Securities code: 002641 securities abbreviation: Yonggao Co.Ltd(002641) record of investor relations activities on January 7, 2022
No.: 2022-003
□ specific object research □ analyst meeting
□ media interview □ performance briefing
Investor relations activities
□ press conference □ Roadshow
category
□ site visit
√ other conference calls
Name of participant and Institutional Investor:
Names of personnel: Li Yang of Minsheng securities, Li Lina of Cinda Australia Bank, sun Yin of Shanghai Queshi assets, Zhang Rui of China CITIC construction investment fund, Cao Ling of Taikang assets, sun haozhong of CITIC Prudential fund, Liu Sheng of Zhonggeng fund, Leng Wenpeng of Western Lide, Zhao Xiang of Guohua life insurance, Wu Jiahao of Huanyi investment, Lu Wenhan of Taiping fund Xi Chenfu of PICC assets, Zhai Xu of Shanghai Investment Morgan fund, Jiang Jincheng of capital management, Liu Jianyi of Huatai assets, Xu Zhen of HSBC Jinxin fund and Zhao Zifeng of Tu Ling assets
Time: January 7, 2022
Place: Securities Department of the company
Receptionist of listed company
Secretary of the board of directors Chen Zhiguo and representative of securities affairs Ren Yanqing
Member name
1、 What is the company’s operation in 2021?
In 2021, the cost of raw materials required by the company increased significantly year-on-year. Although the company made several adjustments to the ex factory price of finished products, the proportion of the increase in raw materials was not fully transferred to the downstream of investor relations activities. Since mid October, the price of raw materials has changed greatly. The cost pressure of the company has gradually eased. At present, the production and operation is normal, and the sales side has maintained a steady development trend. The relevant data will be disclosed in the annual report of 2021.
2、 Proportion of non real estate products in the income structure?
The downstream of the company is mainly in the field of real estate construction. In addition, there are municipal. The company’s sales are mainly channel distribution. According to the use of products, the proportion of entering the municipal field is about 20% – 30%, and the rest is basically in the field of construction and real estate.
3、 What is the proportion of the company’s project direct supply revenue?
Project direct supply is divided into municipal direct supply project and real estate direct supply project. The proportion of municipal direct supply project is about 4%, and the proportion of real estate direct supply is about 12% – 13%. In the project, the company encourages and supports dealers to cooperate directly with local small-scale real estate developers or participate in local municipal project bidding, In this way, dealers not only share the risk of corresponding accounts receivable, but also achieve a win-win situation. 4、 What are the important real estate developers that the company cooperated with after Evergrande incident?
Since the Evergrande incident, the company has been more cautious about the real estate business. The real estate business is mainly aimed at companies with large scale, state-owned background and good assets. The real estate customers are relatively concentrated. At present, Vanke, poly, China Merchants and China shipping account for more than 80% of the direct real estate supply, and other real estate businesses are small.
5、 How does the company accrue accounts receivable from Evergrande?
The company has fully accrued bad debt reserves for Evergrande’s accounts receivable and bills in accordance with the accounting standards. Whether the company can finally make special provision depends on the development of Evergrande event and the audit opinions of accountants.
6、 Besides Evergrande, does the company have other customers’ accounts receivable at risk? Since the Evergrande incident, the company has been more cautious about the real estate business. At present, the collection of other real estate businesses is relatively benign.
7、 Overall situation of home decoration business?
The company’s home decoration business and overall revenue maintained similar growth, accounting for about 6% of the main business revenue.
8、 Growth of home decoration in non East China?
At present, the data are still in statistics. In the future, the company will unify the home decoration business of its subsidiaries to the headquarters. Under the unified planning of the headquarters, the home decoration business may develop faster and better.
9、 PE pipes are mainly used in municipal works. Where are they mainly used?
PE pipes are mainly used for water supply, drainage and gas. PE drainage products of the company account for more. The main customers of PE pipeline are municipal engineering construction units, sewage treatment plants, water companies, gas companies, etc.
10、 Are bathroom products also sold through the existing channel network?
The sanitary ware company has made preparations for a long time in the early stage. The company has set up a sanitary ware business department to promote the development of the sanitary ware business, mainly based on the existing channel network. The company is more confident to do a good job in the sanitary ware business.
11、 Downstream municipal accounts receivable?
At present, the company’s accounts receivable are mainly municipal engineering and direct supply of real estate, accounting for more than 70% – 80% of the company’s accounts receivable. The cycle of municipal accounts receivable is relatively long, and there will be delay according to the contract. The accounts receivable company will accrue according to the aging method. Although the payment of municipal engineering will be delayed, the probability of real bad debt in the end is small.
12、 Why did the company change its name?
The main reason why the company changed its name is that the sales of various products such as plastic pipes, Cecep Solar Energy Co.Ltd(000591) , electrical switches and sockets have always been dominated by the “ad” brand. In recent years, the company has focused on brand publicity, and the market recognition of “ad” brand is improving. The products sold by the company under “ad” brand account for more than 85% of the main business income. Moreover, the “ad” culture built by the company around “ad” brand has also been deeply rooted in the hearts of the people, and “Gong Yuan” has become a synonym of the company. In order to unify the brand and name, it is proposed to change the company name from ” Yonggao Co.Ltd(002641) ” to “ad Co., Ltd.” and the securities abbreviation from ” Yonggao Co.Ltd(002641) ” to “ad Co., Ltd.”.
13、 What is the company’s capacity and future capacity growth rate?
In 2021, the company’s production capacity increased greatly. 70% – 80% of the production capacity of Huangyan’s raised investment project can be released, and about 30% of the production capacity of Yueyang, Hunan can be released throughout the year. Tianjin Yonggao also has a large production capacity release. In previous years, Tianjin Yonggao’s production capacity utilization rate was low, but this year the company made some adjustments to its regional business, and the Shandong market is divided into Tianjin Yonggao, Serving market customers nearby can also effectively reduce logistics costs. Secondly, the production capacity of Chongqing and Anhui production bases is also at the original level
The total production capacity will increase by about 20% this year.
14、 Does the company have the goal of reaching 10 billion by 2023?
The company’s 10 billion sales target. Judging from the current sales situation of the company and the confidence of the management, the company can complete the 10 billion sales target of the company in 2023 or ahead of schedule. In the later stage, the company will pay attention to the improvement of sales volume and profitability at the same time. Before, the company focused on a large market share, and later, while sales increased, It will also improve the profitability of the company. 15、 Cecep Solar Energy Co.Ltd(000591) business situation?
The company’s wholly-owned subsidiary ad Cecep Solar Energy Co.Ltd(000591) is mainly engaged in Cecep Solar Energy Co.Ltd(000591) components and solar lamps. The sales of Cecep Solar Energy Co.Ltd(000591) components account for about 65%, the sales of Cecep Solar Energy Co.Ltd(000591) lamps account for about 30%, and the remaining other businesses account for about 5%. This year Cecep Solar Energy Co.Ltd(000591) has built a new production base in Anhui, and there will be production capacity next year. With the addition of Cecep Solar Energy Co.Ltd(000591) new base and existing production capacity, Cecep Solar Energy Co.Ltd(000591) components have a capacity of 800MW and Cecep Solar Energy Co.Ltd(000591) lamps have a capacity of 30 million.
Annex list (if any) none
Date: January 7, 2022
