Securities code: Guilin Layn Natural Ingredients Corp(002166) securities abbreviation: Guilin Layn Natural Ingredients Corp(002166) Guilin Layn Natural Ingredients Corp(002166)
Record of investor relations activities
No.: 2022004
□ specific object research □ analyst meeting
□ media interview □ performance briefing
Investor relations activities
□ press conference □ Roadshow
category
□ site visit
☑ Other conference calls
Name of participants and Tianfeng Securities Co.Ltd(601162) gaiyuanji, Shen Heng of Fuguo fund, Sun Lin of Guangfa fund, Ji Jingyuan of Taiping pension, name of remittance personnel: Tianfu feihaishu, Yang Zizhen of Bodao fund, Xu Qiyang of China Europe Fund and Cao min of Pengyang fund
Time: March 14-16, 2022
Place: company conference room
Mr. Luo Huayang, deputy general manager and Secretary of the board of directors of the receptionist of the listed company
Member name: Ms. GUI Qingji, Investor Relations Management Specialist
1、 Mr. Luo Huayang, deputy general manager and Secretary of the board of directors of the company, introduced the company’s operation and main single product business to the participants, and explained the company’s performance forecast and future development plan. (I) operation of the company
In 2021, the operation of the company achieved rapid growth, with a total revenue of 712 million yuan in the first three quarters, a year-on-year increase of 60.56%. In terms of business, the revenue of planting and lifting sector accounted for more than 97% of the total revenue, with a year-on-year increase of 76.7% in investor relations activities; BT project revenue accounts for only 3% of the total revenue, and the project has been completed. At present, the company mainly introduces the operation of plant extraction business, forming a business pattern in which natural sweetener, industrial hemp extract and tea extract are the main products, supplemented by many other health care and skin care extracts.
(II) industry situation
The plant extraction industry originates from the traditional Chinese herbal medicine industry and is widely used downstream, covering many industries such as food and beverage, condiment, medicine, health care products, nutritional supplements, cosmetics, feed additives and so on. The industry has not seen an obvious space ceiling yet. China holds more than 70% of the world’s plant extracts
Most of the enterprises have the advantages of smaller production capacity and lower product quality and management level, except for a few enterprises with lower production capacity and technology concentration.
At present, the company’s main single products, natural sweetener, industrial hemp extract and tea extract, are selected from more than 300 cultivated products, which fully match the demand of reducing sugar, anti anxiety and anti-oxidation that consumers pay close attention to and pursue. The company expects that the three single products will have broad development space in the future, which is a major challenge and opportunity in the development history of the company, Guilin Layn Natural Ingredients Corp(002166) has made sufficient preparations for the rapid development of business in the future.
(III) core competitive advantages of the company
1. The plant extraction industry chain is long. After 20 years of continuous efforts, the company has built and improved the comprehensive system of plant extraction production and operation, completed the whole process coverage from raw material control, R & D and innovation, extraction production, quality control and quality inspection, market and sales, and has a high connection and processing ability between upstream agriculture and downstream consumer industry.
2. The company has mastered the core technology of nearly 300 kinds of plant extraction, has strong R & D strength and rich experience, and has sufficient technical reserves. It can respond to customer needs at any time and provide required products and research and innovation. The company has the ability to convert efficient research to mass production, so as to realize the commercial and economic benefits of products and quickly seize the market.
3. The company has established perfect QA and QC production systems, actively fulfilled social responsibilities, paid attention to environmental protection and other advantages and characteristics, and fully met the requirements of downstream enterprises for qualified suppliers. At present, through the establishment of a global sales system, customers cover more than 60 countries and regions around the world.
4. The company has strong raw material control ability, has long-term stable cooperative procurement channels, establishes and improves the raw material procurement mode, and some products have the regional advantages of the main origin of raw materials.
(IV) future performance growth target and development plan of the company
The company is confident in the future development space and growth rate of natural sweeteners, industrial marijuana extraction and tea extraction, and is expected to have an average annual growth target of more than 30% in the next three years.
Future development plan of the company:
1. Strengthen the market position of the company’s three major single products, accelerate the construction of Stevia professional extraction plant, as well as the equipment commissioning and process optimization of industrial hemp extraction plant, and continue to help the tea extraction business
Develop and expand new applications, expand and consolidate the leader of planting and lifting subdivided products.
