Changsheng Bearing(300718. SZ): The company will continue to focus on automobile, new energy, robotics and other industries

Changsheng Bearing(300718. SZ) announced on May 14, 2024 that on May 14, 2024, Changsheng Bearing accepted institutional research, director and general manager: Chu Chenjian; Vice Chairman and Deputy General Manager: Lu Xiaolin; Deputy General Manager, Chief Financial Officer, Secretary of the Board of Directors: He Yin; Independent Director: Wan Yuanxing participated in the reception and answered the questions raised by the research institutions.

The main contents of the survey:

On May 14, 2024, from 15:30 to 17:00 p.m., the company held the 2023 annual results briefing on Panorama Network remotely through the network, and the company interacted and communicated with investors and replied to the questions that investors were concerned about.

The main questions and responses are as follows:

1. What are the potential performance growth points of the company in the future?

Hello, the company's future growth will continue to focus on the continuous development of high-end applications, automobiles, new energy, robotics and other industries are the company's focus areas, thank you.

2. In the field of wind power, new energy vehicles, robots, etc., the company seems to have a lot of room for growth, and the current production and research and development can keep up with the pace of the market? There will also be mergers and acquisitions of upstream and downstream enterprises; Refinancing plans to scale up?

At present, the company focuses on the main R&D efforts in related fields, and will continue to enhance the company's capabilities in the future through talent introduction, school-enterprise cooperation and other forms, thank you.

3. How do you view the company's future development in the domestic market?

Hello, the company will further expand the market share of the automotive industry while consolidating the market advantage of construction machinery chassis parts, and will actively respond to market changes in the future and seek application development and market opportunities for new energy vehicles. Thank you!

4. Mr. Lu, how do you view the trend of further decline in the gross profit margin of some core products, and whether the technical barriers of high gross margin products have been impacted by other competing products in the same industry, and how does the company view and solve them?

Hello, the gross profit margin of the company's core products has maintained a steady upward trend, with the improvement of automation transformation, lean production and capacity utilization, the gross profit margin of products still has some room for growth, thank you.

5. In the field of new energy vehicles, what are the parts of the company's products?

Hello, the applications in the automotive field (traditional and new energy) mainly include seats, four doors and two covers, shock absorbers, steering systems, air conditioning compressors and other parts, thank you.

6. Does the company currently have any ideas for mergers and acquisitions?

Hello, the company actively pays attention to the mergers and acquisitions opportunities in the same industry and upstream and downstream, and has completed the expansion of some product lines and the integration of some raw material suppliers. In the future, we will continue to promote the development of related work.

7. As an investor, I am very concerned about the company's information disclosure and transparency. What is the company's approach to this? Are there any insider information breaches and violations? In addition, does the company have a sound internal control system in place to ensure that the interests of investors are protected?

Hello, the company strictly follows the requirements of the China Securities Regulatory Commission, the Shenzhen Stock Exchange and various regulatory agencies for listed companies, strictly implements the relevant requirements for information disclosure, and there is no internal information leakage. The company has established a sound internal control system to protect the rights and interests of investors, especially small and medium-sized investors.

8. What are the downstream industries of the company's self-lubricating bearings and other related products?

Hello, the company's products are widely used in construction machinery, automobiles, energy (traditional and renewable), port machinery, plastic machinery, agricultural machinery and other industries.

9. Has there been any major change in the company's shareholder structure? Has there been a significant change in shareholder shareholding in the latest period? In addition, for shareholders with a large proportion of shares, what are their views and expectations for the development of the company?

Hello, there has been no major change in the company's shareholder structure recently. The controlling shareholder and actual controller of the company attaches great importance to the sustainable development of the company's business and actively develops the second growth curve, and the company's management will also work accordingly.

10. What are the main technical advantages of ball screw products? Can you quickly open up the market space?

The company has a cost advantage in ball screw products, and the company is actively exploring the related markets in the automotive industry.

11. Hello leaders and executives, after the first quarter earnings report came out, the stock price has been falling, is there a problem with the company? How are you going to repay your shareholders and do you have a market value management plan?

Hello, at present, the company's operation is normal, the performance in the first quarter of 2024 is stable and rising year-on-year, the company's management will continue to work hard to improve the company's performance to enhance investor returns, thank you.

12. Hello, Mr. He, how was the company's investor reception last year? Has the interest increased compared to previous years? Thank you

In 2023, the company held 4 performance briefings, received 8 on-site and telephone surveys, received more than 80 research institutions, and answered more than 130 calls from investors. These research activities cover a wide range of areas, including the company's financial and market situation. Through these activities, the company fully communicated with investors and responded to their concerns. Investor attention has increased compared to previous years. Thank you!

13. What does the company think about the dividend level this year? Are there any plans to increase investor returns in the future?

Hello, according to the announcement of the company's 2023 profit distribution plan, the company plans to distribute a cash dividend of RMB 2.35 (tax included) to all shareholders for every 10 shares based on the total share capital of 298,867,830 shares as of December 31, 2023 (after deducting 760,000 shares repurchased in the special repurchase account).

As a result, the Company expects to distribute a total cash of $70,055,340.05 (including tax). In addition, the scheme does not involve the conversion of capital reserve into share capital.

The company's dividend level is formulated according to the company's articles of association and actual operating conditions, and the company will increase the return of investors according to the operating conditions in the future. Thank you!

14. The gross profit margin of the company's products will increase in 2023, can it be maintained?

Hello, the company's 2023 product gross profit margin increase is mainly affected by factors such as the improvement of product structure, exchange rate and raw material price stability, and the gross profit margin in the first quarter of 2024 remains relatively stable.

15. Please introduce the company's operation in 2023.

Hello, in 2023, the company has shown solid growth momentum. We achieved revenue of 1.105 billion yuan, a year-on-year increase of 3.18%; The net profit attributable to the parent company reached 242 million yuan, a year-on-year increase of 137.26%, reflecting the significant improvement in the company's profitability. Gross margin increased by 6.43 percentage points to 35.81% from 29.38% last year, reflecting our strength in product pricing and cost control. At the same time, our expense ratio for the period was controlled at 10.95%, a year-on-year decrease of 0.23 percentage points, showing good cost control capabilities. In terms of product mix, we have successfully optimized our product portfolio, especially in the automotive plain bearing business, which has had a positive impact on our profitability. In addition, we are also actively deploying wind power sliding bearings and lead screw business, which are expected to become important growth points for the company in the future. Overall, in 2023, Changsheng Bearings achieved positive results in both financial performance and business development, laying a solid foundation for continued growth in the future.

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