Securities code: China Tungsten And Hightech Materials Co.Ltd(000657) securities abbreviation: China Tungsten And Hightech Materials Co.Ltd(000657) China Tungsten And Hightech Materials Co.Ltd(000657)
Record of investor relations activities
No.: 202202
□ specific object research □ analyst meeting
□ media interview □ performance briefing
Category of investor relations activities □ press conference □ Roadshow
□ site visit
□ others (please specify other activities in words)
Participating institutions:
Participating units and personnel: Tianhong Fund Management Co., Ltd. Citic Securities Company Limited(600030) , Hanya investment, hel ved, xingyin wealth management, Panjing assets, Guoxin Investment, China Securities Co.Ltd(601066) , Citic Securities Company Limited(600030) , Wantai Huarui, BOCOM Schroeder
Time: February 28, March 1, March 3
Place: entrance finance and corporate conference room
Form: online conference & on-site investigation
Deng Yingjie, deputy general manager and Secretary of the board of directors of the reception personnel of listed companies, Wang Yuzhen, representative of securities affairs, and Yan Ziqiang, Securities Department
1、 Company profile
In December 1996, it was listed as a high-tech tool manufacturing enterprise in Shenzhen. The company, formerly known as Jinhai Co., Ltd., completed management integration in 2016 and is positioned as a professional company of integrated management, operation and exchange content and specific Q & a camp of tungsten industry under China Minmetals Group Co., Ltd; In 2018 China Tungsten And Hightech Materials Co.Ltd(000657) was included in the first batch of pilot enterprises of the double record hundred action of state-owned enterprise reform. In 2020, the company completed the financing project of non-public offering of shares, raising 880 million yuan to help improve the quality and capacity of the company's high-quality products and industrial upgrading; In 2021, the first phase of the company's restricted stock incentive project was accepted to further improve the company's governance structure, establish an incentive and restraint mechanism with highly consistent interests of shareholders and employees, and stimulate the enthusiasm of key talents. In recent years, China Tungsten And Hightech Materials Co.Ltd(000657) has been determined to reform, made efforts to develop high-end product technology R & D and production, and achieved remarkable results in solving neck sticking technology and implementing import substitution.
The company is the largest comprehensive supplier of cemented carbide in China. The production scale of cemented carbide ranks first in the world. China has a market share of more than 25%, and has many dominant products: precision micro drill bits for PCB rank first in the global market share; Mechanical cutting tools, bar profiles, spherical magnetic hybrid products, precision tools, drilling tools and other advantageous products have a far leading market share in China and have considerable popularity and voice in the international market.
The company has outstanding talent and technical advantages, has the only National Key Laboratory of cemented carbide and four national scientific and technological innovation platforms in the industry, enjoys more than 1400 authorized patents, undertakes a number of national, provincial and ministerial key projects, and has made major breakthroughs in intelligent production.
2、 Q & a session
1. What is the company's production expansion plan for fine tungsten wire?
The company plans to increase the capacity expansion and transformation of 10 billion meters of fine tungsten wire per year, which is undertaken by Chengdu Branch of Zigong Cemented Carbide Co., Ltd. After the completion of the project, 10 billion meters of high-strength tungsten wire will be added for the photovoltaic industry, accelerate the replacement of cutting wire in the photovoltaic industry, promote the transformation, upgrading and subsequent development of tungsten wire products, further expand the production and marketing scale of the company's advantageous products and enhance the profitability of the company. The production expansion will make full use of the existing plant, and the cost consumption is small. It only needs to purchase and debug equipment and increase labor. If the effect of the project meets the expectation, the company will plan the next production expansion according to the market situation.
2. What is the expected production time of the company's fine tungsten wire expansion project?
The construction of the project has been started. It is preliminarily estimated that the construction period will be 9 months. During this period, equipment purchase, equipment commissioning, installation and trial production will be carried out, and finally the production capacity will be reached. The company has many years of mature production experience in coarse and fine tungsten wires, and the commissioning and running in cycle will not be very long.
3. Compared with traditional steel wire, the cost and efficiency advantages of using tungsten wire as diamond wire
Fine tungsten wire has the characteristics of high strength, wear resistance, good machinability and good fatigue resistance. It can upgrade and replace the fine steel wire in some application fields to make up for the shortcomings of the fine steel wire, such as it is difficult to process finer and the strength is too low. Because of its excellent machinability and high strength, tungsten wire has a good cost performance instead of micro steel wire in some special fields. First, the service life is longer. For example, in the production of monocrystalline silicon, the service life of wire rope made of steel wire is only 2-4 times, while that made of tungsten wire can reach more than 40 times; Second, the diameter is thinner: the thinnest steel wire is about 42 μ m. At present, tungsten wire can reach 35 μ m. Conform to the trend of wafer flaking; The third is to save costs. The finer diameter and longer service life will reduce the direct cost of materials; Fourth, higher efficiency, higher cutting times in a single time interval and higher yield. 4. What is the prospect of the fine tungsten wire project?
At present, fine tungsten wire cannot be supplied in batch in the market, but there is an urgent demand in the downstream due to its high efficiency, material saving and other characteristics. At present, the development prospect is good.
5. Please introduce the capacity expansion planning of lower tool business
In 2021, the production capacity of CNC blades of Zhuzhou drilling company exceeded 100 million, and the 10 million blades arranged by the self hardening company were also put into operation last year. Therefore, the consolidated caliber of the whole listed company is about 110 million.
