Xingye Leather Polytron Technologies Inc Released 2012 Annual Report

< p > < strong > Xingye leather Polytron Technologies Inc < /strong > < /p >

< p > securities code: 002674 securities short: Xingye science and technology announcement number: 2013-007 < /p >

< p > Xingye < a href= "http://www.91se91.com/news/index_c.asp" > leather < /a > Polytron Technologies Inc < /p >

< p > < strong > 2012 annual report Abstract < /strong > < /p >

< p > < strong > 1, important note < /strong > < /p >

< p > the annual report summary is from the full report of the annual report. Investors would like to read the details carefully and read the full text of the annual report on the designated website of the China Securities Regulatory Commission on the website of < a href= "http://www.91se91.com/news/index_p.asp" > Shenzhen < /a > stock exchange website.

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< p > Company Profile < /p >

< p > < strong > 2, main financial data and shareholder changes < /strong > < /p >

< p > (1) mainly < a href= "http://www.91se91.com/news/index_cj.asp" > financial data < /a > /p >

< p > (2) the top 10 shareholders holding table < /p >

< p > (3) disclose the property rights and control relationship between the company and the actual controller in block diagram < /p >

< p > < strong > 3, management discussion and analysis < /strong > < /p >

< p > (1) business performance analysis < /p >

< p > 2012, in the face of severe and complex economic environment, under the correct leadership of the board of directors, under the correct attitude towards all shareholders, the company's business layer carried forward the spirit of "perseverance, diligence, devotion and dedication", adhering to the management concept of "taking the initiative to manage and doing fine work", adhering to the business philosophy of "creating a famous brand", adhering to the strategic innovation, institutional innovation, technological innovation and business innovation, and achieved better business objectives.

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During the reporting period, the company achieved operating income of 1 billion 543 million 406 thousand and 500 yuan, an increase of 20.46% over the same period last year, operating profit of 166 million 360 thousand and 300 yuan, an increase of 15.58% over the same period last year, a total profit of 170 million 987 thousand and 100 yuan, an increase of 18.61% over the same period last year, and a net profit of 145 million 429 thousand yuan attributable to shareholders of listed companies, representing a 18.24% increase over the same period last year.

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During the P reporting period, the company's performance growth was mainly due to the increase in production and sales. One of the 1 million 500 thousand new technologies for finishing the top grade leather finishing project (An Dongyuan) was put into operation one after another.

The main work is summarized below: < /p >

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The construction of the staff force: by hiring teachers to teach and train key personnel to study and further study, improve the quality of staff and create a learning team; enhance the loyalty of employees through the career planning of employees; through further improving the examination mechanism, the potential of employees can be effectively activated.

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Sales: regular sales personnel training, improve sales staff's service awareness and service quality; organize customer development designers to communicate with the company's technical team face to face, organize in-depth understanding of customer needs, promote the development and promotion of new products, improve sales volume, cultivate terminal customer loyalty, strengthen cooperation with leading brand shoe manufacturers at home and abroad, strengthen cooperation with luggage enterprises, strive to expand new markets, develop new customers, optimize product mix, and establish brand image of Xingye.

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< p > production management: import fine management, sort out the management system of various departments and posts, and clarify departments and posts < /p >

The division and responsibilities of < p >, implement every work detail, strengthen the coordination of departments and posts, introduce the production bar code management system and OA cooperative office system, strengthen the use of ERP system, and continuously improve work efficiency.

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< p > 4.

Product research and development: through the investigation of the development trend and market demand information of leather products at home and abroad, combined with the hierarchical structure of leather products, the company develops new product development plan and expands the development and production of high-grade, multi-functional and high added value leather.

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< p > (2) industry competition pattern and development trend < /p >

< p > China's tannery enterprises are large and medium-sized enterprises are few, small enterprises are numerous, and production concentration is relatively low.

The different formats and profit models of enterprises in the industry differ from each other in terms of horizontal comparability, and only have advantages in market segmentation.

At the same time, the production capacity of low-grade products is excessive, and the production capacity of high-end products is insufficient.

Most of the small and medium sized enterprises have similar products and similar quality, forming a repeat production at the same level.

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< p > China's leather industry has entered a period of industrial upgrading after years of rapid development.

