Record of investor relations activities
Securities abbreviation: Jangho Group Co.Ltd(601886) securities code: Jangho Group Co.Ltd(601886) No.: 20220322
Investor relations □ specific object research □ analyst meeting □ media interview
Activity category □ performance presentation □ press conference □ Roadshow
□ site visit (teleconference)
Huaxia Fund, CCB fund, Galaxy fund, Penghua Fund, Hua’an fund, GF fund, Chang’an fund, Changxin fund, Prudential fund, ICBC Credit Suisse fund, Societe Generale fund, Huabao fund, Great Wall Fund, Tianhong fund, Dacheng Fund, Fuguo fund, Xingquan fund, Harvest Fund, Wanjia fund, Jiutai fund, Xinyuan fund, Jingshun Great Wall Fund Huafu fund, Everbright Prudential fund, Societe Generale fund, Xinhua fund, Shanghai Bank fund, participating units Taixin fund and rosefinch fund; Taikang assets, CICC assets, Hezhong assets, CITIC Capital capital capital, China Life Insurance Company Limited(601628) endowment insurance, China Post life insurance, Changjiang endowment insurance, Fubon investment in Taiwan, Shanghai Yaozhi, Shanghai wanna, Shanghai Puhui, Shanghai Jiuming, Ivy League, Zhejiang Shaoxia, Zhejiang Juzheng, Suzhou Longyuan, Yingfeng capital, Huaxia future capital, Northeast Securities, Tianfeng Securities Co.Ltd(601162) Huachuang securities, Sealand Securities Co.Ltd(000750) , Huafu securities, Caitong Securities Co.Ltd(601108) , Huatai Securities Co.Ltd(601688) , Citic Securities Company Limited(600030) , China Industrial Securities Co.Ltd(601377) Haitong Securities Company Limited(600837) , Dongxing Securities Corporation Limited(601198) (Hong Kong), CMB financial management, etc.
Time: 09:00-10:00 am, 10:30-11:30 am, March 22, 2022
13:30-14:30 PM, 15:00-16:00 PM, March 22, 2022
Location teleconference
General manager: Xu Xingli
Chief financial officer of the company: Zhao Shidong
Name of person
Secretary of the board of directors: Liu Feiyu
Main contents of Q & a session:
Question 1: please introduce the basic information and investor relations of the two photovoltaic construction projects won by the company recently
Main activities
Rong’s reply: the company has recently won the bid for two photovoltaic curtain wall projects. One is the reconstruction and reconstruction project of Beijing Workers’ Stadium, with a bid winning amount of about 278 million yuan. The project mainly installs photovoltaic curtain wall on the periphery of the building’s roof, and has determined with the owner that the photovoltaic power generation module used is crystalline silicon. Second, Hangzhou Environmental Protection Science and technology headquarters of taini, with a bid winning amount of 256 million yuan. The project is a commercial complex dominated by office, with a building height of 209.85 meters, a total curtain wall area of about 103900 square meters and an estimated construction period of 426 days. The company is responsible for the integrated construction of glass curtain wall, stone curtain wall and cadmium telluride photovoltaic curtain wall of the project. The photovoltaic power generation module to be used in the project is cadmium telluride film. The manufacturer and the transmittance coefficient have not been determined yet. Question 2: last year, the Ministry of housing and urban rural development issued the general code for building energy conservation and renewable energy utilization, which requires that Cecep Solar Energy Co.Ltd(000591) system should be installed in new buildings from April 1, 2022, and the design of Cecep Solar Energy Co.Ltd(000591) building integrated application system should be completed simultaneously with the building design. What is the company’s view on the impact of this mandatory provision on the addition of photovoltaic on buildings
Reply: it is indeed mandatory to implement the new regulations from April 1, 2022. It is clear that Cecep Solar Energy Co.Ltd(000591) system should be installed in new buildings to promote the application of photovoltaic in buildings, but how and how much is not clear. The company believes that relevant departments will release specific supporting policies next, but from the perspective of policy, the window period of photovoltaic construction has come. In the context of the national policy of vigorously promoting “carbon neutrality”, green building of photovoltaic curtain wall will become the main development direction of curtain wall industry. The introduction of this mandatory policy shows that the trend of building + photovoltaic industry will become more and more obvious. Question 3: what does the company think of the “target of accumulating 50gw of Cecep Solar Energy Co.Ltd(000591) photovoltaic installed capacity of new buildings during the 14th Five Year Plan period” put forward by the Ministry of housing and urban rural development? Reply: the plan clearly puts forward that the target of 50gw of Cecep Solar Energy Co.Ltd(000591) photovoltaic installed capacity of new buildings by 2025 should be achieved. Compared with the previous policies, the government hopes to adhere to the principle of standing first and then breaking down, promote steadily and effectively promote the implementation of “double carbon”. We believe that 50gw is also a goal of steady progress. Question 4: what are the advantages of the company in photovoltaic construction projects? Reply: we think: 1 The application scenario of photovoltaic in buildings is the building’s peripheral protection system, and the external protection system is the curtain wall, including facade and roof. 2. The curtain wall industry is a high threshold industry, and the requirements for the technical content of the curtain wall will be higher after adding photovoltaic. 3. In terms of construction specifications, the curtain wall must be constructed by a qualified professional curtain wall company, which is qualified. 4. The company has the best customer group in curtain wall. 5. The company has experience in undertaking photovoltaic building construction. In the past, it has undertaken many photovoltaic building integration projects, such as the China Pavilion of the Expo, the performance center building of the State Environmental Protection Administration, the terminal building of Wuxi airport in Jiangsu, Zhujiang city (tobacco building), Kunming podium of Henglong square, etc. 6. In the field of photovoltaic construction, the company has owned relevant patents and has technical reserves in the photovoltaic curtain wall integration project. Question 5: what are the main driving reasons for the owner to choose photovoltaic curtain wall? Reply: the company believes that: 1 With policy guidance, build green buildings and realize emission reduction. 2. The customer’s consciousness and mentality have changed. They no longer hesitate to go to photovoltaic, but focus on how and how much to go to photovoltaic. 3. The single watt cost of crystalline silicon and thin film has been declining, which has a certain economy. 4. There are also clear provisions on the policy side. Question 6: is the company’s provision for impairment losses sufficient in 2021 and whether there will be a large proportion in 2022? Reply: the company has made provision for all kinds of impairment losses of about 2.46 billion yuan for risk customers including Evergrande, including individual mention of normal provision according to aging. Based on the principle of prudence, the company further accrued credit impairment losses and asset impairment losses for accounts receivable, notes receivable and contract assets of risk customers in accordance with accounting policies.
