Securities code: Shandong Chenming Paper Holdings Limited(000488) , 200488 securities abbreviation: Shandong Chenming Paper Holdings Limited(000488) , Chenming b Shandong Chenming Paper Holdings Limited(000488)
Record of investor relations activities
No.: 2022001
□ specific object research □ analyst meeting
Investor relations activities □ media interviews □ performance briefing
Category □ press conference □ roadshow activity
□ site visit □ teleconference
Name of participating units and names of online investors participating in the company’s 2021 annual performance briefing
Time: April 2, 2022
Location network interactive platform: Panorama · investor relations interactive platform
Mr. Hu Changqing, vice chairman and executive director;
Mr. Chen Gang, general manager of the receptionist of the listed company;
Mr. Dong Lianming, chief financial officer;
Mr. Yuan Xikun, Secretary of the board of directors;
Relevant staff of securities investment department and financial capital management center.
From 10:00 to 11:00 on April 2, 2022, the company held the 2021 annual performance briefing in the form of online interaction and text Q & a through “panorama · investor relations interactive platform”. The main issues concerned by investors are as follows:
1、 Soliciting investors’ questions and replies:
1. Has the company’s performance been affected by the epidemic?
A: Dear investors, Hello! The repeated epidemic has a certain impact on the company’s performance in 2021. However, on the premise of doing a good job in epidemic prevention and control, the company still achieved steady growth in 2021 through a series of measures, such as strictly controlling product quality and investor relations activities, broadening sales channels, tapping potential market demand, reducing operating costs, optimizing the layout of main content introduction industry and improving comprehensive operation efficiency, Showing strong development resilience. thank you!
2. Excuse me, this year’s profit hit a new high, why not pay dividends instead? In addition, the share price and valuation of Hong Kong stocks are seriously low compared with the company’s net assets per share. Why doesn’t the company start repurchase to stabilize market expectations?
A: Dear investors, Hello! (1) Comprehensively considering the current macroeconomic environment and the company’s strategic planning, in order to further optimize the capital structure, reduce the asset liability ratio, improve the company’s financial robustness, enhance the anti risk ability, meet the company’s capital needs in daily production and operation and project construction, ensure the sustainable and steady development of the company’s main business and better safeguard the long-term interests of all shareholders, The board of directors of the company decided not to make profit distribution in 2021.
The company’s retained undistributed profits will be accumulated and rolled over to the next year, which will be mainly used for the company’s daily operation and development, repayment of interest bearing liabilities and project construction, so as to ensure the company’s normal production and business development, provide reliable guarantee for the implementation of the company’s medium and long-term development strategy, and earnestly safeguard the interests of the company and all shareholders, especially small and medium-sized shareholders.
(2) The stock price depends on a variety of factors. In addition to the enterprise performance, it is also closely related to national policies, market conditions, investors’ personal risk preference and other factors. First, the company continues to do a good job in the production and operation management of its main business, actively takes measures to reduce the scale of liabilities, improve financial stability, and repay shareholders with excellent performance; Secondly, the company will continue to strengthen investor relations management, establish an active communication mechanism for information disclosure and investor interaction, and make full use of the opportunity of information disclosure to convey the company’s value and core competitiveness to the outside world. Thank you for your attention!
3. Excuse me: what is the progress of your company’s B to h? What is the progress of the company’s forestry carbon sequestration after reaching the peak and neutralizing the carbon? How is the company’s photovoltaic energy progress? Has the company developed paper batteries? Is there any plan to accelerate debt reduction in 2022? A: Dear investors, Hello!
(1) The application for converting B shares into H shares of the company has been officially approved by the CSRC. The follow-up also involves the technical test of the two trading systems and the application for listing and trading of H shares, which is currently being actively promoted. In case of relevant progress, the company will timely perform the obligation of information disclosure in accordance with relevant legal provisions and regulatory requirements;
(2) The company has about 800000 mu of forest land, and has cooperated with professional institutions to develop carbon sink on this basis. At present, it is under promotion and is expected to be completed around the third quarter; (3) The photovoltaic power generation project cooperated by the company and professional institutions is currently under orderly construction and will be put into use as soon as possible after completion;
(4) The company has no research and development in paper battery for the time being;
(5) In 2022, the company will actively and effectively reduce the debt scale and improve financial stability by increasing the net inflow of operating cash, continuously reducing the scale of financial leasing business, increasing long-term and equity financing, disposing non main business assets and other measures. Thank you for your attention! 4. Loan interest rates are so high? What’s going on?
