Ordos Released Its Annual Board Of Directors Review In 2017. The Company Will Continue To Promote Brand Upgrading And Channel Upgrading.

A few days ago, Ordos (600295) issued the annual board of directors' business review in 2017, which reads as follows:

I. discussion and analysis of business conditions

During the reporting period, the company is still facing a complicated and changeable business environment. The international economy has been growing slowly in the continuous downturn, and trade friction has come and go. The domestic economy has lowered its structure in the new normal, productivity and quality, and the supply side reform has been deepened. The national environmental protection policy has become a new normal. The market has great uncertainty. Facing challenges and pressures, the board of directors and management have led all cadres and staff to open up the market, strengthen management, increase revenue and reduce expenditure, and work hard to improve their business performance.

1, cashmere clothing plate

During the reporting period, the company raw material The operation is well controlled, and the quantity, quality and cost of raw materials can be guaranteed. The production system is closely related to reducing the cost and increasing efficiency, and continuously optimizing and improving the operation quality of all links. The brand remolding of the company's "ERDOS", "Ordos 1980" and "BLUEERDOS" is highly recognized by consumers. The order is expected to grow. According to different brand management and operation standards, different brands are established for different brands. market Competitive strategy. With the brand remolding and channel upgrading, domestic sales orders are increasing. At the same time, the company actively innovated the export marketing mechanism, further promoted the maintenance of key customers, and focused on developing small and medium-sized customers and new customers, and the export market expansion also steadily increased. During the reporting period, the company's clothing sector has completed 48 technologies and R & D projects, and 11 new products have been promoted by the company's design team.

2, power metallurgy and chemical sector

During the reporting period, the organizational structure of the large procurement, production, marketing and logistics of electrometallurgy plate is outstanding. Through the implementation of centralized supplier management and the development of high-quality strategic partners, the purchasing side's overall ability to resist risks, contingency and bargaining power has been enhanced. In terms of production, the company has actively managed, meticulously dispatcher and accurately controlled all links, maintained the overall balance of power supply, production, supply and marketing in the park, ensured the full operation of the whole industrial chain and the full release of super efficiency. The company has intensified its research and development efforts, and has made good progress in promoting and developing 42 projects, including ferrosilicon finishing, automatic feeding system and automatic batching system. Some of them have achieved good results.

3, safety and environmental protection

During the reporting period, the company carried out a "special safety" special activity, comprehensively combed and identified hazard sources, formulated the post life protection and injury prevention rules, comprehensively investigated safety hazards and set up accident prevention barriers, and the staff's safety consciousness and ability were further improved, so as to put an end to major safety accidents. In the face of increasingly stringent environmental policy, the company put forward the concept of "environmental protection is the responsibility of enterprises, environmental protection is also the industry, and environmental protection is a new competitive power". Through years of efforts, the company's environmental protection level has entered the forefront of the industry. The company has been listed as the second batch of green manufacturing list of the state, and has been identified as a green factory. The electroforming plate has set up a new benchmark in the utilization of the three wastes: the waste water has been recycled, the high salt water and waste acid treatment industry is in the lead, the power plant takes the lead in ultra-low emission spanformation, the metallurgical furnace waste heat power generation project continues to push forward, the solid waste fully reuse project is gradually extended, and many times passed the examination and acceptance, and has become a double standard enterprise of safety and environmental protection.

Two. Main business during the reporting period

During the reporting period, the company achieved a total revenue of 22 billion 126 million 925 thousand and 200 yuan, and the net profit attributable to shareholders of listed companies was 520 million 966 thousand and 400 yuan, with earnings per share of 0.50 yuan. By the end of 2017, the total assets of the company amounted to 46 billion 60 million 997 thousand and 700 yuan, up 1.76% over the same period last year, and the net assets of shareholders belonging to listed companies amounted to 7 billion 836 million 22 thousand and 100 yuan, up 7.77% over the same period last year.

The main products of the company during the reporting period are 3 million 110 thousand cashmere sweaters, 830 thousand scarves and shawls, 2 million 920 thousand tons of raw coal, 3 million 100 thousand tons of raw coal, 760 thousand tons of clean coal, 19 billion 200 million degrees of electricity, 1 million 510 thousand tons of ferrosilicon, 480 thousand tons of silicon manganese, 1 million 610 thousand tons of calcium carbide, 310 thousand tons of caustic soda, PVC45 tons of cement, and 530 thousand tons of cement.

