Yuefeng Group released the activity record form on May 5. On April 28, 2023, the company accepted the investigation of 17 institutions, including QFII, insurance companies, others, fund companies, securities companies and Sunshine private equity institutions. Main contents of investor relations activities:
Q: What are the main reasons for the change in Q1 2023?
A: The main reasons for the company's year-on-year decline in the first quarter of 2023 are as follows: First, the annual output of 100,000 tons of photovoltaic aluminum components in the reporting period has been put into production, the production and sales of photovoltaic aluminum frame have increased, the ending accounts receivable have increased significantly compared with the beginning of the year, and the credit impairment loss accrued in the first quarter of 2023 has increased accordingly; Second, the equity incentive in the first quarter of 2023 amortized share payment impact; Third, it will take some time for the non-public offering project with an annual output of 100,000 tons of PV aluminum components to reach full production in 2022. The production capacity climb will be mainly concentrated in the first quarter of 2023, and fixed costs such as depreciation of fixed assets and amortization of intangible assets will increase significantly. Fourth, the new energy vehicle parts project is in the construction period, which also has a certain impact on profits; Fifth, the company has introduced some management talents, increased the investment in research and development, and increased the expenses during the period. In the second quarter of 2023, the company will continue to promote the cost reduction and efficiency measures, improve production and marketing, steadily promote the main business, and constantly improve the level of profitability, with high quality development to repay the trust of investors in the company.
Q: What is the current capacity?
A: With the completion of the production ramp of the project with an annual output of 100,000 tons of photovoltaic aluminum components, it is expected to reach full production in May, and the company's current production capacity can reach 30,000 tons per month. Among them, photovoltaic products account for more than 80%.
Q: How far has the stock been issued to specific parties? Estimated release date?
A: The first round of feedback has been reported to Shenzhen Stock Exchange. Currently, relevant application documents are updated based on the opinions of the audit center and the quarterly report. The Shenzhen Stock Exchange's review of the issuance of shares to specific objects is still in progress. After the review is passed and the registration is completed, the related work of the issuance also depends on the external secondary market environment. The company will choose the appropriate time window to issue, and the specific time of completion of the issuance cannot be reliably predicted at present.
Q: What is the company's current order book and downstream demand?
A: In the first quarter of 2023, both year-on-year and quarter-on-quarter, the production and sales are in a state of growth. At present, the company is in good condition and the order is saturated. In 2023, the global photovoltaic installed capacity is expected to be about 330-350GW, and the corresponding aluminum frame demand is about 1.9 million tons, with a growth rate of more than 20%. Under the condition that the overall silicon supply is sufficient in 2023, the capacity utilization rate is expected to maintain a high level in 2023.
Q: The company is planning to build factories in Vietnam and Malaysia. How is the current progress?
A: The establishment of overseas factories helps enhance the company's global competitiveness, is a necessary means to reduce market risk, and is also an important measure to better serve the downstream component customers. After investigating Southeast Asia, the company decided to set up factories in Vietnam and Malaysia after comprehensive consideration of the investment environment and cost of each country, and is now handling the preliminary preparation work such as ODI overseas investment filing.
Q: What is the progress of the company's recycled aluminum project?
A: The land-use right involved in the company's recycled aluminum project is going through the bidding procedures, and the construction will start after obtaining the land-use right.
Q: What is the progress of the new energy vehicle parts project?
A: The company's annual output of 100,000 tons of aluminum components for new energy vehicles is divided into two phases. The first phase of the project has a production capacity of about 50,000 tons, and the mass production time is around June 2023. Up to now, the plant has been completed and the equipment has been installed and adjusted in succession. The main product direction is battery tray, front and rear bumper, threshold beam and other products, mainly serving new energy vehicle manufacturers and power battery factories and other customers. Up to now, the company has signed confidentiality agreements and product development plans with some Oems and power battery factories. The company will actively promote the relevant product sample verification, factory audit and other related work, and strive to get the project fixed point as soon as possible, after reaching the project can be as soon as possible to batch supply, release production capacity, enrich the company's product line.
Q: What about the alternative risk of aluminum bezels, such as composite bezels, rubber buckle bezels and steel bezels?
A: At present, the mainstream market basically uses all aluminum frame. First, aluminum frame has low density, easy to strengthen, good conductivity, high plasticity, easy surface treatment, corrosion resistance, weather resistance, long service life, beautiful appearance, convenient transportation and installation, and easy recycling, and recycling value ratio as high as 95%. Composite frame has been developed by manufacturers since 2012. Due to the limitation of its polymer material characteristics, it is easy to appear aging phenomenon in practical application, especially at the incision of parts. At the same time, composite material has low yield, large investment and high comprehensive cost, and has not been accepted by mainstream component manufacturers. Rubber buckle frame: First of all, the increase in the size of the mainstream component has higher and higher requirements for the load performance of the frame, and the load capacity of the buckle rubber frame is limited; Secondly, whether the service life of the buckle frame can reach 25 years has not been verified, and it is difficult to become a mainstream product in the short term. Steel frame: the carbon emission factor of aluminum frame is only 52.35% of that of steel frame, and the carbon emission of recycled aluminum is only 22.3% of that of recycled steel. The recovery rate of steel frame is only 55%-65%, and the recovery value ratio is only about 22%. In addition, the steel frame is unstable in machining accuracy, grounding, material matching and other aspects. The steel frame is 2-2.5kg heavier per unit area than the aluminum frame, which increases the load-bearing risk under wind pressure and snow load, and restricts the distributed photovoltaic application scenarios. Yuefeng Aluminum specializes in the research and development, production and sales of industrial aluminum profiles, industrial aluminum components and construction aluminum profiles. It has established a complete industrial production system from the research and development of raw materials, mold design and manufacturing, production and processing, surface treatment to finishing technology, and has the production and manufacturing capacity of the whole process. The company's main products are divided into three categories: industrial aluminum profiles, industrial aluminum components and construction aluminum profiles. The company was awarded "National Enterprise with advantages in intellectual Property Rights", "the third batch of specialized and special small giant Enterprises by the Ministry of Industry and Information Technology" and other honors.