Record of Investor Relations Activities for December 12, 2024
Time：2024-12-12 18:00
| Securities Code: 002886 | Securities Abbreviation: Wote Shares |
Record of Investor Relations Activities of Shenzhen Water New Materials Co., Ltd.
Number: June 2024
Investor Relations Activity Category
| □ Targeted Research □ Analyst Conference □ Media Interview □ Earnings Conference Call □ Press Conference □ Roadshow Event □ On-site visit ☑ Other (2024 Shenzhen Jurisdiction Listed Companies’ Collective Investor Reception Day Event) |
Name of Participating Organization | Investors who participated in the 2024 Collective Investor Reception Day for Listed Companies in the Shenzhen Jurisdiction via AllView Network |
Time | Thursday, December 12, 2024, 2:30 PM–5:00 PM |
Location | “Panoramic Roadshow” website (http://rs.p5w.net) |
Name of the接待 personnel for the listed company | Chairman: Wu Xian |
Overview of the Main Content of Investor Relations Activities
| Questions Raised by Investors and the Company’s Responses The company responded to the questions raised by investors during this briefing: 1. In the first three quarters of 2024, Water Shares reported a 16.29% year-on-year increase in revenue. How does the company plan to further intensify its efforts in market development for new technologies and new products? Dear Sir/Madam, our company will continue to place a high priority on and invest heavily in the research and development of new technologies, with the aim of enhancing the technological sophistication and value-added content of our products and meeting customers’ demand for high-performance, high-quality materials. At the same time, we will relentlessly explore the market potential in downstream sectors such as new-energy vehicles, the low-altitude economy, high-speed communications, and semiconductors, providing customers with customized material solutions, expanding our market share, and driving revenue growth. Thank you! 2. For two consecutive years, the company has allocated 6% of its revenue to R&D. Have these investments yielded concrete outcomes that can be translated into productivity gains—for example, significant reductions in production costs or the development and launch of a proprietary new product? If no such outcomes have been achieved, could R&D spending be reallocated to boost corporate profitability? Going forward, will the company further increase the proportion of its budget devoted to R&D? Good afternoon! The company remains committed to its specialty polymer materials strategy, which entails both continuously closing the gap with leading international technologies and closely collaborating with customers on the development of new technologies and products. Our R&D efforts are steadily being translated into mass-produced offerings. In addition to ongoing investments in technology and market development, we will further enhance our marketing infrastructure to strengthen our ability to deliver strong returns to our investors. Thank you. 3. Your company boasts a wide array of cutting-edge materials that address critical domestic material shortages and help resolve foreign supply-chain bottlenecks. However, how can these technological breakthroughs be translated into tangible economic benefits? Hello! The company will steadfastly pursue its strategy in specialty polymer materials, continuously deepen customer collaboration, and intensify efforts in the development of new technologies for product commercialization as well as in the market application development of new products. Thank you! 4. How is Watertech Co., Ltd. adjusting its product portfolio to align with market changes amid growing demand in downstream applications such as new-energy vehicles and the low-altitude economy? Hello! To meet the growing demand from downstream applications such as new-energy vehicles and the low-altitude economy, the Company is steadfastly implementing a platform-based strategy for specialty polymer materials. On one hand, we are continuously expanding our market share in specialty polymers such as LCP, PPA, and PPS, thereby driving the high-end transformation of our business. On the other hand, we will intensify R&D investment and innovation to enhance our market competitiveness in the specialty polymer materials sector, thus supporting the Company’s high-quality strategic development in the new materials field. Thank you! 5. Huizhou Wote primarily focuses on automotive plastics and is on track for more than 30% growth this year, which would translate into annual output value exceeding RMB 260 million. Given this outlook, the question is whether Huizhou Wote’s production capacity has reached saturation and whether the company can further ramp up its marketing efforts in the new-energy-vehicle sector to capitalize on the rapid growth of the automotive industry and elevate its operational scale to the next level. Hello! The lightweight materials developed by Huizhou Wote are primarily used in the field of low-altitude aerial vehicles, such as drones. The company’s new-energy-vehicle materials business also posted solid growth compared with 2023; please refer to the relevant sections of the company’s 2024 annual report for further details. Thank you for your suggestion. Thank you!
