| In the first quarter, the utilization efficiency of sales expenses was improved. 8. Investors: Will the price of the company’s products continue to be maintained as the pulp price goes down? A: Dear investors, thank you for your question. The company will combine market conditions Adjust the sales price accordingly. On the whole, the prices of high-end products are relatively stable. The company will continue to promote the increase in the proportion of high-end product revenue and optimize the profit structure. At the same time, the company will select some mass-market single products and carry out gradual promotions to maintain a stable and competitive profit level. 9. Investors: How about the pulp cost in the second quarter? A: Dear investors, thank you for your question. Pulp prices will gradually decline in the fourth quarter of 2022, and the company has also taken corresponding measures to actively respond . at present, Pulp stocks are in reasonable condition. If the pulp price continues to decline in the future, the company’s production costs will gradually decrease. 10. Investors: Future plans and expectations of Sun brand? A: Dear investors, thank you for your question. The sun brand pursues cost performance Compared with the positioning of the younger and sinking market, it will serve as a powerful supplement to the main brand Jierou. Through the upgrade of packaging design, more young consumers are attracted, and the market tends to sink in terms of product specifications and prices. Main Contents of Investor Relations Activities 1. Investors: 1. The company’s market share in the past three years, 2. The pulp price trend in 2023, 3. The company’s production capacity Answer: Dear investors, hello! Thank you very much for your attention and support to the company! 1. Regarding the company’s market share, the company currently does not provide relevant data, please ask a third-party professional organization for information. 2. Pulp is an international bulk raw material, and its price is affected by many factors . The price of pulp in 2023 will drop compared with that in 2022 , and the future trend needs to be further observed. 3. The current production capacity of the company is more than 800,000 tons. 2. Investors: 1. Personal care from 100 million in 20 years to 76 million in 21 years to 0.5 in 22 years . At the same time, the company has canceled and withdrawn from many companies related to Dolemi. What is the later planning of personal care products and if they continue to operate , What are the specific and feasible actions? 2. Overseas sales are maintained at about 200 million per year. On the current basis , what specific actions will the company take to expand overseas in the future? 3. Pulp prices are on a downward path , and the company’s inventory has increased by 500 million on the basis of 21 years. Is it reasonable? 4. End of period 1.248 billion in cash and equivalents , and 200 million large certificates of deposit in other current assets , reported During the reporting period, 600 million new short-term loans were added, and short-term loans were also increased in the first quarter 581 million, 165 million certificates of deposit reasonable? The cash and its equivalents at the end of the first quarter were 18.87 ; the rationality of large deposits and large loans ? 5. The top five suppliers account for 53.8 % . If there are special circumstances such as supply interruption, what is the company’s plan ? 6. Other payables are maintained at around 800 million per year. What are the specific details or expenses over the years? 7. What is the term and method of the credit period? What measures will be taken if the deadline is overdue? 8. In 22 years, the company added more labor lawsuits , the reason and the subsequent improvement measures? 9. The actual controller and his family account for 50% of the company’s shares and enjoy equity incentives. What’s the point? Answer: Dear investors, hello! Thank you very much for your attention and support to the company! 1. “Duo Lei Mi” is a strategic brand that the company will continue to invest in and develop in the future. The company firmly promotes and cultivates the development of “Duo Lei Mi” care products . In 2022 , the company will reorganize the care products business, adjust and optimize the operation model and sales channels, and the sales performance of online channels will be affected in the short term. After iterative upgrading of products, the new VI series of Dolemi sanitary napkins and the new series of Zero Sensation Suction were launched to promote in all channels to achieve global retail, and the Dream Girl series was upgraded to shape the brand value of Dolemi. 2. Overseas market companies have established special teams to speed up product design and channel layout. Carry out customer development and market expansion in a planned way. 3. At the end of 2022, the book value of pulp inventory increased by about 30% compared with the beginning of the year, mainly due to the increase in the purchase cost of pulp boards, and the number of pulp boards decreased slightly compared with the beginning of the year . Pulp board stocks are currently at a reasonable level. 4. Through low-cost financing, the company reasonably avoids exchange risks and utilizes financial The tool hedges financing costs and increases financial returns. 5. The top five suppliers are all pulp board suppliers. The company maintains a good strategic partnership with global leading pulp suppliers. In 2022 , when the global supply chain is in chaos, the company has no risk of shortage of raw materials, and has also obtained stable and competitive raw material supply sources. 