Zhejiang Weixing New Building Materials Co.Ltd(002372) : record of investor relations activities on April 6, 2022

Securities code: Zhejiang Weixing New Building Materials Co.Ltd(002372) securities abbreviation: Zhejiang Weixing New Building Materials Co.Ltd(002372)

Zhejiang Weixing New Building Materials Co.Ltd(002372) investor relations activity record

No.: 2022012

□ specific object research □ analyst meeting

Investor relations activities □ media interview □ performance briefing

Other □ press conference □ Roadshow

□ site visit √ others: teleconference

Citic Securities Company Limited(600030) : Sun Mingxin, lengwei; Xinhua Fund: Zhao Qiang, Zhang Lin, Liu Bin, Liu Yuhua, Yu Hang, Gu hang; Name of participants and people's Fidelity Fund: Jing Ning, Nan Sheng, Alex Dong, Ben Li China Industrial Securities Co.Ltd(601377) : Huang Yang, Chen Xuanyuan, name Yi; Changxin Fund: Cheng Xin, Zhu Yao, Tang zhuojing, Xu Hao; Penghua Fund: Liu Wenhao, Chen Daye, fan Jingwei, Yuan Hang, Cheng Qingyun, Hu Ying; Shanghai Bank Fund: Tang Yun, Zhao Zhiye, Chen Bo, Lin Zhu, Zheng Zhong, etc.

Time: April 6, 2022

Location company

Names of receptionists of listed companies such as Tan Mei

1. Could you tell me something about the company's recent operation?

A: the operation of the company was normal in January and February 2022, continuing the steady development trend in 2021; In March, affected by the epidemic, the logistics transportation and terminal demand in some markets were limited, especially in Shanghai, Jiangsu, Guangzhou, Shandong, northeast and other regions with serious epidemic. In this regard, the company first actively completes the epidemic prevention work of employees to ensure the safety of employees; On this basis, we will actively do a good job in basic work such as online training, communication and customer relationship maintenance for areas with medium and high risk of the epidemic, so as to cope with the expansion of municipal investor relations activities during the subsequent easing of the epidemic; Strengthen market expansion in areas with low epidemic risk, fully promote the implementation of annual objectives and plans, and introduce the main contents.

2. How about the price of raw materials in the near future?

A: the company's main raw materials are Petrochemical downstream products and are special materials for pipelines. Their prices are generally affected by factors such as crude oil price, upstream raw material supply and market demand. Although the crude oil price has increased greatly recently due to geopolitics and local conflicts, the price increase of pipeline raw materials is generally small.

3. What is the main reason for the large increase in inventories shown in the company's 2021 annual report?

A: the main reason is that the price of raw materials is at a phased low at the end of 2021, and the company has increased its demand for raw materials

Spare warehouse.

4. Please introduce the highlights and shortcomings of the 2021 annual report?

A: the highlights of the company's 2021 annual report mainly include five aspects: first, the growth rate of sales revenue is high, especially in the second half of the year, under the condition of high base in the same period of 2020, it still maintained a growth rate of more than 20%; Second, under the bad overall environment in 2021, the sales increased by more than 25%, while the scale of accounts receivable was basically the same, continuing the high-quality development trend; Third, the new product category expanded rapidly, and the sales of waterproof, water purification and other products increased by more than 80% year-on-year; Fourth, the regional expansion has achieved remarkable results, with sales in the western, central and South China regional markets increasing by more than 30% year-on-year; Fifth, the total amount of dividends to be paid by the company in 2021 accounted for 78% of the profits realized in that year, maintaining a consistently high dividend level, fully reflecting the respect for investors and the reasonable return of shareholders.

Of course, there are also deficiencies in the company's work in 2021. For example, although municipal engineering and construction engineering have maintained high-quality development, the sales growth has not reached the set target.

5. What are the reasons for the high growth rate of the company's retail business in 2021?

A: the company's retail business mainly maintains steady development by increasing market share and expanding categories. On the one hand, it strengthens the expansion in blank and weak markets and increases the density of outlets. At the same time, it speeds up the sinking of channels in mature markets and continuously improves the market share; On the other hand, we will intensify efforts to promote the implementation of the concentric circle strategy, accelerate the market expansion of new categories such as waterproof and water purification, and improve the average household income.

