财务分析报告英文版.ppt

1、a,1,CHINT ELECTRICS,2011 FINANCIAL REPORTING AND ANALYSIS,a,2,Team Members： Liu ZhaoyeCommon-Size Wang YuyaoDebt-Paying Xue JianchaoProfitability/Operation Shen KangliangInvestment/Operation Jiang RuiCompetitor/Introduction LI xinCompetitor/Introduction,a,3,CHINT ELECTRICS Is Chinas largest producti

2、on of low voltage 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

3、 Chinese trademark, 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,a,4,Company profile Stock na

4、me: CHINT ELECTRICS Stock code: 601877,Is Chinas leading company in the field of low voltage electrical appliances 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

5、products The companys 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.,a,5,The review of latest earnings,The sales were 82,880,000,000 in

6、2011, increased 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

7、 0.91. Due to 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%,a,6,Common-Size Analysis,Balance Sheet Vertical Common-size,Balance Sheet Vertical

8、 Common-size,a,9,In 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 executed bonds issue 1.5 billion Yuan. From the current liabilities to see, the companys short term loans has always

9、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 benefits from the company is very sufficient liquidity 。The proportion of accounts payable is low, on the whole, th

10、e companys short-term debt service pressure is very low.,Balance Sheet Vertical Common-size Analysis,Balance Sheet Crosswise Common-size,Balance Sheet Crosswise Common-size,a,12,Company sales growth not only brought ample liquidity, more subsequent receivables. Accounts receivable compared to above

11、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 bank acceptance.,Balance Sheet Crosswise Common-size Analysis,a,13,A long-ter

12、m 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. The project under construction company in 2011 is 2009 years of 24 times, mainly d

13、ue to current period to raise funds based construction project in caused by increase. The company non-current liabilities in 2011 is 2009 65 times, mainly because of the increase of bonds payable project, that company was to issue 1.5 billion bonds. Capital reserve in 2011 and 2010 were more than 50

14、0 times in 2009, mainly because of the company 2010 years was just listed.,Balance Sheet Crosswise Common-size Analysis,Profits and Loss Items Crosswise Common-size,Profits and Loss Items Vertical Common-size,a,16,Profits and Loss Items Common-size Analysis,The company business income in 2011 was 1.

15、7 times than that 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

16、, sales volume 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

17、operating income proportion and not as a substantial increase in the sales increase, so the pressure of the rising costs was more.,a,17,The financial cost three years are negative, suggests the company continued interest income were more than interest expenses and financial expenses in 2011 is 2009

18、of 12 times, annual 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

19、 because the 2011 main source of revenue for the financial risk control increased cash reserves, interest income increase.,Profits and Loss Items Common-size Analysis,a,18,Main Business Common-size,a,19,Main Business Common-size Analysis,We can see that the power distribution, terminal and control e

20、lectric appliance is the companys 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

21、 control ability outstanding, 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.,a,analyses of short-term debt-paying ability,a,21,comparisons between some ratios of rec

22、ent 3 years,a,22,Analyses of Working Capital,As we can see from the chart，this companys working 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 in

23、creased; this difference is the working capital. This increase in the working capital indicates that the companys short-term debt-paying ability is guaranteed，and strengthened recently。,a,23,Analyses of Current Ratio,As we can see from the chart ， this companys current ratio has been positive and gr

24、adually increased recently，because the current assents and current liabilities have gradually 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

25、 has strengthened.,a,24,Analyses of Acid-test Ratio,As we can see from the chart ，the companys acid-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 inc

26、rease. The increase in the acid-test ratio indicates that the company has a growing ability to immediately realize and pay short-term liabilities. At the same time, this tendency is consistent with the current ratios tendency, which means that the companys inventories have been stable recent.,a,25,A

27、nalyses of Cash Ratio,As we can see from the chart ，the companys year2011s cash ratios is much bigger than year2009s，but the year 2011s is slightly smaller than the years. Because the cash equivalents grew much faster than the current liabilities, causing their ratio to increase. As to year 2011 and

28、 2010,the cash equivalents and the current liabilities have both increased but their ratios have a little difference. The tendency in cash ratio indicates that the companys ability to pay immediately has increased enormously and decreased a bit.,a,26,Analyses of Net Cash Provided by Operating Activi

29、ties/Current Liabilities,As we can see from the chart ，the companys net cash provided by operating 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.

