Securities code: Guangdong Xinbao Electrical Appliances Holdings Co.Ltd(002705) securities abbreviation: Guangdong Xinbao Electrical Appliances Holdings Co.Ltd(002705)
Guangdong Xinbao Electrical Appliances Holdings Co.Ltd(002705) investor relations activity record
No.: 2022002
□ specific object research □ analyst meeting
Investor relations activities □ media interviews □ performance briefing
Category □ press conference □ roadshow activity
□ site visit
█ online communication with other investment institutions
Guotai Junan Securities Co.Ltd(601211) securities, Gf Securities Co.Ltd(000776) , China Merchants Securities Co.Ltd(600999) , China Securities Co.Ltd(601066) securities, Tianfeng Securities Co.Ltd(601162) , Zhongtai Securities Co.Ltd(600918) , China Europe Fund, Gaoyi asset management, Dunhe asset management, Nanfang fund, names and of participating units
Names of Huaxia Fund, Boshi fund, point72 Hong Kong Limited, Great Wall Fund and Huitian
Rich fund, Morgan Stanley Huaxin Fund, Penghua Fund, Harvest Fund, Xinhua fund and other 128 parties access the teleconference.
Time: April 28, 2022
Place telephone online communication
Mr. Zeng Zhanhui, director and President
The receptionist of the company is Mr. Yang Fangxin, director and vice president
Mr. Chen Jingshan, Secretary of the board of directors
1、 Brief introduction to the operation of the company in 2021 and the first quarter of 2022.
In 2021, the company achieved an operating revenue of 14912387600 yuan, an increase of 13.05% over the same period in 2020, of which the foreign sales revenue reached 11623649400 yuan, a year-on-year increase of 14.24% in investor relations activities; China’s sales revenue reached 32887382 million yuan, a year-on-year increase of 9.03%; The net profit attributable to the shareholders of the listed company is 792452900 yuan, a decrease of 29.15% compared with the same period in 2020. In 2021, the company’s gross profit margin was damaged to a certain extent due to the rapid appreciation of RMB against the US dollar in the early stage and the sharp rise in the price of bulk raw materials. Through a series of measures such as product price adjustment, strategic procurement, improvement of production efficiency and forward foreign exchange business, the overall profitability of the company began to be gradually repaired in the third quarter of 2021.
At the beginning of 2022, the international environment in China changed more than expected, resulting in geopolitical and military conflicts
The high price of materials fluctuated, covid-19 epidemic spread in China, the production and living order was disturbed from time to time, and the consumption boom was affected to a certain extent. In the face of complex and severe changes in the internal and external environment, the overall sales revenue of the company achieved a relatively stable growth in the first quarter of 2022, with an operating revenue of 36420238 million yuan, a year-on-year increase of 13.46%, of which the foreign sales revenue increased by about 17% year-on-year; China’s sales revenue increased by about 3% year-on-year; The net profit attributable to the shareholders of the listed company was 178028 million yuan, an increase of 4.60% over the same period in 2021, and the overall gross profit margin continued to repair.
In the first quarter of 2022, the overall cost control of the company during the period was good, and the scale effect continued to play a role: the sales cost was 97.016 million yuan, a year-on-year decrease of 9.74%; The management fee was 169412100 yuan, a year-on-year decrease of 8.82%; The financial expenses were 8.0492 million yuan, up 451.72% year-on-year, mainly due to the increase in exchange losses due to the fluctuation of the exchange rate of RMB against the US dollar; The R & D cost was 1079285 million yuan, an increase of 29.87% year-on-year, mainly because the company continued to strengthen the R & D and investment of new products in 2022.
2、 Main contents of investor interaction
1. What are the changes in the company’s investment direction and strategy in 2022?
A: in terms of investment direction, the company’s asset investment is expanding in 2022. In view of the uncertainty of the current market, the company’s main countermeasures include improving the use efficiency of assets, optimizing processes to improve production efficiency, and improving the operation effect by means of informatization and digitization to improve the management level. In terms of product direction, due to the impact of the epidemic, China’s foreign markets may show the following changes: first, stock products tend to price competition, and second, innovative products will create greater market space. The company will integrate technical capabilities and resources, supplement the insufficient investment in previous product categories, and give more resource investment to products with high market recognition and innovative significance in response to market changes.