We should readjust the industrial structure, change the mode of growth, strengthen the technological pformation, popularize new technologies, new processes, new materials and new equipment, improve the added value and core competitiveness of products, promote energy conservation and emission reduction, eliminate backward production capacity, promote industrial upgrading, and increase the concentration of industries, and lay a solid foundation for China to enter the ranks of leather giants from a big leather country.

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P as the leading enterprise in the leather industry, the company has always been in the leading position in the production and sales of the top layer of shoe upper leather. The company has a complete range of products, covering three major products, such as Napa series, natural throw series and special effect leather series.

In the domestic market, the product sales area is mainly concentrated in Zhejiang, Fujian and Guangdong provinces.

The above three provinces have gathered a large number of shoemaking enterprises. The main customers of the company, such as BELLE, fortune bird, Yi Kang, red dragonfly, AOKANG, and wood Lin Sen, are all concentrated in these three provinces. In 2012, the sales volume in Guangdong and Zhejiang increased by 20% left and right, and the gross margin of products remained stable, indicating that the sales area of the company was mainly concentrated in the more developed areas of footwear industry, with high market recognition and obvious brand effect.

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< p > (3) the development strategy of the company < /p >

< p > leather industry is a relatively high entry industry. In addition to the need for a group of highly skilled practitioners, tanning enterprises also have certain requirements for funds, equipment, factories and pollution control capabilities.

From the perspective of the allocation of production factors, tannery enterprises are either capital intensive enterprises or sophisticated technology intensive enterprises. At the same time, tanneries are the industry that national policies require environmental assessment to be pre approved.

Such a high threshold makes many foreign investors trying to enter the industry.

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< p > < technical barriers > /p >

< p > with the continuous development of the domestic economy and the continuous improvement of people's living standards, the market's demand for new leather products has shown the characteristics of diversification, individuation and fashion. The supply of medium and low grade products exceeds demand, while the products with high technology content and high added value need to be imported, which puts forward higher requirements for the whole leather making industry in terms of processing technology, product quality and performance, and the gradual upgrading of technical requirements has become an important obstacle for manufacturers to enter the industry.

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< p > the company is a "high-tech enterprise", and its production equipment has always maintained a leading position in domestic tanning enterprises.

On the basis of advanced equipment, drawing on foreign advanced technology, after years of experience accumulation, the company has strong core competitiveness in leather technology.

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< p > environmental barrier > /p >

< p > because tannery industry is one of the thirteen polluting industries that the state mainly monitors, the requirement for environmental protection is higher than that of other industries.

Before the project is approved, the "environmental impact assessment" shall be implemented in advance and the strict examination and approval system shall be implemented. In accordance with the relevant state regulations, the investment intensity of the environmental protection project must be guaranteed, and the "Three Simultaneity" system must be carried out at the same time, which is designed, constructed and put into operation at the same time as the main project. In the production process design, the use of environmental friendly chemicals, reasonable water saving and consumption reduction processes, and the processing steps of waste water, waste gas and solid waste are also very important.

In environmental regulation, the state has promulgated a series of policies and measures to strengthen the pollution control of leather industry, such as energy conservation, emission reduction, elimination of backward energy and clean production.

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< p > the company has increased environmental protection investment in recent years, invested a lot of money in building environmental protection facilities, and established a sound environmental management and supervision system.

With the gradual application of advanced environmental protection facilities and environmental protection technologies, the discharge of pollutants has been effectively reduced. At the same time, the recovery and utilization rate of waste water has been raised, and the efficiency of recycling of waste water has been increased.

In the production process, we use environmentally-friendly leather special dyes, high absorption chrome tanning agents, protein filling retanning agents, high-grade leather finishing flame retardant materials, high-grade leather auxiliaries and other new materials. At the same time, we study the new technology of environmental protection leather making, realize the harmless and resourceful disposal of waste residue, the comprehensive utilization of waste water, the recycling of chrome tanning waste liquid, the recycling of Liming waste liquor, and actively promote clean production technology, and strive to create an environment-friendly enterprise.

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< p > barrier of investment scale < /p >

< p > in the early stage of leather industry development, due to non-standard, the scale of investment in enterprises is not high, the entry threshold is low, and some simple equipment can be used for production.

At the present stage, with the continuous improvement of the brand concentration of downstream enterprises, higher requirements for the scale and quality of the upstream supporting enterprises are also required.

