ZDG(SZ:000906)2022-12-04 10:00Group 1: Financial Performance and Market Trends - In 2019, the steel industry experienced a decline in steel prices while iron ore prices increased, leading to a slight rise in the company's supply chain integration business gross margin compared to 2018 [2] - The company reported a significant recovery in supply chain business in April and May 2020, with a year-on-year increase in physical sales volume [4] - The company’s net profit margin growth is closely related to personalized solutions in supply chain services, enhancing revenue generation capabilities [4] Group 2: Supply Chain Integration Services - The company provides comprehensive supply chain integration services, including raw material procurement, inventory management, and logistics, which cater to diverse customer needs [5] - The company has seen a rapid increase in revenue due to the rising industry concentration, with a market size of several trillion yuan [6] - The company aims to enhance service quality and cost-effectiveness by integrating multiple services for production enterprises [5] Group 3: Risk Management and Financial Strategies - The company employs price management strategies to mitigate risks associated with price fluctuations in the commodity market, primarily using hedging tools [6] - The logistics finance model serves as a bridge between banks and small to medium enterprises, addressing financing challenges and enhancing liquidity [7] - The company has established a digital transformation strategy, integrating information technology and data analytics to improve operational efficiency [9] Group 4: Future Development and Expansion - The company plans to expand its logistics finance services, which are expected to enhance customer retention and increase service offerings [8] - The company is focusing on digital transformation, utilizing technologies like blockchain and big data to improve service delivery and customer relationship management [10] - The company is exploring opportunities in the recycling economy, particularly in the steel scrap sector, with a projected growth in scrap utilization rates [15] Group 5: Competitive Advantages and Market Position - The company differentiates itself through a strong focus on supply chain integration services, aiming to create value for clients while enhancing its own profitability [13] - The company has established a robust network of subsidiaries and business units across major regions in China, facilitating nationwide service delivery [18] - The company’s return on equity (ROE) is approaching 20%, significantly outperforming industry peers, indicating strong operational efficiency [22]