Crrc Corporation Limited(601766)
Minutes of 2021 annual performance presentation meeting
Crrc Corporation Limited(601766) issued the “announcement on holding the 2021 annual performance presentation meeting” on March 23, 2022. The company was held at the Shanghai Stock Exchange roadshow Center (website: http://roadshow.sseinfo.com./ ）The 2021 annual performance presentation meeting of the company was held in the form of online graphic interaction.
The meeting is summarized as follows:
1、 Performance presentation meeting
On March 31, 2022, Mr. Lou Qiliang, the executive director and President of the company, Mr. Wang ammonium, the executive director, Mr. Weng Yiyi, the independent non-executive director, Mr. Wang Jun, the vice president, Mr. Wei Yan, the vice president, Ms. Li Zheng, the chief financial officer, Mr. Wang Jian, the Secretary of the board of directors and the heads of relevant departments attended the performance presentation meeting to interact with investors, The questions concerned by investors were answered within the scope allowed by information disclosure.
2、 Main questions raised by investors and replies of the company
(I) pre Collection questions and replies
1. Explain the share and profitability of Chinese and foreign companies in the high-speed rail market in 2022 and the next 10 years
A: Dear investors, thank you for your attention to the company. Equipment manufacturing industry is an important part of the country’s real economy. The high-speed railway EMU produced by CRRC has become a beautiful business card reflecting the level of China’s equipment manufacturing. High speed rail is a successful example of China’s independent innovation. From scratch, from introduction, digestion, absorption and re innovation to independent innovation, it has now led the world. By the end of 2021, CRRC China has delivered more than 3900 high-speed EMUs. At present, CRRC’s most advanced Fuxing series EMUs have also delivered 1191 sets, with a total of 1.358 billion kilometers of safe operation. In the future, CRRC will continue to introduce new technologies, new products and new services, continue to maintain the leading position in China’s high-speed rail market, carefully create the “golden card” of the national high-speed rail, and shoulder the important task of a big country and an industrial engine.
Benefiting from the rapid development of China’s high-speed railway construction, CRRC high-speed railway products have gone through the process of technology introduction, technology digestion and technology re innovation. CRRC has strong competitiveness in high-speed railway product technology, delivery capacity and operation experience. Since the development of high-speed railway is a comprehensive project involving many factors, CRRC hopes to rely on the experience and advantages accumulated in the Chinese market to provide more countries interested in developing high-speed railway with high-quality and reliable high-speed railway products and share the achievements of China’s high-speed railway development. In 2018, CRRC signed the first overseas high-speed railway project, Indonesia Yawan high-speed railway project. At present, the project is carrying out infrastructure construction as planned, and CRRC will provide high-speed railway vehicles for the project.
The company is committed to improving the profitability of its high-speed rail business in 2022 and will continue to make efforts to maintain its profitability in the future. thank you!
2. Is there any policy to stabilize the stock price in 2022? At present, the stock price has fallen, and I don’t even recognize it
A: Dear investors, thank you for your attention to the company. The stock price is affected by many factors. At present, the fundamentals of the company have not changed significantly, and the production and operation are stable. thank you!
3. In view of the current epidemic situation, the rail transportation industry has been seriously affected and the international situation is unpredictable. Under such a severe situation, how can CRRC break the situation and realize the 14th five year plan.
A: Dear investors, thank you for your attention to the company. During the “14th five year plan” period, in the face of the epidemic situation and the complex environment of the international situation, focusing on the main line of high-quality development, CRRC put forward the strategic positioning of “one core, two businesses and first-class”, focusing on the strategic positioning and the connotation of high-quality development. CRRC proposed to strive to achieve “seven new breakthroughs”:
First, make new breakthroughs in business layout, further clarify the key development regions, market models and resource scale of each business segment, promote the realization of scale, specialization and synergy, and strive to promote the layout of international business, wind power, new materials and other businesses.
Second, make new breakthroughs in market expansion, comprehensively organize the establishment of a value creation model with CRRC’s advantages and characteristics, create value for users, and strive to promote the value output of overseas markets.
Third, make breakthroughs in scientific and technological innovation, deeply implement the innovation driven strategy, focus on the main responsibility and main business, accelerate cutting-edge, basic and disruptive technological innovation, and organize the implementation of major special projects and major projects with national strategic significance and industrial demonstration significance.
Fourth, make breakthroughs in reform and innovation, increase the breadth, intensity and depth of reform, and effectively further stimulate the development vitality and growth momentum of enterprises through the three-year action of reform.
Fifth, new breakthroughs in management improvement. Deepen benchmarking world-class management improvement activities, tap internal potential, improve efficiency, and build a model and benchmark for central enterprises in an all-round way.
Sixth, a new breakthrough in the combination of industry and finance. Give full play to CRRC’s brand advantages, capital advantages and technological advantages, promote the combination of industry and finance, reduce financing costs, and help entity enterprises transform and Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) develop.
