603856: Shandong Donghong Pipe Industry Co.Ltd(603856) record of investor relations activities on January 19, 2022

Securities code: 603856 securities abbreviation: Shandong Donghong Pipe Industry Co.Ltd(603856) Shandong Donghong Pipe Industry Co.Ltd(603856)

Record of investor relations activities

Record sheet No.: 2022-006

Target specific research analyst meeting

Investor relations media interview performance briefing

Activity category: press conference Roadshow

Site visit others: teleconference

Name of participant: guangchuang Securities: Wang Zhuoxing; Zhongrong Fund: Qian Wencheng, Feng Qi, Xiong Jian, Ke Haidong; Anxin Fund: Zheng and staff name: Wan Ling; Yinhua Fund: Chamberlain; Guohua life insurance: Zhao Xiang. (the above ranking is in no order)

Time: 14:00-15:00 PM, January 19, 2022

Location teleconference

The listed company receives the Secretary of the board of directors and securities affairs representative looking for Jinlong

Personnel name

1、 Company profile

1. Basic information of the company

Shandong Donghong Pipe Industry Co.Ltd(603856) is an engineering pipeline manufacturer, pipeline engineering service provider and general contractor of pipeline engineering with various polymer plastic composite pipelines, large-diameter anti-corrosion metal pipelines, energy-saving thermal pipelines, high-performance PVC pipelines, connecting pipe fittings and new material applications as its main business. As the world's largest composite pipeline manufacturing base, relying on the national enterprise technology center, the company integrates upstream and downstream ecological resources, deepens the research on the digitization, informatization and intellectualization of pipeline engineering, integrates intelligent pipeline into human life, and is committed to becoming a global leading provider of comprehensive pipeline system solutions with active investor relations. The company has a national enterprise technology center and a national CNAs experimental center. It has successively won the national contract abiding and trustworthy enterprise, China's well-known trademark, Shandong famous brand product and Shandong Shaoxing brand

Honorary titles such as the provincial single champion of manufacturing industry, the all staff innovative enterprise of Shandong Province, the Shandong enterprise management innovation achievement award, the provincial consumer satisfaction unit, the Jining mayor quality award, etc.

2、 Interactive communication

1. What is the impact of infrastructure and underground pipe network proposed by the government on the company's business? Has the project order increased

A: relevant departments of the company actively track and study relevant national and local policy information and carry out relevant preparations. The implementation of relevant policies has a positive impact on the company's business development. The company will seize policy opportunities and market opportunities and steadily promote relevant business.

2. The company's orders in municipal, industrial and mining, gas, heat and other fields. Which areas are growing faster

A: the company is an engineering pipeline manufacturer, pipeline engineering service provider and general contractor of pipeline engineering with various polymer plastic composite pipelines, large-diameter anti-corrosion metal pipelines, energy-saving heat pipelines, high-performance PVC pipelines, connecting pipe fittings and new material applications as its main business. The company's products are mainly used in municipal infrastructure construction, gas Industrial and mining, comprehensive treatment of sewage, transformation of old urban pipe networks, large-scale water transfer projects, natural gas pipe networks, urban-rural water supply integration projects, electricity and heat, etc. The company counts the sales proportion according to the product structure. Please refer to the regular reports issued by the company for specific data.

3. How much is the company's current engineering revenue? Will the company's business focus on Engineering in the future

A: the company mainly sells pipes and fittings and contracts engineering projects in the mode of consortium general contracting. However, the project revenue accounts for a small proportion of the company's operating revenue. In the future, the company will still focus on the sales of pipes and fittings. When contracting relevant engineering projects, it will pay attention to the source of funds of the project, Priority shall be given to projects with financial guarantee.

4. The price of raw materials will rise sharply in 2021. Does the contract signed by the company have a price adjustment mechanism? A: in order to protect the rights and interests of both parties and better safeguard the interests of both parties, the contract signed by the company has a price adjustment mechanism; The specific trigger conditions for price adjustment shall be implemented according to the negotiated pricing of both parties to the contract. If the customer delays in payment and fails to provide delivery time and details, both parties shall terminate the contract through negotiation; When the price of raw materials rises or falls beyond a certain range, the new price shall be implemented after both parties agree on the price again.

5. How is the company's accounts receivable controlled

A: at present, the aging of the company's accounts receivable is mostly within 1 year. The company attaches great importance to the accounts receivable, has a strict evaluation and prevention mechanism, has a special accounts receivable settlement team, and regularly holds special meetings to analyze the arrears. Under the support of relevant national policies and the internal contract control of the company, the company has been continuously increasing the collection of accounts receivable and actively recovering funds.

6. Fields corresponding to various products of the company

A: at present, the company mainly has five series of products, including polyethylene pipes, steel mesh skeleton composite polyethylene pipes, steel plastic composite pipes, heat pipes and PVC pipes. Polyethylene (PE) pipeline series products are mainly used in gas, water supply and drainage and other fields; Steel wire mesh skeleton polyethylene pipeline is mainly used in municipal, civil, fire protection, chemical industry, agriculture and other fields; Composite pipeline products are mainly used in municipal infrastructure construction, comprehensive treatment of sewage, transformation of old urban pipe networks, large-scale water transfer projects, integration of urban and rural water supply, industry and mining and other fields; Polypropylene (PVC) pipe series products are mainly used in reclaimed water, sewage, water supply, rainwater and sewage diversion, farmland irrigation and other fields; Thermal pipeline products are mainly used in hot water transportation, steam transportation, urban air conditioning transportation and crude oil (oil) transportation.

7. Current orders of the company

A: the company's current operation is normal and there are sufficient orders on hand. Please pay attention to the relevant announcements issued by the company for specific business performance.

Annex list none (if any)

Date: January 19, 2022

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