[中报]东方精工(002611):2022年半年度报告（英文版）
原标题:东方精工:2022年半年度报告（英文版） Date of Disclosure: 27 July 2022 Part I Important Notes, Table of Contents and Definitions The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors, supervisors and senior management of Guangdong Dongfang Precision Science & Technology Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee that the contents of this Report are true, accurate and complete and free of any misrepresentations, misleading statements, or material omissions, and collectively and individually accept legal responsibility for such contents. Tang Zhuolin, the Company’s legal representative, Shao Yongfeng, the Company’s Chief Financial Officer, and Yao Bin, the Head of the Company’s Accounting Department (equivalent to Financial Manager) hereby guarantee that the financial statements carried in this Report are truthful, accurate and complete. All directors of the Company attended in person the board meeting for the approval of this Report. For possible risks with respect to the Company, please refer to “X Risks Faced by the Company and Countermeasures” of “Part III Management Discussion and Analysis” herein. And investors are kindly advised to read through the aforesaid contents. The Company has no semi-annual dividend plan, either in the form of cash or stock. This Report has been prepared in Chinese and translated into English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail. Table of Contents Part I Important Notes, Table of Contents and Definitions ........................................................... 2 Part II Corporate Information and Key Financial Information ................................................... 7 Part III Management Discussion and Analysis ............................................................................. 11 Part IV Corporate Governance ...................................................................................................... 64 Part V Environmental and Social Responsibilities ....................................................................... 68 Part VI Significant Events ............................................................................................................... 70 Part VII Share Changes and Shareholder Information ............................................................... 77 Part VIII Preference Shares ............................................................................................................ 85 Part IX Corporate Bonds ................................................................................................................ 86 Part X Financial Report .................................................................................................................. 87 Documents Available for Reference 1. The financial statements signed and sealed by the Company’s legal representative, Chief Financial Officer, and the person-in-charge of the financial organ. 2. All the originals of the Company’s announcements and documents that were disclosed to the public during the Reporting Period on the media designated by the CSRC for information disclosure. 3. The 2022 Semi-Annual Report carrying the signature of the legal representative. 4. The documents above are lodged in the Securities Department of the Company, 25/F, Hisense Southern Building, 1777 Chuangye Road, Nanshan District, Shenzhen City, Guangdong Province, China. Definitions
1. Contact information of the company Whether the company's registered address, company office address and its postal code, company website and e-mail address have changed during the reporting period. □ Applicable √ Not applicable The company's registered address, company office address and its postal code, the company's website and e-mail address remain unchanged during the reporting period, which can be found in the 2021 Annual report. 2. Information disclosure and location. Whether the information disclosure and location have changed during the reporting period. □ Applicable √ Not applicable The name of the information disclosure newspaper selected by the company, the URL of the website designated by the CSRC that publishes the semi-annual report, and the location where the semi-annual report lodges remain unchanged during the reporting period, which can be found in the 2021 Annual report. 3. Other relevant information Whether other relevant information has changed in the reporting period □ Applicable √ Not applicable IV Key Financial Information Indicate whether there is any retrospectively restated datum in the table below. □ Yes √ No
1. Net Profit and Equity under CAS and IFRS □ Applicable √ Not applicable No difference for the Reporting Period. 2. Net Profit and Equity under CAS and Foreign Accounting Standards □ Applicable √ Not applicable No difference for the Reporting Period. VI Exceptional Gains and Losses √ Applicable □ Not applicable Unit: RMB yuan
