Securities code: Earth-Panda Advanced Magnetic Material Co.Ltd(688077) securities abbreviation: Earth-Panda Advanced Magnetic Material Co.Ltd(688077)
Earth-Panda Advanced Magnetic Material Co.Ltd(688077)
Record of investor relations activities
No.: 2022004
■ target specific research ■ analyst meetings
Investor relations □ media interview □ performance briefing
Activity category □ press conference □ Roadshow
□ site visit □ others
Name of participant
A total of 221 people from 150 institutions (see Annex for details)
And personnel name
Time: March 21, 22, 23, 24 and 25, 2022
Place: meeting room of Earth-Panda Advanced Magnetic Material Co.Ltd(688077) company
Activity form teleconference
Director, deputy general manager and Secretary of the board of directors of the listed company: Mr. Dong Xuechun
Participants: securities affairs representative: Ms. Wang Lanlan
1. Specific planning of the company’s production capacity?
A: at present, the company has three major sintered Nd-Fe-B production bases in Lujiang, Baotou and Ningguo, Hefei. By the end of 2021, the total capacity of sintered Nd-Fe-B is 6000 tons and the output is 3955 tons; It is estimated that the total real estate investor relationship activity at the end of 2022 will be 8 Tcl Technology Group Corporation(000100) 00 tons, the total capacity at the end of 2023 will be about 14000 tons, and the main contents of the total real estate at the end of 2024 will be introduced
Shaoneng is about 18000 tons and its total capacity is more than 20000 tons by the end of 2025.
The company will timely adjust the capacity plans of different production bases according to the market demand and growth changes in downstream fields such as industrial motors, new energy vehicles and wind power, so as to improve the overall efficiency.
2. What is the expected production time of the company’s expansion projects in Baotou, Hefei and Ningguo? What is the capital planning for the company’s expansion?
A: the company’s fund-raising investment project “construction project of high-performance sintered NdFeB magnet for automobile motor with an annual output of 1500 tons” is implemented as planned and is expected to be completed and put into operation by the end of this year Earth-Panda Advanced Magnetic Material Co.Ltd(688077) Baotou company’s “project with an annual output of 5000 tons of high-end manufacturing high-performance rare earth permanent magnet materials and devices” was started in June 2021. At present, more than half of the project construction and equipment purchase are in progress. It is expected that part of the project will be put into operation in the second half of this year Earth-Panda Advanced Magnetic Material Co.Ltd(688077) Ningguo company used the existing land to build the project of “annual output of 5000 tons of high-performance NdFeB magnetic materials”, which was officially started in late March and is expected to be gradually completed and put into operation in 2023. The “R & D and industrialization project of high comprehensive performance sintered Nd-Fe-B permanent magnets and devices” invested and constructed by Hefei headquarters has completed the formalities of filing, approval, planning and energy evaluation, and is expected to start construction in the first half of this year.
In addition to the projects invested with raised funds, the current capital sources of the company’s production expansion projects are mainly self owned funds and bank loans.
3. What is the background and mode of cooperation between the company and China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) company? Can the future production capacity of the joint venture China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) Anhui company meet the needs of the company’s production expansion?
A: before 2010, the rare earth raw material market was not as orderly as it is now.
In 2011, China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) in order to speed up the pace of expanding and strengthening rare earth functional materials, improve its downstream economic aggregate and improve its industrialization development level, it is planned to increase the production capacity of 15000 tons of rare earth magnetic materials outside Baotou through joint reorganization and joint venture cooperation, and finally achieve the development goal of China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) annual output of 30000 tons of rare earth magnetic materials. In August 2011, China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) convened the board of directors, deliberated and approved the proposal on establishing Nd-Fe-B alloy company with Earth-Panda Advanced Magnetic Material Co.Ltd(688077) joint capital contribution. During this period, the company has cooperated with the subsidiaries of China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) in related businesses. In order to further seek the stable supply of rare earth raw materials, the company decided to strengthen the strategic cooperation with China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) . Through full consultation, the company and China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) jointly invested 90 million yuan to establish China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) (Anhui) permanent magnet Technology Co., Ltd. (formerly known as “Anhui Baotou Steel rare earth permanent magnet alloy manufacturing Co., Ltd.”, China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) holding 60% and the company holding 40% in November 2011, hereinafter referred to as the “joint venture”). In daily operation, the joint venture company purchases praseodymium neodymium mixed metal from China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) company
It is used for processing Nd-Fe-B quick setting thin strip alloy sheet and is mainly sold to the company and surrounding customers.