A: Dear investors, Hello! A few years ago, in order to realize the pulp and paper integration strategy as soon as possible and realize the balance of pulp and paper production capacity, the company launched four new pulp and paper projects and used some bond financing. The higher bond financing interest rate resulted in higher early loan interest rate. As the company continued to reduce the bond scale and increase the bank financing proportion, the loan interest rate will gradually decline. Thank you for your attention!
5. The company’s option of B to h cash is HK $3.11. If all B-share shareholders choose cash, does the company have sufficient funds to deal with it?
A: Dear investors, Hello! The company is actively promoting the work of B to h, including finding a more suitable provider of cash options. Thank you!
6. The reckless non dividend of the management makes today’s a shares, B shares and H shares fall sharply. How can you explain it to the shareholders? In the past, the performance was not as good as it is now, and the company insisted on dividends every year, giving investors a positive return, while this year’s high growth and no distribution.
Give investors negative returns. Let small and medium-sized shareholders feel cold!
A: Dear investors, Hello! Comprehensively considering the current macroeconomic environment and the company’s strategic planning, in order to further optimize the capital structure, reduce the asset liability ratio, improve the financial robustness of the company, enhance the anti risk ability, meet the capital needs of the company in daily production and operation and project construction, ensure the sustainable and steady development of the company’s main business and better safeguard the long-term interests of all shareholders, the board of directors of the company decided not to distribute profits in 2021.
The company’s retained undistributed profits will be accumulated and rolled over to the next year, which will be mainly used for the company’s daily operation and development, repayment of interest bearing liabilities and project construction, so as to ensure the company’s normal production and business development, provide reliable guarantee for the implementation of the company’s medium and long-term development strategy, and earnestly safeguard the interests of the company and all shareholders, especially small and medium-sized shareholders. thank you! 7. Why did Hong Kong stocks plummet and the dividend was not good
A: Dear investors, Hello! The stock price fluctuation in the secondary market is affected by many factors. Thank you for your attention!
8. Q: (1) whether there is benefit transfer due to high performance growth and no dividend; (2) Whether the first quarter is positive or negative; (3) Any measures to stabilize the stock price. To effectively protect the vital interests of our small and medium-sized investors, how did the management consider when we bought shares and bonds?
A: Dear investors, Hello! (1) The company’s non distributed dividends will be accumulated and accumulated to the next year, which will be mainly used for the company’s daily operation and development, repayment of interest bearing liabilities and project construction, so as to ensure the company’s normal production and business development, provide reliable guarantee for the implementation of the company’s medium and long-term development strategy, and earnestly safeguard the interests of the company and all shareholders, especially small and medium-sized shareholders, without benefit transmission; (2) In the first quarter of 2022, the price of all kinds of paper of the company has been raised to varying degrees, the market demand, especially the increase of overseas exports, has been obvious, and the operation has been significantly improved month on month; (3) The company will continue to focus on the development of its main business. While doing a good job in the production and operation of its main business, it is also actively taking measures to reduce the scale of liabilities, reduce financing costs and improve financial stability, so as to better repay investors. thank you!
9. The 2021 annual report disclosed that the net cash flow from operating activities decreased by 23.78% compared with the same period last year, mainly because the net cash received during the reporting period decreased year-on-year with the reduction of the scale of financial leasing business. The net operating cash flow of the company in 18, 19, 20 and 21 years increased significantly compared with the previous years. Is it mainly due to the company’s financial leasing business since 2018? Will the company’s net operating cash flow continue to decline significantly in the future with the company’s closure of financial leasing business? What is the future growth prospect of the company’s net operating cash flow?
A: Dear investors, Hello! The net cash flow from operating activities of the company in recent years has increased compared with the previous years. Firstly, the company continues to reduce the scale of leasing business and increase the net cash inflow. Secondly, with the gradual benefits of new projects in previous years, the main business income of the company has increased.
