Securities code: Guangdong Kinlong Hardware Products Co.Ltd(002791) securities abbreviation: Guangdong Kinlong Hardware Products Co.Ltd(002791) No.: 2022007 Guangdong Kinlong Hardware Products Co.Ltd(002791)
Record of investor relations activities
□ specific object research □ analyst meeting
Investor relations □ media interview □ performance briefing
Activity category □ press conference □ Roadshow
□ site visit ☑ Others (teleconference)
10 institutional investors including China International Capital Corporation Limited(601995) Yang Maoda & Gong Qing, Morgan asset management, Anatole investment, Fidelity Investment, Jinglin assets, point72, library group, Fullerton, personnel name 3W Richard and polymer attended the meeting.
Time: March 18, 2022
Place: company conference room
Chairman: Bai Baokun
Secretary of the board of directors of the listed company: Yin Jianzhong
Personnel name: securities affairs representative: Han Shuang
1. What are the company’s plans for the next three to five years?
In the past two years, due to the real estate regulation and capital chain pressure, the operation of the whole industry has been affected, and the changes in the external market have greatly changed the living environment of enterprises. In 2021, the company accelerated the progress of channel sinking and developed more new sales scenarios with many of our new categories. While cultivating new categories, it is also conducive to separate investor relations activities and the capital pressure and risks of the real estate industry. In the future, the company will focus on the layout of integrated suppliers of building accessories with the introduction of curtain wall hardware as the core, new category expansion, channel sinking, overseas market expansion and other aspects.
2. Cultivation of new categories of the company?
When evaluating the introduction of new products, the company still analyzes more from the market side, whether it has synergy and whether it expands around its main business. Whether the product can be done well after import involves many factors. At present, among the products of more than 100 categories of the company, its own traditional products account for a high proportion in the performance, but the growth rate of new categories is faster than that of traditional products. At present, the company’s fingerprint lock and sealing strip have become the invisible champion in the industry. With the appearance of scale effect, production subsidiaries have made profits after the increase of gross profit margin, and their operating conditions have been continuously improved. The development of each industry needs a certain time, the cultivation of new categories needs a time process, and all parties need to develop in coordination. 3. What are the advantages of the company’s new products when the channel sinks?
The company is positioned as an integrated supplier of building accessories. In terms of industry characteristics and changes, in order to save procurement costs, more and more customers will prefer “one-stop procurement”. We provide customers with a “product + service” sales model. For some small and medium-sized customers who have relatively little personnel investment, they pay great attention to our integration ability and services. We have more obvious advantages in some prefecture level cities and counties. For customers with a larger professional team, the demand for our services is relatively lower, and we pay more attention to our products. At present, most of the scene sales we are doing are customers who do not have a detailed professional team, and some even the boss is acting as the procurement plan. We are equivalent to the customer’s consultant and consultant to ensure product supply and provide comprehensive services at the front, middle and rear, which has a greater competitive advantage. 4. In what ways does the company improve efficiency?
The company has always been concerned about this issue, and improving per capita efficiency is the company’s long-term goal. The company focuses on the core objectives of “service, support, load reduction and efficiency enhancement”. First, through the information system platform, the company implements organized operation and constructs the “iron triangle” strategy. The customer manager is oriented to the customer, the product manager is oriented to the product line, the service support is responsible for warehousing, logistics and installation, and establishes the client service platform “cloud mining”, so as to give full play to the advantages of the team collaboration platform; On the other hand, from the perspective of integrated supply of diversified products, increase product categories and increase per capita sales income, so as to dilute sales expenses.
5. The company’s new product categories are increasing day by day. How can the salesperson quickly grasp them?
The company mainly assists the salesperson from two aspects: first, through the information system platform, implement the organized operation and build the “iron triangle” strategy. The customer manager faces the customer, the product manager faces the product line, and the service support is responsible for warehousing, logistics and installation, so as to give full play to the advantages of the team cooperation platform; On the other hand, through point-to-point and end-to-end systematic training and knowledge platform sharing, through the establishment of learning platform training system and combined with offline training, learning and exchange, we can quickly improve professional ability, independently undertake sales business and provide value-added services to customers. 6. Facing many subsidiaries, how does the company manage?
The company will carry out differentiated management according to its subsidiaries’ own conditions and characteristics, and select appropriate management methods from its business form and stage under the strong overall business system. For example, the wholly-owned subsidiaries represented by jianyijia, Zhongshan precision and Zhongshan lighting will be directly managed by the management team arranged by the company; The grape tooth subsidiary wholly acquired at the end of 2019 still retains its original management team, and the company sends a vice president to take charge of it; For other holding or joint-stock companies, we will comprehensively consider the company’s situation, selectively arrange managers to participate, and do a good job in the team integration of both sides. 7. What are the company’s plans and per capita goals for the sales team?
By the end of 2021, the company had about 6500 personnel in the sales and support sector, of which more will be recruited in the fourth quarter, including personnel reserves for network laying and new scene development in 2022. Combined with the annual operating income, the per capita output is about 1.5 million yuan (including tax), and the per capita efficiency continues to improve. In 2022 and in the future, our personnel growth plan will be carried out in accordance with the performance growth target, which is basically about half of the growth of sales revenue, but on the whole, the personnel growth will be lower than the sales growth. We pay attention to the improvement of per capita efficiency.
8. What is the company’s plan for cloud mining platform?
The company launched the cloud mining platform in early 2019, positioned as the company’s client service platform, and always optimized and upgraded around the core goal of “service, support, burden reduction and efficiency”. The goal is to provide internal support, service sales, improve efficiency, serve customers externally, connect customers’ daily procurement, achieve Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integration, and improve response speed and efficiency.
At present, cloud mining platforms are mainly standard parts, light customization and configuration, such as doors and windows, and high customization products will also be launched in the future. The combination of online orders and offline services can not only improve efficiency, but also increase customer stickiness.
Annex list (if any) none
Date: March 18, 2022
