Securities code: Jiangsu Libert Inc(605167) securities abbreviation: Jiangsu Libert Inc(605167) Jiangsu Libert Inc(605167)
Record of investor relations activities
No.: 2022001, 002
Investor relations activity category □ specific object research □ analyst meeting
□ media interview □ performance briefing
□ press conference □ Roadshow
□ site visit □ teleconference
□ others (please specify other activities in words)
Name of participating unit and personnel Liu Haichao of Suzhou extra investment management Co., Ltd
Shanghai binghe Asset Management Co., Ltd. Liu Chunmao
Meeting time: March 8 and March 24, 2022
Meeting place: company conference room, teleconference
Name of receptionist of Listed Company Secretary of the board of directors: Yu Jia
Deputy General Manager: Li Sirui
Investor Relations Manager: Ma Caiping
Q&A
1. Q: we are concerned that the company involves hydrogen energy, nuclear power module and lithium battery module. From the fundamental point of view, the company is in line with the national carbon neutralization sector, but many software do not include the company in the concepts of hydrogen energy and carbon neutralization. At present, does the company employ a third party to promote the main content of investor relations activities?
Introduction a: at present, the company has hired Caiguan and touguan. While striving to improve the operating performance, the management of the company attaches great importance to information disclosure and investor relations management, and hopes to timely communicate the company’s operating conditions and market dynamics to the majority of investors through regular performance press conferences, SSE E interaction, institutional research meetings and other channels, Strive to publicize the company’s value and enhance the recognition of the company in the capital market.
2. Q: how about the company’s advance payment and payment collection cycle during project implementation?
A: in the process of project implementation, the company needs to advance a certain amount of funds, but most of the company’s customers are international well-known companies, with high credit rating, strong financial strength and high recoverability of accounts receivable. Payment is made according to different projects and contracts, and according to nodes or completion progress. There are 15 day, 60 day and 90 day payment periods. The company’s overall payment collection is in good condition. 3. Q: has the company encountered any large project that cannot be undertaken or has not been undertaken due to capital chain problems?
A: I haven’t encountered it so far. Whether the company undertakes the project is mainly determined by comprehensive consideration of the project’s risk, profit margin, collection and other aspects. 4. Q: does the company have a plan to issue convertible bonds or an employee incentive plan? Is there a plan for the layout of hydrogen energy? Or what other projects will be considered?
A: at present, there is no plan to issue convertible bonds and employee incentive, but it does not rule out the need in this regard. At the right time, there are appropriate projects. In the fields related to the company’s current main business, the company will study and try to explore new fields or make relevant foreign investment. 5. Q: what is the estimated gross profit of the 1.279 billion major contracts announced by the company? A: the gross profit margin of the contract will fluctuate due to the impact of project management and implementation progress. Please refer to the comprehensive gross profit margin of the company. 6. Q: what is the basic information of the company?
A: the company focuses on the design and manufacturing of industrial modules. The company has the whole industrial chain link and integrated service ability of “design procurement modularization construction” (epfc), which can provide customized project construction services for customers and guarantee the safety and economy of project construction. The whole industrial chain of epfc of the company can be further divided into general contracting (EPC), engineering design (E), engineering procurement (P), modularization (f), engineering construction (c) and engineering maintenance.
The company has American ASME u and ASME s certification certificates, Canadian CWB and TSSA certification certificates, Korean kgs certification certificate, EU en1090 certification certificate, special equipment manufacturing license (pressure vessel), special equipment manufacturing license (pressure pipeline components), special equipment production license (GC1), etc. it is one of the few enterprises in China with large-scale industrial module design and manufacturing capacity, and has been deeply engaged in the industry for many years, It has accumulated the design and manufacturing technology and experience of many industrial modules. Shanghai Jiangsu Libert Inc(605167) Engineering Technology Co., Ltd., a wholly-owned subsidiary of the company, was first established in 2000. It has the design qualification of chemical, petrochemical and pharmaceutical grade A, construction grade A, municipal grade B, pressure pipeline and pressure vessel, and is mainly responsible for engineering design and EPC business. EPC projects undertaken by many well-known customers, such as kostron HCl gas recovery and utilization project, Yigao surfactant expansion project, NVIDIA 50000 ton nylon 6,6 polymer expansion project, run Yinglian Zhangjiagang tank farm expansion and product adjustment and technical transformation general contracting project, Sinochem Lantian Honeywell construction and production foaming agent production line project.