2. Continue to carry out technological transformation, optimize existing processes and processes, improve production capacity and production efficiency, reduce product production costs and improve the profits of individual products.
3. Keep up with the industry’s cutting-edge scientific and technological information, continue to strengthen the company’s R & D and technological innovation capabilities, and reserve technologies and categories for the next large single product.
4. Go deep into the plant extraction industry, continue to find and integrate high-quality resources upstream and downstream of the plant extraction industry, further enrich the company’s product categories, strengthen the ability of formula application solutions, and improve the company’s business added value.
2、 Q & a session
Question 1: please introduce the current capacity utilization and the company’s production expansion plan in the next three years.
At present, the daily feeding volume of the workshop of Guilin fourth generation comprehensive plant extraction factory has not reached the upper limit. At the same time, the company continues to carry out technical transformation of workshop equipment. For example, the daily feeding volume of Stevia extraction workshop is expected to increase by 50% after effective technical transformation. At the same time, the content of raw materials of main products has been increasing in recent years, The company expects that the production capacity of the fourth generation plant in Guilin will be sufficient to meet the demand of the company to maintain an average annual revenue growth of 30% in the next two years.
The company’s capacity expansion plan for the next three years mainly includes raising funds to build a 4000 ton Stevia professional extraction plant through non-public offering projects, so as to improve the extraction efficiency of the fist product Stevia and reduce the production cost.
Question 2: how about the company’s raw material cost control ability? Does it have cost transmission capability? The company adopts the whole process monitoring mode for the purchase of upstream raw materials. At the beginning of the year, the company discussed with the cooperative the planting area of raw materials and the expected purchase volume of raw materials in that year, signed a protective price contract, effectively protected the interests of farmers, provided them with comprehensive support for seedlings, funds and technology, and carried out dynamic monitoring and evaluation on a regular basis.
Through the above raw material procurement methods, the company ensures the sufficiency of raw material procurement and the stability of price every year, and selects high-quality raw material suppliers for cooperation.
China is a major exporter of plant products in the world. The company’s product quality, production and supply and other comprehensive capabilities are highly recognized by major foreign customers, and the customer stickiness is high. Therefore, the product has strong bargaining power and has the ability to transfer the increase of raw material cost to downstream brands.
Question 3: what is the expected gross profit margin of the company in the next three years and whether there is room for product cost reduction?
The company expects that the gross profit margin of planting and lifting sector will maintain a steady growth trend in the next three years, which is likely to exceed 30%.
Guilin fourth generation vegetable extraction plant of the company has realized automatic production, and there is limited room for labor cost reduction. In recent years, the company has mainly improved the production capacity and yield and reduced the production cost by simplifying the process steps and optimizing the extraction process.
Question 4: what are the guarantee points of the company’s current estimated performance growth?
(1) The company expects that the natural sweetener business will achieve an annualized growth of more than 30% in the next three years, mainly due to the broad growth rate of the new market of the sugar substitute industry ① based on the consideration of the health and safety of consumers, countries and regions support the development of the sugar substitute industry through policy encouragement and sugar tax collection; ② demand side: the popularity of the concept of sugar free among consumers has expanded, and consumers gradually prefer to choose and have the ability to buy sugar free ③ supply side of sugar substitute food and drink products: Based on the high-speed growth demand for sugar free products at the demand side in recent years and the cost advantage of sugar substitute, new food and drink brands have sufficient power and strength to carry out the R & D and launch of sugar free food and drink products. In recent years, Chinese famous manufacturers have gradually entered the competition of sugar free drinks, and the foreign market continues to grow. Based on the high-speed growth forecast of the sugar substitute industry, as the only sugar substitute with “natural” concept and higher cost advantage, the company expects its growth rate to be higher than the average growth rate of the sugar substitute industry. Second, the company signed a major strategic contract with fenmeiyi. According to the contract, the annual sales increase year by year, which will provide guarantee for the continuous growth of the company’s natural sweetener business.
(2) The company will promote the formal mass production and customer expansion of industrial marijuana factories as soon as possible, and strive to make new contributions to the company’s revenue growth as soon as possible.
