Securities code: 002641 securities abbreviation: record of investor relations activities of ad shares on February 17, 2022
No.: 2022-008
Investor relations activities √ specific object research □ analyst meeting
Category □ media interview □ performance briefing
□ press conference □ Roadshow
□ site visit
□ others
Name of participants and institutional investors:
Personnel name Western Securities Co.Ltd(002673) Zhu Jian, Shanghai Yaozhi asset management Ye Yimeng
Time: February 17, 2022
Place: Securities Department of the company
Receptionist of listed company
Chen Zhiguo, Secretary of the board of directors, Ren Yanqing, representative of securities affairs
Member name
1、 Introduce the operation of the company?
The company officially started construction on February 10, 2022. At present, the production and operation are normal. In the first three quarters of 2021, from the perspective of operation, the company’s sales maintained a good growth. On the cost side, due to the large increase of raw materials in the first three quarters, although the company also made some adjustments to the ex factory price of products, the increase of raw materials was large, and the increase of raw materials prices could not be fully transferred to the downstream. From mid October to now, the price of raw materials and investor relations activities have changed greatly, and the cost pressure of the company will be gradually relieved. From the fourth quarter, the profitability of the company will be improved month on month.
2、 Application fields of the company’s products?
The company’s main products are PVC, PE and PPR. PVC is mainly used in water supply and drainage of construction projects, power cable protection and agricultural irrigation. PE is mainly used in water supply and drainage of municipal projects and medium and low pressure gas transmission in cities and towns. PPR is mainly used in cold and hot water supply.
3、 Is there much pressure on the company’s real estate business accounts receivable?
The accounts receivable of real estate direct supply and municipal engineering are relatively large and have a long accounting period. The accounts receivable of the company are mainly real estate and municipal engineering, accounting for 70-80% of the total accounts receivable. The scale of the real estate developers directly cooperated by the company is relatively large. For the newly increased cooperative real estate developers, the company will first put the risk control in the first place and decide whether to cooperate according to the comprehensive consideration of the assets and liabilities and reputation of the real estate developers, which will relatively reduce the risk of accounts receivable.
4、 Why did the company fail to transfer the price rise of raw materials to the downstream in time?
It is related to the company’s sales strategy. In the early stage, the company’s sales mainly focused on expanding the market and increasing the market share. With the continuous improvement of the company’s ability to expand the market, the company set 2022 as the efficiency improvement year, and will consider both sales and profits.
5、 What is the company’s gross profit margin in the fourth quarter of 2021?
In the middle of October last year, the raw material price of the company showed a large decline, and the gross profit margin in the fourth quarter recovered better month on month. The specific data will be reflected in the annual report.
6、 How to improve efficiency in 2022?
The company sets 2022 as the year of efficiency improvement. The company mainly improves efficiency through the following four aspects: first, lean management and fine manufacturing in production and manufacturing; Second, in terms of technology, improve the process and optimize the formula to achieve efficiency; Third, increase efficiency by improving human and machine efficiency; Fourth, optimize the sales product portfolio and increase the proportion of products with high profitability.
7、 What are the details of Evergrande’s accounts receivable?
On August 25, 2021, the company made a detailed announcement on the overdue non payment of the commercial acceptance bills issued by Evergrande group and its member enterprises. The company has reached an asset purchase solution for 167 million yuan of the accounts receivable of Evergrande group and its member enterprises, and the balance of the remaining accounts receivable is 478 million yuan, The company has filed a lawsuit against Evergrande and its member enterprises in five cases. These cases are currently under trial. If there is further progress in the follow-up, we will make a timely announcement.
8、 How does the company withdraw accounts receivable from Evergrande?
In the early stage, the company made full provision for bad debts of Evergrande’s accounts receivable and bills according to the accounting standards. The final provision proportion of Evergrande in 2021 depends on the audit opinion of the accountant.
9、 Is the company’s primary distributor the sole agent?
In principle, the company requires that the pipeline business of primary dealers should be operated exclusively, and there are no strict restrictions on secondary and tertiary dealers.
10、 What about the company’s dealers in East China?
The company’s distribution channels are relatively perfect in East China, and there will not be too many first-class dealers in East China. More channels sink to villages, towns and rural areas. In the southwest, central China, North China, northeast and other regions with relatively weak sales, the construction of the company’s primary dealer network needs to be further improved, so the number of primary dealers in these regions will further increase.
11、 Will the company set sales targets for dealers?
The company sets different sales targets for primary dealers in different regions every year.
12、 What is the current situation of Dubai production base?
Affected by the epidemic, the project construction of Dubai production base has been delayed. At present, it is in the bidding stage of project construction. If it goes well, some production capacity should be available in the second half of this year.
13、 Export sales?
The company’s export sales are divided into two businesses, one is Cecep Solar Energy Co.Ltd(000591) export, and the other is the export of pipes and fittings. The company’s export situation is good in 2021, accounting for about 15-16%. 14、 According to the number of dealers, why is the average sales volume of the company’s dealers lower than that of other companies?
Different companies have different dealer management modes. Some companies can manage dealers across regions, but our company’s dealers have strict regional division and cannot sell across regions. The purpose is also to protect dealers. Therefore, the company’s dealer loyalty is very high, and it may be weak for newly developed dealers at the beginning, The company will slowly support the dealers to do it, which can make the dealers develop better. Some companies have different ideas and models from our company, which is also related to the company’s corporate culture. The company’s corporate vision is to become the creator and enjoyment of a happy life, and we will build it
It is to develop together with dealers and share achievements. In addition, the company’s annual report disclosed that there are more than 2300 primary dealers, including 170 overseas dealers in Cecep Solar Energy Co.Ltd(000591) business and 400 overseas dealers in pipeline export business.
Annex list (if any) none
Date: February 17, 2022
