Securities code: Guangdong Dongpeng Holdings Co.Ltd(003012) securities abbreviation: Guangdong Dongpeng Holdings Co.Ltd(003012)
Guangdong Dongpeng Holdings Co.Ltd(003012)
Record of investor relations activities
No.: 202202
□ specific object research □ analyst meeting
□ media interview □ performance briefing
Investor relations
□ press conference □ Roadshow
Activity category
□ site visit
☑ Others (online telephone communication)
China International Capital Corporation Limited(601995) , Changjiang Securities Company Limited(000783) , Guotai Junan Securities Co.Ltd(601211) securities, Harvest Fund, Citic Securities Company Limited(600030) , Hangzhou Jiulong asset management, Chang'an fund, camel bell assets, SDIC (t-0204) - Chongyang phase 5, Shanshui fund, infoinsight, Fengjing fund, Shanghai model investment management, Huabao tajing Shiwang No. 1, participant Name: Atlas Investment Management (Hong Kong), Rongguang investment Shanghai day one investment and people asset management, Nuveen, Nuveen, Horizon Horizon assets, Yingda insurance asset management, Shenzhen Xishan asset management, hilhouhouse capital HCM China fund, hilhouhouse capital capital HCM China fund, still near investment, Shanghai Shanghai's Shanghai day at Shanghai ''s Shanghai day at the end of Shanghai and people asset management, Nuveen, Nuveen, Nuveen, Nuveen, Nuveen, Nuveen, Horizon Horizon assets, Yingda insurance asset management, Shenzhen xishill asset management, hilhilhouse capital capital China China China fund, hilhouhouse capital hchcm, hchcm China China fund, hilhouhouse capital capital HCM HCM China fund, China fund fund, still near investment, still near investment, Southwest Securities Co.Ltd(600369) atotal of 43 people participated in , finance and economics.
Time: 10:00-11:00 am, April 29, 2022
Location: online communication teleconference organized by China International Capital Corporation Limited(601995) organization
Bao Jianyong, director, deputy general manager and chief financial officer of the listed company; Huang Zheng, Secretary of the board of directors and deputy general manager; The name of the receptionist of the vice president manager Zhang Gongcai
1、 Company profile
(I) 2021 Annual Report
Investor relations activities
In 2021, the main contents of multi-point spread of the epidemic, real estate regulation and control, thunder explosion of some real estate enterprises, and double introduction
Under the background of adverse factors such as carbon policy and energy consumption control, and the sharp rise in the prices of energy and raw materials, the company's operating revenue still increased. In 2021, the operating revenue reached 7.979 billion yuan, a year-on-year increase of 11.46%. Among them, the operating income of ceramic tile business was 6.671 billion yuan, a year-on-year increase of 10.06%; Guard
The operating income of bath business was 1.047 billion yuan, a year-on-year increase of 13.61%.
In the face of major changes and challenges in the industry, in 2021, Dongpeng took the initiative to embrace changes and actively carried out key work such as brand upgrading, product leadership, channel sinking, localized supply, digital construction and green manufacturing. Continue to give full play to the advantages of the main battlefield of retail, realize the upgrading of products, services, exhibition halls and quality, and improve the proportion of new products and high-value products. Through lean production, cost reduction and efficiency increase, large-scale operation. Continue to strengthen the platform construction, consolidate the talent base, and improve the organizational vitality and digital operation level. Through cultural upgrading, build an efficient team, deepen the path of strategic achievement, and help the rapid development of the company. Dongpeng ceramic tile has become the official ceramic tile supplier of "Beijing 2022 Winter Olympic Games and winter Paralympic Games", and Dongpeng packaged sanitary ware has become the supporter of China's aerospace industry; More than 300 new products were developed throughout the year, and the sales of medium and large-sized products increased by 3.1 times;
Take the lead in launching the concept of wall rock sector, Zunshi rock sector and graphene warm porcelain rock sector in the industry, and open up a new green heating track; Through the combination of online drainage and offline transformation, the new retail has enabled the terminal and achieved another success on the double 11; Nano coating and antibacterial glaze technology series products launched by bathroom; New 4 production lines.
Capital operation set up Singapore company, curtain wall company and home furnishing business department.
In response to the "double carbon", a low-carbon development strategy committee has been established to strive to take the lead in completing the carbon peak as a representative of the building materials industry, and continuously upgrade green manufacturing by introducing five behaviors: digital intelligent manufacturing, systematic emission reduction, ecological stone products, photovoltaic power generation and recycling. The ecological new material company was established, and the ecological shihukou base is under construction as planned.