Three. Discussion and analysis of company's future development

(1) industry pattern and trend

1, the pattern and trend of cashmere garment industry

Although macroeconomic cyclical downturns and devaluation of the renminbi are affecting consumer market, consumption upgrading accompanied by continuous urbanization is precisely the new engine of China's economic development. With the continuous improvement of income level and the rapid dissemination of information, Chinese consumer behavior is becoming more mature, rational and diverse. The choice of clothing consumption is no longer restricted to meet functional needs, but also pursues clothing design, material, tailoring and representative life philosophy. The outline of the thirteenth five year plan for national economic and social development of People's Republic of China states that in 13th Five-Year, the consumption structure will be promoted by focusing on expanding service consumption, supporting new consumption of information, green, fashion and quality, and promoting the development of new online and offline integration modes. Providing more fashionable and more quality products and services and moving closer to service consumption will be the development opportunities and development trend of Chinese garment enterprises.

Cashmere is a soft fuzz that covers the roots of the goat's hair. It grows when it's cold in winter and shedding when spring gets warmer. Its value is not only because of its rarity, but also because of its fine, soft, slippery waxy, lightness, warmth, Hikaruzawa Youwa and strong elasticity. The properties of cashmere products woven with it are all higher than wool and other fiber products. Since entering the western consumer market, cashmere has always been a symbol of high quality clothing and is favored by high-end consumers. It is a representative material for luxury clothing in autumn and winter.

With the development of consumption upgrading, it is imperative to upgrade the cashmere industry in China in the light of its natural quality advantages. As the largest and best quality cashmere producing area in the world, China has played an upstream role in the global cashmere industry chain in the past. There are many homogenous cashmere products and brands in China, which have created stereotypes of domestic cashmere brand products for consumers. How to reverse the bias, let Chinese consumers feel the quality and fashion of cashmere clothing, and accurately meet the needs of consumers' consumption upgrading, is the upgrading of China's cashmere garment industry, and also a huge structural opportunity.

2. The pattern and trend of power metallurgy and chemical industry

(1) competition pattern of ferrosilicon and silicon manganese Market

Domestic ferrosilicon smelting enterprises are numerous, but large enterprises with an annual output of more than 100 thousand tons are few, and the industry concentration degree is relatively low. Because of the smaller product difference, the competition among ferrosilicon manufacturers is mainly reflected in cost control. By extending the industrial chain to the upstream coal and electricity fields, enterprises that have solved the bottleneck of resources and energy supply will benefit from low cost and take the advantage in competition.

(2) calcium carbide market competition pattern

As an important basic chemical raw material, calcium carbide plays an important role in ensuring the steady growth of the national economy and meeting the needs of relevant industries. The current situation of "less oil, less gas and relatively abundant coal" in our country determines that calcium carbide plays an irreplaceable role in the development of national economy in the future. Calcium carbide products belong to the bulk raw materials of chemical industry. The quality and performance of products are relatively small. In recent years, China's capacity has increased rapidly, and the domestic market has shown a complete competition pattern. The state has gradually tightened market access and operational control, and standardized the competition pattern of the industry.

(3) competition pattern in PVC Market

The domestic PVC market is basically a fully competitive market, with small product differences and low industry concentration. Compared with PVC power, the capacity of leading enterprises in China's PVC industry is still low, and the industry concentration needs to be further improved. In the future, as China's PVC capacity gradually shifts to the central and western resources (600139) areas, especially the government's cancellation of preferential tariff and the implementation of differential electricity prices, the environmental protection, energy saving and emission reduction efforts will increase, and the traditional price competition mode of chlor alkali industry will inevitably change to the comprehensive competition mode of enterprises. At the same time, enterprises with raw material advantages, cost advantages, technological advantages, capital advantages and management advantages will develop into a large-scale comprehensive enterprise integrating the industrial chain of "coal electric carbide -PVC- and other derivatives", and will be in a favorable position in the future competition.

(two) company development strategy

In the next three years, the company will pay close attention to the national optimization of production capacity structure and the development of advanced production capacity control policies. On the basis of improving the industrial chain, we will accelerate the pace of industrial upgrading and brand upgrading, and build Ordos into a more competitive, brand influential and more competitive company. industry The leading strength of characteristic enterprises.

