and consulting, construction technology, engineering cost consulting, engineering general contracting, full-process engineering consulting, PC component production and other industrial chain extension businesses; product types include residential buildings, public buildings, commercial complexes and other business formats. In 2021, the company achieved operating income of 2.88 billion yuan, of which the design business revenue was 1.54 billion yuan, accounting for about 54% of the total revenue and 81% of the gross profit; the total project contract revenue was 1.09 billion yuan, accounting for about 38% of the total revenue.

takes design and R&D as the leader, and prefabricated construction and BIM as the core technologies. The prefabricated building design level is leading in the industry, and its mission is to promote the company to become a leader in national construction industrialization. In 2004, the company launched the research path of prefabricated architectural design, becoming the first " National Residential Industrialization Base " in the design industry, and was selected as a national full-process engineering consulting pilot enterprise. As of 2021, Huayang has completed the design of prefabricated construction projects with a total construction area of ​​more than 20 million square meters, of which the application area of ​​integrated customized products ("Perfect" series) is close to 5 million square meters. The company has obtained a total of 60 patents, including 8 invention patents, 47 utility model patents, 65 appearance design patents, and 59 software copyrights; participated in the compilation of 25 evaluation standards, 12 standard design drawings, and 8 special research projects at provincial, ministerial, municipal and enterprise levels.

Honglu Steel Structure

Focus on high-quality steel structures for the past 20 years, and the industry's leading position has been solid. The company's predecessor, Anhui Honglu Steel Structure (Group) Co., Ltd., was established in 2002, restructured into a joint-stock system in 2007, and listed on the Shenzhen Stock Exchange in 2011. The company's main business is the production and sales of steel structures and related enclosure products. In recent years, it has gradually solidified into an overall business structure mainly based on steel structure manufacturing and sales, and supplemented by building materials production, sales and prefabricated steel structure construction engineering general contracting . In 2006, 2012 and 2014, the company was successively approved as the first-level professional contracting qualification for steel structure engineering, the first-level professional contracting qualification for steel structure engineering, and the first-level general contracting qualification for housing construction engineering. In 2005, the first all-steel structure high-rise building in Anhui Province was built, and the first steel structure prefabricated residential community in Anhui Province was built. In 2020, we will participate in the production and installation of steel structures of Leishenshan and Xiaotangshan Hospital.

Steel structure and prefabricated construction business are the company's basic foundation. The company's steel structure products are mainly divided into six types: building heavy steel structure, building light steel structure, bridge steel structure, space steel structure, equipment steel structure, smart garage and prefabricated buildings. In 2021, the company achieved operating income of 19.5 billion yuan, of which the revenue of construction heavy steel structure was 7.9 billion yuan, accounting for about 40% of the total revenue; the revenue of construction light steel structure was 4.5 billion yuan, accounting for about 23% of the total revenue; the revenue of prefabricated construction was 3.4 billion yuan, accounting for about 17% of the total revenue.

prefabricated buildings have a large potential market size, high technical content, guaranteed collection, and relatively stable profits, making them a new business that the company vigorously develops.The company uses its leading technological advantages to seize the market and becomes the first batch of national prefabricated construction industry bases in China, the first batch of prefabricated construction demonstration projects contractors, national enterprise technology center enterprises, and Anhui construction industry modernization demonstration bases. The company will now focus on the research and development, manufacturing and sales of prefabricated building related technologies and steel structures and other green building materials, and cooperate with large general contractors to promote the steel structure prefabricated building business. From 2018 to 2021, the company's prefabricated construction revenue accounted for an increase year by year.

Seiko Steel Structure

Seiko Steel Structure is a leader in the domestic steel structure industry. The company was established in 1999 and was listed on the A-share market in 2003. It has been ranked first in the national steel structure industry ranking for six consecutive years. The company's main business provides design, procurement, manufacturing, construction, operation and maintenance services for steel structure buildings. The manufacturing product system includes steel structure components and prefabricated building products. While deepening its original steel structure business, it actively develops the information industry to find new profit growth points, and transforms into an EPC engineering general contractor to obtain higher profit space. It has won the first prize of one National Science Progress Award and the second prize of five National Science Progress Awards. It is the company that has won the most National Science Progress Awards in the industry and is also the only company in the industry to win the first prize of the National Science Progress Award.

EPCh The transformation continues to advance, and major projects are implemented one after another. The company's EPC and prefabricated businesses continue to advance. 1) The franchise business of prefabricated construction technology continues to be carried out in provinces, cities and districts across the country. In 2021, the company signed 5 new prefabricated construction technology franchise businesses, with a cumulative contract amount of 200 million yuan, an increase of 100% over the same period last year. As of the end of 2021, the company has developed a total of 13 franchise partners in six major regions including Northeast China, East China, and North China, laying a solid foundation for the company's steel structure construction products to enhance brand awareness and market share across the country. 2) In 2021, the company signed a total of 43 new EPC contracts, achieving operating income of 4.168 billion yuan, accounting for 27.89% of the main business income. The focus of EPC is to ensure that a number of major projects achieve phased construction progress:

Shaoxing International Convention and Exhibition Center Phase I District B Project EPC project has been successfully completed and put into use. The project has passed the "Three-star Green Building" rating and won the National Steel Structure Gold Award; Hangzhou Asian Games Baseball (Branch) Sports and Culture Center project, shouldering the heavy responsibility of hosting the 19th Hangzhou Asian Games Baseball and Softball competition in 2022. It is also the first large-scale public construction project in the country with an assembly rate of over 50%. The overall construction progress has come to an end; Shaoxing Southern Comprehensive Transportation Hub Construction Project successfully passed the completion acceptance and won the title of " Shaoxing City Construction Project Safety Production Standardization Management Excellent Construction Site"; In addition, the construction project of Shaoxing Maternal and Child Health Hospital (Shaoxing Children's Hospital) has been completed through the main experience, and the construction project of the new Shaoxing Sports School has entered the second half. The Jinghu headquarters project of Shaoxing Public Utilities Group, the relocation and construction project of Lishui Shuige Health Center, and the Provincial Lu'an Technician College's comprehensive industry-education integration municipal demonstration training base (second campus) project and other projects have continued to steadily advance and have gradually ushered in phased node goals.

(This article is for reference only and does not represent any of our investment advice. If you need to use relevant information, please refer to the original text of the report.)

selected report source: [Future Think Tank]. Future Think Tank - Official website system error