Code: Chow Tai Seng Jewellery Company Limited(002867) securities abbreviation: Chow Tai Seng Jewellery Company Limited(002867) No.: 2022016 Chow Tai Seng Jewellery Company Limited(002867)
Record of investor relations activities
√ specific object research □ analyst meeting
□ media interview □ performance briefing
Category of investor relations activities □ press conference □ Roadshow
□ site visit
√ others (teleconference)
A total of 50 investors (in no order):
Xinhua Fund: Wang Da South Fund: LV Siqi
Oriental Fund: Shao Zixin Dacheng Fund: Fu Xinyu
Open source asset management: Zheng Xiaofan Penghua Fund: Liu Luosheng
The People’S Insurance Company (Group) Of China Limited(601319) asset management: Tian Lei noan Fund: Wang Yue
Hongkang life insurance: Wang Xinwei Ping An Fund: Zhang Cong
Haining Shibei investment management: ouyangjing Great Wall Fund: Shen Yiyang
Zhejiang Zhichen Private Equity Fund: Sun Yufei Oriental alpha Fund: Wang Huiwu Shanghai Xiangsheng asset management: Wang Lei Xinda Aoyin: Ma Qiwen
Name of participant: China alpha Xu: Sammi life assets: Jiang Tian
And name of personnel: Zhongrong Fund: Fan Pengcheng Guosen Securities Co.Ltd(002736) : Yan Xiaolan
ChuangJin Hexin: Ludi Dacheng Fund: Fu Xinyu
Jinxin Fund: Xu Jidong life assets: Jiang Tian
Kaifeng Investment: Wang Dongsheng Oriental alpha Fund: Wang Huiwu SDIC UBS: Li Yanrong South Fund: LV Siqi
Guosen Securities Co.Ltd(002736) : Liu Xu Shenzhen Kaifeng investment management: Wang Dongsheng Great Wall Fund: Shen Yiyang Zhongrong Fund: Fan Pengcheng
SDIC UBS Fund: Li Yanrong Ping An Fund: Zhang Cong
Guosen Securities Co.Ltd(002736) : Yang Xu Sealand Securities Co.Ltd(000750) : Lu Guanyu, Zhou Yuyun Guoyuan Securities Company Limited(000728) : Li dianhuafu Fund: Xu Yi, Bian Meiying Fidelity Investment: Sunny Yang, Wendy Liu, Lynda Zhou
Huitianfu: Pan porphyrin, Hu Xinwei, Li Chao, Yang Tao, Zheng Huilian, he Biao, Zhang Wei
Time: May 17 and May 18, 2022
Place Chow Tai Seng Jewellery Company Limited(002867) headquarters conference room
Name of receptionist of listed company: Secretary of the board of directors and Deputy General Manager: he Xiaolin Baotong general manager of supply chain: Chen Shouping
Securities affairs representatives: Zhou Xiaoda, Rong Huan
1、 Q & a session:
1: How to view the trend of gufajin in today’s consumer market?
A: gufajin is just a craft. The new technology strengthens the jewelry function of gold products. When consumers are willing to pay for the new design aesthetics, the manufacturing technology of gold will be very diversified.
2: Has the investment demand for gold decreased a lot in the past two years compared with previous years? Will it affect the company’s sales?
A: the proportion of consumer demand for buying gold products (such as gold bars) for the purpose of pure investment is declining, and most consumers will buy gold jewelry with the mentality of maintaining and appreciating gold. The company is an enterprise selling gold jewelry. After the gold products can cover a wider range of consumers and application scenarios, the company will strengthen the sales of gold products.
3: Why did franchisees do weaker than inlaid products in gold before?
Investor relations activities a: there are two main reasons: first, in the past, the company’s gold product sales mainly focused on the designated main content introduction supplier mode. Under this mode, the company’s gold distribution guidance and control for franchisees are not enough, resulting in insufficient planning of the gold sector in terms of the goods structure of terminal stores. Second, due to the insufficient funds of some franchisees, the gold sector is more sparse.
After the introduction of the provincial agent model last year, franchisees who meet our credit conditions can use their own working capital + the company’s financial policy support to spread gold goods more fully. The increase of distribution volume is conducive to the promotion of sales, and gold products, as a popular product, can also drive the sales transformation of inlaid products. Ultimately, it will help franchisees get a better position in the mall and enjoy lower rent conditions, forming a virtuous circle.
4: Compared with 2020, the company’s gross profit margin decreased in the third and fourth quarters of 2021. Is it because of the increase in the proportion of gold?
A: Yes, mainly due to the increase in the proportion of gold wholesale income.
5: What factors will franchisees pay attention to when choosing brands?
A: we will mainly focus on three factors: yield, operation difficulty and brand service.
6: In order to obtain higher gross profit margin after the conversion of buy it now price to gram weight, does it mean that the requirements for design are increased?
Answer: in essence, by piece and by gram means that the pricing coefficient of gold is different. If you want to have a high pricing coefficient, you must have a supporting point of interest, that is, the design and process should be able to support pricing by piece. 7: How to ensure the enthusiasm of franchisees to open stores when the short-term gross profit margin decreases after the buy it now price turns to gram weight?
A: the change of gold pricing structure will not necessarily affect the overall income in the future. The turnover rate of products per gram is relatively faster, so the short-term gross profit margin decreases, but the overall gross profit increases.
8: How to treat the problem of plagiarism in the gold and jewelry market?
A: the company’s product sales are systematic, not a simple style combination. Precision marketing system is a major competitive advantage of Chow Tai Seng Jewellery Company Limited(002867) . The company develops products based on the three dimensions of functional scene, emotional expression and style characteristics. At the same time, it matches the whole product logic according to the characteristics of different people, and finally accurately matches the style to the corresponding people. In addition, the future marketing is content marketing. Products with emotion, style and cognition will form good content. Using content to reach consumers is easier to resonate.
9: How about the consumption of inlaid products in recent years?
A: 1) from the perspective of consumption demand, the consumption scenes of inlaid categories mainly focus on marriage and love and fashion dress; 2) The customer unit price of consumers buying wedding rings has increased; 3) The proportion of marriage and love products with love as the scene, such as pair of rings, has increased significantly; 3) The proportion of diamond products in daily dressing is better than that in the same industry.
10: Now the economic pressure is relatively large. How about the consumer confidence in the market? Will it have a negative impact?
A: the impact of the macro environment on consumption is inevitable in any industry. Relatively speaking, the jewelry industry is in good condition. It is mainly due to the following three factors: 1) the consumption demand of gold and jewelry has a certain rigidity; 2) Gold products have both investment attributes; 3) In the past, the dress up demand of gold products was relatively small and the base was low. Now it is in a state of relatively fast growth.
The parties also exchanged views on the gold distribution model, diamond distribution model and diamond cultivation. Please refer to the Q & A and disclosed announcement in the record of the previous event.
During the reception, the company strictly followed the information disclosure management system and other regulations to ensure that the information disclosure was true, accurate, complete, timely and fair, and there was no disclosure of undisclosed major information. Meanwhile, the investors who conducted on-site investigation have signed the letter of commitment as required by the Shenzhen Stock Exchange.
Annex list (if any) none
Date: May 17 and May 18, 2022