Shanghai Jiangsu Libert Inc(605167) Construction Co., Ltd., a wholly-owned subsidiary of Shanghai Jiangsu Libert Inc(605167) Construction Co., Ltd., has the qualification of first-class general contracting of petrochemical industry, third-class general contracting of construction engineering, third-class general contracting of electromechanical engineering and third-class professional contracting of steel structure. It is mainly responsible for the company’s engineering services such as engineering construction and engineering maintenance, and can provide customized project construction services for customers.
Shanghai libut Industrial Equipment Co., Ltd., a wholly-owned subsidiary, has a complete procurement system and is mainly responsible for engineering procurement.
Zhanjiang Jiangsu Libert Inc(605167) module manufacturing Co., Ltd. is the implementation subject of module manufacturing and pipeline prefabricated parts raised investment projects, mainly to make full use of the location advantages of Zhanjiang Economic and Technological Development Zone, realize supporting production and rapid response to the project demand in South China, and meet the rapid growth of projects in South China in the future.
7. Q: concerned that the company has overseas business, is the Russian Ukrainian war good or bad for the company’s current main business? Will there be an opportunity to expand the company’s business scale in Russia in the future?
A: the conflict between Russia and Ukraine has no impact on the execution of the company’s current orders. The company’s future business scale in this area depends on the customer’s investment plan, investment progress and the company’s competition pattern. 8. Q: what is the company’s assessment of the future market?
A: the market space of the company’s products mainly depends on the development trend from project construction to modular manufacturing, as well as the development and investment construction scale of chemical industry, oil and gas energy, mining, water treatment and other industries. Modular project construction mode can avoid bad construction environment, improve manufacturing quality, improve safety production coefficient of project construction, reduce environmental pollution on the construction site, compress project construction cycle, better cost control, etc. it has many advantages, making project construction in more and more industries develop towards modularization. For example, the chemical industry has a large investment in fixed assets. More and more industry giants choose modular manufacturing for project construction. Modular manufacturing has become one of the main ways of chemical engineering project construction. In 2018, BASF commissioned the company to manufacture BASF’s world’s first modular chemical plant. The whole plant of the project is divided into 10 modules and manufactured independently. The assembly of the whole plant is completed at the construction site only 5 days after the module prefabrication.
With the gradual application of modular manufacturing in all walks of life to realize the transformation of project construction mode, it will continue to provide market demand for the company’s module design and manufacturing business in the future. 9. Q: what about the company’s customers, orders and sales this year?
A: the downstream customers of the company’s industry are distributed in many industries such as chemical industry, oil and gas energy, mining and water treatment. Most of the company’s customers are well-known multinational enterprises in the industry, with customers all over the country and more than 30 overseas countries. The company’s main customers include BASF, Linde gas, Honeywell, kostron, meimeimeike, Dow Chemical, liquefied air, INVISTA and other world-famous companies. With excellent product quality and high-quality service level, the company has established a long-term and stable cooperation relationship with them. Based on their long-term development goals, such customers have long-term investment plans and development plans. In the case of industrial economic fluctuations, It can still maintain sustained and stable investment and provide guarantee for the sustainable development of the company’s business. The company continues to obtain orders from existing customers and continues to tap new customers, with sufficient orders on hand.
Please also pay attention to the company’s announcement for the specific operation. The scheduled disclosure time of the company’s 2021 annual report is April 27, 2022. Please also pay attention.
10. Q: the Russian Yamal project mentioned in the company’s prospectus, has the project been completed and has it gone smoothly from construction to collection?
A: the company undertook the manufacturing business of some module accessories of Yamal project in 2015 and completed the delivery in 2017. The implementation of the project is very smooth and the payment has been fully recovered. The company’s main customers are well-known multinational enterprises in the industry, with high customer credit and good overall collection quality of the company’s accounts receivable. 11. Q: does the project procurement adopt the Commission mode?
