Securities code: 000636 securities abbreviation: Guang Dong Fenghua Advanced Technology (Holding) Co.Ltd(000636)
Guang Dong Fenghua Advanced Technology (Holding) Co.Ltd(000636)
Record of investor relations activities
No.: 2022-002
Investors □ specific object research □ analyst meeting □ media interview
Relationship activity
Event category □ performance presentation □ press conference □ Roadshow
□ site visit √ teleconference □ others
Soochow Securities Co.Ltd(601555) , Shaoxia capital, Chunhou fund, Guoshou pension, Shanghai Trust, Zhongtai asset management, northeast proprietary, chengluo capital, Nanfang fund, Changjiang asset management, Hua’an fund, CITIC Prudential, Dunhe asset management, Bohong investment, Huachuang proprietary, Centennial assets, Cathay Pacific Fund, Panjing investment, CAITONG proprietary, Boshi fund, Xinyuan fund Taiping pension, red chip investment, Zhongmin investment management, Guohai asset management, Ping An pension, Mingya name fund, Fuyi investment, binyuan capital, Ping an asset management, Xiangcai fund, magic square quantification, Orient Securities Company Limited(600958) , Fengyan investment, Donghai self operated, Changjiang asset management, Changxiang asset management, Beijing Hongcheng investment, Konka capital, Shanghai Investment Morgan, Fuyun investment, Western self operated Panhou capital, Baoyin investment, Nanchang new century company, Guoling fund, etc
Time: 15:15, January 27, 2022
Location: conference room of Building 1 of the company
Vice president of corporate reception Liu Ren, financial principal, Xue Zebin, Secretary of the board of directors, MLCC products company, securities affairs department, name of personnel
Heads of financial management department, marketing center and Research Institute
Question 1: what are the reasons for the decline of the company’s performance in the fourth quarter of last year? Why does the product price change? Investor Guan’s reply: ① since the second half of last year, affected by the comprehensive factors such as the less than expected recovery of covid-19 pneumonia, transportation and lack of core, the continuation of main activities, the global economy as a whole has shown a downward trend, the volume and price of short-term important contents have fallen in the passive electronic component industry, and the market demand of the company’s main products has been affected by industry fluctuations, product prices Production and sales volume of Shaoxing decreased month on month. Up to now, the market demand of the company’s main products has gradually picked up, especially the capacity utilization rate of the company’s chip resistor is close to full load. ② We believe that the long-term positive development trend of the passive electronic components industry will not change. The company will continue to focus on the development of its main business. On the basis of stabilizing the original market application field, the company will further improve the market share, the output rate of high-end products and the supply ratio of its own materials by accelerating the construction of large projects and increasing R & D investment, Realize the further optimization of product structure and customer structure, and promote the high-quality development of enterprises. Question 2: from the 2021 annual performance forecast disclosed by the company, is the decline in performance in the fourth quarter of last year also affected by the provision of other related expenses? Reply: according to the preliminary calculation results of the company, the operating performance of the company in the fourth quarter of 2021 decreased month on month. In addition to the annual provision of relevant expenses, the impact of industry cycle fluctuation is still the main factor. Question 3: after the release of new production capacity in the future, are there measures to balance the impact of price on performance fluctuations, such as increasing the proportion of direct sales to major customers or improving the company’s product structure? Reply: the company has been increasing in-depth cooperation with terminal strategic customers, optimizing customer structure and increasing the proportion of terminal customers; At the same time, through in-depth cooperation with customers, continue to optimize the product structure and further improve the proportion of high value-added products. The new management has done a lot of work in the planning of the company’s product structure and customer structure, focusing on improving the “three rates”: first, continuously improve the market share of the company’s main products, and have made remarkable achievements in the development of key core customers. The company will continue to maintain the first market share in China. With the release of production capacity of expansion projects, It will further improve the market share of the company’s main products. Second, the proportion of high-end products has been continuously increased, and a great breakthrough has been made in the batch supply of high-end products such as high capacity and vehicle regulations. The sales of high-end products are in good condition in the market. At present, the company is developing a series of high-end products of capacitors and resistors. The third is to set the goal of improving the self supply rate of key materials. The company has advantages in the field of electronic material R & D and cooperates with experts, universities and scientific research institutes at home and abroad. In recent years, the company has continued to increase investment in the field of electronic materials and improve the company’s electronic material technology and production capacity. There has been a breakthrough in MLCC high-capacity materials, which will further accelerate the self supply rate of electronic materials. Question 4: what is the construction progress of Xianghe Industrial Park project? Progress in R & D and mass production of high volume products? Answer: since the establishment of Xianghe Industrial Park project, the company has actively organized a special project class to speed up the project construction through centralizing the allocation of resources. The monthly production capacity of phase I project is 5 billion MLCCs, which has reached the production capacity by the end of 2021. The first phase of the project has made breakthroughs in the research and development of high-capacity products, mass production and the certification of strategic customers. In particular, the number of coding certification obtained by strategic customers ranks first in China. Some coding products have been mass produced and supplied, becoming a standard supplier for the localization of high-capacity products of strategic customers. The second and third phases of Xianghe project are being accelerated according to the feasibility study plan of the project.
