DOUBLE ARROW(SZ:002381)2022-11-19 01:30Group 1: Financial Performance - The company's net profit attributable to shareholders decreased by 52.82% in 2021, with a gross margin decline of 11.93% due to rapid increases in raw material prices that could not be fully passed on to product prices [3] - The company reported a foreign sales revenue of 334 million, primarily to Europe and Asia, with the main settlement currency being USD [4][5] - The company anticipates a 15% growth in current orders compared to the same period last year [10] Group 2: Raw Material and Pricing Issues - The price of natural rubber (standard rubber) dropped from 13,700 CNY/ton on December 31, 2021, to 12,400 CNY/ton on April 26, 2022, but remains high compared to 2019 and 2020 [3] - The company indicated that the transmission of raw material price increases to product prices typically experiences a lag of about one quarter [6] - The company has raised product prices in response to raw material price hikes, but the order-based production model results in a delay in price adjustments [9] Group 3: Production Capacity and Expansion - The company plans to expand its production capacity to 75 million square meters per year, including a project for 15 million square meters of high-strength energy-saving conveyor belts and another for 60 million square meters [4] - The construction of the new production base is expected to take approximately 36 months [5] - The company aims to achieve a production capacity of 150 million square meters by the end of the 14th Five-Year Plan [8] Group 4: Market Position and Strategy - The company holds a market share of approximately 13% in the conveyor belt industry, with plans to double its market size by the end of the 14th Five-Year Plan [7] - The company is focusing on developing intelligent conveyor belt projects, which are expected to enhance profit margins [7] - The company emphasizes its competitive advantages in quality, price, and lifespan, particularly in high-tech energy-saving conveyor belts [10] Group 5: Diversification and New Ventures - The company is gradually expanding into the elderly care sector, which currently represents a small portion of its overall business [3] - The elderly care business is seen as a long-term strategic growth area, with plans to develop facilities in the Yangtze River Delta region [10] - The company has established partnerships with various professional institutions to innovate in smart conveyor systems [9]