Investor relations activity record form securities code: Sinostone(Guangdong) Co.Ltd(001212) securities abbreviation: Sinostone(Guangdong) Co.Ltd(001212) Sinostone(Guangdong) Co.Ltd(001212) investor relations activity record form No.: 2022 – 002 investor relations activity category? Specific object research □ analyst meeting □ media interview □ performance briefing □ press conference □ roadshow activity □ on-site visit □ other (please specify other activity contents) participants: Minsheng securities (Li Yang), China Post Fund (Wang Huan, Jin Zhenzhen), Penghua Fund (Liu Wenhao), Bank of Communications (Zhang Chen), YONGYING Fund (Wang Jiayin), Changxin Fund (Cheng Xin), Agricultural Bank of China Huili (song Lei) Huatai Bairui Fund (Wang Peng), West Lide Fund (Guan Haoyang) and Hua’an Fund (Li Zhenxing). Time: May 20, 2022 place: company conference room form teleconference name of receptionist of listed company chairman and general manager: Zhou Jun chief financial officer and Secretary of the board of directors: Jiang Jingjing securities affairs representative: Zhang Qiwen exchange content and specific Q & a record 1. Introduce the basic situation of the company. 2、 Interactive communication question 1: affected by the rise in the price of raw materials, the net profit margin and gross profit margin fluctuate. How can the company release the pressure of the rise in the price of raw materials? A: with regard to the rise of raw materials and the fluctuation of gross profit margin, the company’s measures mainly include two aspects: one is to adjust the product structure and price to improve the comprehensive gross profit margin; Second, through technological transformation and digital and intelligent improvement, improve production efficiency and reduce the rate of unqualified products, so as to reduce unit cost and absorb the adverse impact of gross profit margin fluctuation on investor relations activity record form. Question 2: is the company’s future product positioning not limited to home decoration, and what is the future development direction? A: the company’s product positioning is mainly in the field of artificial quartz stone, and is committed to providing the society with new low-carbon and environment-friendly building decoration materials. Last year, the company launched GangShi and Yanban products, and acted as an agent for Versace brand Yanban to provide downstream customers with a full range of products from domestic to imported, from low-end to high-end, so as to better empower customers and enhance the company’s competitive position. While deepening its main business, the company plans to enter the resource-based silicon crystal material industry and hopes to establish a second growth curve for the company through a new track. Question 3: what is the progress of the company’s Guangxi high-end quartz sand project? A: last year, the company issued the announcement on signing the investment framework agreement with the people’s Government of Luocheng County, Guangxi. At present, the project is advancing in an orderly manner. The company’s development plan is to build a silicon crystal new material R & D, development and manufacturing integration project with gangue quartz mine in Guangxi as the core. Question 4: the company announced that it plans to invest 800-1 billion yuan to build an integrated project of R & D, development and manufacturing of silicon crystal new materials. What is the source of funds of the company? A: the main source of funds is the company’s own funds on the one hand and financing on the other. Question 5: what is the progress of Hubei phase II construction and production of the company’s raised investment project? A: at present, due to the epidemic situation, the progress of raised investment projects in Hubei has been affected, but the impact is not great. They can be put into operation in the second half of this year. Question 6: since May, the epidemic situation has improved. Has there been a synchronous change in order demand? A: the recovery of the market is conducive to the growth of sales orders, but the company’s products are at the back end of home decoration projects, and the response to the recovery of the market has a certain lag. Q7: we have observed that the gross profit margin of the company has been maintained at a high level. What is the way for the company to maintain high gross profit? Investor relations activity record form a: it mainly includes the following aspects: first, our product quality is first-class in China, and the product market positioning is mainly in the medium and high-end market, such as customized home furnishing, boutique home decoration, hardcover engineering, etc; Second, the company has a high degree of production automation and a large scale, forming economies of scale, so as to reduce the unit cost; Third, through the research on market demand and continuous investment in product research and development, the company will launch new products every year to lead the market. For example, in view of the epidemic, we have launched the antibacterial sector series, which is widely recognized by the market. Question 8: the asset liability ratio of the company is low, and the income tax rate remains about 13%. Will there be any changes in these two indicators in the future? A: the company is a high-tech enterprise and enjoys a preferential tax rate of 15% of the income tax. The company has a large amount of R & D investment and enjoys the R & D expense plus Deduction Policy. In the future, the company’s high-tech enterprise certification will continue, and there will be no change in the income tax rate, unless the tax policy is changed. The asset liability ratio is low, mainly because the company’s operating cash flow continues to be good, the production expansion plan is moderate, there is no bank loan at present, the company operates steadily, does not advocate blind expansion, and develops steadily without leverage under the condition of ensuring sufficient cash flow. The list of annexes has no date, May 20, 2022
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