At the same time, we also see that since the second half of 2021, some real estate enterprises have had liquidity problems, which has a great impact on the company's performance in the reporting period; At the same time, the company's profit fell this year due to multiple adverse factors such as repeated outbreaks outside China, double carbon policy, power and production restriction, and rising prices of energy and raw materials.
The company's real estate strategic engineering business accounts for about 10% of its main business income. Among them, the annual average business volume with a large real estate enterprise accounts for about 3% of the total sales and less than 5% of the profit. At present, the company has stopped other order business with customers in the real estate industry except cash settlement, which has a limited impact on the company's performance. During the reporting period, the company made adequate provision for impairment of such real estate industry customers (a total of 772 million yuan). The impact on the company is mainly reflected in the reporting period and does not affect the company's continuous growth profitability.
According to the announcement on the provision for impairment in 2021 disclosed by the company on the same day, Evergrande and China Fortune Land Development Co.Ltd(600340) receivables individually withdraw the provision for credit impairment at the proportion of 80%, and Blu ray, Rongsheng, WTO and Zhongnan withdraw about 40% - 50%. The provision proportion is sufficient. The company will also actively promote the relevant creditor's rights recovery solutions focusing on asset debt repayment. If the recoverability of the above impaired assets shows signs of improvement in the future, they will be recoiled to increase the profits of the current period. (II) report of the first quarter of 2022
During the reporting period, the company's operating income, net profit and cash flow decreased compared with the same period last year, mainly due to:
1. The prices of natural gas, coal and raw materials have risen sharply. Although the company has adjusted the product prices in time, it will take some time to transmit the rising pressure of costs to the downstream;
2. The local epidemic situation is repeated, which has a great impact on the sales performance and profits of sales subsidiaries and marketing regions such as Shanghai, Shenzhen and Xi'an. Some production bases stop production to varying degrees in response to epidemic prevention and control; The areas less affected by the epidemic, such as Beijing, Tianjin and Hebei, Shanxi and Henan, northwest, Foshan and Yunnan, have increased.
3. The liquidity of the real estate industry has not been effectively alleviated. In the first quarter, the resumption of work was generally late and the resumption rate was low, resulting in the contraction of the demand of the building materials market. During the reporting period, the project channel sales revenue of the company decreased by 29% compared with the same period last year;
4. The first quarter is the traditional off-season for building decoration. Ceramic enterprises generally invest in kiln shutdown, maintenance and technical transformation. The operating revenue and profit in the first quarter account for a low proportion of the whole year, with obvious seasonality;
5. The first quarter of 2021 is the best quarter in the past years, resulting in a high year-on-year base. Since 2018, the company has only deducted non net profit in the first quarter of 2021 as profit;
6. The company's retail, large package and other channel advantages are still obvious. During the reporting period, the sales revenue of retail channels increased by 4% compared with the same period last year;
7. Dongpeng ceramic tile has become the official ceramic tile supplier for the 2022 Beijing Winter Olympic Games and winter Paralympic Games, and Dongpeng packaged sanitary ware has become a supporter of China's aerospace industry, which have further consolidated Dongpeng's brand position and increased advertising expenses accordingly. (III) key work in 2022
In order to improve profitability and ensure the realization of annual objectives, the company will implement five strategic measures of "strengthening retail, service upgrading, lean operation, cost reduction and efficiency increase and digital drive" in 2022:
Pay close attention to the main battlefield of retail, strengthen the refined operation of retail, optimize the structure, dig the increment, improve the output and floor efficiency of single store, and improve the operation efficiency of the whole link. Promote the construction of shared warehouses, realize the empowerment of comprehensive services and help the sinking of channels;
Through the innovation of "pengzhu shop" service mode, effectively solve customer pain points and improve user satisfaction and customer unit value with "service product"; Create an overall solution for the company's 1 + n multi category hard decoration. Establish a core urban engineering service platform, organize engineering offensive products and expand municipal engineering; Intensive cultivation of large package channels to improve product and service capabilities;
Through the construction of digital lean manufacturing system, lean production, lean management, cost reduction and efficiency increase, sales price increase and other measures, improve the efficiency of supply chain, reduce costs, and deal with the impact of rising energy, raw material prices and labor costs; (IV) management adjustment of the company
Mr. He Xinming, the founder and chairman of the company, is also the general manager. In recent years, the epidemic has continued, some real estate enterprises have liquidity problems, double carbon policy and dual control of energy consumption, and the prices of energy and raw materials have risen sharply. In order to meet the multiple challenges faced by the ceramic industry, the company has actively adjusted its strategy and business layout, sunk its channels, deeply cultivated the market, and adjusted its organization and personnel accordingly. This time, he Xinming, the company's founder and chairman, concurrently served as the general manager, and asked the management to sink the focus to cope with the rapid changes in the market and establish an agile decision-making mechanism. During his tenure, Mr. Gong Zhiyun will no longer serve as the general manager of the company and change to the deputy general manager of the company. Mr. Gong Zhiyun will focus on the business of new ecological materials, develop low-carbon green products and improve the medium and long-term competitiveness of the company. 2、 Questioning and communication link
Q: How is the business split?