At present, the company’s paper and pulp capacity utilization rate has not reached 100%. With the gradual recovery of the market, the company will gradually improve the capacity utilization rate. The company’s operating cash flow will not decrease significantly due to the shutdown of the leasing company. In the future, the cash flow of operating activities will remain relatively stable on the existing basis. Thank you for your attention!
10. I want to ask the company two questions: (1) the company’s performance in 21 years is the peak in recent years, but it doesn’t pay dividends. Why? (2) The Hong Kong stock of the company is only HK $3.13 now, which is only 37% of the net assets relative to HK $8.45 per share. The price earnings ratio is only 4.26 times. There is no repurchase or other measures to stabilize the market. Why? Does the company feel that the current valuation is not worth caring about, or does the company only want financing and never want to return to the market?
A: Dear investors, Hello! (1) Comprehensively considering the current macroeconomic environment and the company’s strategic planning, in order to further optimize the capital structure, reduce the asset liability ratio, improve the company’s financial robustness, enhance the anti risk ability, meet the company’s capital needs in daily production and operation and project construction, ensure the sustainable and steady development of the company’s main business and better safeguard the long-term interests of all shareholders, The board of directors of the company decided not to make profit distribution in 2021.
The company’s retained undistributed profits will be accumulated and rolled over to the next year, which will be mainly used for the company’s daily operation and development, repayment of interest bearing liabilities and project construction, so as to ensure the company’s normal production and business development, provide reliable guarantee for the implementation of the company’s medium and long-term development strategy, and earnestly safeguard the interests of the company and all shareholders, especially small and medium-sized shareholders.
(2) Since entering the capital market, the company has always attached importance to the return of shareholders. Before that, it has paid a high proportion of dividends for many consecutive years, and the cumulative amount of dividends has exceeded the amount of equity financing in the capital market. The stock price depends on a variety of factors. In addition to the enterprise performance, it is also closely related to national policies, market conditions, investors’ personal risk preference and other factors. First, the company continues to do a good job in the production and operation management of its main business, actively takes measures to reduce the scale of liabilities, improve financial stability, and repay shareholders with excellent performance; Secondly, the company will continue to strengthen investor relations management, establish an active communication mechanism for information disclosure and investor interaction, and make full use of the opportunity of information disclosure to convey the company’s value and core competitiveness to the outside world. Thank you for your attention!
11. You always say that pulp integration should have the lowest cost. It’s really incomprehensible why your turnover growth rate is not as fast as that of your peers!
A: Dear investors, Hello! In recent years, in order to reduce the debt scale, the company has properly controlled the capital expenditure. In the absence of new production capacity, the company’s output and sales volume are relatively stable. Under this background, the company has achieved year-on-year growth in sales revenue by strictly controlling product quality, broadening sales channels, tapping potential market demand, reducing operating costs, optimizing industrial layout and improving comprehensive operation efficiency. Thank you for your attention!
12. Your company has a large debt scale, and the average annual loan financing interest rate is higher than the average loan interest rate. Why is the company’s loan interest rate so high? The income is even lower than the loan interest expense?
A: Dear investors, Hello! In previous years, in order to realize the pulp and paper integration strategy as soon as possible and realize the balance of pulp and paper production capacity, the company added four new pulp and paper projects, resulting in a large scale of debt. The company’s financing mainly includes bank financing, equipment financing, bond financing, etc. The higher interest rate of bonds and equipment financing results in higher interest rate of early-stage loans. As the company continues to reduce the total debt, reduce the scale of bonds and increase the proportion of bank financing, the loan interest rate will gradually decline. Thank you!
13. Pulp futures continued to rise, and your company’s artificial forest is 800000 mu. How does it affect the performance?
A: Dear investors, Hello! Owning forest resources can not only stabilize the impact of market price fluctuations of raw materials on the company, but also generate benefits from the external sales of trees. The company will strengthen the management of forestry companies, improve forest output, further consolidate the company’s pulp and paper integration strategy, actively respond to the national carbon neutralization requirements, strengthen the development of forest land carbon sequestration and promote the sustainable development of enterprises. Thank you for your attention!
14. Your carbon sink