1, continue to promote brand upgrading and channel upgrading.

At present, "Ordos" brand value has climbed to 88 billion 66 million yuan, ranking the first brand in China's most valuable brand. Since 2016, the company has been remodeling the clothing brand, and has launched the brand construction and marketing of the three brands of Ordos 1980, ERDOS and BLUEERDOS. At the same time, other products should borrow the spirit of Erdos to carry forward the spirit of craftsmen and vigorously carry forward the spirit of innovation, to occupy the commanding heights of the industry, to produce first-class quality products, and to continuously create quality brands, technology brands, management brands, service brands and cultural brands, and continuously advance to the world's top brands.

In terms of channels, the company will actively expand its marketing channels from the domestic, international, online and offline sectors with regard to its own brand products. In view of the domestic market, the company intends to open direct stores in the core business circle of the second tier cities in China, adjust the location of e-commerce, increase the layout of online channels, and achieve interactive marketing on line and offline; in view of the international market, the company intends to set up direct stores in Japan and other countries, and lay a solid foundation for the objective of international market competition. With regard to overseas foundry products, the company will continue to occupy the international market by relying on good quality, solid industry reputation and strong comprehensive production capacity. From the perspective of the promotion of Japanese brand business, the quality products exported to the overseas market by way of subcontracting will also lay a solid foundation for the company's future brand development in overseas markets.

2, continuously enhance R & D capabilities, operational capabilities and risk tolerance capabilities.

Three aspects of research and development on the development of intelligent ecological inspection platform, "research and development of high-quality and low proportion cashmere blending machine technology" and "cashmere sweater knitted short process automation process technology spanformation" have been carried out to enhance the design and research capabilities; the electroforming plate has intensified research and development efforts from the following aspects: waste heat power generation technology, dust removal spanformation, crushing process, casting method, raw material ratio, operation process and utilization of waste, so as to continuously improve the quality of technology, technology, management, procurement, production, marketing, logistics, information, safety and environmental protection, and create new benchmarks for the industry. At the same time, it actively promotes the integration process of quality resources, creates stable supply base for raw materials, and gradually forms a strong circular industry chain, outstanding productivity advantages and extremely resilience operating ability. On the basis of the two most important sectors of the industry, the industry will continue to be thicker, longer and shorter.

3, continue to enhance the industry's influence and leadership.

On the basis of two world first production of cashmere garments and ferrosilicon, we should further scientific and overall planning, from the formulation of standards to the research and development of new products and technologies, from standardizing market order to leading the upgrading and upgrading of traditional industries, and ultimately to enhance the discourse power of the international market of industry and do a good job in the leading role of the industry.

4, continue to create an ecological, harmonious and happy enterprise.

We will continue to build an intelligent, clustered resource-saving and environment-friendly green, ecological, safe and livable Industrial Park. We will continue to cultivate talents, talents and talents, cultivate platforms, grow platforms and promote platforms. We should continuously improve the incentive measures to improve the income level of employees and the conditions of living and entertainment. We will continuously enhance the happiness index of workers, and continue to drive the surrounding farmers and herdsmen to become rich together, and strive to build a harmonious and happy enterprise.

(three) business plan

In 2018, the company will focus on strengthening and optimizing the industrial chain, upgrading the advanced production capacity, promoting marketing upgrading, and enhancing the overall competitiveness. We must continue to innovate and tap the potential, and strive to achieve efficient operation of the chain of production, marketing and spanportation, so as to boost enterprises' continuous and continuous development.

1, continue to promote industrial upgrading. On the basis of the current two major sectors forming the most complete industrial chain of the industry, we should continue to lengthen, lengthen and make up the short board. In 2018, we should focus on promoting the key technical spanformation projects in phases, especially focusing on the optimization and upgrading of environmental protection facilities, the research and development of the comprehensive utilization of the "three wastes", and the improvement and perfection of the industrial chain.

2, continue to promote brand and channel upgrading. Summarize the successful experience of cashmere garment brand remolding, the company will further strengthen brand building, formulate corresponding brand promotion plan according to different products and different consumer group attributes, further expand brand awareness and enhance brand reputation. At the same time, we should play the role of two wheel driving under the online and offline channels, and vigorously expand new sales channels, and intensify the development of foreign markets.

