1、CHINT ELECTRICS2011 FINANCIAL REPORTING AND ANALYSIS1Team Members：Liu ZhaoyeCommon-SizeWang YuyaoDebt-PayingXue JianchaoProfitability/ OperationShen KangliangInvestment/OperationJiang RuiCompetitor/IntroductionLI xinCompetitor/Introduction2CHINT ELECTRICS Is Chinas largest production of low voltage
2、electric appliance manufacturing enterprise, the specialty is engaged in distribution appliances, control electric appliances, terminal apparatus, and power electronic and electric power supply low-voltage products development, production and sales. Chint is recognized for a famous Chinese trademark
3、, chint brand universal type circuit breaker, plastic shell type breaker series product has been awarded “China famous brand product“ title. The company in 2004 won the Chinese quality management of the highest award, the national quality management award 3Company profile Stock name: CHINT ELECTRICS
4、 Stock code: 601877l Is Chinas leading company in the field of low voltage electrical appliances l Adhere to the independent innovation, research and development a series of with independent intellectual property rights, reach the international advanced level of low voltage electric products l The c
5、ompanys brand to borrow Jacques realize from “low voltage electrical supplier“ to “solution provider“ change, so as to get higher gross margin and wide development space, the realization enterprise of in-depth development. 4The review of latest earningsThe sales were 82,880,000,000 in 2011, increase
6、d to 30.75% of the 2010 level in 2011. Realized earnings before income tax provision and interests were 10,190,000,000. An increase of 24.70%. The net profit were 8,430,000,000. An increase of 31.82%. Realized 797 million net profit after buckle, increased by 31.16%. The diluted EPS is 0.91. Due to
7、the significantly decrease in main raw material cost price, made the gross earnings ratio increase to 28.71% in the fourth quarter, increased the gross earnings level throughout the year obviously 24.03% 5Common-Size Analysis 6Balance Sheet Vertical Common-size2009 2010 2011Current Assets： Monetary
8、capital 36.79% 62.16% 52.11%Notes receivable 5.80% 6.22% 13.11%Accounts receivable 17.20% 8.17% 8.30%Advance payment 2.23% 1.84% 0.80%Accounts receivable-others 0.35% 0.22% 0.12%Inventory 17.36% 10.92% 10.29%Current assets-others 0.19% 0.07% 0.05%Total current assets 79.93% 89.60% 84.79%Non-current
9、assets： Equity investment-long term 2.23% 1.00% 5.09%Investment Property 0.14% 0.06% 0.04%Fixed assets 13.27% 5.63% 4.58%Construction in process 0.31% 0.98% 2.48%Intangible assets 2.50% 1.61% 1.97%Deferred expenses-long term 0.47% 0.21% 0.14%Deferred income tax assets 1.15% 0.92% 0.91%Total non-curr
10、ent assets 20.07% 10.40% 15.21%Total assets: 100.00% 100.00% 100.00%7Current liabilities： 2009年 2010年 2011年 Short-term borrowing 0.05% 0.00% 0.01%Account payable 33.93% 19.63% 15.64%Account collected in advance 1.49% 0.79% 0.84%Pay roll payable 6.05% 3.98% 4.10%Tax payable 1.22% 0.38% 0.74%Other pay
11、ables 4.82% 2.92% 2.58%Current liabilities-others 0.75% 0.55% 0.29%Total current liability 48.31% 28.25% 24.69%Non-current liability： Bonds payable 0.00% 0.00% 17.83%Anticipation liabilities 0.86% 0.50% 0.48%Non-current liability-others 0.00% 0.07% 0.09%Total non-current liability 0.86% 0.58% 18.41%
12、Total liability 49.17% 28.83% 43.10%Owners equity： Paicl-up capital 33.24% 16.24% 12.03%Capital reserve 0.17% 39.79% 28.24%Surplus reserves 3.45% 2.56% 2.98%Undistributed profits 10.50% 10.61% 11.83%Total owners equity vest in parent company 47.37% 69.20% 55.06%Minority equity 3.45% 1.97% 1.84%Total
13、 owners equity 50.83% 71.17% 56.90%Total liabilities and owners equity 100.00% 100.00% 100.00% 8Balance Sheet Vertical Common-sizeIn 2011, the non-current liabilities item of company is the proportion of the 2010s increase obviously, mainly because the company in 2011 to raise funds for company exec
14、uted bonds issue 1.5 billion Yuan.From the current liabilities to see, the companys short term loans has always been the proportion is very low， In 2010 the company short-term borrowing all paid off, in 2011 the company only had an increase of 1.1 million Yuan short-term borrowing， Should say this b
15、enefits from the company is very sufficient liquidity 。 The proportion of accounts payable is low, on the whole, the companys short-term debt service pressure is very low. 9Balance Sheet Vertical Common-size AnalysisBalance Sheet Crosswise Common-size2009年 2010年 2011年Current Assets： Monetary capital
16、 100.00% 386.21% 437.18%Notes receivable 100.00% 245.13% 697.67%Accounts receivable 100.00% 108.53% 148.98%Advance payment 100.00% 188.00% 111.17%Accounts receivable-others 100.00% 145.51% 106.79%Inventory 100.00% 143.73% 182.91%Current assets-others 100.00% 91.20% 86.33%Total current assets 100.00%
17、 256.26% 327.46%Non-current assets： Equity investment-long term 100.00% 102.77% 704.53%Investment Property 100.00% 90.25% 80.50%Fixed assets 100.00% 96.89% 106.56%Construction in process 100.00% 725.53% 2485.20%Intangible assets 100.00% 146.79% 242.62%Deferred expenses-long term 100.00% 104.57% 94.2
18、4%Deferred income tax assets 100.00% 183.21% 246.14%Total non-current assets 100.00% 118.47% 233.96%Total assets: 100.00% 228.60% 308.69% 10Current liabilities： 2009年 2010年 2011年 Short-term borrowing 100.00% 0.00% 88.25%Account payable 100.00% 132.22% 142.28%Account collected in advance 100.00% 122.
