Review on the Operation of Zhengtai Board of Directors in the First Half of 2020

The management opinions of the board of directors of Zhengtai (60 1877) in the first half of 2020 are as follows:

I. Discussion and analysis of operating conditions

(1) Overview

In the first half of 2020, the epidemic situation had a great impact on the global economy, the unstable factors in the international situation increased, and the domestic economic growth slowed down. With the effective control of domestic epidemic situation, the positive factors of new technologies, new industries (300832) and new formats have increased.

On the one hand, the board of directors and management of the company actively responded to the call, earnestly fulfilled corporate social responsibility, and joined the national epidemic prevention and control war with practical actions. On the other hand, they closely focus on business objectives, arrange enterprises to resume work in an orderly manner, vigorously promote the linkage of production, supply and marketing, and strive to ensure the delivery of orders from global customers. Through scientific judgment, the company seized the opportunity from the dialectical understanding of "danger" and "opportunity" to embrace new ideas and technologies to promote the transformation and upgrading of manufacturing industry; Companies adhere to customer-centric, strategic objectives-oriented, market demand-oriented, and constantly achieve steady development.

During the reporting period, the company achieved an operating income of 65.438+04.609 billion yuan, a year-on-year increase of 65.438+0.26%; The net profit attributable to shareholders of listed companies 18. 1 1 billion yuan, up 1.49% year-on-year.

During the reporting period, the company and its subsidiaries won the honorary titles of "Zhejiang Province Manufacturing Industry Average Efficiency Leading Enterprise", "Zhejiang Province Enterprise Standard Leader" and "Smart Photovoltaic Pilot Demonstration Enterprise List" by the Ministry of Industry and Information Technology.

(2) Low voltage electrical appliances

During the reporting period, the low-voltage electrical appliance industry continued to show three major industry trends: the concentration of industry leaders continued to increase, from single components to integrated system solutions, and the global market layout became increasingly important. The rapid development of Internet and communication technology provides a new development direction for low-voltage electrical appliances, which are becoming more and more intelligent. In the future, the new requirements of smart grid and intelligent equipment manufacturing industry will boost the market demand for intelligent low-voltage electrical products, promote low-voltage electrical products to be more intelligent, and boost demand by actively participating in industry integration and industrial chain optimization.

Despite the impact of the epidemic, through the unremitting efforts of all employees, the company actively adjusted the pace of production, further optimized the business structure, and constantly increased the proportion of customers in the industry, and achieved excellent business performance.

1. Deepen the layout and continuously consolidate the advantages of channel distribution.

During the reporting period, the company consolidated and improved the layout of the primary channel network, focused on strengthening the layout and construction of the secondary channel network, accelerated the sinking and opening of the tertiary channel network, and built the most sound and in-depth channel network in the industry. By the end of the reporting period, the company has laid out 475 first-class dealers with provincial capitals, municipalities and cities as the core. And extended to counties and towns, * * * layout of more than 5000 secondary dealers; Achieve 95% coverage of municipal primary and secondary channels, and basically achieve nationwide coverage of the channel network.

Actively carry out channel ecological construction, plan network layout, clarify classification authorization, adjust regional scope, implement customer attribution, implement index reduction, standardize cross-border sales channel reconstruction, and promote the realization of single regional custody and single attribution of channel customers; Focus on areas with great potential, and target 500 channel customers and 160 terminal industry customers for key expansion; At the same time, give full play to the advantages of dealers' regional foundation and promote dealers to accurately develop end customers; Gradually distinguish the distribution and wholesale business led by distributors from the end-customer business; Put key resources into the end-customer business and guide dealers to gradually change to the technical marketing business model.

We will fully promote the promotion of the company's brand, speed up the construction of Zheng Tai brand pavilion, electrical industry supermarket and other projects, and further enhance the influence and reputation of Zheng Tai brand in the terminal market. By the end of the reporting period, the company had laid out 15 brand experience hall, 32 electrical industrial supermarkets, 256 SI image shops and 1 15 secondary image shops. And through more than 240 various industry exhibitions, one-on-one product promotion meetings, customer technical exchange meetings and other forms, the brand image and technological achievements were displayed.

In the face of the epidemic, the company actively responded to the call, launched the activity of "Helping to Resume Work, Meeting with Zheng Taili", and fully supported channel outlets and industry terminal customers to resume work, further highlighting the industry responsibility of the head enterprise, deepening customers' trust in the company, and winning high praise from channel and terminal customers.