3, continue to promote supply side business upgrading. We should continue to improve the supermarket operation of general materials, reduce the occupation of funds and ensure efficient supply; continue to promote the base construction of bulk raw materials, expand the supply channels for strategic cooperation, strengthen the reserves and control of existing resources, and produce and operate at low cost; continue to optimize the business mode, coordinate the operation pattern of centralization and decentralization, long term cooperation and short form; further adjust the reasonable ratio between demand and inventory, and achieve cost optimization.

4, continue to promote the optimization of production system. The company will continue to strengthen technological research and development and new product development, to win new victories, continue to strengthen product mix adjustment, we must grasp the market changes flexibly, promote small niche products in a timely manner, win new victories, continue to strengthen scientific dispatching work, ensure the harmonious and efficient operation of the upstream and downstream industries, give full play to the effectiveness of all links, and maximize the effectiveness of all links.

(four) risks that may be faced

1, macroeconomic fluctuations and the risk of industrial policy changes.

Cashmere clothing belongs to the middle and high-end consumer goods, the elasticity of demand is large, and it is easy to be affected by the economic boom. Metallurgical and chemical products are mainly used in iron and steel smelting and building materials industry, and their production and sales are highly related to the macroeconomic situation at home and abroad. In foreign countries, the recovery time of the western economies represented by the United States is very uncertain. The emerging economies with resource exports are still in a period of adjustment. The future economic development will depend on the spillover effect of the developed countries in the new round of growth. At home, extensive economic growth mode is difficult to continue, the new economic growth mode is not yet mature, and the domestic economy is still under great pressure in the short term. Therefore, the company will face more uncertain macroeconomic environment in the future.

In recent years, the state is committed to promoting the supply side reform, while strengthening environmental regulation. The thermal power, metallurgical and chemical industries may face more stringent industry standards and regulatory requirements. The company will pay close attention to the macroeconomic trend and relevant national industrial policies, adjust the development ideas and business plans in a timely manner according to market changes and policy guidance, so as to enhance the company's ability to resist risks and maintain competitive advantages.

2, industry competition risk

The industry of garment and electroforming products is a fully market-oriented industry with fierce competition in the industry. When the macro situation is not good, vicious competition will occur frequently. The company will give full play to its brand, scale, technology and industrial chain advantages, help to purge the industry competition pattern and strengthen the leading position of the industry.

3, product market price risk

The company's products are fully marketed, and the economic situation and industry competition will affect the price of products. In recent years, the speculative trading of financial capital has also had a certain impact on the company's product prices. The company will increase the pricing power through improving the product quality and customer experience, strengthening the industry status and so on, and studying how to offset the fluctuation of product prices through financial means.

4, safety production risks

Although the company's cashmere clothing plate has adopted various safety management and testing measures, there is still possibility of safety accidents due to force majeure or operational errors in the production process such as washing, carding, carding, weaving and so on. The related sectors of electroplate industry are accidents prone industries, and there are risks of safe production in the process of coal mining and utilization, power generation, metallurgy and chemical products production. The company has always attached great importance to safety production, and continuously increased investment to improve its own level of safety production. Through establishing and improving complete safety production rules and strict implementation, major safety accidents should be avoided to reduce risks and ensure the smooth development of production and operation.

5, environmental regulation risks

The company's cashmere garment plate business will produce a certain amount of pollutants such as waste water in the production process. The electroforming plate business involves heavy pollution industries. In the process of coal mining and utilization, power generation, metallurgy and chemical products production, dust, noise, waste gas and waste water will be produced. With environmental protection becoming an important issue in the process of China's development and construction, the state and local governments have issued more stringent laws and regulations to improve the environmental protection level of related industries. The company attaches great importance to environmental protection. Over the years, environmental protection has been placed in an extremely important position in project construction and late operation. Environmental protection facilities have always been the environmental protection benchmarking enterprises in the area and in the industry.

6, exchange rate risk

Company overseas market Business income occupies a certain proportion. The annual sales of cashmere sweaters are around 110-130, mainly concentrated in Japan and Europe and the United States. At the same time, it also exports a certain amount of ferroalloy products. At the present stage, the international political and economic situation is rather chaotic. Exchange rate is often affected by factors other than trade, resulting in disorder, which makes the production and operation of the company face certain risks.