The company believes that the provision of relevant impairment losses in 2021 is sufficient and prudent. In 2022, in order to further promote Gangyuan decoration, rapidly expand the interior decoration business and enhance the core competitiveness of Gangyuan decoration, the company increased the capital of 324 million yuan to Gangyuan decoration. Based on the sufficient provision in 2021, the company expects that under normal circumstances, the probability of large-scale provision in 2022 is very low. Question 7: the cash flow of the general construction industry is generally not very good. The company’s performance in 2021 is poor, but the company’s operating cash flow is very good. Please explain the reasons. Reply: the curtain wall and interior decoration business of the company belong to the construction decoration industry. We believe that the main reasons for the company’s good cash flow in recent years are as follows: 1 The company does not do capital advance projects, but selectively undertake business and undertake projects with good customer credit and payment collection conditions; 2. Ensure the construction quality of the project, deliver on time and satisfy customers; 3. The company has strong internal control and management, and increases the speed of project settlement and payment collection; 4. Continue to strengthen the business philosophy of “cash is king”, especially during the epidemic period, the company strengthened the timeliness of project settlement and payment collection. In the past five years, the average operating net cash flow of the company was 1.41 billion yuan. The better operating net cash flow benefited from the company’s continuous strengthening of the business philosophy of “cash is king” and paying close attention to project settlement and payment collection. Question 8: will the company pay dividends this year? Reply: the company will maintain stable dividends for a long time and strive to create value for all shareholders. During the reporting period, the company implemented the profit distribution plan for 2020. Deducting the shares repurchased on the equity registration date, the company distributed a cash dividend of 4 yuan (including tax) to all shareholders for every 10 shares, with a total cash dividend of 453200824 yuan (including tax). The dividend rate of the company in 2020 reached 6.88%. Since its listing in 2021, the company has achieved a total net profit attributable to the parent company of about 4.427 billion yuan, of which about 2.153 billion yuan has been distributed in cash dividends, accounting for 48.63%. Despite the company’s losses in 2021, in order to continue to repay shareholders, the company’s profit distribution plan for 2021 plans to distribute a cash dividend of 1 yuan (including tax) for every 10 shares. The proposal has been deliberated and approved by the board of directors and is to be submitted to the general meeting of shareholders for approval. Please pay attention to the company’s external announcement. Question 9: please introduce the positioning of smart photovoltaic company and the smart photovoltaic R35 system developed by it. Reply: during the reporting period, the company established Jianghe smart photovoltaic Construction Co., Ltd., which will actively extend to photovoltaic buildings and accelerate the transformation and upgrading of innovative forms such as photovoltaic buildings and intelligent buildings based on the accumulation in the field of photovoltaic curtain walls over the years, Inject new momentum into the construction of green building solutions. At present, the company is responsible for the research and development of integrated systems related to photovoltaic buildings. At present, the company has independently developed the R35 roof photovoltaic building integration system. The integrated system is developed from the perspective of architecture, easy to design and install, flexible in form, and can replace the color steel tile and be directly used as roof material. It is an innovative integrated system with high safety performance.
Question 10: the net profit attributable to the parent company in the first quarter of 2022 decreased year-on-year. Why did the net profit after deduction increase to a certain extent
Reply: the company has disclosed the performance forecast for the first quarter of 2022 on March 22. The main business of the company achieved steady growth in the first quarter, and the net profit turned from loss to profit. The year-on-year decrease in the net profit attributable to the parent company in the first quarter of 2022 is mainly due to the impact of changes in fair value last year, after deducting the impact of non recurring profits and losses. The company expects to realize the net profit attributable to the shareholders of the listed company after deducting non recurring profits and losses of about 126.07 million yuan to 137.53 million yuan in the first quarter of 2022, which is expected to increase by 10% to 20% year-on-year. We believe that the net profit after deduction can better reflect the company’s operating results.
Risk tip: at present, although the photovoltaic construction industry has clear policy support, the photovoltaic construction is still immature. The above analysis of the industry is only the view of the company. Please pay attention to the investment risk.
Appendix list: no written materials are provided for this investor survey, and there is no disclosure of undisclosed major information (if any).
Date: March 22, 2022