6. Other payables are mainly unpaid customer fees. 7. The company will issue a letter of credit to the supplier when purchasing pulp board abroad, and the credit period ranges from 30 to 180 days. There is no letter of credit for the company’s payment receivable from customers. 8. Affected by the overall market environment in 2022, the company will not Some optimizations can be avoided. The company always adheres to the purpose of corporate compliance , continues to build compliance, and increases employee ability and quality training, so that employees have sufficient ability to perform their duties. 9. The incentive objects of the company’s 2022 equity incentive plan include company directors , senior managers and middle-level backbones. The actual controller of the company and his family were not involved. 3. Investors: Hello, may I ask if our company’s current production capacity is at full capacity? In addition, the company’s newly expanded 300,000- ton bamboo pulp and paper project in Dazhou, Sichuan will use bamboo from Sichuan as raw materials, right? The company used to only use imported wood pulp. What is the reason for introducing domestic bamboo pulp production capacity this time? Are you planning to lay out low-end production capacity? Thanks! Answer: Dear investors, hello! Thank you very much for your attention and support to the company! The company is currently in full production. Based on limited and diversified strategic considerations , the company has deployed a 300,000 -ton bamboo pulp and paper integration project in Dazhou, Sichuan. Bamboo pulp will not be ruled out for use in Sun brand products in the future. Jierou brand products insist on using imported wood pulp raw materials to maintain high-end brand positioning. 4. Investors: What are the main reasons for the company’s revenue to decrease by 6.37% year-on-year and net profit to decrease by 39.77% in 2022? Can it turn a profit in a few years? Answer: Dear investors, hello! Thank you very much for your attention and support to the company! Investors are invited to pay attention to the announcement and annual report information. In 2022 , facing the complex and ever-changing international and domestic situations, coupled with factors such as sharply rising raw material prices and increasingly intensified market competition, the company will face enormous operating pressure. Against this background, the company has always maintained high morale and actively responded. Through effective measures such as product price increase, category structure optimization, channel structure adjustment, and cost reduction and efficiency increase, the company has improved operating efficiency and eased operating pressure to a certain extent. Competitive profitability . Affected by domestic macroeconomic fluctuations, superimposed product price increase strategies and category and channel structure adjustments, the company’s sales will be affected to a certain extent in the short term. During the reporting period, the company achieved operating income of 8.57 billion yuan, a year-on-year decrease of 6.34 % . Influenced by rising packaging material and energy prices and rising production costs, the company will realize a net profit of 350 million yuan attributable to shareholders of listed companies in 2022 , a year-on-year decrease of 39.77%. Although our company’s net profit has declined, it is still in a profitable state. 5. Investors: The tissue paper industry is highly competitive. Who are your main competitors? How to maintain market advantage? Answer: Dear investors, hello! Thank you very much for your attention and support to the company! According to the ” 2021 Annual Report on the Household Paper and Hygienic Products Industry”, the top four household paper manufacturers in 2021 are: Hengan, Vinda, Jinhongye , and Zhongshun Jierou. Through continuous brand building and quality assurance, steady pace of production capacity layout and channel expansion, the company has become one of the representative brands of high-end household paper in the market , ranking first in the household paper industry, and has won the majority of consumers and the capital market. recognition. The company has always been adhering to the value concept of “only care about you”, continues to cultivate consumer demand, and uses strong R&D and innovation capabilities to continuously upgrade and optimize products, and is committed to providing consumers with better quality and more comfortable products that better meet individual needs. Products, enhance consumers’ reputation for the company’s products, and continue to strengthen and consolidate brand power. 6. Investors: The tissue paper industry is highly competitive. Who are your main competitors? How to maintain market advantage? Answer: Dear investors, hello! Thank you very much for your attention and support to the company! According to the ” 2021 Annual Report on the Household Paper and Hygienic Products Industry”, the top four household paper manufacturers in 2021 are: Hengan, Vinda, Jinhongye , and Zhongshun Jierou. Through continuous brand building and quality assurance, steady pace of production capacity layout and channel expansion, the company has become one of the representative brands of high-end household paper in the market , ranking first in the household paper industry, and has won the majority of consumers and the capital market. recognition. The company has always been adhering to the value concept of “only care about you”, continues to cultivate consumer demand, and uses strong R&D and innovation capabilities to continuously upgrade and optimize products, and is committed to providing consumers with better quality and more comfortable products that better meet individual needs. Products, enhance consumers’ reputation for the company’s products, and continue to strengthen and consolidate brand power. 