Boshen Tools: Main business profit decreased compared with the same period of last year

Abstract During the reporting period, the board of directors of the company operated in accordance with the relevant provisions and requirements of the “Articles of Association”. All directors performed their duties with due diligence, exercised their powers according to law, actively planned the development of the company, and steadily promoted various tasks. In the first half of 2013, the global economic structure became increasingly complex,...
During the reporting period, the board of directors of the company operated in accordance with the relevant provisions and requirements of the “Articles of Association”. All directors performed their duties with due diligence, exercised their powers according to law, actively planned the development of the company, and steadily promoted various tasks.

In the first half of 2013, under the background of increasingly complex global economic structure and slowing domestic economic growth, the contradiction between insufficient market demand and high operating costs of enterprises is very prominent, and the overall operating situation of the manufacturing industry is more severe. To this end, the company in the first half of the year in accordance with the "increasing income and savings" work guidelines formulated at the beginning of the year, actively explore the market, strengthen customer maintenance, strengthen the control of various expense items, and strengthen the production cost reduction work of each business unit. With the efforts of all employees in the company, the operating income has remained basically stable, and sales of power tools and tile tools have increased. However, due to the high operating costs of the company, especially after the Boss Thailand subsidiary was put into production, the capacity utilization rate was lower and the comprehensive cost was higher. The overall profitability of the company's main business was lower than that of the same period of last year.

During the reporting period, the company continued to strengthen research and development technology investment. In the first half of 2013, the company's “High-performance professional diamond saw blade pre-alloy powder carcass manufacturing technology” project won the “third prize of Hebei Province Science and Technology Progress Award”. In the first half of the year, the company obtained 10 authorized patents. As of the end of the reporting period, the company had 163 valid national patents, including 10 invention patents.

During the reporting period, the company realized operating income of RMB 269,966,400, a decrease of 5.49% over the same period of the previous year of RMB 285,569,100; realized operating profit of RMB 35,290,600, an increase of 22.84% over the same period of the previous year of RMB 28,927,600; The net profit attributable to shareholders of listed companies was RMB 31,043,300, an increase of 25.21% over the same period of the previous year of RMB 24,792,300. The increase in operating profit during the reporting period and the net profit attributable to shareholders of the listed company was mainly affected by the company's transfer of investment income from Tiantong Light Truck and Tiantong Automobile.

In the second half of 2013, under the circumstances that the domestic and international economic development situation has not changed significantly, the company will continue to implement the business strategy of “increasing revenue and reducing expenditures” to promote the increase of sales revenue, while controlling costs and reducing costs. Efforts to improve the completion of the annual business indicators. In the second half of the year, the company will work in the following aspects:

1. Product sales. (1) Strengthen the analysis of sales area and product sales structure, enhance the planning of market expansion and the pertinence of regional layout; extensively and in-depth study of the actual needs of product use terminals, from the use, performance, price, brand, channel and other dimensions Combine the existing product structure, establish a systematic scientific product system, enhance the pertinence of product sales, and strengthen the direction and pertinence of new product development. (2) Strengthen channel management and customer maintenance, analyze customer structure changes, take corresponding measures for different situations, strengthen the pertinence of customer service, and cultivate potential customers on the basis of maintaining the stability of customer structure. (3) Strengthen the training of sales personnel, improve the knowledge level of business personnel in product performance and application product functions, guide business personnel in professional training in customer communication, marketing, customer service, etc., and improve the comprehensive quality of business personnel. Improve customer recognition.

2. Cost control. (1) Strengthen budget management and control various expenses; (2) simplify structure and personnel and improve work efficiency; (3) strengthen management of new services such as general power tools and ceramic tile tools, formulate corresponding systems, and control costs, Improve profitability.

3. Cost reduction. (1) Strengthen cost analysis, analyze the cost structure of different products, compare the changes in gross profit margin, and find possible cost reduction points from raw material procurement and production process control; (2) strengthen production planning management and reduce inventory levels. Improve inventory turnover. Each production unit conducts detailed analysis on the respective raw materials, products and finished products, finds possible space for inventory reduction, and combines the reasonable arrangement of production plans to reduce inventory levels. (3) Strengthen the management of accounts receivable, establish and improve the customer account management policy, strengthen the management of settlement methods, strengthen the assessment of the return of sales personnel, and improve the speed of capital turnover. (4) Strengthen the operation and management of subsidiaries such as Boshen Thailand and Boshen Brazil, reduce operating costs and improve their profitability.

4. Product development. (1) Establish and improve product planning and product development processes to improve the pertinence and practicality of product development; (2) Combine the existing product structure, and accelerate the development of new products in response to the decline in the sales volume of individual diamond tools. Promote the upgrading of products and reverse the decline in sales; (3) Optimize the management of R&D projects, strengthen the performance management of R&D personnel, and improve the success rate and economic benefits of product R&D.

5. Basic management. Continue to strengthen the establishment and improvement of various business and management processes, improve work efficiency; focus on strengthening product quality management and improve customer satisfaction.

With the adoption of the above measures and the gradual effectiveness, the company's profitability will gradually increase.

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