Four. Analysis of core competitiveness during the reporting period

(1) the core competitiveness of cashmere garment plate

1, the advantages of the whole industry chain

The company is the largest cashmere clothing manufacturer and sales company in the world, and has established the whole industrial chain from raw material procurement to initial processing, deep processing, garment production, brand promotion, channel construction and product sales. In the control of raw materials, the company has established a sound reserve mechanism to ensure the stability of raw material supply and minimize the fluctuation risk of raw material prices. In production and processing links, the advantages of production technology, technology patents and large-scale production have ensured the stability of product quality and the optimal control of production cost; in the sales link, due to the high-end attributes of cashmere, the added value of its products is higher, the price is more rigid, the profit margins are larger, and the impact of raw materials and artificial price increases is far less than traditional clothing.

2, brand and channel advantages

During the reporting period, the Ordos brand released by the world famous brand accreditation agency, the world brand laboratory, in 2017, "China's 500 most valuable brands" analysis report, Erdos brand value climbed to 88 billion 66 million yuan, ranking first in China's textile and garment industry. The company also won the national trademark of the highest honor "China Trademark Gold Award" and many other awards.

In terms of channels, the company's clothing sales channels cover most of the second tier cities in the country and part of the three tier cities, and have some of the leading high-end sales outlets in the core business circle of the first tier cities. As of December 31, 2017, the number of stores was 1270, of which 613 were direct and holding stores. The company has established a stable strategic cooperative relationship with several mainstream high-end chain stores and shopping centers in the country. At present, the market can choose more and more diversified sales channels. With the upgrading of the brand, the company will continue to plan and expand sales channels nationwide.

3, excellent quality and core production technology advantages.

The company has carried out various research and development work in the cashmere garment industry in a variety of ways, including independent innovation and industry university research cooperation, and has formed many core technologies and special products. In the field of deep processing, the company not only introduces the equipment that has the highest level in the world, but also focuses on the continuous renewal of equipment and technology, so that the production technology level of the company keeps up with the advanced level of the world, and achieves a major leap from the autumn and winter coarse textile products to the high count worsted, light and thin, four seasons garments.

4, continuous innovation capability advantage

As a leading enterprise in cashmere garment industry, the company has a strong R & D base and strong R & D capability, and invested a large amount of research funds every year, with independent innovation and research and development as the main body, and has carried out industry university research cooperation with the national cashmere products engineering technology research center and other institutions. During the reporting period, the company declared 2 industry standards, 3 group standards, 1 group standards, 30 authorized patents, 1 utility models, and 29 appearance patents, and continuously enhanced the company's industry voice and technology reserves.

(two) core competitiveness of power metallurgy and chemical sector

1, the overall competitive advantage of the industrial chain

The company's power metallurgy and chemical industry covers coal mining, power generation, metallurgy and chemical industries. The circular economy mode is based on the efficient utilization and recycling of resources, with the principle of "reduction, reuse and resourceization", with the characteristics of low consumption, low emission and high efficiency. It pursues the best economic scale and the maximum self-supporting and internal value-added, maximizes the efficiency of resource utilization, effectively spanforms the local resource advantages into cost and competitive advantages, and accords with the economic growth mode of sustainable development concept. It has a strong ability to resist risks and obvious cost advantages, which is conducive to giving full play to the synergy effect and enhancing the overall competitiveness, especially in the low period of the industry.

2, equipment and technology advantages

The company has introduced advanced production equipment and advanced technology at home and abroad, and has continuously made technological research and development and improvement. It has made breakthroughs in the low pressure compensation technology, electric furnace tail gas utilization technology, water cooling rotary feeding system, automation operation technology and so on, making the production of the company efficient, recycling and energy saving and environmental protection. The company has strong technical force, advanced equipment technology, complete detection methods, strict manufacturing standards and perfect quality system, and has been leading the industry in terms of product technology, production indicators, product quality, comprehensive utilization of resources and environmental protection capability.

3, continuous improvement of innovation capability

Companies actively carry out scientific research and innovation activities, from waste heat power generation technology, dust removal spanformation, crushing process, casting mode. raw material A number of research topics have been established in terms of proportioning, operation technology, etc., and will be pushed forward according to plan, laying a solid foundation for upgrading production indicators. At the same time, the company is also actively exploring the use of Internet e-commerce and other emerging sales models to further enhance the company's customer coverage and sales revenue.

All these advantages have laid a solid foundation for the sustainable development of the company.