ERA(SZ:002641)2022-12-08 08:44Group 1: Company Overview - Yonggao Co., Ltd. is involved in the production of plastic pipes, with a focus on the impact of Zhejiang Province's "Five Water Co-Governance" initiative on its operations [1][2]. Group 2: Sales and Marketing Strategy - The company's sales model is primarily channel distribution (approximately 65%), with engineering contracts (including real estate delivery) at about 25%, and exports making up around 10% [2]. - The company is exploring innovative marketing methods through social media platforms like Weibo and WeChat, and is assessing the feasibility of online store sales [2]. Group 3: Production and Supply Chain - Yonggao has seven production bases located in Tianjin Binhai New Area, Chongqing, Shanghai Pudong, Anhui Guande, Zhejiang Huangyan, and Guangzhou and Shenzhen in Guangdong [2]. - The main raw materials for production, including PVC-U, PVC-C, PPR, and HDPE, account for approximately 70-80% of the production costs, with fluctuations in raw material prices significantly affecting profitability [3]. Group 4: Financial Performance - The company has experienced a decline in net profit over the past two years due to rising labor costs, increased raw material prices, reduced sales prices, and higher depreciation [3]. - An improvement in sales revenue and net profit is anticipated for the upcoming year [3]. Group 5: Corporate Governance - Currently, there are no specific plans for equity incentives, but the company is considering implementing an equity incentive plan in the future [3].