6. What is the company's capital expenditure?

A: in recent years, the company's annual capital expenditure is about 200 million, which is mainly used for the improvement of production base, intelligent improvement of equipment, new production capacity according to market demand, etc.

7. What is the company's future dividend policy?

A: the company's dividend policy is generally stable. In the future, it will continue to follow the provisions of the articles of association and the shareholder return plan for the next three years (20212023). The annual profit distribution plan will be decided after taking into account its own development reality and strategic planning, cash flow status, shareholders' wishes, external environment and other factors, and fully considering the reasonable return of investors.

8. How about Dongpeng Heli fund? Are there any losses?

A: the original intention of the company to establish Dongpeng Heli is to combine strategic investment projects with financial investment projects. In particular, we hope to find some new projects suitable for the development of the company's industrial chain and high degree of synergy through this platform, so as to accelerate the company's industrial upgrading and growth. However, for many reasons, the current investments are basically financial investment projects. The fair value of the company's investment in 2021 will decrease, but the net profit of the current period will be affected

The project invested is still profitable. Dongpeng investment has always adhered to the concept of "overall risk control".

9. How can the company improve the "star housekeeper" service?

A: the company continues to improve and upgrade the "star housekeeper" service. On the one hand, it standardizes the service standards and service processes; On the other hand, the service tools and management tools are more advanced, and the training, improvement and management of star housekeeper personnel are more in place.

10. How does the company carry out cooperation on home decoration channels?

A: the company has strengthened its cooperation with home decoration companies through various measures. The national and cross regional large home decoration companies are developed and maintained by the company's decoration enterprise business department, while the regional small and medium-sized home decoration companies and local leaders are developed and maintained by branches and dealers.

11. Why do more and more users choose Weixing water purification products?

A: it is mainly based on two reasons: first, the change of consumption concept, users pay more attention to food safety and drinking water safety, and the demand for water purification products increases; Second, the popularity and reputation of Weixing water purification products have been continuously improved and gradually recognized by consumers.

12. What is the development trend of hardbound houses in real estate?

A: at present, the government has no clear requirements on the proportion of hardbound houses, which presents different situations in different regions: in the first and second tier cities, the proportion of hardbound houses has maintained a high proportion; In the third and fourth tier cities, the promotion speed and market demand of hardbound houses are not as good as those in the first and second tier cities. At the same time, with the government's control in place, the quality of hardbound houses is gradually improving, and the market environment is developing in the direction of benign competition.

13. Does the company's municipal engineering business feel the impact of policies such as water conservancy projects and pipe networks?

A: from the beginning of the year to now, there have been many relevant support policies for municipal projects, but at present, there have been no significant changes in the company's business and orders.

14. What about the company's terminal outlets?

A: at present, the company has about 30000 terminal outlets, with a net increase of 10002000 every year.

15. What are the main competitive advantages of the company's waterproof business?

A: the company's waterproof business is positioned in the home decoration waterproof market. On the one hand, the company's brand positioning of kale waterproof coating is high-end, with excellent quality, and all performance indicators have reached the international advanced level; On the other hand, provide excellent inspection and acceptance or construction services to effectively solve the hidden danger of water leakage in home decoration; At the same time, the company's perfect marketing channels can provide strong sales and service support for the sales of waterproof business.

16. What are the main purposes of the company's acquisition of jieliu?

A: the company's acquisition of Singapore jieliu company mainly focuses on the excellent system integration design ability and brand influence of jieliu company. It hopes to optimize and strengthen the building drainage and sewage market by combining with the company's strong product manufacturing and marketing strength, so as to further open the development space of the future drainage Market, especially China's high-end residential projects and large-scale public construction market; Further improve the company's integrated system design and service capability, promote the upgrading of profit model and enhance comprehensive competitiveness; At the same time, it will complement the industrial park in Thailand, further strengthen the Southeast Asian market and accelerate the international strategic layout.

17. What is the company's internationalization strategy?

A: at present, the company's internationalization strategy mainly includes preliminary layout and basic work: first, the layout of production and market; Second, the reserve of international talents and the construction of international teams; Third, brand internationalization layout, such as upgrading the company's main trademark to "vasen" and carrying out system certification in all regions of the world, so that the company's products can serve global customers; Fourth, set up overseas technology R & D and investment platforms to enhance the company's core competitiveness through the introduction of technologies and projects.

Annex list (if any) none

Date: April 6, 2022

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