19、04% 173.41%Pay roll payable 100.00% 150.43% 209.49%Tax payable 100.00% 71.01% 187.52%Other payables 100.00% 138.56% 165.18%Current liabilities-others 100.00% 166.88% 121.18%Total current liability 100.00% 133.68% 157.79%Non-current liability： Bonds payable Anticipation liabilities 100.00% 132.71% 17
20、1.32%Non-current liability-others Total non-current liability 100.00% 152.50% 6575.03%Total liability 100.00% 134.01% 270.56%Owners equity： Paicl-up capital 100.00% 111.67% 111.67%Capital reserve 100.00% 52587.67% 50395.17%Surplus reserves 100.00% 169.55% 266.38%Undistributed profits 100.00% 231.01%
21、 347.70%Total owners equity vest in parent company 100.00% 333.93% 358.81%Minority equity 100.00% 130.69% 164.26%Total owners equity 100.00% 320.12% 345.59%Total liabilities and owners equity 100.00% 228.60% 308.69% 11Balance Sheet Crosswise Common-sizeCompany sales growth not only brought ample liq
22、uidity, more subsequent receivables. Accounts receivable compared to above increase is not a lot, but notes receivable is nearly seven times to 2009. The annual report to make a explained, in order to reduce the risk of bad loans, the company adjust credit policy, increase the settlement scale of ba
23、nk acceptance. 12Balance Sheet Crosswise Common-size Analysis1. A long-term equity investment of 2011 years is 2009 7 times, mainly due to the value of 161.59 million Yuan this company to purchase the “ZKtechnology“ 9.18125 million shares, in addition to the company invested 200 million RMB.2. The p
24、roject under construction company in 2011 is 2009 years of 24 times, mainly due to current period to raise funds based construction project in caused by increase. 3. The company non-current liabilities in 2011 is 2009 65 times, mainly because of the increase of bonds payable project, that company wa
25、s to issue 1.5 billion bonds.4. Capital reserve in 2011 and 2010 were more than 500 times in 2009, mainly because of the company 2010 years was just listed.13Balance Sheet Crosswise Common-size AnalysisProfits and Loss Items Crosswise Common-sizeItems Crosswise 2009 Crosswise 2010 Crosswise 2011NO.1
26、、 Taking 100.00% 132.02% 172.62%Cut： Operating costs 100.00% 136.17% 182.55%Business Taxes and Surcharges 100.00% 109.65% 125.26%Selling expenses 100.00% 125.46% 140.07%Management expenses 100.00% 135.57% 161.47%Financial Expense(Be negative for three consecutive years) 100.00% 185.99% 1208.81%Loss
27、from as set devaluation 100.00% -31.93% 31.37%Income on investment(be negative in 2009) 100.00% -465.57% -872.47%NO.2、 Operating profit 100.00% 119.65% 155.06%Plus： Non-business income 100.00% 15.87% 7.43%Cut： Non-business expenditure 100.00% 11.11% 15.09%NO.3、 Total profit 100.00% 121.88% 156.36%Cu
28、t： Total profit 100.00% 116.61% 142.94%NO.4、 Net profit 100.00% 122.97% 159.12% 14Items Vertical 2009 Vertical 2010 Vertical 2011NO.1、 Taking 100.00% 100.00% 100.00%Cut： Operating costs 71.84% 74.09% 75.97%Business Taxes and Surcharges 0.65% 0.54% 0.48%Selling expenses 5.05% 4.80% 4.10%Management ex
29、penses 7.58% 7.79% 7.09%Financial Expense(Be negative for three consecutive years) -0.11% -0.15% -0.76%Loss from as set devaluation 0.39% -0.09% 0.07%Income on investment(be negative in 2009) -0.01% 0.04% 0.05%NO.2、 Operating profit 14.59% 13.22% 13.11%Plus： Non-business income 1.65% 0.20% 0.07%Cut：
30、 Non-business expenditure 1.87% 0.16% 0.16%NO.3、 Total profit 14.37% 13.26% 13.01%Cut： Total profit 2.45% 2.17% 2.03%NO.4、 Net profit 11.91% 11.10% 10.98% 15Profits and Loss Items Vertical Common-sizeProfits and Loss Items Common-size AnalysisThe company business income in 2011 was 1.7 times than th
31、at in 2009, operating income increased year by year, explain the company sales scale expands unceasingly. The annual report says the company mainly due to the increasing domestic and foreign market development and promotion of new strength, so domestic auxiliary market demand increase, sales volume
32、growth.The company business cost 2011 is 1.8 times more than in 2009, operating costs increased year by year, and compared with the business income greater proportion. This is mainly because 2011 product sales growth and raw material prices caused by common effect, but net profit in operating income
33、 proportion and not as a substantial increase in the sales increase, so the pressure of the rising costs was more.16The financial cost three years are negative, suggests the company continued interest income were more than interest expenses and financial expenses in 2011 is 2009 of 12 times, annual
34、report also shows that 2011 net interest revenue by two hundred and twenty percent more than at the beginning, because that does not exist is annual report has the controlling shareholders and their affiliates non-business take fund, then according to illustrate the annual report because the 2011 ma