A: engineering procurement is to provide customized selection services and procurement of engineering materials and equipment according to the characteristics and needs of the owner’s engineering project. Engineering procurement is also priced in a market-oriented way, not in a commission mode. 12. Q: does EPC include engineering design, engineering procurement, engineering construction and engineering maintenance? The proportion of each business in the company’s main business income is that the business of industrial module design and manufacturing and engineering construction accounts for a relatively high proportion, rather than the general contracting of construction? A: under the general contracting business mode, the company acts as the contractor and is responsible for the design, procurement, construction, commissioning and other pre delivery work of the whole project. Specifically, EPC refers to that the company is entrusted by the customer to undertake the overall planning, engineering design, procurement, construction, commissioning and other work of the project, and is responsible for the quality, safety, cost and progress of the project, and finally hand over the project to the customer for operation.
The company has the service capability of the whole industrial chain and can provide various engineering services including general contracting, engineering design, engineering construction and engineering maintenance according to the needs of the owner, including overall planning, feasibility study, engineering cost and economic analysis, engineering design, procurement, construction, commissioning, equipment and system inspection and maintenance, etc.
The proportion of each business of the company will vary with the customer’s investment plan, project implementation strategy and the type of projects undertaken by the company. 13. Q: what are the competitive advantages of the company’s industrial module design and manufacturing?
A: industrial module design and manufacturing is a technology intensive industry. There are certain entry barriers in this industry, such as the performance of successful large-scale projects in the past and the company’s brand and industry reputation, design and manufacturing technology, project management ability, strict qualification review, capital and other entry barriers.
The company is one of the few enterprises in China with the ability to design and manufacture large-scale industrial modules. It has been deeply engaged in the industry for many years and has accumulated the design technology and experience of many industrial modules. It can fully consider the process requirements of large-scale devices and the owner’s own standards and specifications for customized design; At the same time, the company has a number of industry-leading module manufacturing technologies and a large production base located in an advantageous location, which provides a guarantee for the manufacturing and shipment of the company’s large-scale industrial modules. The company has the industry-leading “design procurement modularization construction” whole industry chain link and integrated comprehensive service capability, and can provide various services in the whole industry chain link according to customer needs. The design, module manufacturing and construction in the industrial chain are complementary and collaborative. After years of accumulation, the company has provided services to many international well-known enterprises, and has achieved the performance of industrial module design and manufacturing projects in the chemical, energy, oil and gas, mining and water treatment industries, as well as the performance of various engineering services in the chemical industry. The company has international high-quality customer resources. Based on the reputation and cooperation stickiness formed by previous projects, the company has formed a stable cooperative relationship with customers and accumulated a good reputation. 14. Q: what are the company’s competitors and competitive landscape? A: the company’s competitors and competition pattern are reflected in the prospectus. For example, the company’s Listed Companies in the same industry include Bomesc Offshore Engineering Company Limited(603727) , Yantai Jereh Oilfield Services Group Co.Ltd(002353) , etc; However, the sub areas are different. The downstream products of the company are mainly used in the chemical industry. The main products are process modules, pipe gallery modules and pipeline prefabricated parts. Bomesc Offshore Engineering Company Limited(603727) main business is the construction of offshore oil and gas development modules, mining production modules and natural gas liquefaction modules Yantai Jereh Oilfield Services Group Co.Ltd(002353) is mainly engaged in oil and gas field equipment construction and modular delivery, and its products are mainly used in oil and gas exploitation.
In terms of competition pattern, modular technology was first applied to the manufacturing of large-scale devices in the field of offshore oil and gas energy. Modular technology has developed rapidly in the United States, Russia, Japan and other countries, and gradually expanded to other industries. After years of development, it has formed some European and American enterprises with dominant positions in core technology, patented technology and design. Most of these enterprises are powerful general contractors, which are mainly characterized by high-end products and strong design, manufacturing and general assembly capabilities. As China’s one belt, one road, more and more Chinese enterprises are involved in overseas projects. They are more inclined to use China’s modular manufacturing enterprises as general contractors, and use China’s modular assembly to carry out overseas assembly. Due to the number and cost of skilled workers, the completeness of large construction sites and facilities, the perfection of infrastructure and many other modular systems in China
