Is it swimming naked? China CNC profit Dependency subsidy

The tide receded to know who was swimming naked. By virtue of "middle and high-end CNC system" leader image landing gem of the Central China Numerical control (300161.　　SZ), in the listing only half a year, that is to investors poured a basin of cold water. August 24, the Central China Numerical Control issued 2011.5 Annual report-the period of ownership of the listed company's net profit of 16.72 million yuan, a year-on-year decline of 39.69%.　　For only six months after the listing, there has been a sharp decline in profits, the company explained as research and development investment and human costs, and subsidized income reduction. One of the most significant impact, from the national project funding of the sharp decline-period of subsidy income reduction of 7.3373 million yuan, the reduction of 50%. "For a long time, the profit of central China NC has been too dependent on subsidy income."　　"Wuhan Local brokerage researcher evaluation.　　Another noteworthy financial detail is that, even excluding the reduced subsidy income, the Central China numerical control received a government subsidy of up to 7.368 million yuan, accounting for 44% of net profit during the reporting period. But this is not the result of the Central China numerical control performance landslide reasons.　　According to the reporter understand, despite the so-called "domestic largest middle and high-end CNC system Enterprises", but in fact, its high-end CNC system currently profit is limited. August 25, the Central China Numerical control Dong Wu Heng in the interview with reporters frankly, the main support for the company's performance is still relatively low margin of the mid-range CNC system: "High-grade products have not yet formed the scale of profitability."　　"Profit-dependent subsidy has long been an important part of the profit composition of CNC in central China."　　Access to the central China numerical control nearly four years of financial results, 2007, 2008, 2009, 2010, the company attributable to the parent company's owner of the Non-recurrent net profit of the owner of the parent company accounted for 23.98%, 30.65%, 26.55% and 36.8% respectively, showing an upward trend. The majority of the income part of the non-recurrent profit and loss is the state subsidy for various scientific and technological projects. The 2010 Annual report, which is available for viewing, shows a net profit of 53.366 million yuan during the period, while the government subsidy received in the current period is as high as $22.572 million. "CNC industry belongs to the state to encourage and support the industry, government subsidies should be continuity."　　"Central China CNC Dong Wu Heng told reporters so." The company said in the prospectus, "high-grade CNC machine tools and basic manufacturing equipment major special" is the "national medium and long-term science and technology development Planning outline (2006~2020)" identified 16 national science and Technology, one of the major special, central CNC as a domestic and high-end CNC system leading enterprises,　　Will hopefully receive long-term support from national policy.　　However, in reality, the influence of the national macro-control, policy-related subsidies in the implementation, often there are multiple uncertain factors. August 2, the local media in Wuhan disclosed that, because the local supporting funds are not in place, including the Central China Numerical control, such as seven Wuhan Enterprises, major science and technology projects delayed acceptance. This means that the company is getting a complementaryThe sticker income will be greatly reduced. Immediately, the Central China Numerical Control issued a clarification announcement, said the company's current production and operation of the normal situation, major special subject acceptance and the 2012 project to declare the project in accordance with the normal procedures.　　However, there is no positive response to the question of how local major special supporting funds are in place. Reporter learned that the above major projects involved in central China in the "Eleven-Five" period during the national science and technology major special, and declared the 2012 National science and Technology major special. "We have submitted to the Ministry of Information the relevant major special declaration materials." In fact, the ministry has not raised any objections to local supporting funds in place.　　"Wu Heng said. But Wu Heng also told reporters that the major scientific and technological projects are still pending phase: "When approved to see the relevant national ministries, we are not clear." According to reporters, even if the final approval, the actual subsidies will shrink. A central China numerical control insiders said that in the national tightening regulation of the background: "The eventual availability of funds should be cut."　　"High-grade" halo reality? Too dependent on government subsidies behind, refraction is the main business of central China's profitability is relatively weak. "Born" in Huazhong University of Science and Technology, relying on the former CNC Systems Engineering Research Center and the National Photoelectric Laboratory research and development support, in the NC technology has more than 10 years of technical accumulation.　　Its prospectus declares: "At present, the company has become the largest in China, high-grade CNC system production Enterprises"-This is also the Central China Numerical control landing Gem's biggest selling point.　　The Yangtze River Securities Research report shows that in the domestic CNC enterprises, the central China CNC accounted for the high-end CNC system market share of 66%, accounting for the domestic market share of mid-range CNC system 30%. But one can not ignore the market reality is that the current China's high and mid-range CNC system market, almost by foreign-owned enterprises monopoly. The Yangtze River Securities Research data show: "At present, high-end CNC system (five-axis linkage and above) foreign capital occupies 99% of the market share, to central China CNC led by the domestic enterprises accounted for only 1%, even in the middle-end CNC system in the domestic enterprises accounted for only 20%. "A number of people familiar with the NC industry in central China revealed to this newspaper, although it is known as" the largest domestic and high-grade CNC system production enterprises, "but in fact, high-end CNC system for the company's profit contribution is limited. "In fact, 85% of the company's profits are from mid-range CNC systems, and high-end CNC systems are currently making little profit."　　"One familiar with central China numerical control's internal core personage discloses, compares the upscale product, the mid-range numerical control system profit margin is low." In this context, the focus of the Central China 8 CNC System Products research and development, bearing the Central China CNC breakthrough high-end market Chongwang. Central China Numerical control Dong Wu Heng told reporters that the current central China 8 CNC system is still in trial-run stage, Sales Limited: "High-end CNC system products for the company to produce scale profit, the earliest to wait until 2012." At present, in the high-end CNC system market, there is still a big gap between domestic and foreign enterprises in brand recognition and performance stability. ”said the industry personage analysis, the Central China type 8 can occupy the market quickly, still is unknown. The low profitability of huazhong numerical control has aroused the concern of the capital market.　　On July 21, in the restructuring of the Central China Numerical control issued a large decline in the first-half performance letters, July 25, the day of the return card, that is, the organization to borrow high "flee." Pettibone Securities in a research report that the central China CNC's profit growth rate will be lower than expected, while the central China CNC rating from "overweight" down to "neutral."