Hechuan Technology has been investigated by 21 institutions： medium and large PLC, and we have begun to promote it in the market. At the same time, iterating new products such as Q7 and Q9 will bring
Hechuan Technology released the record form of investor relations activities on November 7, and the company was investigated by 21 institutions on November 3, 2023. The types of institutions are QFII, others, fund companies and securities companies. Introduction to the main contents of investor relations activities: 1. Review of the results in the third quarter of 2023 1. Operating income In the first three quarters of 2023, the company achieved operating income of 885 million yuan, a year-on-year increase of 26.14%. Mainly due to the photovoltaic industry continues to maintain a good development trend, the company’s products in the photovoltaic industry customer sales increased. 2. Net profit attributable to the mother In the first three quarters of 2023, the company realized a net profit attributable to the mother of 63,135,500 yuan, a year-on-year decrease of 29.72%, mainly due to: (1) the implementation of the big terminal strategy. The company’s major customers are concentrated in the photovoltaic industry. In order to enter the market quickly, the sales price of products has decreased, and at the same time, due to the impact of product upgrading, the gross profit margin of the company’s products has decreased. (2) Implement the overall solution strategy. In order to deeply penetrate the overall solutions of downstream industries, the company increased its business and technical investment in traditional sub-sector solutions, resulting in an increase in related personnel and sales expenses. In order to improve the overall solution capability of industrial automation and expand the product lines of control, drive, transmission and sensing layers, the company set up a new product line division and continued to increase investment in new product research and development, resulting in an increase in research and development expenses. 3. R&D investment In the first three quarters of 2023, the company invested 106 million yuan in R&D, accounting for 11.93% of operating income, up 44.65% year-on-year.
Q: What is the company’s product strategy?
A: Dear investors, hello! The company’s current product strategy includes: (1) Continue to promote one-stop product solutions such as servo, PLC, touch screen, sensor and frequency converter. (2) Research and development of new products in the fields of industrial motor, guide screw, photovoltaic inverter and humanoid robot, which will be launched one after another. thank you
Q: What is the company’s industry layout?
A: Dear investors, hello! Since the fourth quarter of last year, the company has laid out traditional industries, continuously increased investment in traditional industries, and promoted our complete set of solutions in textile, logistics, packaging, CNC, wire harness, printing, medical care, semiconductor and other industries. thank you
Q: In what specific directions has the company made a key layout?
A: Dear investors, hello! The company has made a key layout in the following specific directions: (1) The company’s new generation controller has been released, which will increase the investment in the underlying software of the controller. (2) The company will continue to invest in basic products such as sensors and frequency converters to enrich the product matrix. (3) The company will increase investment in core components/joint components of humanoid robots. (4) Increase the input of transmission and new industrial motors. thank you
Q: What is the growth prospect of the downstream of the new energy industry next year?
A: Dear investors, hello! The growth rate of new energy industry is slowing down, and the future trend is uncertain. At present, our main goal is to expand the sales scale in the stock market and strive to get more market share. thank you
Q: What are the main potential markets downstream of the guideway?
A: Dear investors, hello! At present, the market of the company’s guide rail products is mainly in the field of industrial automation, and it will be distributed to the CNC machine tool industry in the future. thank you
Q: In the future, will the gross profit margin be further reduced for the company’s promotion of key customers?
A: Dear investors, hello! Our gross profit in the photovoltaic industry is not lower than the average of the same industry in China. The next step is to expand the share by digging deep into the different models of a single customer. We will package the controller, module and servo as a whole, cut into the whole solution and balance our gross profit. thank you
Q: What’s the progress of large and medium-sized PLC in the company?
A: Dear investors, hello! Large and medium-sized PLC, we have begun to promote in the market, and iterative new products such as Q7 and Q9 will bring higher performance and smoother motion control ability. thank you
Q: What is the layout of the company after the development plan of humanoid robot comes out?
A: Dear investors, hello! We already have the technical accumulation of motor, encoder, sensor and other products. In the future, besides customizing components for customers, we will also actively develop towards components. Next, the communication and exchange meeting with major customers will be more in-depth. thank you
Q: What is the significance of signing strategic cooperation between the company and bosch rexroth?
A: Dear investors, hello! Bosch rexroth’s strategic investment in Hechuan and its intention to establish a subsidiary company reflect its confidence in the future development of Hechuan Technology and China Industrial Automation. Both parties will give full play to their respective advantages and carry out in-depth cooperation to promote the further development of China’s industrial automation industry. thank you
Q: What is the background and future cooperation form between the company and bosch rexroth?
A: Dear investors, hello! Because Dr Rexroth has profound technical accumulation in the field of industrial automation, and Hechuan’s global cost competitiveness, it will combine its own technology with China’s technology and make more products in China, which is our great cooperation background. The company cooperated with Dr. Rexroth to set up a subsidiary with a second brand; There will be more in-depth follow-up planning between the company and Dr. Rexroth. thank you
Q: Tell us about the global distribution of Hechuan brand and how the joint venture brand can be sold through the sales network in bosch rexroth.
A: Dear investors, hello! At present, the brand of Hechuan has begun to be internationalized, and the products of joint venture brands and Hechuan can also be sold through bosch rexroth’s global sales network. thank you
Q: What is the business relationship between Leda Bochuan and Leda Bohua?
A: Dear investors, hello! Leda Bochuan is a joint venture between Hechuan and bosch rexroth, and Leda Bohua is currently a wholly-owned subsidiary of bosch rexroth. We will take over the automation business done by Leda Bohua first, and then take over other advantageous products, and implement a step-by-step strategy. thank you
Q: Can you interpret the flexible conveying system mentioned in the cooperation between the company and bosch rexroth and the ownership of the subsidiary?
A: Dear investors, hello! The products basically determined by the joint venture company are controllers, servos and FTS (Flexible Linear Production Line), and the intellectual property rights of these products belong to the joint venture company. If it is an OEM product, it will be authorized first. The joint venture company will also invest in research and development and produce its own products. thank you
Q: What is the product forecast of the joint venture between the company and bosch rexroth?
A: Dear investors, hello! At present, the cooperation between Hechuan and bosch rexroth is jointly developed by both sides. The first generation products of the joint venture company are the products from bosch rexroth or Hechuan. The second generation of products is to use the advantages of Hechuan and bosch rexroth to launch superimposed products. thank you
Q: Product layout and brand positioning of the company and its subsidiaries in bosch rexroth?
A: Dear investors, hello! We will use Dr. Rexroth’s technology in controller, high-performance servo and other aspects, plus Hechuan’s technology and manufacturing ability to produce new combined products, and the second brand produced is mainly to replace imported brands. The brand positioning of the joint venture company is in the middle and high-end market, and its main competitors are mainly foreign brands such as European and Japanese, including domestic head brands. We will respond to the market with superimposed technology and the cost advantage of Hechuan. We will also use bosch rexroth’s brand influence to enter some markets that are still difficult for domestic brands to reach. Thank you;
Details of participating institutions are as follows: