Securities code: Zhangjiagang Guangda Special Material Co.Ltd(688186) securities abbreviation: Zhangjiagang Guangda Special Material Co.Ltd(688186)
Zhangjiagang Guangda Special Material Co.Ltd(688186) investor relations activity record No.: 2022-3
□ specific object research √ analyst meeting
□ media interview □ performance briefing
Investor relations activities
Event category □ press conference □ Roadshow
□ site visit √ teleconference
□ others (please specify other activities in words)
Minsheng securities Deng Yongkang, Wang Yiru, sun Erchun, YONGYING fund Li Yiming, Ruida fund Wang Lei, Yuxiu asset Li Lei, Hexi investment Wu Di, Heju Investment Ma Huang, Yingfeng investment long Yunlu, Ping an asset Yan Peng, Dazheng asset Xu Haitao, fuanda fund Zhang Xinyi, Penghua Fund Zeng Wengang, Liu Yujiang, Jiang Canhui, Yan Siqian Wang Siyuan of Jin yuanshun’an fund, Liu Guangxu of CITIC Capital, China International Capital Corporation Limited(601995) Zhou Xiufeng, Zhang Shuwei, Che Yunji, Li Xinyu and Allianz of Fosun Prudential Life Insurance
Thomas, Li Wei of SDIC UBS fund, Liu Yujiang of Penghua Fund, Zhou Zhipeng of Kunlun insurance asset management, Wang Zhanfan of Jianshun investment, Wang Zhiqi of Guohua Xingyi insurance asset management, Liu Zhuowei of Guoshou assets, Zhang Zhe of Taibao assets, Li Haotian of Fengling capital, Zhang Ji of Huihui capital, Meng Yijia of Guoshou security fund, Lei Yang of Boshi fund, fuguoji and names of personnel, Jin Jiachen Hou Wu, China Industrial Securities Co.Ltd(601377) Wang Jun, Qin Xuefeng of CITIC asset management, Su Guangning of conch venture capital, Yang Kaifa, Zhang struggle of red cat assets, Zhu Kailun of Pengtai fund, Fan Jianping of a Xing Investment, Wang Huijing of Yiling pharmaceutical investment, Teng Xuefei of Gaoyi assets, Jiang sichen, Zhang Yannan of Shanyuan investment, sun Chunpeng of Shanghai harmony exchange, Liao Yi of long-term investment, Luo Xing of South Fund Huatai bairuiding, He Jing, Li Chun, Soochow life insurance Li Haoyue, Mingya fund Wang Ningshan, Xitai investment fan Guifeng, Dongzheng asset management Zheng Huahang, Guosen Securities Co.Ltd(002736) min Xiaoping, Great Wall fortune Hu Jiyuan, Agricultural Bank of China Huili Zuo Tengfei, Huili fund Luo Jing, Xingyuan investment Zhao Lei, Zhonggeng fund Wang Aotao, Jinyong investment he Shuai, Soochow Fund Liu Haoyu, Cai Qiushi Wu Han of Debang securities, Yang porui of Anxin securities, Ding Jiaying, Yang Dawei of AXA fund of Shanghai Pudong Bank, Northeast Securities Co.Ltd(000686) Han Jincheng
Qiu Yixiang, Zhang Yujing, Tang Kai, Gu Yihong, Sinolink Securities Co.Ltd(600109) Zhang Jiawen, Shen Yanan, Guo Tai of BOC Samsung life, Wang Han of Guojun asset management, Tianfeng Securities Co.Ltd(601162) sun Xiaoya, Morgan Stanley Yu Jianyu, sang Yadong of Zijin insurance, Lin qinkai of Juzi private placement, Zhongtai Securities Co.Ltd(600918) fangchenglin, Chen Dingru, Guotai Junan Securities Co.Ltd(601211) securities Li Pengfei, Wei Yudi, Wang Hongyu, Zhao Wuyang Huian fund an Xiaotao, Guodu securities Yu Weikang, Hengyue fund Liu Yu, Fujian Zeyuan Wu Jinyong, chaos investment Zhou Zhanli, Hongze research Qi Yan, Yao Jingru, Shibei investment Li Changqiang, wandefeng investment Huang Weibin, Runhui investment Xing Tiancheng, Banxia investment Li Jiahao, CMB financial Zhang Chi, Zhongtai asset management Tao Shiqi, GF fund he Juewei, Huapu asset Zhu Tong Xie Ningning of Qixi assets, Li Jianfei of Guoyuan Xinda capital, Meng Jing of Founder life of Peking University, Wang Zhenfei of Zhongcai Shengsheng capital, song Guolin of Bank of China asset management, Jia Yuan of Huachuang securities, Kong Xiangyu of Ruiyuan