Securities code: Suzhou Shihua New Material Technology Co.Ltd(688093) securities abbreviation: Suzhou Shihua New Material Technology Co.Ltd(688093) Suzhou Shihua New Material Technology Co.Ltd(688093)
Record of investor relations activities in March 2022
Investor relations activities
Specific object research, teleconference
category
Name of participants Soochow Securities Co.Ltd(601555) , deppon securities, Changsheng fund, Qianhai Dengcheng asset management, Baoying fund, Gaoshen asset management, Shangfeng capital and individual investors (in no order)
Time: March 2022
Location teleconference
Total number of receptions: 3
Deputy general manager, Secretary of the board of directors and chief financial officer: Gao Jun
Name of company Receptionist
Securities affairs representative: Ji Wen
1. How is the operation of the company’s production line?
A: since the resumption of work in the Spring Festival, the production lines in Daguang Road plant of the company have started one after another, and two high-speed production lines have been opened in shinuo plant at present.
2. Progress of the company’s OLED international high-end production line?
A: the main equipment of OLED international high-end production line has been installed, and the decoration of the clean room has come to an end. After the decoration of the clean room is completed, precision commissioning and product trial run will be started, and it is expected to be put into use in the third quarter of 2022. The company will consider putting into production high-standard electronic composite functional materials and OLED module materials first, so as to improve the capacity utilization of the production line in the early stage of production, and then extend to core materials.
Investor relations activities 3. What is the difference between the new production line of the company’s raised investment projects and the existing production line?
A: the new production line equipment configuration of the company’s fund-raising project shinuo plant is higher, and the level of dust-free room is also improved, thus improving the overall production capacity and production efficiency. Assuming the same product is produced, the efficiency of a new production line of SINOSURE factory is about 1.5 times that of an existing production line; The international high-end OLED production line of Sinochem plant will show higher production efficiency after it is put into operation in the future. However, the company has many kinds of products, high universality of production line, and the influence of low and peak seasons every year, so the output value cannot be calculated directly and linearly.
4. How about the company’s subsequent capacity planning?
A: considering the renewal and iteration of functional materials, the change of equipment demand and the reasonable matching of production capacity, the company will invest in the production line of Shino raised investment project by stages. Four new production lines of Shino can provide capacity support at the peak of this year. One OLED international high-end production line is expected to be put into operation in the third quarter of this year. The remaining new production lines have been discussed and planned for many rounds, It is expected that 3-4 orders will be placed first this year
A line. In addition, the Zhangjiagang project of the company is about to enter the stage of land bidding, auction and listing, and the subsequent main production of resin structural materials. 5. Please introduce the progress of Zhangjiagang project. A: the preparatory work of Zhangjiagang project is being carried out in an orderly manner, and the link between bidding, auction and hanging of land affected by the epidemic has been slightly delayed. The project mainly produces resin structural materials, which is an extension of the upstream of the company’s industrial chain. Production capacity can meet self use and external sales, and external sales mainly rely on existing customer resources. The implementation of this project can ensure the security of the company’s supply chain, optimize the company’s business structure, further enhance the company’s product competitiveness and expand the application field of the company’s products, which is of great significance to the company’s long-term development. 6. Is the item number supplied by the company to customer a continuously increasing? A: the number of item numbers of the company increases every year. In addition to item numbers, the project volume supplied by the company to customer a is gradually increasing. 7. Please introduce the company’s share in customer a? A: customer a has many product series and uses a large scale of functional materials. At present, the materials provided by the company account for only a small part of them, and there is great room for development in the future. 8. Customer a released new products in March this year. Does the company supply them? A: the company has some product applications. 9. Compared with the third quarter, the fourth quarter of 2021 decreased slightly. What are the main reasons? A: in the third and fourth quarters of 2021, due to the overseas epidemic, the shortage of key parts in the industrial chain, power restriction and other factors, it will have a certain impact on the global industrial chain of key customers, and the slowdown of customer delivery will also have a certain impact on the company. 10. What is the overall situation of the company in the first quarter of 2022? Are there new recruits? A: the company and its subsidiaries are located in Suzhou and Shenzhen. Recently, due to the repeated epidemic, the government has strengthened epidemic prevention and control, which has an impact on the company’s logistics and transportation, customers’ demand for goods, and the overall production and operation are normal. The recruitment work of the company has been carried out in an orderly manner. 11. The impact of raw material price fluctuations on the company? A: some raw materials of the company are affected by the price of upstream raw materials and the relationship between market supply and demand, showing a rise in varying degrees, which has a certain impact on the company. However, due to the small scale of the company as a whole, the company strives to reduce the relevant impact through a variety of cost reduction measures. 12. What is the impact of the company’s new project on the depreciation expense? Answer: the plant of Sino plant, a raised investment project, will be converted into fixed assets in 2021, and the depreciation expense will increase; Three new production lines will be converted to fixed assets in 2021, and it is expected that there will be new production lines to be converted to fixed assets in 2022, and the depreciation expense will increase. 13. The company has frequent layout, whether the capital is sufficient, and whether refinancing is considered? A: at present, the company has good profitability, low asset liability ratio and abundant operating cash flow, which has formed a strong support for the construction of new projects. The company does not rule out the possibility of further financing, but
