Securities code: Shanghai Baolong Automotive Corporation(603197) securities abbreviation: Shanghai Baolong Automotive Corporation(603197) Announcement No.: 2022011 Shanghai Baolong Automotive Corporation(603197)
Announcement on the investigation of reception institutions in the first half of March
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Shanghai Baolong Automotive Corporation(603197) (hereinafter referred to as "the company") received the institutional research through on-site reception and teleconference in the first half of March 2022. The situation is hereby announced as follows:
1、 Investigation
1. Specific object research
S / N date visitor unit Receptionist
Feng He fund, Millennium capital, Matthews Board Secretary Yin Shufei
1 202203.03 Cao Kailun, senior representative of Asia Securities Investment
2.03.04, 2022 Changjiang Securities Company Limited(000783) Cao Kailun, senior representative of securities investment
3.03.08, 2022 Huatai Securities Co.Ltd(601688) Cao Kailun, senior representative of securities investment
2. Telephone survey
S / N date visitor unit Receptionist
1. 202203.01 Western Securities Co.Ltd(002673) securities investment senior representative Cao Kailun
Sealand Securities Co.Ltd(000750) , Ruiyuan fund, Millennium capital, board secretary Yin Shufei
2.03.02, 2022 Founder Securities Co.Ltd(601901) Cao Kailun, senior representative of securities investment
3.032022 Cao Kailun, senior representative of Kaiyuan securities investment
4. On March 8, 2022, Yin Shufei, Secretary of ICBC Credit Suisse fund
Secretary Yin Shufei
5.03.09, 202203 Cao Kailun, senior representative of Wells Fargo fund securities investment
6. March 15, 2022: enbao assets, Xitai investment, Cinda Australia Yinji securities investment senior agent, China financial asset management, Gf Securities Co.Ltd(000776) form Cao Kailun
2、 Summary of the main questions exchanged and the company's reply
1. Yin Shufei, Secretary of the board of directors of the company, and Cao Kailun, senior representative of securities investment, had a brief exchange on the company's main products, operation, industry trend and future development.
2. The company's leaders communicated with investors on the following issues:
Question ①: how is the company's recent operation affected by the epidemic
answer:
The epidemic situation in China has intensified recently. The company has actively implemented various prevention and control measures to maintain stable and orderly production. From the current production scheduling and sales situation, the production and operation of the company are within the normal range.
Question ②: the impact of the Russian Ukrainian war on the company's business
answer:
At present, the production scheduling and sales of the company remain stable. In terms of European business, the customers of valve and exhaust pipe are relatively scattered, and the customers of tire pressure business are mainly high-end luxury brands. Generally, they have not felt the obvious impact of the war. The company will continue to observe the situation and actively respond to the subsequent potential impact of the war.
Question ③: is the impact of raw materials and freight mitigated
answer:
In terms of raw materials, the company has agreed on product price adjustment terms when signing contracts with major customers. When the price of bulk raw materials fluctuates, the product price will be adjusted. At present, most customers have completed price adjustment.
In terms of sea freight, the company has reached an agreement with major customers, and most of the freight will be borne by customers.
It is expected that the impact of the rise in the prices of raw materials and freight on the company's performance will continue to reduce.
Problem ④: shipment and capacity planning of air spring
answer:
Passenger car air springs began to be measured in February, and there should be thousands in the first quarter. In terms of capacity planning, the second production line will be installed in April and the third production line will be installed in September. It will be planned and updated according to the order. At present, the layout cycle of a single production line can be controlled within about half a year, and the overall pace of capacity planning can be effectively controlled.
Question ⑤: strategic purpose and consideration of Longgan Technology
answer:
In terms of the company's strategic objectives, first of all, the sensor itself is the company's core business and direction. From TPMS to more categories of vehicle sensors, they have been supplied in pressure, light, rain, speed, position and current. In terms of the characteristics of sensor business, the application categories are particularly rich, and the total value is increasing, but the value of a single product is not high. To form a scale in the sensor field, we still need a rich product portfolio, from Bosch and continental to Sensata and te. If the product is relatively thin, it cannot compete with global enterprises. The acquisition of Longgan can enrich the company's sensor product portfolio and improve the company's business scale and the competitiveness of vehicle sensors.
Longgan's team is excellent, from product development to large-scale production. As a start-up company, the lack of resources leads to limited development. After the acquisition, the company's supply chain system and various resource capabilities will be introduced, and there will be a better development speed in speed and position sensors. The company is also confident that the sensor business will develop rapidly this year.
The time point of this acquisition is also relatively good. Under the background of insufficient supply of global sensor manufacturers, we can enter the customer system more quickly. Therefore, this acquisition is a very good business development window. Question ⑥: the company has made frequent investment and mergers and acquisitions in recent years. How to consider the follow-up
answer:
The growth path of the company includes endogenous self research and external M & A. Dill M & A has been very successful since 2005, and has accumulated initial experience.
For the sensor business, referring to the development history of global sensor company, mergers and acquisitions are very common. Merging and acquiring a single category of technology companies can enrich the product portfolio and meet the characteristics of the sensor industry.
The market competition of ADAS business is very fierce. By forming a strategic alliance with external companies, we can better reduce costs and increase efficiency.
Generally speaking, M & A is still the industrial strategy of service companies, not simply to expand the scale of revenue. Question ⑦: is the chip still in a tight situation and whether the company's supply chain reserves are sufficient
answer:
The overall chip supply is still very tight, but there is a considerable easing in the first quarter of this year compared with the second half of last year, and the supplier's supply to us is also normal.
The company maintains active communication with suppliers, which is also a long-term and large-scale cooperative relationship, so the support from the supply chain will also be sufficient. At the same time, the company began to lay out domestic supply chain reserves and import a variety of domestic chips last year.
In the environment of chip shortage in the industry, the company has obtained more new businesses because of its full preparation on the chip.
It is hereby announced.
Shanghai Baolong Automotive Corporation(603197) board of directors March 17, 2022