35、in source of revenue for the financial risk control increased cash reserves, interest income increase.17Profits and Loss Items Common-size AnalysisMain Business Common-size18Main Business Common-size AnalysisWe can see that the power distribution, terminal and control electric appliance is the compa
36、nys three big blockbuster products. Low voltage electric low end the market the main competitive factors is cost control ability and product prices, and the company with domestic similar enterprise brand advantage compared significantly, bargaining power, stronger, cost control ability outstanding,
37、higher growth performance for many years the industry average more than 10% of the companys market share increases company experienced industry inside remain relatively high growth.19analyses of short-term debt-paying abilitycomparisons between some ratios of recent 3 years yearratioyear2009 year201
38、0 year2011Working capital856018150.3yuan3697904421yuan5022143163yuancurrent ratio1.65 3.12 3.43Acid-test ratio1.30 2.73 3.02cash ratio 0.76 2.20 2.11net cash provided by operating activities/current liabilities0.84 0.40 0.0621Analyses of Working CapitalAs we can see from the chart， this companys wor
39、king capital has been positive and gradually increased recently， because the recent 3 years current assets and liabilities have gradually increased respectively， and the difference between these two have also increased; this difference is the working capital. This increase in the working capital ind
40、icates that the companys short-term debt-paying ability is guaranteed，and strengthened recently。22Analyses of Current RatioAs we can see from the chart ， this companys current ratio has been positive and gradually increased recently， because the current assents and current liabilities have gradually
41、 increased, but the current assets have increased faster. The increase of current ratio indicates that the company has a growing ability to pay the current liabilities, and the short-term debt-paying ability has strengthened.23Analyses of Acid-test RatioAs we can see from the chart ， the company s a
42、cid-test ratio has gradually increased recently，because the current assets and inventories have both increased but the current assets have increased much faster, which made the difference between them increase. The increase in the acid-test ratio indicates that the company has a growing ability to i
43、mmediately realize and pay short-term liabilities. At the same time, this tendency is consistent with the current ratio s tendency, which means that the company s inventories have been stable recent.24Analyses of Cash RatioAs we can see from the chart ， the company s year2011 s cash ratios is much b
44、igger than year2009 s， but the year 2011 s is slightly smaller than the year s. Because the cash equivalents grew much faster than the current liabilities, causing their ratio to increase. As to year 2011 and 2010,the cash equivalents and the current liabilities have both increased but their ratios
45、have a little difference. The tendency in cash ratio indicates that the company s ability to pay immediately has increased enormously and decreased a bit.25Analyses of Net Cash Provided by Operating Activities/Current LiabilitiesAs we can see from the chart ， the company s net cash provided by opera
46、ting activities/current liabilities has gradually increased, because the net cash provided by operating activities have decreased and the current liabilities have increased, causing their ratio to decrease. This ratio s tendency indicates that the company has a gradually decreased ability to pay its
47、 short-term debts by using net cash. This ratio in the recent 3 years has been below 1, so the company can t pay its debt using just net cash provided by operating activities. It must obtain cash in other ways to ensure that its liabilities can be paid in time.26analyses of long-term debt-paying abi
48、litycomparisons between some ratios of recent 3 yearsyearratioyear2009 year2010 year2011debt ratio 49.17% 29.30% 43.10%debt/equity ratio96.75% 41.44% 75.74%Debt to tangible net worth ratio 101.76% 42.42% 78.46%Times interest earned532.02 1820.80 26.44net cash provided by operating activities/total l
49、iabilities0.83 0.39 0.0328analyses of debt ratioAs we can see from the chart ， the company s 2010 year s debt ratio is much smaller than the 2009 s, because the total assets of year2010 is much bigger than the year2009. The debt ratio of year2011 is nearly level with the year2009, because although the total assets and liabilities have both increased， but as with year2009， the total liabilities are nearly half of the total assets. Theoretically， in the recent 3 years, the company has a growing and then decreasing debt