No such cases in the Reporting Period. Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items: □ Applicable √ Not applicable No such cases in the Reporting Period. (II) Intelligent corrugated packaging machinery business 1. Overview of the intelligent corrugated packaging machinery business The Company's core business is intelligent corrugated packaging machinery, in which it provides medium- and large-sized enterprise customers in the global corrugated packaging industry with core and key production lines and machines making up the production lines necessary for the corrugated packaging production and processing. The Company has become a one-stop production line and machinery supplier with leading comprehensive strength in the industry for corrugated packaging enterprise customers and provides machinery products for the production and printing of corrugated boards and paper feeding/slotting/die cutting/waste discharging/pasting and stitching/counting/stacking of corrugated boxes of corrugator plants and corrugated box plants.[Figure 1 Relationship between Corrugated Packaging Production and Industrial Value Chain and the Company's Intelligent Corrugated Packaging Machinery Products] The Company's corrugator line business is mainly operated by the wholly owned subsidiary Fosber Group (consisting of Fosber Italy, Fosber America, QCorr, Tiru?a Group, etc.) and the holding subsidiary Fosber Asia. The subsidiary Fosber Group owns S-Line, C-Line and Quantum-Line products, and its main customer groups are in Europe, North America, and Latin America. The subsidiary Fosber Asia owns Pro-Line and E-Line products, and its main customer groups are in China, Southeast Asia, and South Asia. The Company's middle- and high-end corrugator line products are ahead of those of domestic brands of enterprises of the same type in overall performance including velocity, width, intelligence, precision, and stability, and run stably and are provided with good technical support, being greatly competitive in the global industry market. (2) Corrugated box printing and packaging lines The Company's corrugated box printing and packaging line business is mainly operated by Dongfang Precision (China), Dongfang Precision (Europe) and Shenzhen Wonder. Dongfang Precision (China) owns integrated corrugated box printing and packaging line products including Dongfang Star I top printing fixed type FFG inline, Dongfang Star II top printing open-close type FFG inline, Super Star I bottom printing die cutter stripper vacuum stacker converting line, Super Star II bottom printing open-close type FFG inline and Super Star III bottom printing open-close type/FFG & stitcher line, covering different types and specifications as fixed type/open-close type and top printing/bottom printing. Besides, Dongfang Precision (China) also sells the main assemblies of the integrated line products up to dozens of different specifications, as well as corrugated box printing and packaging machinery products of different market positioning. Its integrated line products and single machine products are marketed in over 30 countries and regions in Europe, America, Asia, Africa, Latin America, and Oceania. Dongfang Precision (Europe) owns high-end integrated corrugated box printing and packaging lines including FD quickset top printing FFG inline and HGL quickset bottom printing FFG inline and quickset bottom printing FFG/die cutter stripper line and sells them in the European market. These lines can feed paper without crushing and be separately controlled by the servo, is fully automatic, and is capable of high-resolution printing. Besides, it also sells pre-printing and post-printing machines of different specifications that are applicable to integrated line products, including paper feeders, waste dischargers, intelligent stackers, and folder gluer. Shenzhen Wonder is a pioneer and leader among the Chinese brands of digital printing machinery in the corrugated packaging industry. It is one of the several enterprises worldwide that has demonstrated its leadership in applying the high-speed inkjet printing technology to corrugated packaging, and that specializes in producing the printing machinery for corrugated packaging based on the Single Pass digital printing technology. After years of development, Shenzhen Wonder has owned the Multi Pass scanning digital printers applicable to small batch printing of corrugated boards and the Single Pass high-speed digital printers applicable to the printing of the corrugated boards of various specifications and to the pre-printing of the base paper. Additionally, it has formed a complete digital printing machinery matrix that covers multiple application modes and scenarios, ranging from Multi Pass scanning digital printers to Single Pass high-speed direct-inkjet digital printers, from post-printing to pre-printing, from dye ink, pigment ink to UV inks, from cattle paperboard to coated board, from single-sheet printing to seamless change of variable data, from stand-alone printing to ERP-supported printing. This has enabled Shenzhen Wonder to provide a full range of digital printing solutions for corrugated board packaging to small, medium, and large customers and to export its products to America and Europe, the Middle East, Latin America, Southeast Asia and elsewhere. Currently, Shenzhen Wonder occupies a market stock of more than 1,300 units in more than 80 countries worldwide. Meanwhile, Shenzhen Wonder, with its profound exploration of digital printing of packaging and a good reputation in the industry, has created the digital printing machinery for advertising, home decoration, building materials and other fields, and the customized high-speed digital printing machinery such as flatbed and roll-to- roll printers. Materials that are applicable to flatbed printers include aluminum gusset, glass, ceramic tile, metal plate, acrylic plate, and pp plate sheet. Materials that are applicable to roll-to-roll printers include corrugated base paper, removable stickers, print cloth, PVC color film, decorative paper, and metal coils. [Table 2 Main Product Matrix of the Intelligent Corrugated Packaging Machinery Business of Dongfang Precision - Corrugator Lines]