(3) Tea extraction is an old brand of plant extraction, and the annual growth rate remains stable. On this basis, the company will accelerate the research on new application scenarios of tea extraction in the next three years and expand new customers and business. Question 5: what are the main reasons why natural sweeteners are the development trend of sugar substitutes in the future?
Natural sweeteners are extracted from plants, and their physical properties have not changed. Compared with synthetic sweeteners and erythritol, natural sweeteners are the only sugar substitutes with the concept of “natural” among many sugar substitutes. They meet the consumer’s demand for natural products and meet the consumer brand’s new choice of clean label, nature and health. Second, among non synthetic sweeteners, natural sweeteners have high cost performance. Roughly calculating the cost of single sweetness, stevia extract is only 1 / 15 of erythritol, and Momordica grosvenorii extract is 1 / 3 of erythritol, which has cost advantages. More important
In recent years, natural sweeteners are the preferred products for the application of sugar reducing formula rather than other sugar substitutes.
Question 6: what is the current competition pattern and situation of the natural sweetener industry?
There are few large competitive enterprises in the natural sweetener industry. In terms of Stevia extract, in addition to the company, the main suppliers include Prosecco and Haotian in Zhucheng, Shandong, China. At present, the output of Stevia extract of the company ranks first in the world. In terms of Siraitia grosvenorii extract, 90% of the world’s Siraitia grosvenorii is produced in Guilin. Except for the company, Chinese competitors are mainly distributed in Guilin and Hunan, and there is no significant difference in the scale of major suppliers.
The natural sweetener industry has no strong periodicity and seasonality, and there is no significant fluctuation in product prices caused by overcapacity. It takes a long time for large brands to test the quality, capacity and quality control ability of planting and improving products. Therefore, at present, the leading enterprises have great advantages, and benign competition is conducive to the better development of the natural sweetener industry.
Question 7: what is the cooperation and pricing model with major customers fenmeiyi?
Based on the high agreement between the company and fenmeiyi on the importance and future development of natural sweeteners, the two sides successfully reached a long-term strategic cooperation in 2018 and authorized fenmeiyi to exclusively sell the company’s natural sweeteners and some other products in overseas markets and for some domestic customers. Relying on fenmeiyi’s huge customer base, the company’s overseas natural sweetener business has developed well in recent years. On the basis of product agency, the company and fenmeiyi jointly expand new customers by sharing customer information. At present, almost all of fenmeiyi’s natural sweetener business customers are purchased from our products. Based on the strong formula application ability of fenmeiyi, the company has also established more in-depth cooperation with fenmeiyi in technical exchange and formula research and development, so as to strengthen the formula application strength of the company and provide customers with products and services with higher added value.
According to the annual purchase price of raw materials, the company and fenmeiyi agree on the price of natural sweeteners in the coming year, and make adjustments within a certain range in the middle of the year according to the market situation to ensure the profit of the company’s products.
Question 8: does the company adopt distribution or direct selling? What is the current expansion of new customers in China?
The company’s sales adopts direct selling (the cooperation between the company and fenmeiyi belongs to strategic cooperation, and the customers are for common development, so it does not belong to the distribution mode).
At present, new customers mainly come from China. At present, they have cooperated with some well-known functional drinks
New tea and other consumer brands have reached cooperation. In the future, the company will further expand the Chinese market relying on Shanghai Asia Pacific Marketing Center and Guilin sales headquarters.
Question 9: how about the company’s raw material procurement and production schedule?
The main raw material of the company is Shenzhen Agricultural Products Group Co.Ltd(000061) . At the beginning of each year, the purchase volume of the current year is adjusted according to the purchase volume of raw materials of the previous year and the sales plan of the current year, and combined with the dynamic price of raw materials of the current year. After the purchase, it is processed into semi-finished products and stored in the fourth quarter and the first quarter of the next year, so as to reduce the storage cost of raw materials and facilitate subsequent finishing processing. Therefore, the stock at the end of the third quarter is low, High inventory in the fourth quarter. In case of fluctuations in the price of raw materials, the company will increase or use the strategic inventory of reserves.
Question 10: does the company have any plans for new BT business in the future?