Seventh, a new breakthrough in the construction of the “golden card” of Party Building: take the initiative to raise the level of Party building in enterprises, and ensure high-quality development under the guidance of high-quality party building. thank you!
4. At present, compared with the previous businesses, Crrc Corporation Limited(601766) the newly built businesses such as locomotives, bullet trains and high-speed railways are greatly affected, the newly built orders are gradually reduced, and the maintenance business should be exposed. In terms of maintenance business, how should Crrc Corporation Limited(601766) deal with the control of maintenance price, the requirements of reducing mining and cost, and the independent maintenance of the railway bureau? How to treat the ability and quality control of the products overhauled by the railway bureau?
A: Dear investors, thank you for your attention to the company Crrc Corporation Limited(601766) and China Railway Group have been committed to long-term cooperation in the maintenance business of locomotives and EMUs, Crrc Corporation Limited(601766) and the Railway Bureau jointly ensure the efficient and safe operation of rolling stock equipment on the whole road. In recent years, Crrc Corporation Limited(601766) continues to give full play to the enterprise advantage of integrating manufacturing and repair, continuously studies the independent innovation of maintenance technology and process, deeply carries out independent maintenance and in-depth maintenance of components, improves maintenance quality, shortens maintenance time, reduces operation and maintenance cost, provides users with high-quality maintenance services, and ensures the high-quality development of CRRC maintenance business through the research on product life cycle reliability and economic integration technology. The maintenance of locomotives and EMUs of the railway administration and CRRC shall implement unified maintenance specifications and quality standards, and shall be carried out according to the same maintenance cycle. The railway administration also has a complete technical and quality management system. At present, the maintenance business carried out by the railway administration has not only received corresponding technical training, but also has corresponding maintenance qualification and independent maintenance ability through maintenance cooperation and technical exchange with CRRC. thank you!
5. Since the merger of CNR into CRRC in 2015, the performance has not improved, and there are even some setbacks. Excuse me, CRRC management, do you have the urgency to improve your performance? Now, Zhuzhou Crrc Times Electric Co.Ltd(688187) has issued A-Shares and China Railway Group Limited(601390) has also carried out equity incentive. Do you have an equity incentive plan? Is there a mechanism to retain talents?
A: Dear investors, thank you for your attention to the company.
Since 2019, the joint-stock company has guided and promoted its subsidiaries to successively carry out a number of medium and long-term incentive plans, including post dividends of scientific and technological enterprises, equity sales of scientific and technological enterprises, mixed reform of employee stock ownership, incentives for the transformation of scientific and technological achievements, equity follow-up investment and other forms. In 2021, with the listing of Zhuzhou Crrc Times Electric Co.Ltd(688187) science and innovation board, strategic placement was implemented for core employees, which effectively stimulated the entrepreneurial enthusiasm of key employees, It has played a positive role in promoting the development of enterprises.
In 2021, the company formulated and issued the guidance of Crrc Corporation Limited(601766) on strengthening talent incentive and the measures for the administration of Crrc Corporation Limited(601766) supporting scientific and technological innovation and implementing separate payroll management, from strengthening talent positive incentive, improving talent incentive system, improving payroll management, promoting medium and long-term incentive, optimizing internal distribution management, improving welfare guarantee, strengthening spiritual incentive Implement the eight aspects of collaborative innovation talent guarantee, and systematically build a talent incentive system to provide institutional guarantee for attracting and retaining talents. thank you!
(II) network interaction questions and replies
1. What are the company’s recent developments in the field of new energy?
A: Dear investors, thank you for your attention to the company. The company has always adhered to the in-depth implementation of the concept of green development. Focusing on the “double carbon” strategy, aiming at “6G”, i.e. green investment, green innovation, green manufacturing, green products, green services and green enterprises, facing the whole industrial chain, value chain and technology chain, fully integrating carbon reduction, zero carbon and negative carbon technologies, and fully promoting green development. CRRC held the opening ceremony of new energy equipment base in Songyuan, Jilin Province on February 28 and Baise, Guangxi Province on March 28. The company will give full play to its advantages in technology, talent, brand and industrial chain in the field of wind power, take the project as an opportunity, strive to build a “big country and heavy weapon” and continue to polish the “national business card”. thank you!
2. Good leadership. What is the current ownership of national railway locomotives, passenger cars, multiple units and freight cars?
A: Dear investors, thank you for your attention to the company. According to the 2021 statistical bulletin of China Railway Group, by the end of 2021, the number of national railway locomotives will be 20900. The national railway has 76000 passenger cars, including 4012 standard EMUs and 32097. The national railway has 892000 wagons. thank you! 3. What new rail transit products did the company have last year?