3. Business model of intelligent corrugated packaging machinery business A. R&D model Both the corrugator line business represented by the subsidiaries Fosber Group and Fosber Asia and the corrugated box printing and packaging machinery business represented by Dongfang Precision (China), Dongfang Precision (Europe) and Shenzhen Wonder are equipped work industry-leading independent design and R&D capabilities. The Company keeps building a high-level R&D innovation management mechanism and has an R&D team composed of industry-leading experts, and secure the leading position of its technology in the industry with long- term and short-term product R&D plans, market-oriented R&D mechanism and refined R&D talent incentive policies. B. Procurement and production model The Company purchases steel plates, metal components and electric components from external suppliers, while producing core machining components and corrugating rolls by itself. It produces most of the machinery products according to orders, and purchases raw materials from suppliers, compiles annual, quarterly, and monthly production plans and reasonably arranges production according to sales contracts and raw materials on hand only after receiving customers' orders and requiring customers to pay part of the down payment. In production and operation management, the Company promotes "lean production" to accurately control BOM costs and manufacturing costs and continuously improve operational efficiency. In general cases, orders of corrugator lines will be delivered in 4 to 6 months, and orders of corrugated box printing and packaging machinery will be delivered in 2 to 3 months. C. Marketing model In terms of the marketing method, the Company sells products through direct selling and distribution. In the domestic market, the Company sells products mainly through direct selling, as well as a small amount of distribution. In overseas markets, the subsidiaries Fosber Group and Fosber Asia sell mainly through direct selling and Dongfang Precision (China), Dongfang Precision (Europe) and Shenzhen Wonder sell mainly through agency distribution in some overseas markets. Direct selling allows the Company to directly face customers to ensure accurate demand information, prompt information transmission and information feedback to the Company's R&D and production departments, so that customers can be timely provided with overall solutions. Due to the complexity of products, the Company has an outstanding after sales service team that is responsible for on-site installation, commissioning, training and after sales services, which can provide 7*24h prompt response and support as required by customers. In terms of the types of products being sold, the Company sells production lines, single machines, accessories, software, and services. Integrated lines and single machines are sold only once, and the amount of each sale is large. Accessories, software, and services are sold multiple times during the lifecycle of machines. In the industry market, the continuously increasing holding of the Company's machinery boosts ceaseless sales of the Company's accessories, software and services, and high-quality technical support and services drives the sales of production lines and machines, which is fully evidenced by the high re-purchase rate of the Company's middle- and high-end machinery products, so the two support and facilitate each other. In terms of the settlement method of sales payment, the Company enjoys a high brand awareness and superior bargain power in the industry, so it collects down payment in advance and payment by stages for the sales of corrugator lines and corrugated box printing and packaging machinery products. In general cases, 80% to 90% of the sales payment can be collected upon the delivery of products. (III) Overall solution business for intelligent plants in the corrugated packaging industry Dongfang Digicom, established in 2020, is the key carrier of the implementation of the Group's "digitalization and intellectualization strategy". Adhering to the purpose and mission of "making the industry more intelligent and manufacturing simpler" and with the vision of "to become a world-leading supplier of overall solutions of intelligent plants and industrial Internet services in the packaging industry", it is specialized in building an enterprise-level and industry-level industrial Internet platform for the corrugated packaging industry that integrates new information technologies including IoT, cloud computing, big data, 5G and AI. Aiming at the current situation that most domestic corrugated packaging enterprises are poorly capable of production resources integration and in labor shortage, have unreasonable workshop layout and have a large room for production efficiency improvement, the intelligent logistics business team of Dongfang Digicom provides corrugated packaging enterprises in China with tailor-made intelligent logistics solutions for intelligent plants based on years of profound experience in global and domestic industry markets and ERP, APS, WMS/WC and MES technologies and in combination with advanced international technical concepts and the distinctive characteristics of the carton packaging market in China. The Company enjoys a whole-industrial-chain layout in the corrugated packaging machinery sector, and the most complete and rich product base in the industry. With nearly 30 years of profound experience in Know-How in the corrugated packaging machinery sector, it is the firm foundation and solid support for Dongfang Digicom. With an unswerving strategic focus, the Company continues resources input and import of talents specialized in industrial Internet and has developed the unique and core technical R&D force of Dongfang Digicom to output solutions with completely independent intellectual property rights. Figure 2 Dongfang Digicom's Overall Solutions for Intelligent Plants in the Corrugated Packaging Industry [Figure 3 Application Model of the Overall Solution Business for Intelligent Plants in the Corrugated Packaging Industry]