2. Fully develop and greatly increase the share of customers in the industry.

Industry customers have higher requirements for customization and industry characteristics, and put forward higher requirements for the integrated design ability of integrated solutions. The solid market share of industry customers is an important driving force for the company's long-term sustainable development. During the reporting period, the company continuously enriched and optimized the structure and scale of the direct selling team, and formed a stable and sufficient regional direct selling business force and a first-line market segment business development team; At the same time, continue to promote the industry focus of the direct selling team, upgrade to the theme of "future community" in the civil field and "energy efficiency management" in the industrial and commercial field, and make full use of the advantages of the company's entire industrial chain.

During the reporting period, the company gave full play to the advantages of coordinated operations, with rival industrial companies as the main force and other industrial companies as the support, planned solution-oriented products, set up an iron triangle project team for industrial market segments, tapped customers' pain points, implemented product combination strategies accordingly, accelerated new product development and stock upgrading, strived to become market segment experts and continuously expanded market share. The company has established strategic cooperative relations with large clients of state-owned enterprises and central enterprises such as China Communications Group, China Construction No.1 Bureau, China Construction No.8 Bureau, China Aluminum (60 1600), China Railway Material Trade, China Power Construction (60 1669), and has also made substantial breakthroughs and progress in various sub-industries: in terms of power mining, the company's business in the southern provinces and bureaus of the State Grid. In recent years, the business team has successfully expanded its business in cities such as Changsha, Jinan and Fuzhou. This year, we overcame the difficulties of epidemic situation and made new breakthroughs in key customers such as Gaomi in Shandong, Changde in Hunan and Shengli Oilfield.

In terms of communication and OEM customers, on the basis of continuing to maintain good cooperative relations with customers such as China Mobile, China Unicom, Huawei and ZTE, the company has added a number of benchmark customers with dominant positions in various industries, including Sany Heavy Industry (60003 1), Zoomlion, Dongfang Pump, Nissin Seiki (002520) and Jingwei Textile Machinery (000666).

In terms of real estate construction, the company has reached strategic cooperation with more than 10 TOP20 real estate enterprises such as China Merchants, Ocean Shipping, R&F, Huaxia Happiness (600340) and Shanghai COFCO, and the industry landscape has continued to expand.

At the same time, the company gives full play to the advantages of dealers in their rooted areas, and has made important achievements in customer development in sub-sectors, helping dealers to develop a large number of well-known customers in the industry, including Mu Yuan (0027 14), Wanma New Energy, Ningbo Haitian and so on. , covering modern breeding, new energy, molding machine, lifting and environmental protection.

3. Internal repair and external expansion, and the international business structure has been steadily optimized.

During the reporting period, the company continued to deepen its close cooperation with international customers through continuous innovation. In the difficult situation that the global economy suffered a severe recession and the external environment was extremely uncertain, the overseas market still achieved positive growth in the first half of the year.

In the case of adequate epidemic prevention measures, the company quickly resumed production, made full use of its intelligent manufacturing advantages formed by "machine substitution", and the production capacity was quickly released and improved to ensure the rapid delivery of orders from overseas customers. At the same time, the company's long-term internationalization and localization strategy has given full play to its great advantages. By utilizing China's international capacity cooperation with Singapore, Viet Nam and Egypt, as well as more than 20 overseas regional logistics warehouse networks all over the world, we can more effectively form close contact with local customers, realize continuous and stable supply and service to first-line customers, greatly enhance customer stickiness and satisfaction, strengthen brand trust, and maintain rapid growth in sales of overseas subsidiaries.

The company continues to strengthen professional market breakthroughs, dig deep into the industrial value chain, give full play to the advantages of the whole industry chain, and promote cooperation with customers in key industries such as electric power, new energy, construction and HVAC. The company has won many projects, such as the data center project of Kaide Group in Singapore and the ENGIE wind power project in Chile. Through in-depth product customization research and development, the integrated intelligent circuit breaker won the purchase order of $1 billion external circuit breaker for smart meters from Saudi National Power Company. Through this cooperation, Zhengtai has become a key project supplier of the "Belt and Road" of the State Grid.

During the reporting period, the company actively overcame unfavorable factors, innovated marketing measures and recreated brand popularity. Seven live online broadcasts of the whole industry chain, including English and Spanish, have been launched one after another, and many online product promotion meetings, industry salons, online marketing meetings and other activities have been launched to attract customers to watch Zheng Tai at home, and to maintain the continuous positive interaction between the company and customers.

