Securities code: Shantou Dongfeng Printing Co.Ltd(601515) securities abbreviation: Shantou Dongfeng Printing Co.Ltd(601515) Announcement No.: pro 2022008 bond Code: 113030 bond abbreviation: Dongfeng convertible bond
Shantou Dongfeng Printing Co.Ltd(601515)
Announcement on the investigation of reception institutions
Shantou Dongfeng Printing Co.Ltd(601515) (hereinafter referred to as “the company”) received the institutional research through online conference on March 15, 2022, and now the situation is announced as follows:
1、 Investigation;
Time: 15:00-17:00, March 15, 2022;
Form: online meeting;
Participants of the company: Vice President of the group and Secretary of the board of directors;
Securities affairs representative Huang Longyu;
Investor participant: Jiangsu Ruihua Investment Holding Group Co., Ltd
Shanghai Shangjin investment management partnership (limited partnership)
Zhongtian Guofu Securities Co., Ltd
Danshui spring (Beijing) Investment Management Co., Ltd
Hangzhou Shinian Investment Management Co., Ltd
Citic Securities Company Limited(600030)
Guolian Securities Co.Ltd(601456)
Xiangju Capital Management Co., Ltd
Taiping Endowment Insurance Co., Ltd
Shanghai Hexi Investment Management Co., Ltd
Shenzhen danen Xianfeng Investment Management Co., Ltd
Shanghai Maodian Asset Management Co., Ltd
Haifutong Fund Management Co., Ltd
2、 Main issues of communication and key points of the company’s reply;
In this investor exchange meeting, the key issues concerned by investors and the key points of the company’s reply are as follows:
The Secretary of the board of directors of the company briefly introduced the operation of the company in 2021 and the development strategy in 2022:
In 2021, while maintaining the leading edge in the main industry of cigarette label printing, the company made rapid transformation, focusing on outward investment and M & A, actively explored new tracks in the field of pharmaceutical packaging, new materials and new tobacco, and achieved certain business success.
In 2022, as the launch year of the company’s strategy of “increasing cigarette labels, adding tracks and raising valuation”, the company plans to create three core competitive advantages: first, the large packaging strategy. While continuously deepening the cigarette label business, the company will quickly invest in and layout high growth class I drug packaging materials, auxiliary materials, medical devices and other tracks to maintain the rapid growth of this sector; Second, the complete layout of the new-type tobacco track. The company has laid out the new-type tobacco field including HNB, atomization, PLA filter, etc., and has accumulated a very wide range of intellectual property rights. The whole industrial chain layout is carried out from substrate and flavor R & D to production and sales. With the gradual implementation of national regulatory policies, the company will firmly support regulation, Strictly implement a series of new policy requirements for new tobacco, including e-cigarette taste regulations, formulate corresponding development strategies under the policy framework of laws, regulations and regulatory authorities, and continue to pay attention to and explore further optimizing the development of new tobacco related business sectors; Third, new material platform (including new energy materials). The company plans to increase the investment in Guangdong Xinrui New Material Technology Co., Ltd., a wholly-owned subsidiary, and build it into the leading enterprise of the group’s new materials, so as to accelerate the transformation of the company to a track with high prosperity and high valuation (mainly focusing on pet base film, super blue film, PVA high resistance membrane, high oxygen resistance membrane, etc.). At the same time, Study new material tracks in a wider area, gradually establish and acquire teams, absorb excellent talents, and carry out industry university research cooperation with high-quality university research institutes, so as to reserve high-quality resources for long-term tracks in the next five years or more.
At the same time, in the field of consumer investment funds, the company’s consumer investment funds have gradually generated investment income since 2017 and have invested in several new FMCG high-quality targets until the latest reporting period. Most of the projects invested by the consumer investment fund are currently in the stage of rapid growth. After that, the consumer investment fund will also enter the exit period, and the company will obtain the corresponding investment income. Next, the company will use the investment income to further increase the investment in pharmaceutical packaging business and new material business, and accelerate the transformation and upgrading of the company.
Question 1: please introduce the advantages of the company in the traditional cigarette label industry;
The tobacco industry is an industry with monopoly system. It has been implemented for a long time to purchase tobacco labels by means of bidding. The asset liability level, asset scale, industrial chain and stable supply capacity of Tobacco Label enterprises attach importance to business terms, and one is the price factor. The company has been deeply engaged in the cigarette label industry for more than 30 years and has formed a high industrial barrier. In the future, on the one hand, the company will invest large human and material resources to build a high-standard design center, strengthen the design and R & D capacity and improve the bid winning rate of new products; In addition, the company has also established a whole industry chain covering paper products, base film, ink, coating, electrochemical aluminum, laser film, laser transfer paper, printing and packaging design and production, and has become one of the most complete printing and packaging enterprises in the industry. At the same time, the company will take many measures to reduce production costs and period expenses to ensure stable business performance. Cigarette label business is the cornerstone business of the company. The company will give full play to the advantages of industrial chain depth and business scale, effectively control cost, quality and delivery time, and ensure the steady growth of cigarette label printing business.