30、 This ratios tendency indicates that the company has a gradually decreased ability to pay its short-term debts by using net cash. This ratio in the recent 3 years has been below 1, so the company cant pay its debt using just net cash provided by operating activities. It must obtain cash in other way

31、s to ensure that its liabilities can be paid in time.,a,analyses of long-term debt-paying ability,a,28,comparisons between some ratios of recent 3 years,a,29,analyses of debt ratio,As we can see from the chart ，the companys 2010 years debt ratio is much smaller than the 2009s, because the total asse

32、ts 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, th

33、e company has a growing and then decreasing debt burden. However, these ratios are all below 50%，which can be considered acceptable and means that the company has a comparatively light debt burden and the creditors interests are highly protected.,a,30,Analyses of debt/equity ratio and Debt to tangib

34、le net worth ratio,As we can see from the chart ，these two ratios have both decreased and increased recently. Because compared with the total owners equity, the total intangible assets and liabilities are much smaller, the reasons for this tendency are almost the same，that is, the year2010s total eq

35、uity is much bigger than the year2009s。However the year 2011s total equity and liabilities and the year2009s can be nearly considered the same.,a,31,Analyses of Times interest earned,As we can see from the chart, the companys times interest earned has fluctuated enormously recently. It increased eno

36、rmously from year2009 to 2010, and decreased enormously from year2010 to 2011. The reason is that compared with year2009, the year2010s net profit and tax expense have both increased, but interest expense has decreased enormously, causing the ratio of the total of these three and interest expense to

37、 increase. Besides, compared with the year2010, the year2011s net profit and tax expense have both increased, but interest expense has decreased more enormously, causing the ratio of the total of these three and interest expense to decrease. As can be known, the fluctuation of interest expense is th

38、e main reason for the fluctuation of times interest earned. Although the times interest earned fluctuated much, these figures indicate that the company has a considerable ability to pay the interest debt and long-term debt-paying ability.,a,32,Analyses of Net Cash Provided by Operating Activities/To

39、tal Liabilities,As we can see from the chart ，this ratio has decreased recently, because the net cash provided by operating activities have decreased and the total liabilities have increased, causing the ratio of these two to decrease. This ratios decreasing tendency indicates that the company has a

40、 decreasing ability to pay its debts using the net cash provided by operating activities. The figures of the recent 3 years are all below 1, so the company cant pay its debts using just the net cash provided by operating activities.,a,33,The summary of analyses of debt-paying ability,As we can see f

41、rom the analyses from, the companys ability to pay liabilities has been growing decently, especially between year2009 and 2010. Although it has undergone some fluctuations in some ratios, these changes can be considered the changes that dont influence the debt-paying ability much. These trends also

42、conform to the appliances industrial development. Because of such factors as national policy and growing economic development, the home appliance, the company has been developing rapidly. However, according to some ratios, the company still has something to improve.,a,34,Operation Capacity Analysis,

43、a,35,Operational capability index contrast,a,36,According to analyze the index of operation capability, account receivable turnover went up year by year. It explained that the growth rate of net sales exceeded growth rate of account receivable. The main reason that rapid growth of sales income lead

44、to increasing account receivable. In order to reduce Bad debt risk of CHNT, CHNT properly adjust credit policy and increase the scale of settlement the bank acceptance. Because of increasing account receivable turnover, CHNT received much cash and Loss on bad debts reduced. CHNT has great debit payi

