Changhai shares by 2 institutions research: the first half of this year, glass fiber wet thin felt nine lines of production, the expansion of production capacity has a role in promoting.

Changhai shares (300196) on October 26 released the investor relations activity record form, the company on October 26, 2022 to accept 2 institutional units research, the type of institution is a securities company.

Introduction to the main contents of investor relations activities:

Q: The company briefly reported the operation in the third quarter of 2022?

A: In the first half of this year, the demand for downstream applications of major domestic glass fiber remained stable, overseas market demand recovered, and the overall market was in line with expectations. Since the second quarter, the concentrated release of new capacity in the industry has put some pressure on prices. At the same time, the global energy supply and demand tension and global inflation caused by the conflict between Russia and Ukraine continue to intensify, and the world economy continues to be depressed. In the third quarter, the overall inventory pressure of the industry was large, the overall market demand was weak, the demand in some downstream applications was backward, the price of roving fell, the overseas demand fell in the third quarter, and the export decreased month-on-month, resulting in the increase of industry inventory.

Combined with the domestic and foreign economic situation, according to the market supply and demand situation, timely adjustment of product structure and sales strategy, increasing market share, the main product sales increased month on month, to achieve the growth of operating income. However, gross margin declined month-on-month due to the year-on-year decline in sales prices of some products. From January to September this year, the company achieved revenue of 2.296 billion yuan, a year-on-year increase of 25.26; net profit attributable to the parent company was 0.602 billion yuan, a year-on-year increase of 43.14; non-net profit was 0.524 billion yuan, a year-on-year increase of 44.37. Among them, the revenue in the third quarter was 0.759 billion yuan, up 15.97 percent from the same period last year; the net profit attributable to the parent was 0.174 billion yuan, up 7.99 percent from the same period last year; and the non-net profit was 0.152 billion yuan, up 10.94 percent from the same period last year.

Q: The price of Q3 roving has fallen very sharply, close to the bottom of the last round, is it possible that the bottom of this round is even lower than the bottom of the last round? How do you look at the supply and demand situation in the fourth quarter and next year, how do you look forward to next year's price, and will it recover next year compared to this year's ring?

Answer: The company is mainly selling products. The products are used in building materials, new energy vehicles, rail transit and other fields. There are many long-term association customers, and it is unlikely that the price will be lower than the bottom price of the last round. With the gradual expansion of glass fiber applications, we believe that the future glass fiber industry is still an upward trend of the industry.

Q: What is the development progress of the company's application of wind power products?

Answer: The 30000-ton to 80000-ton tank kiln production line of the company's subsidiary Tianma Group is dedicated to high-end fields such as wind power and new energy vehicles. After it is put into production, the product structure will be optimized. The company will start the project at the right time according to production and market demand. Technical renovation and expansion.

Q: What is the progress of the company's thin felt capacity expansion plan?

A: In the first half of this year, the production of nine lines of glass fiber wet felt has a promoting effect on the expansion of production capacity. In the future, the company will gradually build the remaining three thin felt production lines according to market demand.

Q: Like thermoplastic and wind power field, how to look at the future competitive environment between several major suppliers.

Answer: In the future, the proportion of thermoplastic products in the application end will be higher and higher. For new energy vehicles, it is also the main material for lightweight, because it mainly uses plastic modified particles, and the application of plastic modified particles in all walks of life is constantly expanding. Wind power is the future of the national industry-oriented products, both for the glass fiber industry is a new increment. We are optimistic about the healthy development of the glass fiber industry for a long time.

Q: What is the sale of rhodium powder in the third quarter of 2022? What is the company's plan for the sale of rhodium powder in the future?

A: The company sold a small amount of rhodium powder in the third quarter of 2022. The company will sell rhodium powder at market prices in the future.

Q: Is there a decline in demand in the European market in Q3?

Answer: The global energy supply and demand tension and global inflation caused by the conflict between Russia and Ukraine continue to intensify. The European market demand is weak, and exports in the third quarter fell from the second quarter.

At present, the US dollar exchange rate continues to rise and the global inflation problem continues to intensify, which may lead to tension between supply and demand.

Q: What is the company's subsequent product structure?

A: The company's future product layout in the field of thermoplastic and wind power, the proportion of raw yarn and sales will continue to increase in the future. With the expansion of the company's production capacity, the product end also has a corresponding increase.

Q: If the thermoplastic piece, the client will have more work to do? Does it mean that the thermoplastic piece can be based on diversified customer needs to do stronger customer stickiness and more stable pricing, this piece also has the possibility of giving birth to the next star product similar to wet-process thin felt right?

Answer: Yes, because it is used more in household appliances and industrial fields. More and more thermoplastic fibers are used on some parts of new energy vehicles. Now most of the market thermosetting conversion to thermoplastic this trend is more obvious, because the supply and demand and cost of thermosetting compared with thermoplastic competitive advantage is getting smaller and smaller, so now most of the thermosetting to thermoplastic.

In the past, most of the thermosetting products were combined with chemical products a little more, and then made into thermosetting products. Now are directly with modified plastic particles plus thermoplastic fiber to play a reinforcing role, the efficiency is relatively high. Individual products are still thermosetting, but most of the new energy vehicles have gradually changed from thermosetting to thermoplastic.

Q: Thermosetting to thermoplastics is an overall upgrading direction of fiber reinforced materials, just to say that the permeability of replacement in new energy vehicles will increase more obviously and faster?

Answer: Thermoplastic is a development direction in the future, so as to gradually replace the thermosetting market, mainly in the fields of automobiles, rail transit and white goods, and engineering plastics account for an increasing proportion of building materials, and the application field is constantly expanding;

The main business of Jiangsu Changhai Composite Material Co., Ltd. is the research and development, production and sales of glass fiber products and glass fiber composite materials. The main products include glass fiber yarn, chopped felt, wet felt, composite partition, coated felt, etc. The company is one of the few domestic glass fiber enterprises with a complete industrial chain from glass fiber production, deep processing of glass fiber products to glass fiber composite material manufacturing. It is one of the largest comprehensive production enterprises of non-woven glass fiber products in China. It is also one of the few high-tech enterprises in China that can manufacture high-end glass fiber felt products and continue to carry out deep processing of products.