ZHONGYEDA(SZ:002441)2024-09-05 10:28Group 1: Company Overview - Zhongyeda is the largest industrial electrical distribution service company in China, focusing on low and medium voltage electrical and industrial automation product distribution, system integration, and complete product manufacturing, providing customers with one-stop industrial electrical product services and system solutions [1][2]. Group 2: Customer Needs and Distribution Strategy - Different customer needs vary; some prioritize brand, others quality, price, or service, and delivery time. The company, as a multi-brand distributor, can meet diverse customer demands [3]. - The company signs annual distribution framework agreements with suppliers, which may be adjusted based on market conditions, project specifics, and actual circumstances. Suppliers consider the company's procurement performance and market expansion when providing sales discounts [3]. Group 3: Procurement and Inventory Management - Most distribution products are purchased from suppliers before being sold to downstream customers, necessitating a certain inventory level to meet customer demands. Regular products are stocked based on market and customer needs, with lead times ranging from 2 weeks to 3 months [3]. - The company has policies for inventory management and turnover rate improvement, including return and exchange policies for slow-moving products [3]. Group 4: Brand Distribution - The company adheres to a multi-brand strategy, distributing products from nearly 200 brands and over 1 million SKUs, with a significant proportion of foreign brand procurement (76.41%) [4]. - The top five suppliers in 2023 are Schneider, ABB, Siemens, Changshu Switch, and Delixi, accounting for a substantial portion of the company's procurement [4]. Group 5: International Business Expansion - The company plans to increase capital by SGD 42 million to its wholly-owned subsidiary to promote overseas expansion, particularly in Southeast Asia's electrical automation distribution market [4].