Chenzhan Optoelectronics: Junrong Investment, Fugue Investment and other 3 institutions investigated our company on September 13

On September 14, 2021, Chenzhan Optoelectronics (003019) announced that Junrong Investment, Fugue Investment, kunyi investment investigated our company on September 13, 2021, and this survey was conducted by board secretary Zhong Bai'an, investment director Kang Lunnian, general manager Special Assistant Li Yingxue, investor relations Gui Qiuyue was responsible for reception.

The main contents of this survey are:

The main communication content of the investor relations activities:

1. Why did the company's performance in the first half of the year decline slightly year-on-year? Reply: In fact, revenue in the first half of last year was the highest level in the company's history. Since the company's business income mainly comes from overseas, denominated in US dollars, the operating income in US dollars in the first half of this year increased by 8.09% year-on-year. However, due to the large appreciation of the renminbi against the US dollar, the revenue converted to renminbi denomination declined slightly, and the exchange loss also affected the company's net profit. Judging from the order situation in the first half of this year, the market demand has gradually recovered, but it is affected by the shortage of raw materials and logistics, and the order execution cycle has been extended accordingly. At the same time, in view of the impact of the exchange rate, the company carries out foreign exchange hedging business and strengthens exchange rate risk management.

2. Is the 2.31% decline in gross profit margin in the first half of the year affected by the shortage of raw materials? Reply: There is a certain impact, although the main pressure of raw material price increases will be borne by customers, but the company will also comprehensively consider the bearing capacity of different customers, in the case of maintaining customer stability and taking into account the long-term interests of the appropriate sharing, will not transfer all the pressure of raw material price increases to customers. This is also an important reason why the company can establish long-term and stable cooperative relations with customers.

3. Can the company's production capacity meet the demand? Reply: There are no difficulties in terms of the company's production capacity for the time being. On the one hand, it can be improved by increasing the frequency; On the other hand, after the completion of the Implementation of the Longxing M&A Project, it will further increase the company's production capacity.

4. Are there performance requirements for the company's acquisition of Longxing Technology? Reply: The final purchase price is linked to the performance achievement rate.

5. Does the company have overseas production bases? Reply: At present, the company's R & D and manufacturing bases are distributed in Xiamen and Taiwan. In the current Sino-US trade war environment, the advantage of our Taiwan base is conducive to helping foreign customers solve tariff problems. In addition, we have sales centers and after-sales service agencies in the United States, Germany, Japan and key cities in China, Beijing, Shanghai, Shenzhen and Changsha.

6. It is understood that the shipping schedule in the second half of the year is very tight, does it have an impact on the company? Reply: Tight capacity does have an impact on the business, so on the one hand, we will try to advise customers to place orders in advance and fully reserve the delivery time; On the other hand, we optimize product packaging and specifications to reduce the volume and allow more products per container. In terms of freight, the company's orders are mostly FOB, and the freight is borne by the customer, and the impact is limited. Or, depending on the situation, part of the cost will be covered by agreement with the customer.

7. Domestic market expansion plan? Reply: We take the traditional ODM customer direct sales and MicroTouch brand through the dealer sales dual model to open the market, from ODM/ JDM-based R & D design and manufacturing company gradually developed into an OBM company with its own brand. For the domestic market, we have an independent business team and product planning that distinguishes it from the international market. The members of the business team are all veterans in the industry, with rich head customer resources, and have successfully formed a benchmarking effect in various application fields. At the same time, we will also establish a rapid sample R&D center in Shenzhen to enhance R&D strength, optimize supply chain management, shorten response time, and better respond to product needs of domestic customers. In terms of domestic competitive strategy, we focus on technical differentiation with competitors and continue to provide high-quality products and services; Continuously improve channel coverage and increase market share in advantageous areas; And timely carry out horizontal transfer of the industry, grasp the opportunities of emerging application areas. The company's products have been applied in many fields such as domestic airports, subways, express logistics, finance, retail, industrial control and so on.

8. What is the company's planning in the field of on-board intelligent cockpit? Reply: The field of in-vehicle intelligent cockpit is one of the key areas of the company's product research and development and market expansion. At present, the company has set up a special R & D team for vehicle-related products, and intends to develop products from the on-board touch display to the intelligent cockpit human-computer interaction system to the development path of the whole vehicle human-computer interaction system, which usually takes 1 to 2 years to be mass-produced, because the on-board equipment has very high safety requirements and needs to undergo strict testing. The way to enter the in-vehicle market: on the one hand, through the company's business team direct contact with major automotive manufacturers, on the other hand, through our dealers and service customers to carry out indirect business development.

9. Are the products in the automotive field different from other terminal application products? Reply: Different industries for commercial intelligent terminal applications have different forms, functions and performance requirements for their products. Vehicle-related products in the high temperature resistance, safety requirements are relatively high, product application before the need to go through more stringent safety testing and certification, we are also actively preparing for ISO16949 automotive production and related parts management system certification.

10. What is the proportion of revenue of the company's products in various application fields? Reply: The main forms of the company's products include all-in-one machines and displays, according to the proportion of operating income in the half year of 2021, all-in-one machines account for about 35% of our business, displays account for about 47%, and there are some touch modules and components. From the perspective of application field: catering retail accounted for the largest proportion, more than 50%; Finance + Industry about 30%; The total of others is about 15-20%. Sports and fitness is an emerging application that the company focused on developing this year, with a small number of shipments in the first half of the year, and the current orders in hand exceed $20 million, which will be shipped in the second half of the year.

11. What are the main aspects of the company's future growth? Reply: In the past two years, there are mainly the following aspects: (1) the business increase brought by MicroTouch brand promotion; (2) the demand for smart fitness market; (3) the increase in large-size products (conference whiteboards); (4) the improvement of domestic market share; Note: During the investigation, the company strictly complied with the "Information Disclosure Management System" and other provisions, and there was no undisclosed material information leakage.

Chenzhan Optoelectronics main business: optoelectronic devices and other electronic devices manufacturing; Computer manufacturing; Manufacture of computer parts; Other computer manufacturing; Manufacture of electronic components and components; Printed circuit board manufacturing; Design, development, manufacture and sale of robots and smart devices (excluding projects subject to licensing); Engineering and technology research and experimental development; Software development; Information system integration services; Information technology consulting services; Data processing and storage services; Integrated circuit design; Wholesale of computers, software and auxiliary equipment; Wholesale of other machinery, equipment and electronic products; The import and export of all kinds of commodities and technologies (without attaching a separate catalogue of import and export commodities), except for commodities and technologies that are restricted by the state to be operated by companies or prohibited from import and export; The export business of the self-produced products of the enterprise and the import business of machinery and equipment, spare parts and raw and auxiliary materials required by the enterprise (without attaching a separate import and export commodity catalog), except for the commodities and technologies that the state restricts the company to operate or prohibits the import and export.

Chenzhan Optoelectronics 2021 interim report shows that the company's main revenue of 678 million yuan, down 0.64% year-on-year; net profit attributable to the mother of 64.9113 million yuan, down 11.8% year-on-year; deduction of non-net profit of 55.5843 million yuan, down 21.27% year-on-year; debt ratio of 27.36%, investment income of 6.2964 million yuan, financial expenses of 1.847 million yuan, gross profit margin of 24.01%.