In 2022, the self hardening company will further expand the production capacity of 10 million pieces; Zhuzhou drilling company has been approved to build two production lines of cutting tools for key parts of aerospace and automobile in August 21, and will increase the production capacity of more than 10 million NC blades in total. The current expansion projects of the company have room for further production expansion, and there are reserves in land reserve, plant and equipment procurement, which can be flexibly adjusted according to the market situation in the later stage.
6. What are the changes in tool business demand at the beginning of this year?
From the perspective of the company's orders, it basically continues the situation of relatively high prosperity last year. At present, the order production is scheduled for more than two months, and there are continuous delivery and receipt of orders. The overall momentum is still relatively good.
7. Please introduce the overall situation and subsidiaries of the lower tool industry
At present, the scale of China's cutting tool market is about 40 billion yuan, of which cemented carbide cutting tools account for about 60%. From the second half of the 20th year to the 21st year, the industry has shown a trend of rapid development, and the major tool manufacturers have achieved significant growth.
At present, the company's cutting tool business is mainly involved in Zhuzhou drilling, Jinzhou and self hardening. Zhuzhou drilling is the leading enterprise of cutting tools in China, specializing in the production of NC blades, integral tools, NC tools and clamp welding blades, as well as providing comprehensive cutting processing solutions. In recent years, the revenue has been in the forefront of the market. In the past 21 years, the production and sales of CNC blades have exceeded 100 million, and the number of patent applications is leading in China. Jinzhou company mainly produces PCB tools such as micro drill bits and micro milling cutters. At present, it is the world's leading supplier of PCB special tools, and its production, sales and technical research and development have reached the world-class level. Self hardening company produces CNC blades and traditional blades, which is the main force for the company to plan the dual brand strategy of cutting tool business, differentiated operation and regional market segmentation.
This year, the cutting tools and tools sector will still be a key development sector of the company, and the production capacity will be further expanded. The company is also committed to providing "overall solutions", and the requirements for technical strength and R & D and innovation ability will be higher and more comprehensive.
8. Can you introduce the product structure development of Zhuzhou drilling company? The product structure of Zhuzhou drilling company has been continuously optimized. At present, the proportion of CNC products has exceeded 85%, and the proportion of medium and high-end products has also continued to grow. In the past two years, the medium and high-end direct supply business has grown rapidly, and the revenue accounts for more than 20%. The overall solution service business represented by the general contracting business of Chengdu Airlines has developed rapidly. After stable development, it will bring more development opportunities and growth space for the company in the application fields of aerospace, military industry and other industries.
9. Please introduce the overall solution development of Xiazhu drilling company in detail?
The overall solution service of Zhuzhou drilling company is based on the cutting and processing needs and economic requirements of customers, aiming at improving the cutting and processing efficiency of customers and reducing the cutting and processing cost, including advanced cutting and processing solutions, customized tool design and production, whole process management of cutting processing, cutting site tool management services And innovative settlement management services. Being able to provide comprehensive cutting solutions is an important condition for becoming a comprehensive cutting service provider, and it is also the main gap between Chinese tool brands and international brands.
At present, the company's overall solution has achieved rapid development. First, the number and scale of customers have increased significantly. Second, some breakthroughs have been made in key industries. Taking the general contracting of Chengfei cutting tools as an example, we changed the pricing mode and provided a complete set of cutting and processing services, from selling products to selling services. Extend the tool service tentacle directly to the customer's site, continuously improve the customer's cutting efficiency, reduce the customer's cost, and provide better feedback and improvement for their own product research and development.
In the future, with the continuous improvement of national requirements for ensuring the safety and reliability of the manufacturing supply chain and solving the neck problem of the manufacturing industry, the demand of Chinese customers in key industries for the nationalization of solutions will also continue to increase. Therefore, Zhuzhou drilling company will further improve the overall level of cutting solutions, Actively use the demonstration role of industry leading users with point-to-point contact surface to fully promote the localization of cutting solutions.
10. What is the current situation of Jinzhou company? What is the future development plan?
At present, the development of Jinzhou company is relatively stable, orders and production are relatively full, and the development momentum of the enterprise is good. The future development of Jinzhou company is still worth looking forward to, because first, the market position is stable. At present, Jinzhou company is the world's leading supplier of PCB processing tools. It leads other enterprises in terms of production capacity, R & D and design ability, and its cost control and profit level are also prominent. Second, Jinzhou company has a strong ability to grasp the market. For example, during the epidemic last year, Jinzhou company seized the production of melt blown cloth drilling needle development, quickly occupied this market, well reduced the cost of customers and maintained a good gross profit margin. Third, it has strong R & D and innovation ability. The development progress of deep hole micro drill and dental processing tools designed for PCB processing is good. At present, the market prospect is good and the development space is large.
At present, Jinzhou company plans to build production bases in Shenzhen, Kunshan and Nanchang, and adopts the strategy of small-scale and frequent production expansion. The three bases develop synchronously, leaving room for capacity expansion in the future.
11. What is the current progress of Jinzhou in dental tools?
Jinzhou company has made rapid progress in dental tools. From the original dental needle tools to a full range of dental tools, now it has been expanded to dental tools for children. The R & D progress is fast and the market development is relatively smooth. However, it is still in the market development period, and the relative revenue scale and benefits are not significant, but we think the future development space is worth looking forward to.
Annex list none
Date: March 4, 2022
