Securities code: Neway Cnc Equipment (Suzhou) Co.Ltd(688697) securities abbreviation: Neway Cnc Equipment (Suzhou) Co.Ltd(688697) Neway Cnc Equipment (Suzhou) Co.Ltd(688697) equipment (Suzhou) Co., Ltd
Record of investor relations activities
No.: 2022002
Investor relations ☑ Specific object research □ analyst meeting
Activity category □ media interview □ performance briefing
□ press conference □ Roadshow
□ site visit □ teleconference
□ others (please specify other activities in words)
Name of participant Gf Securities Co.Ltd(000776) Zhu Yuhang
And name of person: China Post Fund Xu hang
The People’S Insurance Company (Group) Of China Limited(601319) sun Haoran
Hua Rong fund Du Hanyi
Pan Bozhong of Zhonggeng fund
Fu Rong fund Zhou Tianhao
Citic Securities Company Limited(600030) Liang Qinzhi
Yingfeng capital Zhang Tingjian
CITIC proprietary Liang Shuang
CITIC Capital highlights
Guohai Franklin Jisheng
Northeast Securities Co.Ltd(000686) Liu Jun, Wei Songling
Meeting time: March 29, 2022
Meeting place: meeting room of the company, No. 69 xunyangjiang Road, Tong’an, Suzhou New District Hi-Tech Industrial Co.Ltd(600736) District
Deputy general manager of reception of listed companies: Wei Jijian
Name: Secretary of the board of directors and chief financial officer: Hong Liqing
Securities affairs representative: Wu Bin
Question 1: business overview of the company in 2021.
In 2021, benefiting from the national industrial policy, industrial upgrading drives technological upgrading, and the demand for medium and high-grade CNC machine tools has increased significantly. Relying on the long-term accumulated independent R & D ability, strong marketing network and efficient comprehensive service ability, the company has seized the opportunity and made certain achievements.
At the financial level, in 2021, the company achieved an operating revenue of 1712699 million yuan, a year-on-year increase of 47.06%; The net profit attributable to the shareholders of the listed company was 1685425 million yuan, a year-on-year increase of 62.06%; The net profit attributable to the shareholders of the listed company after deducting non recurring profits and losses was 1517942 million yuan, a year-on-year increase of 60.59%.
At the technical level, the company’s core technology application fields mainly include machine tool accuracy and maintenance, machine tool high-speed movement, machine tool fault analysis and solution, convenient operation, complex parts processing and independent research and development of functional components. In 2021, in addition to further improving the above six core technology fields, the company also gradually studied the intelligent field of NC machine tools.
Investor relations activities
In terms of talent construction, the company has established a team with rich experience and strong R & D ability
And a large-scale R & D team. By the end of December 2021, there were 156 R & D personnel, accounting for 15.00% of the total number of employees, including 28 senior engineers and 44 engineers, so as to ensure the company’s continuous innovation ability.
Question 2: what is the company’s long-term plan? How to balance high-end development and scale expansion?
The company hopes to take advantage of the opportunity of accelerated transformation of China’s manufacturing industry to develop in the direction of compounding, multi axis and automatic processing line in product categories, high speed, high precision and high efficiency in product performance, and actively carry out the research and development of upstream accessories technology to reduce the dependence of core components on import procurement and the impact on product competitiveness, Continue to pay attention to the development trend of industry technology, improve R & D capability, upgrade products through standardized and modular design ideas, strive to provide users with the best solution for metal processing, and strive to develop into a complete set of cutting technology solution providers.
In fact, there is no contradiction between scale and high-end. For example, Yamazaki Mazak, the industry leader, has more than 300 models and an annual income of more than 30 billion yuan. The complete product line can meet the needs of more customers on the one hand and contribute to the precipitation of technology on the other hand. The more CNC machine tools of different models produced by the company, the more technology accumulation, which is conducive to the iterative upgrading of machine tools, so as to accelerate the development to high-end.
At present, the company has launched more than 200 types of machine tool products, covering all kinds of metal workpieces with sizes ranging from 1 cm to 20 meters and weights ranging from 10 grams to 200 tons, from ordinary CNC machine tools applied to the processing of simple mechanical parts to large five axis linkage CNC machine tools suitable for the processing of complex and precise curved surfaces. In the future, the company will continue to improve its product line and conduct in-depth research in the key technical fields of various types of machine tools. Question 3: the company divides its main products into large machining centers, vertical CNC machine tools and horizontal CNC machine tools. How about the sales of these three types of machine tools in 2021? How to choose and reject various types of machine tools in the future?
In terms of sales, in 2021, the largest growth point of the company’s sales revenue was in large processing centers, with a year-on-year increase of 73.54%.
On the one hand, in 2021, the machine tool consumption market has a trend of high-end development, which is reflected in the larger specifications of large machine tools ordered by customers, and the corresponding unit price will also increase. On the other hand, the industries with more downstream growth in 2021 are mainly construction machinery, wind power, new energy vehicles, etc., which will use a large number of large-scale processing centers.
In the future, the company still hopes that all categories will develop in a balanced way. First, in the field of CNC machine tools, China is the largest consumer, accounting for about 30% of the total global demand. This is a very broad market. The company will continue to promote the innovation and upgrading of technical system and service mode, and promote all kinds of machine tools to obtain more market share. Secondly, only with the balanced development of various categories can the company provide customers with one-stop ordering services. Finally, the balanced development of various categories can resist potential market risks and is conducive to the long-term development of the company. Question 4: the company developed rapidly in 2021, but why is the scale effect not obvious?
First, the scale effect exists. For example, in 2021, the company’s operating revenue increased by 47.06% year-on-year, but the management expenses increased by 33.63% year-on-year.
Secondly, the company also belongs to the stage of rapid expansion, and the corresponding investment is essential. For example, the company is further developing China’s high-end CNC machine tool market and overseas CNC machine tool market, and strengthening the construction of technical support forces in various sales regions. Therefore, the company’s sales expenses in 2021 increased by 54.06% year-on-year.
In addition, the company was subject to certain capacity constraints in 2021. With the three phases successively put into operation in the second half of this year, it is believed that the scale effect will gradually appear. Of course, the company will further improve its profit margin through fine management and cost and expense control.
Annex list (if any) none
Date: March 29, 2022
