Securities code: 002003 securities abbreviation: Zhejiang Weixing Industrial Development Co.Ltd(002003)
Zhejiang Weixing Industrial Development Co.Ltd(002003)
Record of investor relations activities
No.: 2022-011
□ specific object research □ analyst meeting
Investor relations activities □ media interviews □ performance briefing
Category □ press conference □ roadshow activity
□ site visit √ others: teleconference
Changjiang Securities Company Limited(000783) : Lei Yu
Gf Securities Co.Ltd(000776) : Li Yonghong
Name of participants and China Southern Fund Management Co., Ltd.: Yu Yiming, Yuan Li, LV Siqi
Name of Employee: ping an Endowment Insurance Co., Ltd.: Ye Li
Debang Fund Management Co., Ltd.: Shilin
Shanghai juming Investment Management Co., Ltd.: Chen Gong
Pengyang Fund Management Co., Ltd.: Cao min
Time: January 20, 2022
Location-
Name of receptionist Xie Jinkun of listed company
1、 Company profile
The company is mainly engaged in buttons, zippers, metal products, plastic products, webbing, rope belts, signs and other clothing and luggage accessories. It mainly serves brand customers in the fields of clothing, shoes and hats, luggage, sports and leisure products, and belongs to the daily consumer goods industry.
The earliest history can be traced back to 1976, when Weixing Group Co., Ltd., the controlling shareholder of the company, began to set foot in the button business. With the reform and opening up, China has participated in the international division of labor with the advantage of cheap labor, investor relations activities, textile and garment industry and other labor-intensive industries have achieved rapid development, and the company has grown rapidly in this wave. The main content introduces the opening of zipper business in 2000 to serve brand clothing customers at home and abroad. In 2004, it landed in the capital market as one of the first eight small and medium-sized boards in Shenzhen Stock Exchange. After listing, after several fund-raising investments, the company has rapidly improved in terms of scale, technology and other comprehensive competitive strength, and the industry reputation is also rising. At the same time, the rapid growth of Chinese garment enterprises, the oligopoly effect gradually formed by segmenting garment brands, and the high requirements for downstream customers have promoted the rapid improvement of the company's scale and economic benefits.
After 2010, due to the continuous investment in the textile and garment industry before, the channel inventory accumulation was serious, and the phenomenon of "de inventory" appeared in the industry; At the same time, with the continuous improvement of people's living standards, the labor cost has increased significantly, China's international comparative advantage has weakened, and the textile and garment industry has migrated to Southeast Asia, which has intensified the competition in the industry. In the past five or six years, the company has actively carried out all-round transformation and upgrading, focusing on the following aspects:
1. Promoting the strategic layout of globalization is mainly reflected in the layout of international production bases, the cultivation of international brands, the expansion of international marketing networks, the formation and expansion of international staff and the formation and development of international business philosophy; The company is docking with more and more international brand operators.
2. Vigorously promote intelligent manufacturing and continuously improve on-site production efficiency and manufacturing level. Clothing accessories are typical non-standard products with a wide range of categories and obvious personalization. Orders also show the characteristics of "multi category, multi batch and small batch". The company recognized the trend of continuous high labor cost and the benefits of automatic production to improve product quality, stability and competitiveness; In recent years, good results have been achieved through continuous investment, and "digital intelligence" manufacturing is in the leading position in the industry.
3. Continuously improve the company's manufacturing level, technical level and product quality. The company has optimized and upgraded the existing customer structure and expanded in all aspects to global brand customers. Therefore, the company must constantly improve the production and manufacturing level, so that the company's products, technology and quality can respond to the requirements of first and second tier brands and luxury brands.
2、 Interactive session:
1. YKK believes that such standard products like pants chain account for a large share of the market. The company has always focused on product personalization. Will the competition between the two companies not be at the same level in the future?
A: different enterprises have different business styles. The zipper business of the company was born out of the button business, and the button products are typical non-standard products with obvious personalization. The company's style of focusing on innovation and R & D has continued to this day. In the future, the company will continue to cultivate in the aspects of style diversity and fashion, and gradually expand to the production of relatively standardized zippers on this basis.
2. Does the fashion of clothing have more and more obvious requirements for the diversity of accessories?
A: with the continuous improvement of living standards and people's pursuit of good things, the fashion trend changes more rapidly, the fashion of clothing becomes more prominent, and the clothing accessories change continuously with the change of clothing style, which requires the company to have strong innovation ability and R & D ability.
3. Is the company's pursuit of sustainable development inconsistent with the wolf style of the company's sales team? A: the so-called sustainable development means that the decision-making level needs to grasp the risk control first. On this premise, the implementation level needs to work hard to achieve the enterprise's goals. It belongs to a team with obvious wolf characteristics.
4. How about the cooperation between the company and Xiyin?
A: at present, the amount of cooperation between the company and Xiyin is not large. The new retail model has extremely high requirements on delivery date, which requires suppliers to prepare a certain stock, which is different from the company's production mode of "order production", and the company needs to adjust the production mode. Of course, the company is very optimistic about the future development prospect of the new retail model represented by Xiyin, and is also actively exploring and thinking about the layout in this field.
5. How many zipper styles does the company produce in a year?
A: different clothing needs to match different accessory styles, so the company produces more zipper styles every year, but it is impossible to make statistics one by one.
6. What are the company's main competitors in zipper?
A: in terms of zipper business, the company's main competitors are international well-known zipper enterprises represented by YKK.
7. What is the company's core competitive advantage over YKK?
A: YKK's advantages mainly lie in the accumulation and popularity of the brand, and the company is the business philosophy of "product + service", focusing on providing customers with "one-stop and whole process" services while providing customers with high-quality products. In addition, the company has formed a strong competitive advantage in the diversity and fashion of auxiliary material products, the novelty and innovation of styles, the rapid response to the market and the supporting ability of products.
8. What are the company's future business objectives?
A: the company launched the fourth equity incentive plan and the fifth equity incentive plan in 2020 and 2021 respectively. You can refer to the relevant assessment indicators of the two equity incentives.
9. Please briefly describe the pricing model of the company's products.
A: the company adopts the cost plus pricing model. Due to the obvious non-standard attribute of the company's products, the company will set the price of the basic products, and then increase the price according to the process involved in the actual production process.
10. How long is the company's production cycle?
A: the production cycle of the company's products is generally 3-15 days, and the busy season will be appropriately extended. The delivery time should be based on the saturation degree of production capacity, order volume and quick reaction demand.
11. What is the proportion of the company's top ten customers?
A: according to the statistics of brand customers, the proportion of the company's top ten customers is not low. It should be noted that the top five customers disclosed in the company's periodic report are counted according to the caliber of financial Invoicing, and do not penetrate brand customers. There are differences in the caliber of data statistics.
12. How will the company achieve its growth target?
A: on the one hand, it comes from the efficiency improvement brought by the promotion of internationalization strategy and the promotion of intelligent manufacturing strategy. On the other hand, it deeply excavates the company's original customer needs to increase the proportion of order share and vigorously develop new customers and new categories to obtain new orders.
13. What is the share of the company in brand customers?
A: different customers account for different proportions due to differences in customer matching, cooperation time and closeness. I believe that with the deepening of bilateral cooperation, the company's comprehensive competitiveness will gradually be recognized by more customers.
Annex list none
Date: January 20, 2022