motor market in 2020 was USD9,105 million, which is expected to reach USD13,191 million by 2027, with a compound annual growth rate of 5.04% from 2021 to 2027. In 2020, the size of the outboard motor market in China was USD228 million, which is expected to reach USD424 million by 2027, with a compound annual growth rate of 8.91% from 2021 to 2027, significantly higher than that 5.04% of the global market. Worldwide, the outboard motor industry is dominated by Japanese and American brands, including Yamaha, Japan (an outboard motor brand under Yamaha Motor) and Mercury, USA (an outboard motor brand under Bentfield Group). China has become one of the world's fastest-growing outboard motor markets owing to its rapid economic growth and changing recreational habits. With the rise of domestic brands represented by Parsun Power, domestic substitution has gradually become one of the mainstream trends in the development of the outboard motor industry in China, and there is a broad market space for domestic substitution. Meanwhile, with the increasing attention to global environmental protection and climate changes and the implementation of China's carbon emission reduction and carbon neutrality policies, the global development trend of outboard motor products toward medium- and high-horsepower and new-energy ones is more and more definitive. After years of development, Parsun Power has become a leading enterprise among domestic outboard motor brands, its market share has been ranking the first nationwide for years, and its products are being exported to tens of countries and regions in Europe, Africa, Oceania, South America, North America, the Middle East, and Southeast Asia. Parsun Power has realized a complete product line layout of "gasoline-diesel-electric power” and has been marching toward high-horsepower diesel outboard motors and electric outboard motors with its years of experience in products and technology and leading market share in the field of petrol outboard motors. In the future, it will raise funds through a spin-off listing, and will improve its core competitiveness to become a professional supplier of aquatic power products in China with global competitiveness. 2. Main products of Parsun Power in outboard motor business Parsun Power provides outboard motor products from 2hp to 115hp. The output power of an outboard motor increases with its horsepower, so as the size or velocity of the boat assembled to it. By the source of engine power, outboard motor products of Parsun Power are divided into gasoline outboard motors, electric outboard motors, and diesel outboard motors. Gasoline outboard motors enjoy the most abundant specifications and varieties. Parsun Power has accumulated years of industry experience in the field and has had several proprietary technologies and applied them to products. In recent years, Parsun Power has developed medium- and high-horsepower outboard motors leading the Chinese market and with domestic substitution characteristics, has achieved mass production of the maximum 115hp gasoline outboard motors, and has successfully broken the long-term monopoly by international well-known brands in the 115hp sector. With stable and reliable quality of its 115hp gasoline outboard motors, Parsun Power has won more and more product orders in Europe and China, contributing to domestic substitution of medium- and high-horsepower outboard motors and the improvement of the global market share of domestic brands. After successfully conquering the 115hp gasoline model, Parsun Power's R&D team marches toward higher-horsepower models and strives the make domestic-brand high-horsepower outboard motors take a place in the global competition of the high-horsepower outboard motor market. Electric outboard motors are powered by batteries. They convert electric power into kinetic power through motors, and are characterized by zero emissions, low noise, and easy operation, and are mainly used in scenic spots and other sectors requiring stricter environmental protection. Parsun Power's electric outboard motors are divided into 7hp motors and 9.9hp motors, which are being sold in developed countries such as the United States. Diesel outboard motors not only retain the characteristics of easy assembly, easy maintenance and easy operation of gasoline outboard motors but also enjoy the advantages of fuel saving, lower emissions, greater torque and being safer, more reliable, and easier for maintenance, which are mainly used in commercial transportation and public law enforcement. Parsun Power now has diesel outboard motors and is selling the high-horsepower outboard motors of 150hp to 300hp of OXE Marine (a Swedish brand) in the domestic market. Parsun Power's outboard motor products have stable quality and reliable performance, and some of them enjoy the comprehensive performance comparable to that of internationally well-known brands and emissions reaching European and American standards. In the future, Parsun Power will focus on high-horsepower outboard motors, enrich electric outboard motor production lines, continuously optimize the product structure of outboard motors, and consolidate its leading position among domestic outboard motor manufacturers. 