2021-08-11-深交所-三花智控_2021年半年度报告（英文版）_180页_5mb

Zhejiang Sanhua Intelligent Controls Co., Ltd. 2021 Semi-Annual Report Summary

Core Content Overview

Zhejiang Sanhua Intelligent Controls Co., Ltd. (Sanhua Intelligent Controls) released its 2021 Semi-Annual Report in August 2021. The report outlines the company's business operations, financial performance, strategic direction, and key financial indicators for the first half of the year. The report also details the company's corporate governance, environmental and social responsibilities, and significant events.

Main Business and Industry Development

1. Principal Business

Sanhua Intelligent Controls focuses on refrigeration and air conditioning electrical components and automotive components. Its main products include:

• Refrigeration and A/C Electrical Components: Four-way Reversing Valve, Electronic Expansion Valve, Solenoid Valve, Microchannel Heat Exchanger, Omega Pump, etc.
• Automotive Components: Thermal Expansion Valve, Receiver Drier, Electronic Expansion Valve, Thermal Management Integrated Module for new energy vehicles, Electronic Water Pump, etc.

The company's business model and core operations remained unchanged during the reporting period.

2. Industry Development

• Refrigeration and A/C Electrical Components Industry:

  • The home appliance industry has stabilized and upgraded, contributing to the growth of this segment.
  • Energy-saving and intelligent control technologies are becoming key trends, which Sanhua Intelligent Controls is actively following.

• Automotive Components Industry:

  • The rapid development of the global automobile industry, especially the rise of new energy vehicles, has driven significant growth in this segment.
  • The company has expanded its product offerings and has become a strategic partner for major automotive brands such as Valeo, Volkswagen, Mercedes Benz, BMW, Toyota, and BYD.

3. Industry Position

Sanhua Intelligent Controls is the world's largest manufacturer of refrigeration control components and a leading manufacturer in automotive A/C and thermal management system control components. It holds a leading market share in several key products, including:

• Electronic Expansion Valve
• Four-way Reversing Valve
• Solenoid Valve
• Microchannel Heat Exchanger
• Automotive Electronic Expansion Valve
• Thermal Management Integrated Module for new energy vehicles
• Omega Pump

Key Financial Indicators

1. Financial Performance (RMB)

• Operating Revenue: 7,674,081,761.69 (up 44.30% YoY)
• Net Profit Attributable to Shareholders: 823,881,221.70 (up 28.03% YoY)
• Operating Profit: 1,008,000,000 (up 36.29% YoY)
• Net Profit After Deducting Non-recurring Items: 719,771,655.78 (up 23.63% YoY)
• Net Cash Flow from Operating Activities: 825,216,623.26 (down 25.30% YoY)
• Total Assets: 21,007,499,311.90 (up 23.34% YoY)
• Net Assets Attributable to Shareholders: 10,444,077,103.59 (up 3.77% YoY)

2. Key Financial Data Changes

Revenue Structure

Non-recurring Gains and Losses

• Total Non-recurring Gains and Losses: 104,109,565.92 (RMB)
• Non-recurring Gains and Losses Items:
  • Gains or losses from disposal of non-current assets: -1,623,182.25
  • Government subsidies (excluding regular business-related): 64,034,111.05
  • Gains or losses from fair value changes (excluding hedging): 60,752,561.20
  • Other non-recurring income and expenses: 891,333.20 + 702,064.60
• Impact of Income Tax: -20,201,305.62
• Impact of Minority Equity (after tax): -446,016.26

Strategic Initiatives and Investment

• The company raised RMB 3 billion through the issuance of convertible bonds in June 2021.
• The funds are mainly used for:
  • Commercial refrigeration and air conditioning intelligent control components construction project (65 million sets/year)
  • High-efficiency and energy-saving control components technical transformation project (50.5 million sets/year)
• These projects aim to enhance product efficiency, improve business scale, optimize the business structure, and support long-term strategic development.

Core Competitiveness

• Clear Strategic Layout: The company follows the path of "Focus on Leading, Innovation, Transcendence," focusing on heat pump technology and thermal management system products.
• Technology Leading: Sanhua Intelligent Controls is a national high-tech enterprise with 2,529 patents (1,235 invention patents) authorized globally.
• Quality Assurance: The company has achieved ISO9001, IATF16949, and QC080000 certifications.
• Global Marketing and Production Network: The company has established overseas subsidiaries and production bases in multiple countries, including Japan, South Korea, the U.S., Mexico, and Germany.

Notes and Disclosures

• The company did not distribute cash dividends, bonus shares, or shares from capital reserve in the current reporting period.
• The non-recurring gains and losses items are not classified as recurring gains and losses.
• The company did not experience significant changes in its profit structure or profit sources during the reporting period.
• The designated newspapers for information disclosure were updated in July 2021 to China Securities Journal and Securities Times.
• The semi-annual report is available for inspection at the Board of Directors Office and on the CSRC website at http://www.cninfo.com.cn.

Risk and Countermeasures

The report highlights possible risks and countermeasures in Section X, including:

• Overseas epidemic impact
• Sharp rise in international shipping and raw material prices
• RMB appreciation against USD
• Exchange rate fluctuations and derivative gains/losses

The company has implemented measures such as automation, lean production, supply chain optimization, and global production layout to mitigate these risks.

Conclusion

Sanhua Intelligent Controls reported strong growth in both refrigeration and air conditioning electrical components and automotive components businesses in the first half of 2021. The company's strategic focus on technology innovation, global expansion, and product diversification has supported its core competitiveness and market leadership. Despite challenges such as rising costs and exchange rate fluctuations, the company has taken proactive steps to optimize operations and enhance profitability.