FLAC(SZ:002536)2022-12-08 05:30Group 1: Financial Performance - The company currently has an average annual revenue growth of approximately 4.5 billion CNY, with plans to produce 10 million units next year, potentially reaching a revenue of 20 billion CNY [1] - The company's gross profit margin has declined, primarily due to the dilution of profits from commercial vehicles, with efforts underway to negotiate higher prices to improve margins [2] - The company aims for a profit increase of 30% or more next year, with expectations that profit margins will rise to 5% [3] Group 2: Product Development and Market Strategy - The company is shifting its product focus away from ordinary exhaust manifolds to high-nickel and heat-resistant steel exhaust manifolds, with no plans for excessive investment or blind expansion [1] - The company is developing intelligent water pumps and electronic water pumps to align with the growth of new energy vehicles, targeting high-end passenger cars [3] - The company acknowledges competition in the electronic water pump market but emphasizes continuous quality improvement and technological advancement to maintain a competitive edge [3] Group 3: Workforce and R&D Investment - Employee wages are at a moderately high level, with average monthly incomes of 2,500-2,600 CNY in the West Gorge and Inner Xiang regions, while Zhengzhou Feilong employees earn 15%-20% more [2] - R&D expenses account for 15%-16% of total costs, primarily focused on the development of volute products [2] Group 4: Competitive Landscape - The company faces competition in the turbocharger market, with two competitors in Wuxi and one in Tianjin [4] - The processing difficulty and material standards for turbochargers and exhaust manifolds are established, with the company designing its own processes [4]