At the same time, with the increasing importance of environmental protection in China and the strict restrictions of the developed countries on the standards of leather chemicals, the access conditions for the industry are getting higher and higher.

From the perspective of development trend, due to the gradual increase of related cost investment, small enterprises without scale and technological advantages will be phased out gradually.

Therefore, the objective limitation of enterprise investment scale will constitute a barrier to enter the industry.

Under the influence of the national macroeconomic regulation and control policy, many small and medium-sized tanneries are facing the risk of bankruptcy, but they also set a higher threshold for investors preparing to enter the leather industry.

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< p > as the first natural leather listed enterprise in China, the market share of leather upper leather is the first in China. The company will take this opportunity to keep pace with the trend of world shoe industry fashion and luggage, increase investment in research and development, accelerate the introduction of foreign advanced leather technology, and effectively increase the added value of the company's products.

We should continue to strengthen the company's sales force building, optimize the layout of the national sales network, increase the brand publicity, expand the visibility and influence of the companies in the leather industry of men's shoes, women's shoes, sports shoes, bags and other leather materials through various ways, especially in the next three years. On the basis of consolidating and developing the market of the upper leather, we should increase the development of the market of luggage and leather goods, enhance the brand image of "Xingye leather" in an all-round way, and go all out to reach the mission of "green leather and hundred years' prosperity."

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< p > (4) core competitiveness analysis < /p >

< p > 1. The advantage of product development is < /p >.

< p > the company has strong R & D strength and advanced technology.

As a leading industry in the domestic industry, the company adopts the strategy of "research and development guidance" rather than "follow the strategy".

In line with the principle of "generation generation, reserve generation, R & D generation", the company relies on a powerful technology platform to continuously carry out forward-looking technology research and new product development.

With the increasingly fierce competition in the downstream footwear market, the downstream customers are increasingly demanding the leather industry, and the orders are showing the characteristics of multiple varieties and batches. Especially, the footwear industry as a fast selling product has a very high demand for timeliness.

This poses great challenges to the leather industry, and is also an opportunity for R & D and scale leading enterprises.

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< p > production equipment superiority < /p >

< p > the company's production equipment has maintained a leading position in domestic leather making enterprises.

Over the years, the company has introduced Y type stainless steel drum, computerized automatic skin gripper, high precision shaving machine, constant pressure water control system, automatic production line, computer spray machine, laboratory testing analyzer and sewage treatment advanced equipment from Italy, France, Korea and Brazil. It not only greatly improves the mechanization and automation level of the production process, but also provides hardware support for product quality standardization.

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< p > technical advantage < /p >

< p > on the basis of advanced equipment, drawing on advanced technology from abroad, after years of experience accumulation, the company has strong core competitiveness in leather making technology.

The company has four patents for design, two invention patents for leather making technology and eight utility models. The "clean leather production technology" project is listed as "national Spark Program" by the Ministry of science and technology.

The company has strong product development capability. In recent years, new products have been continuously developed, and new product development series and varieties have been developed. The development of new products has greatly promoted the company's revenue and performance growth.

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< p > location, customer advantage < /p >

< p > China's largest and most concentrated four shoemaking bases, including Guangzhou, Wenzhou, Quanzhou and Chengdu, are commonly known as "three states and one capital". The company is located in Jinjiang City, Fujian Province, adjacent to Zhejiang, Guangdong, and adjacent to Guangzhou, Wenzhou and Wenzhou in four major shoemaking bases. It has advantageous geographical advantages, is conducive to timely understanding of customer needs, and quickly grasps market dynamics through customer feedback, grasps market trends, and adjusts product structure timely according to market trends and future trends.

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< p > the company has established strategic partnership with many well-known footwear enterprises, and has provided high-quality leather materials for a long time.

At the same time, relying on strong technology platform, the company can develop customized products with high added value according to the requirements of customers, and respond quickly to the personalized needs of customers.

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< p > enterprise culture superiority < /p >

For more than a year, the management of the company has extracted the spirit of "perseverance, diligence, love to fight and dedication" from the rhinoceros, cattle, bullfight and cow on the basis of absorbing Chinese traditional culture, combining with its own operating characteristics and practical experience. It has formed a unique cattle culture like "Rhino like steadfast, like a cattle like to work and dedication, such as a bullfight, never say die, and a selfless dedication like cows".