fund, Wang Peng of self operated Zhejiang merchants, China Securities Co.Ltd(601066) Wang Mingyu, Shen Cheng of Huafu fund, Yang Fu of Caixin securities, Yu Junchen of Shenzhen Taizhi technology, Hanbin of Jingwo investment Kaifeng investment Chen Wenwu, Changjiang Securities Company Limited(000783) Yi Hong, Sealand Securities Co.Ltd(000750) Qiu Di, Shanghai chat plastic assets Ma Chong, Kaitai investment Zhang Junxiao, Zheshang fund chaiming, Shanghai Shangjin investment Zhao Jun, JUNHE investment Zhang Yu, Lerui assets Zhang Wenxin, impact assets Chen Zebin Huatai Securities Co.Ltd(601688) Gong Runhua, Ma Xiaochen, Agricultural Bank of China Huili fund Wang haofei, Panjing investment Zhang Qi Huatai Securities Li Bin, Gong Runhua, Huaxia Fund Peng Ruizhe, Guangfa fund Yao xuzeng, Changjiang pension Ma Rui, Guoshou security fund Li Bowen, Jingshun Great Wall Fund Wang Kaifa, long Zhen, Zhonggeng fund Luo Zhiyuan, Liu Sheng, Chen Tao, Orient Securities Company Limited(600958) Liu Yang, Li Yiran, Yin Yaqi, Meng xianbo, BOCOM Schroeder Xu senzhou, ICBC Credit Suisse Lin Nian, Zhang Yang Yingming, Xingquan fund, Liu Ping, Chen Hong, Xie Zhiyu, Zhang Xiaofeng, Yang Shijin.
Time: March 1, 2022 – March 31, 2022
Venue: conference room, 7 / F, Jinlan road company, Anqing village, Fenghuang Town, Zhangjiagang City, Jiangsu Province
Name of receptionist Guo Yan, Secretary of the board of directors, Xu Qiuyang, representative of securities affairs
Questions and answers about investor relations activities:
Q1: in 2021, the company’s operating revenue increased by more than 50%. What are the main growth points?
A: In 2021, the company achieved an operating revenue of 2.737 billion yuan, an increase of 51.20% over the same period of last year. The main growth points are as follows:
① In 2021, it coincided with the “rush tide” of offshore wind power, and the wind power casting capacity arranged by the company was gradually released, resulting in incremental revenue.
In 2021, the company achieved an operating revenue of 845 million yuan.
② In 2021, Deyang Guangdong automobile, a new holding subsidiary of the company, realized a revenue of 583 million yuan.
Q2: in 2021, the company’s revenue increased significantly, but the net profit decreased slightly after deducting non profits. The main reason is?
A: In 2021, the company achieved an operating revenue of 2.737 billion yuan, an increase of 51.20% over the same period of last year, and a net profit of 148 million yuan after deduction of non-profit, a decrease of 9.38% over the same period of last year. The main reasons are as follows:
① In 2021, Dongfang Motor Corporation was still in a state of loss due to new construction and rising prices of raw and auxiliary materials.
② In 2021, the price fluctuation of raw and auxiliary materials required by the company’s production led to an increase in costs.
Q3: how about the operation of Deyang Dongfang automobile in 2021 and whether it can turn losses into profits in 2022?
A: In 2021, Dongfang Motor Corporation realized an operating income of 583 million yuan and a net profit of – 152489 million yuan, which is still in a state of loss.
In the fourth quarter of 2021, the steel casting production capacity of Dongfang Motor Corporation has been improved and gradually put into operation. The expanded production capacity will bring incremental income to listed companies in 2022; At the same time, the cost reduction and efficiency increase work is carried out in an orderly manner, and the profitability will be further improved.
Q4: what are the reasons for the huge negative operating cash flow of the company in 2021? What improvement measures does the company have?