It has not been considered before. If the company has relevant plans, it will disclose them in time. 14. Does the company consider cooperating with domestic brands? A: before, the company had limited production capacity and capacity, so we concentrated on giving priority to serving our main customers; With the expansion of the company’s production capacity, the company has gradually expanded the market and gradually carried out cooperation with domestic brand customers. 15. Expansion of the company in other fields? A: the company’s existing products are mainly used in the field of consumer electronics, and will continue to cultivate in this field and explore more opportunities and customers; On the other hand, the company has actively carried out investigation and research in the fields of medical treatment and automobile, which is in the state of preliminary layout and expansion. A small part of products are shipped, and the overall proportion is still very small.
16. What are the main aspects of the application of the company’s materials in new energy vehicles? A: at present, the functional materials verified on new energy vehicles are mainly functional materials that play the role of cushioning, shielding and heat dissipation on electric control boards and batteries. 17. Please introduce the company’s R & D team and investment? A: the company’s R & D team has gathered a group of excellent scientific research talents led by doctors and masters, who have been engaged in cutting-edge technology research and innovation for a long time. The R & D team covers many majors such as material physics and chemistry, polymer chemistry and physics, microelectronics and solid electronics, material science and engineering, material engineering and so on, forming a multi-level R & D team. The company has been increasing the training of internal excellent talents and establishing and improving the long-term mechanism of talent training, growth and incentive. The company is also strengthening cooperation with colleges and universities, actively preparing to build a postdoctoral workstation and recruit high-level talents through the school. At the same time, the company plans to set up an innovation center in Shanghai to continuously introduce high-end R & D talents, especially the technical leaders in various subdivided fields and product categories, and further strengthen the strength of R & D team and improve innovation ability through in-depth optimization of talent structure. The company carries out material research and development based on core R & D technology, reserves functional material synthesis technology and new formula, and develops towards higher and sophisticated functional materials. The R & D investment also shows an increasing trend year by year. 18. How does the company set the R & D direction? A: the company mainly focuses on meeting the needs of customers, carries out application research and development, and transforms the existing needs of customers into functional materials; At the same time, the company will also carry out pre research and development. For example, under the background of environmental protection dominated by carbon neutralization, the company has already begun to actively develop green and environmentally friendly bio based materials. In addition, the international friends of the company in the field of functional materials are basically century old enterprises, with high R & D and innovation ability and many kinds of products, which is worth learning by the company. 19. Can the gross profit margin of the company be maintained? A: with more than ten years of dedicated development in the material industry, the company has a certain scale effect and has a high-quality and stable customer group. However, with the production expansion of functional materials and upgrading projects invested by the company, the depreciation of fixed assets and the increase of personnel increase, and the corresponding cost increases; In the long run, the company will continue to strengthen its operation and management ability and maintain good profitability. 20. What is the basic situation and competition of the new material industry? A: the new material industry has a large market capacity. At this stage, it is still a century old industry such as 3M in the United States and Nitto in Japan
Represented by enterprises, occupy the whole industrial chain in the field of materials. According to public information, the operating revenue of 3M company in the United States exceeded 200 billion yuan in 2020, and the total revenue of Nitto company in Japan exceeded 40 billion yuan in 2020. The business of these international companies involves many fields and product categories. The company has been deeply rooted in the material industry for more than 10 years and has a certain position advantage. With the continuous increase of the company’s scale and R & D ability, the ability to create value for customers is also improving, and the competitiveness of the company with international friends in some projects is also gradually increasing. The industry will have a high threshold for new entrants. 21. Please introduce the future development direction of the company. A: after more than 10 years of development, the company has accumulated some experience and popularity on the functional material track. In the future, the company will continue to maintain a consistently good fundamentals, steadily and solidly take the road of high-quality sustainable development, continue to expand the application scenarios of functional materials and continue to develop new customers.
