2021-08-03-深交所-东方精工_2021年半年度报告（英文版）_185页_2mb

Summary of Guangdong Dongfang Precision Science & Technology Co., Ltd. Semi-Annual Report 2021

Core Content

Guangdong Dongfang Precision Science & Technology Co., Ltd. (hereinafter referred to as the "Company") issued its Semi-Annual Report for 2021 on July 2021. The report covers important notes, corporate information, key financial data, management discussion and analysis, corporate governance, environmental and social responsibilities, significant events, share changes, and other relevant information.

The Company has no semi-annual dividend plan, and the report is prepared in Chinese with an English translation. In case of discrepancies, the Chinese version is considered authoritative.

Main Business and Operations

The Company's core business is "high-end intelligent equipment", with a focus on intelligent corrugated packaging machinery. Its main business segments include:

• Corrugator lines
• Corrugated box printing and packaging machinery
• Overall solutions for intelligent plants
• Outboard motors

The report highlights that the Company is a global leader in corrugated packaging machinery and is actively working to become an overall solution provider for intelligent manufacturing.

Key Financial Highlights (2021H1 vs. 2020H1)

The Company's domestic business segment showed strong growth, while the overseas segment continued steady development. The gross profit margin remained stable due to effective cost control and price adjustments.

Key Business Segments

1. Corrugator Lines (Fosber Group and Fosber Asia)

• Performance: Fosber Asia achieved significant growth, with operating revenue reaching RMB 150 million, a 4.6-fold increase compared to the same period in 2020.
• Products: The "Pro-Line" intelligent corrugator line was well received in China and Southeast Asia.
• Market Expansion: Sales in the domestic market accounted for over 80% of total revenue, and the company expanded into countries like Thailand and India.
• Localisation: Parts and accessories localisation rate stabilised at around 90%, with a stable supply chain in China.

2. Outboard Motors (Parsun Power)

• Performance: Sales of outboard motors and general utility small gasoline motors grew rapidly, with operating revenue and net profit increasing by over 50% year-on-year.
• Product Development: The 115-horsepower gasoline outboard motor, independently developed by Parsun Power, was successfully launched, breaking the monopoly of foreign brands.
• Strategic Cooperation: Collaborated with OXE Marine, a Swedish diesel outboard motor brand, and achieved a sales breakthrough in 2021.
• R&D and Operations: Enhanced R&D and operations management, with a focus on electric outboard motors and the domestic military market.

3. Corrugated Box Printing and Packaging Machinery (Dongfang Precision (China))

• Performance: Export revenue declined due to international shipping factors, but domestic market revenue increased rapidly.
• Market Expansion: Successfully sold machinery in several "Belt and Road" emerging market countries.
• Technical Support: Sales and shipments of technical support services, spare parts, and accessories maintained good growth.

Overseas Business Segment

• Operated by Fosber Group and Dongfang Precision (Europe), with subsidiaries including Fosber America, Italy QCorr, and Spain Tiruña.
• Fosber Group and Dongfang Precision (Europe) achieved steady growth in order sales and improved operating quality.
• Spain Tiruña and Italy QCorr saw improved operating results after acquisitions and integration measures.
• The overseas segment has developed steadily since 2016, with increasing revenue and profit year-on-year.

Strategic Focus

• The Company continues to promote its "digitalisation and intellectualisation" strategy, aiming to enhance the digital and intelligent transformation of corrugated printing and packaging machinery.
• Dongfang Digicom, a subsidiary, is responsible for implementing overall intelligent plant solutions.
• The Company is working on integrating digital and intelligent technologies into its products and services, enhancing competitiveness and operational efficiency.

Corporate Governance and Other Information

• The Company's corporate governance and management structure are well established, with clear roles for the Board of Directors, Supervisory Committee, and senior management.
• The report is available for reference, including financial statements, public disclosures, and the 2021 Semi-Annual Report.
• There were no significant changes in contact information or information disclosure locations during the reporting period.

Risk Management

• Investors are advised to refer to the "X Risks Faced by the Company and Countermeasures" in Part III for detailed risk analysis and mitigation strategies.

Conclusion

The 2021H1 report reflects the Company's strong performance in both domestic and overseas markets, with a focus on intelligent manufacturing and digital transformation. The growth in operating revenue and net profit, along with improved cash flow and operational efficiency, highlights the Company's resilience and strategic direction in the face of global challenges.