Driven by the mission of "green leather and century development", "cattle culture" has become the basis of strategic innovation, institutional innovation, technological innovation and business innovation.

At the same time, the company in line with the "people-oriented" management concept, strive to provide superior working environment for employees, create a comfortable living environment, and build a harmonious cultural environment.

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< p > (5) future business plan < /p >

< p > < marketing > < /p >.

< p > based on the "three states and one capital" (Guangzhou, Wenzhou, Quanzhou, Chengdu), we will divide the marketing area, set up the front-end agencies, do a good job in market investigation, do a good job in customer search, further optimize the customer structure, increase the promotion of strategic well-known brands, plan other second-line brands and OEM manufacturers, and distribute them to local distributors on the basis of the company's "customer credit rating selection principle".

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< p > R & D area < /p >

< p > continue to strengthen investment in the company's R & D center's capital and talents, give full play to the role of the world's technical resources as a member of SATRA, the world's tannery technology authority, and continue to intensify efforts to promote the pace of the company's leather manufacturing technology to integrate with the world, and build the R & D center as the leading R & D base for ecological leather in China and the research base for cleaner production technology in leather industry, so that the R & D market can grasp market demand in time, guide consumption trends, accelerate the development of fashion varieties, and stabilize product quality.

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< p > < HR > /p >

< p > the company adheres to the principle of "appointing talents and applying talents" and focuses on the road of "qualified personnel echelon construction, internal training and common development".

In the past three years, a joint college or bachelor degree education has been carried out. Over the past 80% years, more than 80% college level cadres and chief level technicians have been established, and a team of top level technicians has been set up to build a team of professional managers at all levels in the leather industry, and strive to improve the overall quality of the staff through the training of key personnel at different levels, especially the improvement of the modern management, innovation and decision-making ability of the middle and senior management and technical personnel. The company will continuously introduce high-end management and technical personnel at home and abroad, comprehensively enhance the management level and product development ability of the enterprise, establish the incentive mechanism for the top and middle level core talents, and embark on the core personnel career planning, so as to achieve the goal of developing enterprises and talents together with the development of talents. The company will continue to establish a key personnel training mechanism with universities and colleges, and adhere to the marriage with famous universities.

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< p > (6) the risk may be less than /p.

< p > < 1 > the risk of environmental protection policy < /p >

"P" domestic tannery enterprises are faced with the increasingly stringent environmental laws and regulations supervision.

For a large number of small and medium-sized enterprises with limited environmental protection or pollution control, the enterprises will gradually withdraw from the market due to environmental pressure, and the enterprises with strong pollution control and environmental protection will get greater development space.

The trend of industry merger and integration is very urgent because of the increase of environmental protection supervision.

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< p > the company has always attached importance to environmental protection work. In recent years, environmental protection investment has been continuously increased, and a perfect environmental management and supervision system has been established.

With the application of advanced environmental protection facilities and environmental protection technology, the discharge of pollutants has been effectively reduced. Meanwhile, the recovery and utilization rate of wastewater has been raised, and the efficiency of recycling of waste water has been increased.

In the production process, we use environmentally-friendly leather special dyes, high absorption chrome tanning agents, protein filling retanning agents, high-grade leather finishing flame retardant materials, high-grade leather auxiliaries and other new materials. At the same time, we study the new technology of environmental protection leather making, realize the harmless and resourceful disposal of waste residue, the comprehensive utilization of waste water, the recycling of chrome tanning waste liquid, the recycling of Liming waste liquor, and actively promote clean production technology, and strive to create an environment-friendly enterprise.

In September 2008, our company's "recycling economy leather cleaning production technology research and development" was awarded the first China leather industry energy conservation and emission reduction environmental protection innovation award three and so on. In January 22, 2008, the company's clean production was formally approved by the Fujian provincial Environmental Protection Bureau.

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< p > at present, the state is continuing to increase environmental protection supervision and enact more stringent environmental regulations.

If the country improves environmental standards or tighter environmental policies, the company will pay more capital expenditure and cost, which will lead to an increase in its operating costs.