Question 2: how does the company view the future development of the traditional cigarette label industry;
From the perspective of the total volume of large cases in the market, the traditional tobacco industry shows a single digit growth year by year, but the transformation of product structure to medium and high-end is an inevitable trend. The structural adjustment of the company’s cigarette label products is also carried out step by step, making continuous efforts to new products and high-end tobacco products. It is actively designing and developing new products to enhance the company’s core competitiveness and maintain business growth.
Question 3: whether the company’s pharmaceutical packaging business involves vaccine packaging, nucleic acid testing reagents and other related businesses; In terms of pharmaceutical packaging business, the company has actively arranged the industry of class I pharmaceutical packaging materials, auxiliary materials and medical devices, and has acquired four class I pharmaceutical packaging materials enterprises: Guizhou Chiba, Chongqing Shoujian, Changzhou Huajian and Fuxin Huakang. Among them, Chongqing Shoujian supplies aluminum-plastic composite covers for Beijing Kexing Zhongwei Biological Technology Co., Ltd. and is one of the main suppliers of Kexing Zhongwei. Up to now, about 200 million aluminum-plastic composite covers have been ordered, and the production and delivery have been completed; Fuxin Huakang’s business involves the production of relevant packaging materials for nucleic acid detection kit products; Changzhou Huajian is the main supplier of aluminum foil and composite film bag of “Lianhua Qingwen capsule and Lianhua Qingwen Granule” of Yiling pharmaceutical. Guizhou Chiba participated in the stability research of PVC hard sheet for drug packaging, which further reflects the demand of pharmaceutical customers for the supplier of overall packaging services, In addition, Fuxin Huakang also provides relevant packaging of self-test kits for major companies of Andon Health Co.Ltd(002432) its subsidiaries.
In the future, the company’s Dongfeng medicine bag platform will also further develop medical devices in the field of IVD (in vitro diagnostic reagent). At the same time, Chongqing Shoujian will smoothly cooperate with Kexing Zhongwei to enter the WHO supplier list through excellent quality management and service system, which means that Chongqing Shoujian can supply more vaccine bottle caps to enter the international market in the future, At the same time, it will also provide more product packaging for the supply of vaccines in the Chinese market and class I packaging materials for the production and supply of multi strain combined vaccines in the future.
Make efforts to high gross profit products to boost the gross profit and net profit level of the sector. At the same time, we are actively expanding foreign enterprise customers. In the future, the company will continue to develop high-quality customers, optimize the customer structure, further enhance the industrial scale and promote the accelerated development of the pharmaceutical packaging business sector in combination with the business development.
Question 4: what are the customers of the company’s pharmaceutical packaging business;
Pharmaceutical packaging business is one of the key areas of the company’s industrial layout. At present, the company has successfully acquired four class I pharmaceutical packaging materials enterprises: Guizhou Chiba, Chongqing Shoujian, Changzhou Huajian and Fuxin Huakang. Because each pharmaceutical packaging material company has its own product category layout and advantages, the customers of each company can graft on each other. At present, the main customers of the company’s pharmaceutical packaging business are Beijing Kexing Zhongwei, Tongjitang, Shijiazhuang Yiling Pharmaceutical Co.Ltd(002603) , Sinopharm group, Guangzhou Pharmaceutical Group, Chongqing Taiji Industry (Group) Co.Ltd(600129) , Yangzijiang pharmaceutical, Kpc Pharmaceuticals Inc(600422) , China Resources Sanjiu Medical & Pharmaceutical Co.Ltd(000999) , Xiangxue Pharmaceutical Co.Ltd(300147) , Guilin Sanjin Pharmaceutical Co.Ltd(002275) pharmaceutical and many other well-known pharmaceutical enterprises, and the foreign customers are mainly AstraZeneca and fesenyuskabi, In addition, the business cooperation with Sanofi has provided samples and passed the test, and the business cooperation with Bayer has also completed the procedures of supplier filing.
In 2022, all subsidiaries of class I pharmaceutical packaging materials have plans to further increase capital and expand production, expand industrial scale, improve product quality and optimize customer structure. The business proportion of this sector will gradually increase and the gross profit margin will further increase. Each subsidiary in the pharmaceutical packaging sector will dig deep into the supply chain in its field. The company is also actively looking for new M & A targets, expanding product categories and upgrading industrial scale. At present, the company focuses on industrial expansion, product upgrading and customer structure upgrading, and takes developing business scale and improving product quality as the primary task. According to the five-year development strategic plan for pharmaceutical packaging industry (20202024) previously released by the company, the company’s future goal is to strive to become a comprehensive leading manufacturer in the field of China Meheco Group Co.Ltd(600056) packaging. Question 5: why the gross profit margin of the company’s pharmaceutical packaging business in 2020 increased compared with that in 2019;
The gross profit margin of the company’s pharmaceutical packaging business in 2020 has increased to a certain extent compared with 2019, mainly due to the further upgrading of production capacity, product structure and customers. In the future, the profit level of this business segment will be further improved.
