Securities code: 002641 securities abbreviation: record of investor relations activities of ad shares on February 16, 2022
No.: 2022-007
Investor relations activities □ specific object research □ analyst meeting
Category □ media interview □ performance briefing
□ press conference □ Roadshow
□ site visit
√ other teleconferences
Name of participants and institutional investors:
Names of personnel: Wang Ting of galaxy securities, Jia Yameng, Hao Ziyu of BOCI, Lin Qizhen, Zheng Jingwen, Yao Yang of superstar investment, and Liu Pei of Jinmen Finance
Time: February 16, 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, which failed to fully transfer the range of raw material price increase investor relations activities to the downstream. From mid October to now, the main contents of raw material prices have changed greatly, the cost pressure of the company will be gradually relieved, and the profitability of the company will be improved month on month from the fourth quarter.
2、 Planning for the company’s capacity expansion?
The company’s future production capacity planning, the company’s business is mainly in East China, and the future development, East China is still our main market. The company’s construction of a new production base in Huai’an, Jiangsu Province is to further explore the East China market and create more than 1 million tons of energy in the Yangtze River Delta in the future. Companies in other regions are also laying out, The company has projects under construction in Guangdong, Hunan, Tianjin and Chongqing. The construction of these projects provides capacity guarantee for the development of the company. In addition, a storage center will be set up in the area with weak sales to radiate the market through the storage center. In the future, whether to build or acquire a new production base in the area will be considered in due time according to the market expansion.
3、 What are the year-on-year price changes of PVC, PE and PPR products of the company in 2021? In 2021, the price of PVC raw materials increased the most, so the ex factory price adjustment range of PVC products is also large. The raw material price fluctuation of PE and PPR products is not too large, and the ex factory price of products is also slightly adjusted.
4、 Number of dealers in 2021?
The number of primary dealers has increased compared with last year, and the specific figures are still being counted.
5、 What are the company’s incentive policies for dealers?
The company will encourage dealers in different regions based on their performance expansion, performance growth and total performance. Different regions have different requirements and incentives. 6、 Accounts receivable of the company?
At present, the company’s accounts receivable are mainly municipal engineering and real estate direct supply, accounting for 70% – 80% of the company’s accounts receivable, and the channel accounts receivable accounts for a relatively small proportion. In 2022, we will take a more cautious attitude towards real estate customers. Among real estate customers, except Hengda, the accounts receivable of other real estate customers are relatively benign. In terms of engineering, accounts receivable account for a large proportion. After collection, the collection status in the fourth quarter of 2021 is good.
7、 What is the company’s plan for sales?
In the future, the company will still focus on East China, including northwest and other regions with weak sales, and adopt storage and distribution centers. At present, the company has set up logistics distribution centers in Guiyang, Xi’an, Changsha, Kunming, Chongqing, Xinjiang and other places. The company’s establishment of storage and logistics distribution centers is mainly to solve the problem that the company has no local production base or imperfect distribution network, The establishment of warehousing and logistics distribution center can not only effectively expand the local market, but also save the distribution cost of the company’s products and enhance the company’s competitiveness in the local market. In the future, a certain number of regions will also consider establishing production bases.
8、 The company’s raw material reserves?
Before the middle of October 2021, the price of PVC raw materials of the company is relatively high. Before that, the raw material reserve of the company is small, and it is generally guaranteed to be able to produce normally. However, when the raw materials are relatively low, the company will increase the reserve of raw materials through spot and futures. Under normal circumstances, the raw materials will have an inventory of about one month.
9、 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.
10、 At present, the price of raw materials has declined. Has the ex factory price of the company’s products been reduced? In the first quarter, the company carried out promotional activities for some products, and the product price will recover after the promotional activities.
11、 The impact of infrastructure on the company?
The business volume of the company’s own direct participation in bidding is small, accounting for about 4%, and the rest is mainly done through dealers. Generally speaking, the company supports the channel distribution to the bidding area project. If the company needs to guide the bidding in the business, the company will fully cooperate with the dealers. The company has always been in line with the principle of making profits and establishing a community of interests with the dealers to achieve a win-win situation. In the future, the company will further increase its support to the dealers. At the same time, at the beginning of 2022, the company made some internal adjustments, integrating the East China large pipeline marketing center and Shanghai sales company, and adjusting the engineering project department, so as to provide guarantee for the better development of municipal business in 2022. 12、 The development plan of the company’s bathroom?
It took Yongfeng a long time to integrate its products into the online sales channel of the original bathroom business on December 30, 2021, The addition of bathroom products should play a positive role in promoting the company, especially home decoration, and will not have a negative impact on the company’s cost operation. The bathroom products have just been released, and the later stage still depends on the overall sales situation.
13、 The company’s Cecep Solar Energy Co.Ltd(000591) business is mainly export-oriented. Will China’s development be considered?
The company’s Cecep Solar Energy Co.Ltd(000591) products are mainly exported, and the company is also planning the development of the Chinese market.
14、 Will the company improve the sales of products with good profitability in the future? From the perspective of the company, we hope to gradually adjust the product structure and improve the sales of products with high added value, including home decoration pipes, water supply pipes, fire pipes, agricultural breeding and the products of the newly launched sanitary system. In recent years, the company has allocated more resources to the home decoration business. Starting from team building, brand publicity, system construction and other aspects, the home decoration business is also becoming mature and perfect, the business scale is also increasing year by year, and the profit contribution to the company will be greater and greater in the later stage.
Annex list (if any) none
Date: February 16, 2022