3. Business model of Parsun Power's outboard motor business Parsun Power runs its outboard motor business through "Design and R&D + Production + Marketing". In terms of sales model, Parsun Power gives priority to distribution, with direct selling as a supplement. II Core Competitiveness Analysis In the Reporting Period, the Company had no significant adverse changes in its core competitiveness. Analysis of the Company's core competitiveness is as follows: (I) Complete layout in the corrugated packaging machinery industry chain and the most complete and richest product portfolio in the industry Among enterprises of the same type in the domestic corrugated packaging machinery industry, Dongfang Precision has the most complete and comprehensive industry chain layout, with its business covering almost all key processes in the corrugated packaging production and processing business chain. A full-coverage layout in the corrugated packaging production and processing value chain has been established. Processes in the corrugated packaging production and processing value chain covered by the Company's business units include: 1. Corrugator production: Fosber Group, Fosber Asia and QuantumCorrugated are the business units of the Company engaging in it. They serve large- and medium-sized enterprises in domestic and foreign corrugated board production and processing industries, and supply middle- and high-end corrugator line products of different specifications, different types, and different market positioning. Fosber Group has middle- and high-end corrugator lines and leading industrial Internet technologies in the front rank of the global industry market, and has corrugating roll production lines and high-speed corrugator lines suitable for industrial digital printing, having a complete industrial layout in the core production line and machinery sector in the field of corrugator production and processing. Specifically, Tiru?a Group, a subsidiary of Fosber Group, is a time-honored, prestigious, and professional corrugating roll supplier in Spain, and its corrugating roll products are one of the key components of corrugator lines, and QCorr, another subsidiary of Fosber Group, has the independently developed Quantum high-speed corrugator line that has the unique design fitting the embedding of industrial digital printing technology. 2. Corrugated box printing and packaging: Dongfang Precision (China), Dongfang Precision (Europe) and Shenzhen Wonder are the business units of the Company engaging in it. They serve domestic and foreign corrugated box production and processing industry markets, and supply middle- and integrated high-end corrugated box printing and packaging lines and single machine products covering all units and all specifications of the production lines. In terms of corrugated box printing and packaging machinery, Dongfang Precision's products are divided into fixed type/open-close type, top printing/bottom printing and integrated line/single machine products and has the riches product portfolio among domestic enterprises of the same type. In terms of digital printing, the digital printing machine products of Shenzhen Wonder cover a wide range of application modes and scenarios, including Multi Pass scanning and Single Pass high-speed direct-jet, post-printing and pre-printing, ink, and UV, etc., that have formed a complete digital printing lines and machines product matrix and can provide a full range of digital printing products for corrugated packaging for customers of all levels. 3. Overall solution for intelligent corrugated packaging plants: Dongfang Digicom is the business unit of the Company engaging in it. It provides customers in the corrugated packaging production and processing industry market with the overall solution for intelligent plants covering order management, production management, cost analysis, intelligent decision-making, intelligent logistics and supply chain management and equipment management, as well as the solution for intelligent whole-plant logistics. With the full-coverage industry chain layout, the Company has the most complete and richest corrugated packaging line and machinery product portfolio in the industry, making it capable of meeting the demands for integrated line and single machine products of different market positioning, different customer types and dozens of specifications and models, second to none in China. Figure 4 Business Divisions and Entities of Dongfang Precision (II) Industry-leading technology level and capability of continuous R&D and innovation The Company's overall R&D strength and technology level are at the forefront among domestic enterprises of the same type. As of 30 June 2022, the Company was holding around 330 licensed patents at home and abroad. And the Company has been awarded the Provincial Industrial Design Center of Guangdong and the Provincial Demonstration Enterprise of Intellectual Property Right in Guangdong. Its subsidiary Fosber Group is one of the two companies with the strongest comprehensive technical strength in the field of high-speed and wide corrugator lines worldwide. Fosber's middle- and high-end corrugator lines are internationally leading in the industry in velocity, width, precision, stability, reliability, failure rate and intelligence, and its high-technology-content and high-quality machinery products and technical support services have won the praise of domestic and foreign enterprise customers. During design and R&D of high-end corrugator lines, Fosber Group proactively practices the industrial Internet technology and applies sensors, VR, big data, and algorithms, and has launched the PRO information-based intelligent production management system for corrugator lines with tens of years of Know-How experience in the middle- and high-end corrugator line industry, realizing full automation and intelligence of the whole process of corrugator production and processing. Through over 200 sensors in corrugator lines, it monitors the temperature, humidity, heat, folds, and other data of corrugator lines in real time, and monitors the dashboard dynamically in the （未完）  |