Securities code: Guangdong Kinlong Hardware Products Co.Ltd(002791) securities abbreviation: Guangdong Kinlong Hardware Products Co.Ltd(002791) No.: 2022006 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)
Galaxy Securities Wang Ting & Jia Yameng, ICBC Credit Suisse, Xinhua fund, ChuangJin Hexin, name of East participating units and party asset management, Huaxia Fund, Jiutai fund, China Europe Fund, Dacheng Fund, Debon securities, GF fund, guolian’an fund, CIC Credit Suisse, Haifutong, CCB fund, personnel name Penghua Fund, Pengyang fund, TEDA Manulife, sunshine assets, Great Wall Fund More than 20 institutional investors including China Merchants Fund and Changsheng fund attended the meeting.
Time: March 17, 2022
Place: company conference room
Secretary of the board of directors of the listed company: Yin Jianzhong
1. What are the main reasons for the decline of the company’s gross profit margin?
(1) The factors affected by the price rise of bulk raw materials account for about 2 / 3. The company has also made some price increases and adjustments in the selling price, and there are some differences in the acceptance of customers; (2) From the perspective of product structure, in order to cope with the external environment, the company made phased adjustments in the fourth quarter, paid attention to operational risks, adjusted some product structure, and the growth rate of high investor relations gross profit products such as door and window hardware was relatively low; At the same time, the new scene and the main content introduction field of the new city are developed, which are generally non door and window products. Now they are in the promotion period, their gross profit is relatively low, and the impact of product structure accounts for about 1 / 3.
2. Which new categories of the company are better cultivated?
The single category of the company’s new products has not changed greatly, and is in a relatively stable state of market expansion and cultivation. The original gradually mature categories have developed well. In addition to the long-term cultivation of Hebes smart lock, the cultivation of products supporting the door and window (spacer strip, heat insulation strip, foaming agent, etc.), smart home and community (smart lock, fresh air system, visual intercom, road gate, etc.), as well as mechanical lock, bathroom and interior decoration is good. In addition, the supporting construction (supports, hangers, guardrails, etc.) is growing rapidly, and the volume of other new products is relatively small. 3. Introduction of the company’s sales team and per capita output?
In 2021, the company recruited and reserved some sales personnel in advance according to the personnel demand planning. By the end of 2021, the company had about 6500 employees in the sales and support sector, of which more will be recruited in the fourth quarter. 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. The net increase of sales personnel is relatively large, mainly based on the fact that the company’s sales channels are in the investment period in the county market, and the channel sinking layout will continue. At present, the market performance of the county is not high, and the development will continue to increase. 4. Current channel sinking of the company
From the original sales layout dominated by the first and second tier markets, the company has strengthened the development of the county market since this year. First, it has accelerated the layout and coverage of the county network, and second, the replication and summary of the county market development experience. The company’s promotion of scene sales has begun to take effect. With the exception of Tibet, all prefecture level cities have been covered, county-level cities and counties still have some space, and some sales outlets cover multiple county-level cities or counties, which will continue to sink in the future according to the actual situation. 5. Is the channel sinking of the company challenged?
Channel sinking is our long-term strategy, but expansion means the increase of company personnel and costs, as well as the improvement of management difficulty. What we hope to achieve is a balanced and benign growth, and engage in production, management and human resources at a stable pace
To realize the steady increase of income.
6. Accounts receivable and cash flow of the company?
In the past, the company controlled the total amount of accounts receivable, and increased the limit control for a single customer in 2021. From the perspective of accounting period, risk classification is made for different customers. For example, public construction customers are basically Chinese prefix enterprises, with relatively loose accounting period, stronger anti risk ability and low risk of bad debt; Some direct purchase customers with high correlation with real estate adopt the policy of shrinking the accounting period to reduce the risk of bad debts and tilt the credit resources to high-quality customers and projects. At the same time, the company is also actively exploring some new markets and new scenarios with relatively good cash flow, which will accelerate the speed of cash inflow. Cash flow is the lifeline of the enterprise. The company will not replace orders with cash flow and will continue to control the payment collection risk.
7. What is the future development direction of the company?
The company adheres to the strategic positioning of integrated suppliers of building accessories, continues to expand new products and enhance and strengthen the integrated supply capacity of building accessories on the basis of traditional advantageous industries such as building door, window and curtain wall hardware, according to market development and customer needs. 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 of the external market have greatly changed the living environment of enterprises. At the same time, in the channel layout planning, the company will increase the channel sinking of the county market on the premise of maintaining the advantages of the first-line market and prefecture level cities. In 2021, through the development of new scenes and new markets, the company has laid a certain foundation for development in the next two years.
Annex list (if any) none
Date: March 17, 2022
