Huaguang Welding(688379)2021-12-31 09:42Revenue Structure - Refrigeration industry chain accounts for approximately 63% of total sales revenue [2] - Electric vacuum field accounts for about 16% of total sales revenue [2] - Motor field accounts for about 7% of total sales revenue [2] - Other fields account for about 14% of total sales revenue [2] Key Clients - Major clients in the refrigeration industry chain include Gree, Midea, Haier, Hisense, and Aux [2] - Other clients in the refrigeration industry chain include Meizhi, Lingda, Haili, Mitsubishi, and Panasonic for compressors, and Sanhua, Danfoss, and Dunan for refrigeration valves [3] Sales Growth - Product sales increased by over 30% from January to September 2021 [3] - Sales growth is attributed to market share expansion in refrigeration, electric vacuum, motor, and electronic fields, as well as new market and overseas market development [3] Core Competencies - 26 years of focus on brazing technology R&D and high-quality brazing material manufacturing [3] - Possesses core technologies in brazing material formulation and product preparation processes [3] - Holds 85 patents, including 34 invention patents [3] - Offers a wide range of products with thousands of specifications, capable of customized design, flexible production, and mass production [3] Gross Margin Decline - Gross margin decline in Q3 2021 due to a significant drop in silver prices and rising costs of phosphorus and other production materials [4] - Sales price and procurement cost linkage had a lag, impacting gross margin [4] Electric Vacuum Applications - Electric vacuum devices are used in microwave magnetrons, vacuum interrupters, DC relays, discharge tubes, thyristors, and ceramic seal connectors for new energy vehicle batteries [4] - Sales in 2021 showed significant growth compared to 2020 [4] New Energy Vehicle Sector - Welding materials are used in high-voltage DC relays, ceramic seal connectors for power batteries, and welding of drive motors and automotive connectors [4] - Clients choose the company for its strong R&D capabilities, diverse product offerings, stable product quality, timely delivery, and technical services [4] Future Plans - Focus on aluminum-based brazing materials, with ongoing R&D for flux-cored aluminum-based brazing materials for air conditioning applications [4] - Expansion into larger market segments such as silver paste and soft solder for electronic connection materials [5] - Strategic goal to become a leading global provider of functional connection materials and solutions, offering integrated services including welding materials, welding equipment, and welding technology [5] Fundraising Projects - Three fundraising projects are underway, with two showing gradual results and capacity improvements [5] - The "Annual 4,000 Tons of New Green Brazing Materials Intelligent Manufacturing Construction Project" is in the civil construction phase, with equipment introduction and production expected by the end of 2022 [5] - Full capacity release is anticipated after 2023 [5]