A: Distribution and retail 47%; Strategic engineering 10%; Direct subsidiaries: 21%; Sanitary ware 13%; Home 5%
Q: What is the support plan for dealers under the influence of the epidemic?
A: In 2022, the company will encourage the proportion of retail business and dealers to increase. 1) Will take certain support for dealers' core strategy, store price and other aspects; 2) The company has formulated special credit projects and cash flow support plans for dealers; 3) Increase support for online live broadcasting, traffic support and other aspects, and also run through the annual plan.
Q: Is there a specific assessment of the impact of the epidemic on the company? What is the impact of each cost? A: In the first quarter, the company's subsidiaries such as Shenzhen, Shanghai and Xi'an were greatly affected by the epidemic, while the less affected regions maintained good growth, such as Beijing Tianjin Hebei, Shanxi, Henan, Yunnan, Northwest China, Foshan, etc.
In terms of cost, the impact of chemical industry, coal and gas is obvious. Coal will be the most affected in 2021, with an overall increase of nearly 60%; In 2022, gas and electricity increased by nearly 20%, and coal continued to increase by 25%. The good news is that in the past two years, the raw material cost of sand and mud of the company has decreased by about 3% every year, and the cost control is good, which is lower than the average level of the same industry. Other raw materials such as coal, gas, electric power and chemical industry that are not controlled by enterprises are greatly affected by bulk commodities. Affected by the epidemic, rising energy prices and the real estate industry, the pressure faced in the first half of the year was great. The company tapped the potential at the production end, improved production efficiency, changed the strategy at the sales end for retail, adjusted the structure at the product end, and increased the revenue.
Q: What are the performance indicators of the option plan formulated by the company in the face of external pressure?
A: The operation in 2022 is under great pressure due to the impact of the epidemic, the Russian Ukrainian war and the rise of natural gas energy prices. The company's stock option incentive plan in 2022 has 242 incentive objects, covering the company's main core business personnel and technical backbone above the middle level. The overall operation index set in this incentive plan: the revenue in 2022 will increase by 10% compared with that in 2021.
Q: What is the effect of the company's current price increase? Is the conduction smooth at the terminal?
A: At the end of 2021, the company raised the price in combination with market changes and market transmission. The impact of price increase on Q1 price is about 5%.
Q: As the leader of the whole industry, has the company observed a price war in the industry? A: 1) retail business: the price competition at the retail end is relatively good, and there will be low prices in major festivals. 2) Engineering business side: at present, the price war is mainly reflected in the big b-end real estate, continuing the relatively fierce competition trend in 2021.
Coping style: main coping styles, such as screening high-quality partners at the engineering end and providing overall solutions; Promote space sales in key retail stores and core stores to avoid the competition of single products. Q: What is the strategy of building a core city engineering service platform for small, medium and micro projects
Sales dealer or specialized engineering dealer? How about the specific playing method of small b-end?
A: Strategy of small, medium and micro engineering in 2022: on the one hand, encourage dealers to target municipal, urban investment, urban construction and Design Institute projects in distribution channels; On the other hand, build an engineering service platform with dealers, hoping to attract and develop more high-quality cross industry partners. On the one hand, the small, medium and micro engineering business is based on the original dealers, on the other hand, more professional engineering agents are developed. In terms of quantity, the number of external professional engineering partners will increase by more than 100% this year.
Q: In the strategic project, what other major customers are the company doing now? What is the current structure?
A: After the screening of real estate last year, the company now maintains normal cooperation mainly in key central enterprises, state-owned enterprises and some high-quality private enterprises. The company mainly cooperates with high-quality companies such as poly, China shipping, China Resources, China Railway and China Merchants. The key customers of the company will have a structural optimization and pay more attention to the cooperation of some enterprise headquarters.
Q: Can it be understood that in fact, the gross profit margin of the whole year may be relatively low in the first quarter of this year, because the price increase in the second quarter will be better than that in the first quarter, and the cost will be flat or slightly lower?
A: The cost in the first quarter must be the highest in the year. According to the characteristics of the industry, there are kiln shutdown and maintenance in the first quarter, and the utilization rate in the first quarter is relatively low.