A: In 2021, the net cash flow from the company’s operating activities was -696 million yuan, mainly due to the following reasons:
① In 2021, the company achieved a sales revenue of 2571128600 yuan in the domestic market, an increase of 52.79% over the same period of the previous year, and a corresponding increase of 1650528 million yuan in accounts receivable. The domestic sales payment is mainly based on bill settlement, which reduces the operating cash received.
② In 2021, the growth of the company’s sales revenue led to the increase of procurement volume, the amount of settled bills payable increased, the bill margin paid by the company increased, and the corresponding operating cash paid increased.
③ In 2021, the cash flow from operating activities of the newly established holding subsidiary Dongfang automobile was -1061412 million yuan, mainly due to the increase of initial inventory and accounts receivable.
At the same time, according to the case analysis of listed companies’ implementation of accounting standards for business enterprises (2019) and the basis for the preparation of financial reports and other relevant documents, the company follows the principle of prudence and strictly implements the judgment basis for the derecognition of bank acceptance bills. Part of the business of discounting undue acceptance bills is included in the item of “cash received from other financing activities” in the cash flow of financing activities. This part of cash is actually generated from the company’s daily production and operation activities. This part of the amount has a great impact on the net cash from operating activities.
In 2022, the company will continue to strengthen cash flow management. On the one hand, strengthen the management of sales collection, negotiate with customers to determine the settlement method, and implement the collection assessment system for sales personnel; On the other hand, actively negotiate with suppliers and try to adopt bill settlement. Finally, strengthen inventory management, control the purchase volume, speed up the pace of production, and try our best to improve cash flow.
Q5: the gross profit margin of main business in 2021 decreased by 5.35% compared with the same period of last year. What are the main reasons?
A: In 2021, the gross profit margin of the company’s main business products was 18.58%, a decrease of 5.35 percentage points compared with the same period of last year. The main reasons are as follows:
① In 2021, the freight adjustment originally included in the sales expenses was included in the company’s operating costs.
② In 2021, the majority of Dongqi, a consolidated holding subsidiary, had a low overall gross profit margin due to the new establishment of the company.
③ Affected by the external market environment in 2021, the price of raw materials required by the company’s production fluctuated, resulting in an increase in costs.
Q6: in 2021, the company’s construction in progress and fixed assets increased significantly. What are the main project investments?
A: At the end of 2021, the company’s construction in progress and fixed assets were 1.461 billion yuan and 1.778 billion yuan respectively, an increase of 108.48% and 80.46% respectively over the end of last year. The project under construction is mainly the core precision parts project for large-scale high-end equipment (wind power gear precision mechanical parts finishing project), Hongmao offshore wind power high-end equipment R & D and manufacturing project (wind power casting finishing project), super large castings and forgings intelligent technical transformation project (wind power casting project), Dongqi cast steel technical transformation project and other sporadic projects invested and constructed by the company in 2021. The fixed assets account is mainly due to the partial conversion of fixed assets from the majority of shareholders of Dongfang Motor Corporation in 2021, the R & D and manufacturing project of Hongmao offshore wind power high-end equipment and the intelligent technical transformation project of super large castings and forgings.
Q7: at the end of 2021, the company’s loan balance reached 2 billion yuan. What are the main purposes of the loan?
A: At present, the company’s bank loans are mainly used for industrial project investment and supplementary working capital.
Q8: the company established Deyang Guangda Xinhong Technology Co., Ltd. in December 2021. What is the main business orientation in the future?
A: Guangda Xinhong company was incorporated in Deyang City, Sichuan Province on December 20, 2021, with a registered capital of RMB 100 million. Its main business is the production and sales of relevant parts and components of hydraulic generator sets and gas generator sets. In the future, it will focus on the finishing business of relevant parts and components.
Q9: is your company in the list of special, refined and new giants published by the Ministry of industry and information technology? What favorable conditions will it bring to the company’s future development? A: The company has been selected into the list of the third batch of specialized and special new “little giant” enterprises issued by the Ministry of industry and information technology, and has completed the social publicity. Since its establishment, the company has attached great importance to R & D, and has always adhered to taking technology R & D as the core and integrating science and technology
The achievements are transformed into real productivity and production technology, and the company’s vigorous development in high-end equipment manufacturing industry is enhanced through R & D achievements.
Annex list none
Date: April 1, 2022
