Click the blue word to focus on the cast construction industry, which is known as the trillion blue ocean.

Despite the impact of the epidemic and the overall downturn of the real estate industry, as a head enterprise of precast construction, Yuanda housing workers still achieved a revenue of 3.059 billion yuan in 2021, a year-on-year increase of 21.8%.

In 2021, the PC component manufacturing business of Yuanda residential workers signed a contract of 4.947 billion yuan, a year-on-year increase of 20.9%; The production quantity of PC components increased by 28.7% from 797000 cubic meters at the end of 2020 to 1026000 cubic meters; The sales volume of PC components increased by 27.1% from 872000 cubic meters at the end of 2020 to 1108000 cubic meters.

There were many consolidated losses, resulting in an obvious decline in its net profit.

(02163.hk, hereinafter referred to as Yuanda housing workers) released the 2021 annual financial report, which showed that the revenue during the period was about 3.059 billion yuan, an increase of 21.8% year-on-year, but the gross profit, gross margin and operating profit decreased significantly.

According to the 2021 annual report of zhuyou Zhizao Technology Group Co., Ltd.

The continuous technological R & D and investment of precast buildings will also produce some output in the future..

For precast construction enterprises, how to solve the problem of “increasing income without increasing profit” in the future? Why does the head enterprise increase income but not profit? Precast buildings can be roughly divided into three categories: Precast concrete structure (PC), steel structure and wood structure.

What is the current development status? Recently, as the leading enterprise in the cast construction industry, Changsha Yuanda Housing Industry Group Co., Ltd.

However, its gross profit from continuing operations was 855 million yuan, a year-on-year decrease of 6.3%; The gross profit margin decreased from 36.3% in 2020 to 28.0%; The operating profit was 158 million yuan, a year-on-year decrease of 54.5%; The profit attributable to equity shareholders of the company was 32.427 million yuan, a year-on-year decrease of 85.0%.

At present, China’s precast construction capacity is mainly distributed in Hunan, Jiangsu, Shandong, Jiangxi and other places, of which Hunan Province accounts for the highest proportion of capacity, and it is mainly PC structure capacity.

last year, the price rise of all raw materials, whether cement, iron ore or steel bar, was particularly serious.” Zhang Bo said that for head mounted construction enterprises, it is beneficial in the long run to have sufficient market share and exchange more market share by making less money.

Source: zhuyou Zhizao Technology Annual Report “the sharp rise in the price of bulk commodity raw materials in 2021 has a great impact on construction enterprises.

The above two enterprises are engaged in the construction and production of precast PC.

According to public data, in 2020, the production capacity of precast concrete structures in Hunan province accounted for 19.8%, Jiangsu ranked second with 11.5% and Shandong ranked third with 9.6%.

This is mainly because Yuanda residential engineering, the largest PC construction manufacturer and PC equipment manufacturer in China, is headquartered in Changsha, Hunan Province, which provides convenient conditions for the development of precast PC buildings in Hunan Province.

In 2021, the revenue reached HK $2.085 billion, with a year-on-year increase of 91.4%; The gross profit was HK $524 million, a year-on-year increase of 51.8%; The gross profit margin decreased from 31.7% in 2020 to 25.1% in 2021; Profit attributable to shareholders was HK $132 million, a year-on-year decrease of 16.7%.

The gross profit margin and profit attributable to shareholders decreased significantly year-on-year.

It can be found from the analysis of the financial report that the interest expense increased by 72.73% and the non recurring profit and loss increased significantly.

In the same period, the sales contract amount of PC components was 2.501 billion yuan, a year-on-year increase of 74%.

On the one hand, the industry competition intensifies, on the other hand, the price of raw materials rises, which compresses the profit space of products, resulting in pressure on the gross profit margin of enterprises.

Although the sales revenue continues to increase, the corresponding reduction of unit benefits leads to the increase of income rather than profit.

Similar to Yuanda residential workers, while the gross profit of zhuyou Zhizao technology increased, the gross profit margin and profit attributable to shareholders also decreased significantly year-on-year.

Source: for the decline of profits in the annual report of Yuanda housing workers, Tang Fen, President of Yuanda housing workers, said at the performance meeting, “we don’t have the leading power in the industry chain, resulting in the downward pressure on the price, and the supply of raw materials in the upstream is also rising.

“The increase in operating revenue shows that the influence of the whole precast construction market is expanding, while the non profit increase is due to the increasing cost.” Zhang Bo, President of anjuke Real Estate Research Institute branch, analyzed to the reporter of daily economic news that the price rise of bulk commodities is the biggest reason for the rise of the whole sales cost of precast construction enterprises.

According to the statistics of the Ministry of housing and urban rural development, in 2020, precast concrete structures accounted for 68.3% of newly started precast buildings, and precast steel structures accounted for 30.2%.

At the same time, zhuyou Zhizao technology also consolidated the performance of its associated companies.

Zhuyou Zhizao technology pointed out in its annual report that the decline in gross profit margin was mainly due to the rise in the cost of raw materials, of which the cost increased by about HK $185 per cubic meter due to the rise in the price of steel.

(00726.hk, hereinafter referred to as zhuyou Zhizao Technology), another head enterprise also engaged in precast construction, the revenue during the period was HK $2.085 billion, a year-on-year increase of 91.4%; The gross profit was HK $524 million, a year-on-year increase of 51.8%.

From the perspective of business composition, PC part structure is still the main source of income for Yuanda residents.

At present, PC is mainly used in China.

Spherical Head Anchor

Under the pressure at both ends, Yuanda housing workers become a part of the dumbbell.” Looking at zhuyou Zhizao technology, the sales revenue of PC components in 2021 reached HK $1.323 billion, a year-on-year increase of 44.51%.