4, Industry-University-Research, intelligent manufacturing speed-up strategy implementation.

The continuous investment in R&D is an important foundation for the company to become the world's leading integrated energy solution provider. By the end of the reporting period, the company was researching 283 scientific and technological projects; In the first half of 2020, there were 256 patent applications, 278 patent authorizations, 22 trademark applications, 23 trademark registrations and 4 soft registrations; Take the lead in establishing 1 Zhejiang manufacturing standard; The project "Key Technology and Industrialization of Electromagnetic Residual Current Action Circuit Breaker Based on Lean Automation Production" won the third prize of 20 19 Zhejiang Science and Technology Progress Award.

During the reporting period, the company continued to deepen the innovative application of lean production, implemented 54 lean projects, optimized processes to improve production efficiency and quickly responded to market demand; In the first half of the year, 66 technical transformation projects and 22 acceptance projects were carried out, which greatly improved the automation level of manufacturing, assembly, online testing and packaging of key components and improved the consistency and reliability of product quality; Fully implement the intelligent manufacturing strategy, focus on promoting the construction of five digital workshops: small circuit breakers, molded case circuit breakers, frame circuit breakers, AC contactors and relays, and continuously promote the deep integration and digitization level of automation and informatization. The company's capabilities in digital design, design and implementation of intelligent manufacturing software and equipment, digital workshop operation and maintenance, and big data value mining have been significantly improved. Through the deep integration and system integration of automation and informatization, the company creates a new green, efficient and lean intelligent manufacturing model, and provides the whole solution of intelligent manufacturing system for the industry.

During the reporting period, the company launched a number of innovative products, such as low-voltage power distribution products NA 1P-S, which won the recognition of customers in the industry. The company will give full play to the resource advantages of being familiar with domestic market application scenarios and directly connecting with customer technical institutions, and make layout in key areas such as 5G base station construction, UHV, intercity high-speed rail and urban rail transit, new energy vehicle charging piles, and big data centers.

(3) New energy sources

During the reporting period, faced with the unfavorable situation that the supply of raw and auxiliary materials in the photovoltaic industry is tight and the logistics efficiency is greatly affected, the company seized the opportunity for its new energy business in the "crisis". With the rich experience accumulated in photovoltaic field, the localization development strategy will be implemented to minimize the impact of overseas epidemics on project construction. During the reporting period, the company's photovoltaic new energy business grew steadily. The company has achieved global component sales of 2,220MW, and Dutch 146MW project and Polish 5 1.42MW project have entered the construction stage. The domestic market continued to advance steadily, and the 100MW 100-City Leading Award Base was successfully connected to the grid, winning the bid for the 2020 1. 15GW national bidding parity project; The company's newly added household installed capacity exceeds 600MW.

1, continuous mode innovation, rapid growth of household installed capacity

During the epidemic period, the company made good business deployment and preparation in advance, actively carried out the innovation of business model per household, improved the ecological construction of channels, and continuously enhanced the vitality of channels to meet the arrival of the era of per household. During the reporting period, Zheng Tai Taiji Home System was released, which will provide customers with four worry-free intelligent solutions: capital, quality, after-sales and income. Break through the restrictions of business promotion forms in special periods, and use the Internet to conduct product and business fairs or industry seminars online, focusing on target customers, creating a sales boom and increasing business sales. During the reporting period, the average installed capacity of new households exceeded 600MW, and the company continued to maintain its leading position in China.

2. Layout domestic power stations to increase the potential for subsequent development.

Make full use of the advantages of the company's entire industrial chain, increase the independent development of regional companies nationwide, and enhance the stickiness of end customers. By the end of the reporting period, the company's total installed capacity had reached 4.35GW, and actively participated in the national project bidding in 2020. Combined with its own superior resources, * * won the bid for 1. 15GW and the cheap project, which laid a solid foundation for the company to achieve its business objectives in the future.

3. Adjust the rhythm in time to realize the grid connection of power stations on schedule.

During the reporting period, the company overcame various unfavorable factors, and the second phase of Baicheng 100MW photovoltaic leader award compensation project was connected to the grid as scheduled, which reflected the company's comprehensive strength in the fields of high-efficiency component technology, EPC cost and quality control.

Meanwhile, Wenzhou 550MW Yuguang Project, Liaoning Fuxin 70MW Project and Xishui 100MW Project are under construction. Overseas, Dutch projects and some projects in Poland will also be connected to the grid this year.

