DMEGC(SZ:002056)2022-12-03 08:58Group 1: Magnetic Materials Overview - Soft magnetic materials had a sales revenue of 900 million in 2017, with an annual production of 18,000 tons and a domestic market share of approximately 8% [1] - In 2018, the growth in soft magnetic materials was stable, primarily driven by the automotive electronics and wireless charging sectors, with a gross margin around 30% [1] - Permanent magnetic materials had a production of 107,000 tons in 2017, maintaining a domestic market share of 13% [1] Group 2: Cost Structure - In 2017, the cost composition of magnetic materials included raw materials (35.34%), labor (29.81%), depreciation (4.37%), energy (13.70%), and others (16.78%) [3] Group 3: Recent Acquisitions and Performance - Chengji Electronics, acquired by the company, had a sales volume of 150 million vibration motors in 2017, capturing 30% of the national market and 12.2% of the global market [3] - In 2018, Chengji Electronics' sales volume is expected to reach 220 million units, representing 51% of the national market and 18.6% of the global market [3] - The revenue for Chengji Electronics in 2018 was over 300 million, with a promised net profit of over 33 million, projected to reach around 40 million in 2019 [3] Group 4: Solar Energy Sector - Despite a rapid price decline in the photovoltaic industry post "531 New Policy," the company maintained full production capacity, with a significant portion of sales in foreign markets [4] - The solar energy sector is characterized by strong customer stability, effective cost control, and high technology conversion rates, aiming for steady progress in 2019 [4] Group 5: Future Outlook - The company plans to maintain steady and high-quality development in 2019, despite a challenging macroeconomic environment [4] - The permanent magnet industry is facing sales declines and increased inventory, but the company aims to stabilize this sector by increasing market share [4] - The soft magnetic materials sector will focus on new materials, products, and market expansion to sustain growth [4]