Securities code: 002641 securities abbreviation: Yonggao Co.Ltd(002641) record of investor relations activities on January 6, 2022 (II)
No.: 2022-002
Investor relations activities √ specific object research □ analyst meeting
Category □ media interview □ performance briefing
□ press conference □ Roadshow
□ site visit
□ others
Name of participant and Institutional Investor:
Personnel name Zhongtai Securities Co.Ltd(600918) Sun Ying, Liu Yinan
Time: January 6, 2022
Place: company conference room
Lu Zhenyu, chairman of the board of directors, the receptionist of the listed company, Yang Yongan, deputy general manager and financial director, Chen Zhiguo, the Secretary of the board of directors, and Ren Yanqing, the representative of securities affairs
1、 Will the company increase the provision for bad debts of Evergrande?
The company has fully accrued bad debt reserves for Evergrande’s accounts receivable and bills in accordance with the accounting standards. Whether the final special accrual depends on the development of Evergrande events and the audit opinions of accountants.
2、 What are the specific changes in the company’s internal management in recent years?
In terms of management, the general manager personally pays attention to the company’s sales. On the one hand, the company’s investor relations activities increase the construction of the sales team and build a new Iron Army, so as to maintain a high growth of the sales business. The main content introduces the scale effect and reduce the unit cost. On the other hand, the company continued to introduce lean production, steadily improving the level of production management from the beginning of fuzzy management to the current digital control. Starting from the four aspects of open source, throttling, risk prevention and implementation, regularly hold target management meetings to check the completion and improvement of project topics of each center and business department, summarize achievements, deploy tasks and normalize target management. Through lean production and target management, the company’s management level has been effectively improved, which not only promotes the steady improvement of the company’s sales end, but also has a better control of costs. The company has a qualitative improvement in management and cost control.
3、 How about the salary of the salesperson?
The company’s compensation for salespeople is linked to performance, which will vary in different regions and markets. The company has built a system for the entire sales personnel and formulated the ad Iron Army sales manual. In recent years, the manual has been continuously improved. During this period, the sales personnel will be mainly screened, eliminated, improved and trained, and the survival of the fittest. In the expansion of the company’s market business scale, the sales personnel are performance-oriented, through performance objectives, payment collection objectives Performance growth, implement salary incentive systems at different levels to promote the enthusiasm of sales personnel for business development.
4、 Will the real estate business of the company decline after Evergrande incident?
After the Evergrande incident, the company became more cautious about the real estate business. The real estate business mainly focused on the direct distribution of large-scale companies with good assets with state-owned background. In 2021, several newly signed real estate developers can basically fill the original Evergrande business scale, so the real estate business development will remain basically stable.
5、 How does the company manage its subsidiaries?
The company’s management mode for subsidiaries is to give play to the unified coordination role of the headquarters. The company decomposes the objectives, and the headquarters signs the annual performance objective responsibility certificate with the general manager of the subsidiaries every year, The nine functional centers of the company headquarters (Marketing Center, administrative center, financial center, science and technology center, market center, information center, production management center, material control center and Human Resource Center) implement line business guidance. The company and its subsidiaries hold objective management meetings every month to spot check the completion of project topics of each center and business unit, and improve and improve deficiencies in work.
6、 What brand is the company’s bathroom?
At present, the main brand of the company’s sanitary products is “Yonggao sanitary ware” series.
7、 Why did the company’s internal management begin to change significantly?
In recent years, the construction and growth of the company’s management team have become more and more mature, the talent echelon training has been gradually systematized, and the company’s sales is personally grasped by the general manager. Therefore, the sales performance has been improved rapidly, and the company’s internal management has been gradually refined.
8、 Why are the profitability of subsidiaries quite different?
The regional influence of each subsidiary is relatively weak. The sales focus on expanding the market and increasing the market share. In addition, the product structure of each subsidiary is incomplete, which is quite different from that of the headquarters. In the future, the company will gradually improve and enhance the profitability of each subsidiary.
9、 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 Cecep Solar Energy Co.Ltd(000591) 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.
10、 What are the products of Cecep Solar Energy Co.Ltd(000591) lamps?
Cecep Solar Energy Co.Ltd(000591) lamps mainly include Cecep Solar Energy Co.Ltd(000591) lawn lamps, Cecep Solar Energy Co.Ltd(000591) courtyard lamps, etc. at present, they are mainly exported.
11、 Is there a large capital expenditure on Cecep Solar Energy Co.Ltd(000591) at present?
In 2021, the company built a new production base in Anhui for Cecep Solar Energy Co.Ltd(000591) with capital expenditure of no more than 100 million yuan.
12、 Will the company’s gross profit margin improve when the price of raw materials decreases?
The raw materials of the company’s products account for about 80% of the cost, and the decline in the price of raw materials can improve the company’s gross profit margin.
13、 Is there room for the company’s expense rate to decline?
The expense rate of the company is relatively higher than that of other companies in the same industry, but the company also has a downward trend in recent years. First, the growth of the sales end drives the reduction of unit cost. Second, the internal continuous implementation of corresponding fine management has a significant effect, and the expense control drives the reduction of expense rate. The gross profit margin and net profit margin of the company are not high compared with other companies in the same industry, and the expense rate still has room to decline.
14、 What measures does the company take to reduce costs and increase efficiency?
The company’s cost reduction and efficiency increase are mainly reflected in production, supply and marketing. First, sales should be controlled from two aspects. First, the distribution cost should be reduced, focusing on Municipal Engineering and real estate. For regions and markets with more than a certain amount, strive to increase their own direct distribution
The other is the adjustment of the market area. The principle of proximity can save transportation costs by serving customers in the nearest area.
Second, in terms of procurement, further promote the centralized procurement of the main raw materials of the whole company, which will have an advantage in the procurement price. In addition, the price of raw materials fluctuates greatly. The company does it through PVC hedging. When the price is low, the company reserves more raw materials for spot and futures. At the production end, there are two aspects: one is to realize the mutual adjustment of internal production capacity among various bases; the other is to increase the improvement of digital and intelligent manufacturing, improve production efficiency and reduce production costs through the reasonable layout of production capacity.
15、 Is there any risk in the company’s municipal engineering?
The final bad debt risk of municipal engineering business is small, but the collection cycle is relatively long. 16、 Why did the company increase more administrative and R & D personnel in its 2020 annual report?
The reason for the increase in administrative personnel is to reserve talents for the future. The increase in R & D personnel is because Hunan made preparations for applying for high-tech enterprises in advance, so the R & D personnel increased more.
17、 How does the company prevent fleeing goods between dealers?
Through the regional division of dealers, the company has established a strict control mechanism to prevent fleeing goods. The company has a special organization. On the one hand, it will conduct market research and take the initiative to find out. On the other hand, it will timely and seriously deal with the fleeing goods according to the complaints. If it is serious, the marketing qualification can be cancelled.
Annex list (if any) none
Date: January 6, 2022