A: Dear investors, thank you for your attention to the company Crrc Corporation Limited(601766) adhere to self-reliance and self-improvement in science and technology, focus on the safety and stability of the industrial chain and supply chain, strengthen the construction of scientific and technological innovation system and capacity according to the general requirements for the industry to move towards medium and high-end, strengthen scientific and technological research, accelerate the upgrading of technology and products, and continuously enhance the ability to lead innovation Xi Jinping General Secretary praised “a successful example of China’s independent innovation is the high-speed railway, which has led the world from scratch, from introduction, digestion, absorption and re innovation to independent innovation”, when he took the Beijing Zhangjiakou high-speed railway to Zhangjiakou competition area on January 19, 2021 to inspect the preparations for the Beijing Winter Olympic Games and the winter Paralympic Games Crrc Corporation Limited(601766) has built a product pedigree of EMUs with completely independent intellectual property rights, and the “Fuxing” series and “smart EMUs” with speeds of 160350 kilometers per hour have been fully put into operation. The “Fuxing” EMUs of Shuangyuan on the sectorau have been put into operation on the Lalin railway, realizing the full coverage of “Fuxing” in 31 provinces (autonomous regions and municipalities directly under the central government) in the country; 600 km / h high-speed maglev, 400 km / h variable gauge transnational interconnection high-speed EMU, 350 km / h Freight EMU and the first Chinese standard subway train have been offline. thank you!
4. What is the composition of the current board of directors of the company? Who is it made up of?
A: Dear investors, thank you for your attention to the company. The current board of directors of the company is composed of four special committees, namely strategy committee, nomination committee, remuneration and assessment committee and audit and risk management committee. Members of the strategy committee: Mr. Sun Yongcai, Mr. Jiang Renfeng, Mr. Lou Qiliang, Mr. Wang ammonium and Mr. Shi Jianzhong. Members of the nomination committee: Mr. Wei Mingde, Mr. Sun Yongcai, Mr. Lou Qiliang, Mr. Shi Jianzhong and Mr. Weng Yiyi. Members of the remuneration and assessment committee: Mr. Shi Jianzhong, Mr. Jiang Renfeng and Mr. Weng Yiyi. Members of the audit and Risk Management Committee: Mr. Weng Yiyi, Mr. Jiang Renfeng and Mr. Wei Mingde. thank you!
5. When will the first quarterly report of the company be disclosed?
A: Dear investors, thank you for your attention to the company. The first quarterly report of the company in 2022 will be disclosed on April 30, 2022. thank you!
6. Can you introduce the future railway scale of the country?
A: Dear investors, thank you for your attention to the company. According to the outline of the national comprehensive three-dimensional transportation network planning, by 2035, we will basically build a convenient, smooth, cost-effective, green intensive, intelligent, safe and reliable modern high-quality national comprehensive three-dimensional transportation network, realize international connectivity in China, three-dimensional access to major cities in China and effective coverage of county-level nodes, and effectively support the “national 123 travel transportation circle” and “global 123 fast cargo logistics circle”. Build a comprehensive three-dimensional transportation network with railway as the backbone, highway as the foundation and giving full play to the comparative advantages of water transportation and civil aviation. By 2035, the total scale of the national comprehensive three-dimensional transportation network will be about 700000 kilometers. The scale of the national railway network has reached about 200000 kilometers, including 70000 kilometers of high-speed railway (including some intercity railways) and 130000 kilometers of ordinary speed railway (including some municipal Railways). thank you!
7. What is the company’s R & D investment in 2021?
A: Dear investors, thank you for your attention to the company. In 2021, the total R & D investment of the company was about 13.205 billion yuan, and the total R & D investment accounted for 5.85% of the operating revenue. thank you!
8. What was the company’s overseas business last year?
A: Dear investors, thank you for your attention to the company. In 2021, the company’s overseas business realized a revenue of 20.034 billion yuan, a year-on-year increase of 17.41%, accounting for 8.88% of the total operating revenue. The company overcame a series of adverse effects caused by covid-19 epidemic and successfully broke through three new markets: Luxembourg, Greece and C ô te d’Ivoire. New orders were obtained from the United Arab Emirates, Pakistan, Australia, New Zealand, the Netherlands, Guinea, Chile, Argentina and other countries and regions. Old fellow old fellow one belt, one road, one belt, one road, one old fellow. The central and old railway’s “Lancang” vehicle was manufactured and delivered with high standard and high quality, which ensured the smooth opening of the railway between China and Laos, and contributed to the construction of the “mid and old friendship” landmark project. At the same time, it further enhanced the market influence and demonstration effect of the company along the “one belt and one road”, and the “going out” mode was successfully implemented. Achieve sustainable market expansion. thank you!
9. What was the company’s Urban Rail business income last year? How long is the current national urban rail line?
A: Dear investors, thank you for your attention to the company. In 2021, the company’s urban rail and urban infrastructure business realized an operating revenue of 54.556 billion yuan. According to the statistical express released by China Urban Rail Association in January 2022, by the end of 2021, a total of 50 cities across the country (excluding Hong Kong, Macao and Taiwan) had opened 919262 kilometers of urban rail transit lines, including 725373 kilometers of subway, accounting for 78.9%. In 2021, the length of new urban rail transit operation line is 122292