In 2021, according to the development plan of the joint venture, the two sides decided to expand the scale of cooperation. In August 2021, the company and China Northern Rare Earth (Group) High-Tech Co.Ltd(600111) jointly increased 90.36 million yuan to the joint venture in the same proportion for the construction of “8000 ton high-performance Nd-Fe-B alloy flake project” in Baotou. At present, some of them have been put into operation and brought into full play.
In the future, the joint venture will comprehensively consider the company’s capacity expansion and the market demand of surrounding customers, implement the corresponding capacity expansion plan, and provide raw material guarantee for the company to expand the production scale of neodymium iron boron products.
4. What is the proportion structure of the company’s downstream application sales? Which areas will grow faster in the future?
A: the downstream application fields of NdFeB products of the company mainly include industrial motor, automobile industry, wind power generation, high-end consumer electronics, etc. In 2021, the proportion of sales in the downstream application field of NdFeB products of the company is: industrial motor accounts for about 41%, automobile industry accounts for about 22% (including new energy vehicle drive motor accounts for about 8%), wind power generation accounts for about 8%, high-end consumer electronics accounts for about 21%, and other categories account for about 8%.
In the future, the company will continue to consolidate and strengthen its market dominant position in the field of industrial motors, and further improve the market development and business growth of the automotive industry, especially in the field of new energy vehicle drive motors. 5. What is the impact of the motor energy efficiency improvement plan (20212023) issued by the Ministry of industry and information technology and the State Administration of market supervision on the company’s orders in the field of industrial motors? What are the subdivision applications in the field of industrial motor?
A: in the context of “double carbon”, the Ministry of industry and information technology and the State Administration of Market Supervision issued the motor energy efficiency improvement plan (20212023), which proposed that “by 2023, the annual output of high-efficiency and energy-saving motors will reach 170 million KW, and the proportion of in-service high-efficiency and energy-saving motors will reach more than 20%, which will effectively support energy conservation and efficiency improvement in key industries and fields and help achieve the goal of” double carbon “.
The company’s main products are high-performance sintered NdFeB permanent magnet materials, which have the characteristics of high magnetic properties, excellent service characteristics and good stability. They are important functional materials for rare earth permanent magnet motors. In 2021, the sales of neodymium iron boron products of the company accounted for about 41% in the field of industrial motors. In the future, with the continuous growth of the demand for neodymium iron boron products in the downstream market, the sales proportion of industrial motors will gradually increase.
In the field of industrial motors, the company’s rare earth permanent magnet products are mainly used in electric tools, industrial Siasun Robot&Automation Co.Ltd(300024) , linear motors, compressors, etc.
6. The pricing model of the company’s products? Can the price rise of rare earth raw materials in the upstream be conducted smoothly? A: the company’s product pricing model mainly refers to the cost plus model, but the specific pricing situation will comprehensively consider the influence of many factors, such as customer viscosity, product performance, product processing complexity, packaging personalized requirements, etc. For high-end customers, compared with price factors, they often consider comprehensive factors such as product performance indicators, product consistency and delivery capacity.
Rare earth metals account for a high proportion of sales costs. When rare earth prices fluctuate greatly, the company maintains timely communication with customers and adopts a dynamically balanced price management mode, forming an effective price transmission and restraint mechanism. The price rise of rare earth raw materials will be reasonably and effectively transmitted to downstream application manufacturers within a certain period of time.