4. Strengthen technological progress and greatly enhance manufacturing strength.

During the reporting period, battery efficiency and component power reached the leading level in the industry. The average mass production efficiency of the battery reaches 23%, the mainstream power of AstroSemi module reaches 450W, and AstroTwins double glass reaches 445W, leading the industry in the mainstream power gear of mass production.

During the reporting period, Zheng Tai New Energy was officially selected into the list of smart photovoltaic pilot demonstration enterprises. The company won 2020PVEL/DNVGL "Top Component Manufacturer" and won two firsts: the comprehensive reliability of AstroTwins products ranked first in the industry; The number of company awards ranks first among all participating manufacturers.

(4) Company management

1. Promote process change and support rapid business development.

During the reporting period, the company actively promoted the adjustment of organizational structure, strengthened the leading core role of the front line of the market in resource allocation and marketing decision-making, effectively solved the management shortcomings, made efficient business decisions, smoothly transmitted information, greatly reduced the management scope, reduced communication costs and improved management efficiency. Further improve the sales project management system, carry out the operation summary of the iron triangle project, and solidly promote the marketing management system, process organization construction, clue management and contract delivery.

2. Enhance human resources organization and consolidate soft power.

During the reporting period, the company continued to deepen the innovation of human resources organization, improved the three-pillar human resources structure of "front desk, middle desk and back office", and professionally supported the rapid development of business. Strengthen internationalization, absorb the supply of high-end talents, pay attention to the accelerated training of endogenous talents, fully implement the stock of scientific talents, and stimulate organizational vitality and employee self-drive. Through the linkage of overseas charging workshops, universities, marketing, technical quality and production colleges, we will continue to build a learning organization and enhance the brand power of employers.

3. Guided by the party building model, help enterprises to return to work and reach production.

The party Committee of the company pays attention to the prevention and control of the epidemic on the one hand and the resumption of work and production on the other, so as to achieve "both hands must be hard and both wars must win". The company set up a leading group for enterprise epidemic prevention work at the first time, started the emergency mechanism, and was a pioneer in front-line epidemic prevention, epidemic prevention propaganda, ideological guidance, post attack and difficult help. Implement and solve the problems of employees' return transportation, accommodation and living facilities. The Party Committee launched the "Pioneer of Returning to Work" activity, which provided a strong red impetus for enterprises to return to work and reach production.

Second, possible risks

1, macroeconomic downward pressure

The company's main business is distributed in the field of low-voltage electrical appliances and photovoltaics. These industries have a strong correlation with the macroeconomic cycle and are greatly influenced by the economic development cycle. In the first half of 2020, influenced by the macroeconomic environment and geopolitics, the downside risks of the global economy and the uncertainty of the financial market have increased significantly, and there may be a risk that the demand for products in the downstream areas where the company's main business is concentrated will decline.

2. Risk of exchange rate fluctuation

Most of the company's export products are denominated in RMB, but the sales generated by international business are mostly settled in US dollars and euros. Therefore, if the exchange rate fluctuation between RMB and major foreign currencies such as USD and EUR is too large, the exchange rate risk of the company may increase. In view of the possibility of large fluctuations in the international exchange rate market in the second half of this year, the company will continue to strengthen the use of hedging tools to control or reduce the related risks brought by exchange rates by expanding RMB settlement of cross-border trade.

3, industry policy risk

In recent years, the state has issued a large number of policies to support the development of new energy industries such as photovoltaic, and the industry has grown rapidly. However, if the policy support changes in the future, it may have a certain impact on the company's operating performance and profitability.

4. Risk of rising raw material prices

In the field of low-voltage electrical appliances, the raw materials required for the company's production are mainly copper, silver, steel and plastic; In the photovoltaic field, the development and construction costs of photovoltaic power generation are mainly solar cells, silicon wafers and other equipment and raw materials. Although benefiting from technological progress, increased production capacity and integrated operation of the company can offset the risk of some changes in raw material prices, if the price of raw materials rises sharply in the future, it may have an adverse impact on the company's manufacturing costs.

5. Rising labor costs

As the largest manufacturer of low-voltage electrical appliances in China, the company's main production bases are located in Shanghai and Zhejiang in the Yangtze River Delta region. In recent years, the labor cost has shown a rapid upward trend, and the delay in returning to work after the year has brought some pressure to the company's cost control.