2. In the short term, small household appliance export enterprises may face pressure on orders. Does this pressure come from the decline of overseas demand or overseas customers transferring orders to Southeast Asia and other regions? A: in recent years, some overseas customers of small household appliances have indeed transferred their orders to Southeast Asia and other regions. This situation is mainly concentrated in some specific product lines in the North American market, such as vacuum cleaners and air purifiers. Affected by the tariffs of the Sino US trade war, they have been phased transferred to Southeast Asia, not covering the whole small household appliance industry. From the current situation, overseas markets
The growth rate of the market demand side has slowed down compared with last year, but the change of this demand is predictable. Affected by the epidemic in the past two years, some demand has been overdrawn in advance. Small household appliances are necessities of life in developed countries such as Europe and the United States. It is expected that the market will gradually return to normal in the future. At present, from the company’s orders in the second quarter, this callback is stable.
3. Why is the small household appliance industry chain not completely transferred to Southeast Asia and other regions?
A: at present, the factors driving the transfer of some industrial chains to the southeast region and other regions are mainly due to the increase of tariffs on some products caused by the Sino US trade war, the increase of production costs of enterprises in the southeast coast of China, and the demand for risk avoidance and balance of the supply chain caused by the superposition of Russian Ukrainian war and epidemic factors. The industrial chain of small household appliances is long, and the core products, core parts and R & D and production equipment still rely on the advantages of China’s relatively complete supporting supply chain. It is unlikely that the large-scale industrial chain of small household appliances will be transferred to Southeast Asia and other regions in the short term.
At present, the production base invested by the company in Indonesia operates well, and the company will adjust the scale according to the needs of the market.
4. Will the company increase the sales of high repurchase attribute goods such as peripheral products to enhance user stickiness?
A: the company has two main development spindles at present, on the one hand, it is to transform from product company to technology company to improve the company’s technological research and development ability; The other is to develop independent brands and make influence in the market segments. For peripheral products, such as the company’s professional tea set brand, we will consider trying to meet the needs of some tea set electrical appliances, but we will not consider taking the initiative to make peripheral products for the time being. 5. How does the company translate user needs into research and development?
A: the company implements the product manager model to realize resource sharing and information integration. For stock products, we will consider whether consumers have pain points that need to be solved urgently, whether there are good solutions in the existing technology, whether the adaptive group has sufficient purchasing power, etc. if all the above are met, we can invest in research and development to realize the commercialization of demand.
6. How does the company view the trend of overseas sales of small household appliances? Will the company still focus on overseas business in the future? What is the future growth point of the company’s export business?
A: at present, the sales composition of the company is mainly overseas sales. The company is a leading enterprise in the export of small household appliances. The export business is mainly ODM business. In the future, it will still be the main business composition of the company. The company believes that there is still a large market space for overseas business in the future. The global demand for small household appliances has fluctuated due to the epidemic in the past two years, but it is expected that the demand will continue to increase steadily in the future
Long; At present, there is no complete large-scale small household appliance industry chain that can replace China in other countries or regions in the world. The company’s products have made good achievements in expanding from kitchen appliances to household appliances, personal care and beauty appliances, living appliances, refrigeration appliances and other categories. With the company’s comprehensive competitive advantages, the company still looks forward to the overseas market.
7. What is the market distribution of the company’s ice maker? How does the company view horizontal competition?
A: the original ice maker market is mainly concentrated in North America. After joining this track, the company will explore the European market. The market distribution proportion of the company’s ice maker is relatively balanced. In terms of refrigeration products, the company’s core advantage is to serve customers with better product technology and more stable product supply, and can meet customers’ one-stop procurement needs at the same time. The company focuses more on creating demand. There are more refrigeration products than ice makers. The company will launch more creative and innovative products in the future. 8. What is the current operation of the company’s independent brand and emerging channels? How to expand channels in the future?