Due to the implementation of the related review policy, pharmaceutical enterprises will not easily change the suppliers of drug packaging materials, and pay more attention to the quality of drug packaging materials rather than the price. After the implementation of volume procurement in the pharmaceutical industry, the order volume of a single customer and a single variety of drug packaging materials has increased significantly, which is conducive to improving capacity utilization and equipment OEE efficiency, resulting in an increase in the gross profit margin of drug packaging materials suppliers.
In the future, with the continuous deepening of business integration and coordination, the gross profit margin of the company’s pharmaceutical packaging business should still have room to improve. With the aging of the population, the whole medical and health industry, including health care, should gradually increase the demand for health and drugs, which is an upward track. The demand of foreign pharmaceutical enterprises in the pharmaceutical packaging material business is very large. Foreign pharmaceutical enterprises originally have high requirements for packaging, and there will be more profit space accordingly. After entering the supply system of foreign pharmaceutical enterprises, with the increase of the volume and price of the whole pharmaceutical packaging sector of the company, the gross profit margin should be further optimized.
Question 6: the future performance expectation of the company’s pharmaceutical packaging business;
According to the five-year development strategic plan for pharmaceutical packaging industry (20202024) previously released by the company, the company’s future goal is that by 2024, the operating revenue of the company’s pharmaceutical packaging industry will not be less than 1.2 billion yuan and the net profit will not be less than 120 million yuan.
Q7: please introduce the development and advantages of the company’s new material business;
According to the company’s strategy, the company plans to build Guangdong Xinrui New Material Technology Co., Ltd., a wholly-owned subsidiary, into a leading enterprise of the group’s new materials. As the main body of the company’s new material sector, after years of development, Xinrui technology’s membrane material business has gradually cut into the field of lithium new energy and high barrier based on the traditional base membrane business. Xinrui technology has developed new energy material related products such as lithium battery diaphragm support protective film and lithium battery cell outsourcing aluminum plastic film protective film, It is also the main supplier of Yunnan Energy New Material Co.Ltd(002812) lithium battery diaphragm production, and the developed lithium insulation blue film products have high cohesion and adhesion, and have reached the industry-leading level. In addition, Xinrui technology has invested in Shenzhen Bosheng, which is a Byd Company Limited(002594) lithium battery diaphragm supplier and Contemporary Amperex Technology Co.Limited(300750) energy storage diaphragm supplier. At present, it has gradually released its production capacity. It has started to make profits in December 2021, and its gross profit has returned to a higher level in the industry. Moreover, Jiangsu Yancheng production base has entered the stage of equipment commissioning, which will further release its production capacity. Shenzhen Bosheng’s performance in the gambling industry is 30 million yuan in 2022, 47.5 million yuan in 2023 and 60 million yuan in 2024. In the future, the company will also fully cooperate with Shenzhen Bosheng in the field of new materials. The two sides will further transform to the end of new energy comprehensive materials through industrial and supply chain integration and enter the new energy supply chain system.
In addition, Xinrui technology has invested in the establishment of Xinrui Chino to operate the PVA coated high resistance diaphragm project. At present, the products have achieved mass production and have excellent oxygen resistance performance. They have been used in various high-end food and high-end drug packaging, among which the representative is the application of inner packaging materials of dairy products. The company also established a high-end functional film joint laboratory with Huangpu Advanced Materials Research Institute of Changchun Yinghua Institute, closely focusing on the functional needs of end customers, continuously expand the application scenarios of relevant products, and increase the research and development of new varieties and applications of functional films.
At present, the business of various new materials is growing rapidly and is expected to maintain sustained growth in the future. The company will also increase the investment and integration of this sector and comprehensively improve the proportion of this sector in the company’s revenue. In the future, high-end pharmaceutical packaging, high-end food packaging and other fields, as well as film industry opportunities extended from various new materials (including new energy) lithium battery products, will be the strategic focus of the company’s development and transformation.
Question 8: please introduce the synergy between the original base membrane business and the expanded functional membrane business of the company; The functional film business of the company is extended from the pet base film business segment. The company’s PET film, laser film, laser paper and other businesses are operated and incubated in Guangdong Xinrui New Material Technology Co., Ltd., a wholly-owned subsidiary. As the company’s high-end film new material platform company, Xinrui technology has gradually moved towards the extension of the industrial chain from the base film business at the beginning. The company’s strategy is also step by step from the idea of the industrial chain, Expand and optimize the layout step by step.
Question 9: please introduce the basic situation of the company’s investment in Shenzhen Bosheng;
Through the wholly-owned subsidiary Guangdong Xinrui New Material Technology Co., Ltd. and Shenzhen Bosheng New Material Technology Co., Ltd