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< p > 2. The risk of product innovation and technological progress < /p >

< p > technological innovation is an important means for the company to maintain the advantage of bargaining and resist competition in the same industry.

Because of the strong brand promotion, high market concentration, strong design strength, variety, variety, and fast changing speed, high-end brand customers not only require companies to adapt to the characteristics of "large quantity and variety", but also require the company to have rapid R & D, quick supply capability, and shorten the development cycle of new products, such as development, small test, pilot, bulk trial production and mass production, as far as possible.

The success of our company is largely dependent on the demand for downstream industries and the accurate grasp of the technological development of the industry. We also advance the development of new technology or new technology. If the company's technological development and upgrading can not keep up with the trend of the downstream industry and the needs of the final consumer and keep up with the hot spots of the market development, the new product design and development capability of the company can not meet the needs of customers, and will not continue to gain competitive advantage in the industry, resulting in business losses or customer churn.

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< p > concentration of industry is low, there is disorder competition risk < /p >

< p > because our products are mainly sold domestically, the main competitive pressures are domestic, while the domestic tannery industry is mainly small enterprises, with low industry concentration, and most of the small and medium sized enterprises have similar products and similar quality, forming a duplication on the same level.

At present, there are some unfair competition phenomena in the industry, such as price war, imitation war, patent infringement, trademark infringement, enterprise name infringement and so on.

With the development of the industry, the market competition faced by the company is constantly increasing.

Although the products produced by our company are stable in quality, high in technical content, and fast in product renewal, it will be harmful to the sales of the company's products and the profits of the company if the other enterprises in the same industry adopt low-priced dumping methods to disrupt the market.

But at the same time, in the face of many small and scattered enterprises, it also provides opportunities for industry consolidation. Our company can make considerable progress through integration opportunities.

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< p > 4. The risk of technical loss and loss of core technicians is less than /p.

< p > leather tanning technology is highly professional. The research and protection of technical formula and production technology is one of the key factors in the production and operation of the company.

To this end, the company has developed a complete set of technical confidentiality system, including: < /p >

< p > (A) the three major systems of R & D, production and market are managed piecewise, and a strict information communication system is established. All raw materials, semi-finished products and finished products are encoded in the factory without chemical names.

The production formula is composed of a basic confidentiality formula and a core secret recipe, wherein the core secret formula is allocated by the special person; < /p >

< p > (B) all technical documents and files are kept by the special person according to the confidential level; {page_break} < /p >

< p > (C) all technical personnel and related personnel have signed the technical confidentiality agreement and the competition restriction agreement with the company, so as to ensure the safety of the technical secrets legally; < /p >

< p > (D) takes full account of technology continuity and secrecy, and allows core technical personnel to indirectly share in order to stabilize the technical team; < /p >

< p > (E) formulated measures to prevent the loss of core technical personnel and maintain the stability of core technicians; < /p >

< p > (F) to apply for patent protection. At present, the company has four products to obtain the design patent, two tannery production technologies have obtained invention patents and eight utility model patents.

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< p > although the company has adopted a series of protection measures for the core technical personnel and the secret recipe, if the loss of most of the core technical personnel of the Future Ltd and the failure of the company to replenish qualified personnel in time, it will adversely affect the new product development and future development of the company. At the same time, because the company has not applied all the formulations and technologies for patent protection, if the company's confidentiality of technology or formula is not perfect, it may cause some technology or formula to be lost, which will adversely affect the normal production and operation of the company.

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< p > < strong > 4, and related matters related to financial reporting < /strong > /p >

< p > (1) compared with the financial statements of the previous year, the changes in accounting policies, accounting estimates and accounting methods showed that < /p >

< p > not applicable.

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< p > (2) a major accounting error correction during the reporting period needs to be traced back to restatement, < /p >

< p > not applicable.

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< p > (3) compared with the financial statements of the previous year, the scope of changes in the consolidated statements is less than /p.

< p > not applicable.

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< p > (4) the board of directors and the board of supervisors explain the "non standard audit report" of the accounting firm during the current reporting period < /p >

< p > not applicable.

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< p > above shareholder relationship or concerted action note < /p >

< p > the above shareholder Jinjiang Wanxing Investment Co., Ltd. and Quanzhou Hengda Investment Co., Ltd. are acting in concert.

In addition, there is no correlation or concerted action between the above shareholders.

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