7. In recent years, the head magnetic material enterprises are expanding their production capacity. In the future, the production capacity will increase rapidly. Will the competitive pressure of the industry increase accordingly?
A: at present, driven by the “double carbon” economy, the demand for high-performance sintered NdFeB magnets in high-end application fields such as new energy vehicle drive motors, wind power generation and industrial energy-saving motors is growing. At present, listed companies mainly engaged in sintered NdFeB permanent magnet materials will implement different production expansion plans according to their own market positioning and development plans. The industry competition will be more intense in the future. The company will enhance its comprehensive competitiveness and continuously enhance its market share and industry position through a number of measures, such as continuous innovation capacity-building, strengthening cost control, improving management level, strengthening new customers and new market development.
8. What are the main reasons for the substantial increase of the company’s R & D expenses in 2021?
A: in 2021, the company’s R & D investment accounted for 5.83% of its operating revenue, an increase of 1.48 percentage points year-on-year. The substantial increase in R & D expenses in 2021 is mainly due to the company’s increasing R & D investment, the increase of R & D projects in this period, the rise in the price of raw materials for R & D, and the increase in the salary of R & D personnel caused by equity incentive.
9. The company’s export business accounts for a relatively high proportion. What are the main areas of export products?
A: in 2021, the company’s export business income was 452322600 yuan, accounting for the company’s main business income
The proportion of income is 31.95%. The company’s export products mainly come from automobile industry, industrial motor and other fields. 10. What are the main reasons for the negative net cash flow from operating activities in 2021? A: in 2021, the net cash flow generated from the company’s operating activities was -1293764 million yuan, which was mainly due to the increase in cash paid for purchasing goods and receiving labor services, the expansion of production capacity, the significant increase in revenue and the significant increase in undue accounts receivable.
11. What are the company’s customers in the field of automotive and industrial motors?
A: in the field of automobile industry, the company has passed the certification of new energy vehicle drive motors and parts manufacturers at home and abroad, such as ZF, Schaeffler and Juyi technology, Jing-Jin Electric Technologies Co.Ltd(688280) , Ningbo Shuanglin Auto Parts Co.Ltd(300100) and has been applied to Volkswagen, BMW, Chrysler, Ford, GM, Honda, JAC, Chery, Wuling, Chang’an and other well-known new energy vehicle brands at home and abroad. In the field of industrial motors, the company has maintained stable cooperative relations with Crrc Corporation Limited(601766) , Schaeffler, Siemens, Baide, Makita, Panasonic, CIK and SMC.
12. What are the main competitive advantages of the company?
A: the company adheres to the main business of R & D, production and sales of high-performance sintered NdFeB permanent magnet materials. As a leading supplier of high-performance sintered NdFeB permanent magnet materials in China, focusing on the application needs of downstream customers and the future development trend of the industry, the company has formed core advantages in continuous innovation ability, high-quality customer resources and supply guarantee of rare earth raw materials.
13. How about the production and operation of the company in the first quarter of 2022?
The company’s production status in the first quarter of 2022 at www.sse.cn Stock Exchange (planned to be good on February 19, 2022) Please pay attention to the disclosure of the first quarter report of 2022.
Appendix list Earth-Panda Advanced Magnetic Material Co.Ltd(688077) names of participating units and personnel of investor relations activities
(if any)
Date: March 21, 22, 23, 24 and 25, 2022
enclosure:
Earth-Panda Advanced Magnetic Material Co.Ltd(688077) investor relations activities and names of participants
(in no order)
No. activity time participant name activity form
1 2022 / 03 / 21 22:30-23:30 Minsheng securities Hu Youwen, Qiu Zuxue, Wang Yanhai, teleconference Yin Huiwei, Zhang hang, Zhang Yiqing
2 2022 / 03 / 21 22:30-23:30 Guiyuan investment Lai Zhengjian and Liao Ninglin teleconference
3 2022 / 03 / 21 22:30-23:30 Qingli capital Li Mengyao teleconference
4 202203/21 22:30-23