Question 5: what plans does the company have for the self supply rate of raw materials? How much is the gross margin gap between high volume products and ordinary products? Where is the current product price level relative to the historical level? Reply: ① the company has a certain proportion of self-developed and self-produced powder materials for MLCC. At present, the establishment of a “R & D production application” Trinity material self-produced assessment system has been included in one of the key tasks of the year. By accelerating the increase of investment, improving the construction of system and mechanism, the proportion of self-produced supporting supply of materials has been continuously increased, Accelerate the self-produced supporting R & D and mass production of high value-added materials, and enhance the core competitiveness of the company’s main products. ② The gross profit margin of high volume products is much higher than that of ordinary products. ③ Passive electronic components involve a wide variety of products according to product scale, model and technical parameters. Different products and application markets are different, so it is difficult to compare them with a unified price standard. Question 6: Chinese and foreign counterparts are actively expanding production. How does the company view the subsequent market competition? Reply: the company’s main product, electronic components, as a basic product of the electronic information industry, has a very broad market development space. First, with the high-frequency, intelligent and high-end development of electronic application terminals, the market demand for the number of components of downstream terminal products such as automotive electronics, industrial control, 5g communication, Internet of things, new energy and emerging industries will continue to increase; Second, at present, China is still the world’s largest electronic product manufacturing center and component application market, and the company’s product scale still has huge development space and opportunities relative to the market demand; Third, the electronic information industry is a strategic emerging industry supported by the state. The state has clearly proposed that the independent guarantee rate of core basic parts (components) and key basic materials should reach 70% by 2025. The Ministry of industry and information technology has issued the action plan for the development of basic electronic components industry (2021-2023), It is planned to strive for the revenue scale of 15 enterprises to exceed 10 billion yuan by 2023, and the national policy support will continue to increase, which will further promote the rapid development of the industry.
In recent years, the company and its counterparts at home and abroad have actively expanded production. It is precisely because of the long-term optimism about the development track of the industry that the company will seize the market opportunities, continuously improve the product technology level, accelerate the introduction of the company’s products in high-end application fields and high-end customers, and continuously improve the market share of the company’s products. Question 7: does the company still focus on the home appliance market in terms of market development? How about the expansion of other market areas? How about the customer development of Xianghe Industrial Park project? Reply: ① home appliance market is one of the important market application fields of the company. With the development of Internet, Internet of things, big data, cloud computing and related industries and technologies, the more intelligent application of home appliance industry has further promoted the development of traditional passive electronic components to high-end. On the one hand, the company continues to be committed to home appliance market
On the other hand, we will continue to expand the market of high-end household appliances. ② On the basis of continuously stabilizing and expanding the home appliance application market, the company focuses on the expansion of high-capacity and high reliability products in the high-end application market, including communication field, 5g base station, automotive electronics, new energy, large server and other application fields. 01005 products have successfully entered the packaging and wearable market at present; ③ The application fields of Xianghe project products cover base stations, mobile phones, smart wear, industrial control, automotive electronics and other application fields. During the specific implementation of the project, the company will continue to optimize the product structure in combination with market changes and further increase the proportion of high value-added products. With the release of the production capacity of Xianghe project, the proportion of the company’s high-volume products will gradually increase.
Question 8: what is the current application of the company’s vehicle specification level MLCC products? What are the plans for the future?
Reply: vehicle specification products are one of the key application fields of the company. After years of technology and R & D accumulation, they have vehicle specification grade MLCC, chip resistor, inductor, aluminum electrolytic capacitor and other products, and have passed iatf16949 automobile quality system certification and aec-q200 vehicle specification product certification, At present, the company’s MLCC and resistance car gauge products have been supplied in batches to automotive electronics customers outside China.
Question 9: when is the current market fluctuation of passive components expected to recover?
Reply: the passive electronic component industry is affected by multiple factors such as the overall economic situation and the upgrading of technology and products in the application field, and has obvious cyclical fluctuation characteristics. The capacity utilization rate of the company’s resistance and capacitance products has improved month on month since January this year, and it is expected to rise gradually in the future.
Annex list none
Date: January 27, 2022