45、ng ability.,a,37,inventory turnover ratio also increased year by year. It illustrated that the increasing extend of cost of sale overweight increasing inventory. It also showed that the occupation of the inventory level of CHNT was low and had highly liquidity. Moreover, the more highly liquidity, t

46、he more fast the speed of inventory converting to cash and account receivable. CHNTs fixed asset turnover was increasing. It showed the utilization of fixed asset of CHNT had become higher and higher and the management level constantly improved. Meanwhile, it has advantage for improving CHNTs profit

47、ability.,a,38,However, the total asset turnover has decreased year by year. Total asset turnover is an important indicator to examine the operational efficiency of corporate assets, reflecting the transfer speed of all of the assets of the business during the period from input to output. The possibl

48、e reason lies in the companys long-term equity investments, intangible assets and construction in progress. Owing to a significant increase in long-term equity investments, intangible assets and construction in progress, it leads to the increase in total assets is greater than the increase in net sa

49、les. The actual situation, confirmed the speculation. The company purchase a low voltage electric appliance industry base. This move led to a significant increase in long-term equity investment. Due to newly acquired Wenzhou electrical, net sales growth was slower than the growth of total assets. At

50、 the same time, Zhejiang Zhengtai Corporations total asset turnover is still far higher than the industry total asset ratio. It proved that the company operates well.,a,39,Profitability Analysis,a,40,Profitability index contrast,a,41,Compared with 2009, we found that the equity return rate changes a

51、 lot in 2011. Through the analysis of financial statements, we found the company owners equity increases by 220.12%. Owners equity greatly increased, leading to rights return rate drop dramatically. The reason why the owners equity has a big increase is that the company becomes a public company in 2

52、010. But compared with 2010, the owners equity increased by 7.96% in 2011. It is clear that the growth is not obvious. Whats more, net income increase.,a,42,Combined with the practical situation, we found that the company five main products gross margin have a certain scope down, but change is not c

53、lear. Combined with practical, we learn that terminal apparatus and power to the electric gross margin fell more than 3%. The reason why gross profit decrease is that the copper, silver and other main raw material prices rise, reducing product profit margins. But the company during the good cost con

54、trol, marketing expenses, administrative expenses and financial expenses drop respectively compared to the 0.7, 0.69 and 0.44%, to make up for the rise in the cost of raw materials to the company net profit margin of the influence,a,43,Operating return on assets decreased significantly, thus further

55、 reflecting the efficiency of asset utilization. Compared with 2009, Operating return on assets decreased significantly in 2010. Analysis the reason is that a large number of operating costs and notes receivable, notes receivable increased by 145.13% ,compared with 2009. compared to 2009, operating

56、costs increased by 136.17%. The increase in notes receivable cause increase of the operating assets, increased operating costs led to a decrease in operating income. In the end, lead to the decline in operating return on assets.,a,44,The reason why return on assets decline is that the growth of tota

57、l assets higher than the net income growth. Analyzing the reasons for the growth of total assets is the long-term equity investment, construction in progress as well as the growth of intangible assets. Compared with the beginning of the period, the long-term equity investment increased by 585.52%. C

58、ompared with the beginning of the period , the construction in progress increased by 242.54. compared with the beginning of the period, the intangible assets increased by 65.28%.,a,45,Investment ability analysis,a,46,Comparing the ability of investment from 2009 to 2011,a,47,According to these relat

59、ed index, we can found that the CHNTs financial leverage basically maintain at 1.00 and keep stably low level. It show that the CHNT has lower risk of finance. CHNT has just listed in 2010. The listing of price of the CHNT in 2010 abidingly dropped from 23.95 yuan to 13.10 yuan in 2011. We can have a proof that it was affected by the European debt crisis. Because of that, the big board of Shanghai Index dropped badly and also affected market value per share of CHNT. The EPS of CHNT raised year by year. Comparing with last two years, it increased 10.34% and 28.13% respectively. It