A: the company’s own brand has laid out different business channels earlier. Currently, Morphy Richards has a relatively healthy expansion in offline and Tiktok channels. The company’s sales in emerging channels are still in the process of forming comparative advantages. It will try to optimize the promotion and delivery, and make more refined operation control according to the product category.
9. Will the capacity of China’s small household appliance export OEM enterprises expand after 2020? Will the slowdown in overseas demand lead to more fierce price competition in the industry?
A: since the outbreak of the epidemic in 2020, the industry has generally carried out capacity expansion. The company believes that simple capacity expansion may not directly improve the competitiveness of enterprises. In order to maintain the scale, it is possible for enterprises to reduce the price through the advantage of production capacity. However, at present, for the stock market of small household appliances, the sharp price reduction does not necessarily lead to an obvious increase in volume. At present, the overseas market needs more innovative products that can meet the needs of brand differentiation.
10. In terms of domestic sales, the company has increased R & D investment this year. Is there a single product launch worthy of expectation?
A: different brands of the company will launch new items this year. At present, there are some innovative and differentiated small items with good market feedback.
11. The company’s export orders in the second quarter? Inventory of overseas customers? What is the company’s outlook for the second half of the year?
A: at present, affected by the rhythm of transportation and logistics, some customers in the overseas mature small household appliance market will be out of stock or overstock, which will be gradually alleviated in the follow-up. In addition, it is also related to the attributes of small household appliances. For example, kitchen appliances are relatively affected, and the impact on coffee machines is not obvious. It has a very bright performance in the first quarter of this year. The main driving factor is the consumption upgrading of coffee machines. The company’s products and technologies adapt to market changes and even lead the trend.
At present, the company’s export orders in the second quarter are relatively stable. The base in the third quarter of last year is relatively high, and the orders in the third quarter of this year are expected to remain relatively stable.
12. What are the current orders for floor washing machines and coffee machines?
A: the company has a preliminary research on product technology of the washing machine in the early stage, and has not produced related products due to objective conditions. However, some oem/odm orders and brand products have been put into operation since last year. It is expected that more products will be put into the clean products this year.
The company has a certain precipitation in the product technology of coffee machines and has strong competitiveness in the global market. In the first quarter of this year, the coffee machines of the company belong to the category with good year-on-year growth. The main driving factor is the consumption upgrading of coffee machines. The products and technologies adapt to market changes and even lead the trend. The growth rate of overseas orders is high. At the same time, the transformation of relevant technologies into the Chinese market and independent brands have also received good market response. Although the sales volume of the company’s own brand of coffee machine is still small, it is worth looking forward to from the perspective of its growth and product profitability.
13. What is the reason why the gross profit margin of domestic independent brands is repaired more slowly than that of export?
A: take Morphy Richards as an example. It is positioned as a medium and high-end product. The price is relatively high and the cost rises sharply. In the short term, it will not digest all the cost pressure on old products by raising the price; The pricing of new products will comprehensively consider the factors of rising raw materials to repair the gross profit margin. The company will gradually repair the overall profitability of domestic sales through efficiency improvement, continuous launch of new products or iterative products, and the gross profit rate of domestic products will be gradually restored with the improvement of external factors.
14. What is the company’s investment plan this year? 618 how are the goods prepared?
A: in 618 this year, the company still prepared goods for high-speed cities according to the original prediction. The company’s sales market in China is mainly from high-speed cities, which may be affected by the epidemic, but the impact is not expected to be obvious. The company will promote the launch and promotion of products according to the original rhythm.
In terms of new product launch, 618 is a window period for launching new products. Compared with the past, the public
The investment cycle of the company has been extended. The company tends to launch long-term products, so that consumers can see the advantages of the products from the technical innovation, product innovation to the market level.
There is no information in the attached list (if any) about whether the information disclosure is true, accurate, complete, timely and fair in strict accordance with the investor relations management system and other regulations. There is no explanation of undisclosed major information or disclosure of major information.
Date: April 28, 2022