6. How has your company’s strategic positioning in the semiconductor sector, particularly the acquisition of Waters’ PTFE business, impacted your financial performance? Hello! The Company’s acquisition of full ownership of Huaben has made a positive contribution to its operating performance. At the same time, this acquisition has enabled the Company to enter both the global and domestic semiconductor supply chains. Thank you! 7. In the first half of the year, Huaben PTFE reduced production due to market conditions; prices rose in the fourth quarter. Is capacity now at full utilization? Hello! The company will appropriately plan production capacity in line with market demand and strategic objectives. Thank you! 8. Could you please outline your 2025 development targets in more specific terms? For example, a 30% increase in revenue and a 100% increase in profit. I believe these targets are not particularly challenging for you; in fact, you could easily set an annualized growth rate of 50%. Could you therefore give more serious consideration to the pace of your growth and ensure that it is effectively implemented? Hello! Based on a comprehensive assessment of multiple factors, the company is progressively refining its 2025 business plan, which includes quantitative targets and corresponding supporting action plans. We appreciate your attention and valuable suggestions. Thank you! 9. Dear Secretary of the Board, could you please inform us of the company’s shareholder count as of December 10? Hello! The company discloses the number of shareholders on a regular basis through its periodic reports. Please refer to the company’s relevant periodic reports. Thank you! 10. Dear Chairman, in order to further strengthen and expand the company, does the company have any incentive programs for senior management and employees? Hello! The Company’s 2024 Employee Stock Ownership Plan has been implemented. Please stay tuned for future updates and next year’s incentive programs in the Company’s public announcements. Thank you for your suggestion. Thank you! 11. Will strategic investment be brought in to strengthen the company, and is there a market-capitalization management plan? Hello! Our company has consistently adhered to a strategy focused on specialty polymer materials and has always placed the long-term, healthy, high-quality development of the enterprise at the core of our market-capitalization management. We appreciate your attention and valuable suggestions. Thank you! 12. By what percentage did the company’s operating revenue increase year over year in the third quarter of 2024, and what was the exact amount of the increase? Hello! In the third quarter of 2024, the company’s operating revenue increased by 23.82% year on year, representing a growth of RMB 92.4 million. Thank you! 13. In the first half of 2024, Water Shares achieved operating revenue of RMB 807 million, a year-on-year increase of 12.23%. Which business segments were primarily responsible for this growth? Hello! Our company is firmly committed to implementing a platform-based strategy for specialty polymer materials, continuously expanding our market share across various sectors. Thank you! 14. When will the Chongqing LCP production line and PEEK production officially commence, and when will they begin generating revenue? Hello! The company is currently actively communicating with the relevant authorities. The project has already passed the expert review at the comprehensive acceptance meeting for safety facilities, but is still in the process of completing the subsequent related procedures. Please stay tuned for the company’s future announcements. Thank you! 15. Hello, Chairman Wu! Given that your company is based in a city renowned for its innovative vitality, could you please tell us whether your company has any business dealings with Shenzhen Zhixin Huawei, particularly in the areas of 5G applications and 6G development, as well as in fields such as Huawei Robotics? If so, what is the current level of these collaborations? Thank you! Hello! Our company will fully leverage the locational advantages of Shenzhen and actively promote collaboration with leading local enterprises. Thank you for your suggestion. Thank you! 16. Chongqing Water has already passed the safety acceptance inspection. Has the full acceptance process been completed? When is formal production expected to commence? What is the capacity utilization rate during the trial operation? Hello! The Company’s under-construction project in Chongqing has now achieved scaled production capacity. The Company is actively coordinating with the relevant regulatory authorities to complete the subsequent necessary procedures. Please stay tuned for the Company’s future announcements for specific updates. The quality of the products from the trial production phase has already met the Company’s planned targets, and the Company will further intensify its market development efforts going forward. Thank you! 17. What is Water’s capacity deployment in the field of specialty polymer materials, particularly in liquid crystal polymers (LCP)? Hello! The company currently has an LCP synthetic resin production capacity of 5,000 tonnes, and once the under-construction capacity is commissioned, total annual LCP resin production capacity will reach 25,000 tonnes. Thank you! 18. The company has seen a significant increase in verified customers. What is the current status of new large-volume supply clients? Have any long-term contracts been signed with major customers? Hello! If the relevant business agreements meet the information disclosure requirements, the company will fulfill its information disclosure obligations in accordance with applicable regulations. Thank you! 19. What were Water Shares’ gross and net profit margins in the third quarter of 2024, and how did they compare with the same period last year? Hello! As the company’s specialty materials business continues to grow, profitability has steadily improved. Thank you! 20. In the third quarter of 2024, Water Shares’ net profit increased by 138.65% year on year. What are the key drivers behind this substantial growth? Hello! As the company’s specialty materials business continues to grow, profitability has steadily improved. Thank you! |
List of Attachments (if any) | None |
Date | December 12, 2024 |
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