In the second half of the year, the company will continue to promote the process of intelligent manufacturing and transformation and upgrading, use digital means to carry out personnel recruitment and training, implement short-,medium-and long-term salary design and incentive mechanism, and fully mobilize the initiative and creativity of employees.

Three. Analysis of core competitiveness during the reporting period

As a leading enterprise in domestic low-voltage electrical appliances and new energy industry, the company has realized the layout of the whole power industry chain, and has the advantages of all industry consolidation and solutions. At the same time, the company has strong competitive advantages in cost control, scale and production line automation, as well as technological innovation, channel and brand management.

(1) As a leading enterprise in the domestic low-voltage electrical appliance industry, the company's competitive advantages are mainly reflected in the following aspects:

1, channel advantages

The company has the most complete and sound sales network in the industry, forming a marketing system with provincial capitals as the core and county-level as the auxiliary point. The construction of these sales networks and the formation of supporting logistics service capabilities are the results of the company's long-term cultivation.

2. Advantages of industrial expansion

The company has established and owned power and industrial sales teams, as well as industry solutions and marketing application teams, focusing on industry market expansion and technology marketing promotion. Through the innovative development of business models such as 3PA, Iron Triangle Team and full value chain marketing, the development of key customers in the industry has achieved fruitful results.

3. Innovative technological advantages

The company insists on independent innovation and increases investment in scientific research. With the comprehensive promotion of Zheng Tai Kunlun series products, the quality and brand value of Zheng Tai products will be further improved, leading the whole low-voltage electrical appliance industry to re-enter a new era of quality innovation and revolution.

4. Brand advantage

Zheng Tai and Naujac companies have significant brand benefits in the industry. During the reporting period, Kunlun series of new products and system solutions continued to be deeply cultivated, which realized the effective promotion of products and services and further enhanced the company's brand competitive advantage.

5. Management advantages

The company has first-class management team and modern enterprise management mechanism, and has established stable and experienced management teams at all levels. Most senior managers have more than ten years of industry experience. At the same time, the company makes full use of information technology, applies enterprise resource management (SAP/R3), product life cycle management (PLM), collaborative management and other systems, fully implements "Digital Zheng Tai", and carries out meticulous management in all aspects of production and operation, which has obvious advantages among peers in terms of resource optimization, energy saving and emission reduction, and environmental friendliness.

6. Cost advantage

The company's cost control depends on two advantages: First, the scale effect. As a leading domestic low-voltage electrical appliance enterprise, the income of similar products is ahead of domestic counterparts, and the marginal effect brought by scale effectively reduces various costs; Second, lean production, the company fully realizes lean production mode, improves the on-site process level, improves the efficiency of the company's production logistics management, and uses advanced information management means to solidify it. At the same time, the company optimized the product structure and reduced the company's production costs, so that the company's production costs were finally effectively controlled and reduced.

(II) As a pioneer in photovoltaic new energy industry, the company's core advantages are as follows:

1, First Mover advantage

Zheng Tai New Energy is the earliest private enterprise in China that switched from photovoltaic manufacturing to photovoltaic power station construction. It has various qualifications and a group of experienced talents, and has strong comprehensive capabilities in development, design, engineering construction and professional operation and maintenance.

2. Integration advantages

Zheng Tai New Energy has the whole industrial chain of power generation, integration, inverter, substation, distribution, transmission and control system products. It is the only full product provider with the advantages of system integration and technology integration in the industry, providing customers with one-stop service and complete quality assurance.

3. Advantages of globalization

Zheng Tai New Energy Overseas Power Station covers four continents and regions: Europe, Asia, Africa and the United States. With rich and stable international partners and perfect investment risk control system, and with the policy support of "going out" and "Belt and Road", it has achieved remarkable overseas performance.

4. Cost advantage

Establish comprehensive cooperation with major financial institutions at home and abroad, and the financing ratio and financing cost are at an advantageous level in the industry. Known as "low comprehensive cost and high operation efficiency" in the whole industry chain, it continuously obtains reliable and competitive financing, and creates the return of power station projects in leading industries with the best power cost.

5. Scale advantage

The company realizes the connection of the whole industrial chain of power generation, distribution and electricity consumption, grasps the opportunity of new energy and electricity reform through integration, exerts the synergistic effect, utilizes the core advantages of the whole industrial chain, continuously expands the scale of photovoltaic power generation, seizes the opportunity of electricity reform to open the distribution terminal, participates in the electricity sales business, and creates a regional microgrid integrating "new energy power generation, distribution, electricity sales and electricity consumption" to realize business model innovation.