According to the 2019 annual report data released by Shanghai Yongjin Electric Technology Co., Ltd. (Securities abbreviation: Yongjin electric securities code: 836718), during the period, the company realized an operating revenue of 263047900 yuan, a year-on-year decrease of 14.35%, and realized a net profit of 17749600 yuan, a year-on-year decrease of 22.84%.

Al Yongjin electric released its annual report for 2019, and its operating revenue decreased by 14.35% year on year

As for the performance decline, Yongjin Electric said that the company won the bid in China Southern Power Grid (mainly in Guangdong) in 2019, which was significantly lower than that in 2018; at the same time, the company did not win the supplier qualification on the State Grid e-commerce platform in 2019, resulting in a significant decline in the sales of cables and power tools. The sales of power tools and appliances decreased by 24.062 million yuan, or 16.862 million yuan.

According to the data, Yongjin Electric is mainly engaged in R & D, manufacturing and sales of power cable accessories, power safety tools, wires and cables, focusing on smart grid, power cable accessories and smart cable accessories of 500kV and below

The company’s main business income structure is stable. The main business income mainly comes from the sales of cable accessories, wires and power cables.

There are three types of customers in the company: one is long-term customers, which are customers of State Grid, China Southern Power Grid and power grid systems of provinces, cities and counties; the other is temporary customers, which are temporary needs of technological transformation, maintenance and repair of large-scale industrial and mining enterprises other than iron and steel, coal, mining, petrochemical, railway and other power systems; the third is potential customers, which are large-scale power equipment manufacturing enterprises (supporting their products) .

The core technology of the company mainly comes from the independent innovation of the company’s R & D team and the accumulated industry experience, especially in the field of cable accessories with relatively high technology content, the company has rich design and manufacturing experience, has a number of core technologies and has formed a number of patents.

In the next three years, Yongjin Electric will focus on the already clear development strategy, rely on the existing technical reserves and scientific research capabilities, and make use of technological innovation to continuously improve the R & D and service capabilities of existing products; at the same time, according to the direction of industrial development and the needs of main customers, increase the R & D and production of smart grid and high-voltage and ultra-high-voltage products, expand new market areas and demand space, and make progress Further strengthen cooperation with upstream and downstream enterprises, expand enterprise scale and enhance market competitiveness. Through demand-oriented product R & D, production and continuous high-quality service, we can create value for customers and maintain the company’s sustainable and rapid development.

It is worth mentioning that Yongjin Electric’s customers are mainly State Grid Corporation of China, China Southern Power Grid Corporation and its subsidiaries. The procurement of wire, cable and cable accessories of State Grid’s subsidiary companies adopts the mode of “unified organization by headquarters and specific implementation by provincial grid companies”, and carries out centralized scale bidding procurement. In the future, if the company can not effectively maintain a good cooperative relationship with State Grid Corporation and China Southern Power Grid Corporation, and can not continue to develop new customers, it will directly affect the company’s sustainable operation ability and bring a greater adverse impact on the company’s future development.

Editor in charge: WV

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