7. Investors: Why the net cash flow from operating activities has decreased up? Answer: Dear investors, hello! Thank you very much for your attention and support to the company! The decrease in net cash flow from operating activities was mainly due to the increase in cash paid for purchasing goods and materials and receiving labor services. 8. Investors: Hello, Secretary of the Board, can you introduce the company’s current downstream market demand? Answer: Dear investors, hello! Thank you very much for your attention and support to the company! At present, the downstream market demand remains stable, and consumer confidence continues to improve. 9. Investors: In 2022, the profit of product price increase will not be obvious, and the production and sales of tissue paper will decline instead. Strategies to increase revenue and gross profit in 23 years? In 2022 , the inventory balance will be 1.912 billion yuan year-on-year +30.25% , and in February 23 , it will be disclosed that it will expand production What are the considerations for 100,000 tons of household paper? Answer: Dear investors, hello! Thank you very much for your attention and support to the company! The effect of the price increase in 2022 is mainly reflected in the second half of the year. Due to the impact of high costs, the profit improvement is not obvious, but the company still maintains a competitive profit level in the industry . In 2023 , as the market changes, the economy recovers, and the price of raw materials gradually declines, the company will increase promotions in subdivided channels, relaunch high-end series, improve the category structure, and increase sales and gross profit. 10. Investors: Are there new markets and new products in the company’s main business sector, and what are the difficulties and solutions? Answer: Dear investors, hello! Thank you very much for your attention and support to the company! The company’s main business is constantly adding new products, such as the recently launched small milk skin, removable toilet paper, etc., so stay tuned. At the same time, we are also actively exploring new channels and networks. Currently affected by market segmentation and traffic differentiation, cultivating explosive models and creating key markets requires greater investment and longer time. 11. Investors: What is the current production and sales volume of the company, and can it meet the market demand? Answer: Dear investors, hello! Thank you very much for your attention and support to the company! At present, the company’s household paper business is in a state of basic balance between production and sales, and some products have obtained production capacity through OEM outsourcing. 12. Investors: How will the company protect the interests of small and medium investors? Answer: Dear investors, hello! Thank you very much for your attention and support to the company! The company formulates relevant internal control regulations in strict accordance with the requirements of the “Company Law”, “Securities Law”, “Governance Guidelines for Listed Companies”, “Stock Listing Rules of Shenzhen Stock Exchange” and other normative regulations promulgated by China Securities Regulatory Commission and Shenzhen Stock Exchange system, improve the company’s internal corporate governance structure, and standardize corporate behavior. Standardize the convening, holding, and voting procedures of the general meeting of shareholders, and treat all shareholders equally, Ensure that shareholders can fully exercise their rights. In order to further strengthen and improve investor relationship management efforts, the company conducts investor relationship activities in strict accordance with relevant systems. The office of the board of directors of the company arranges special personnel to be responsible for answering investor consultation calls, replying emails and answering questions on the investor relations interactive platform, and maintaining smooth and good communication with investors. The company carefully arranges special personnel to do a good job in the reception of investor visits. The company will continue to optimize the product structure, further strengthen the promotion of high-end, high- margin products, drive the growth of the share of high-end, high-margin products, enhance the brand image, steadily improve the company’s product gross margin and profitability, and make the company’s performance stronger and bigger. Give back to investors. 13. Investors: What is the strategic development direction and goal of Zhongshun Jierou? what? Answer: Dear investors, hello! Thank you very much for your attention and support to the company! Please pay attention to the relevant content of the company’s ” 2022 Annual Report”, Section 3.11 “Prospects for the Company’s Future Development”. 14. Investors: What are the company’s new customers and orders in the first quarter of 2023 ? Answer: Dear investors, hello! Thank you very much for your attention and support to the company! The number of customers and orders of the company are business secrets of the company, and it is inconvenient to inform them. The company achieved a sales revenue of 2.06 billion yuan in the first quarter, which was attributable to the shares of listed companies. Dong’s net profit was 89.44 million yuan. 15. Investors: What are the main shortcomings of the existing company’s business? Answer: Reply: Dear investor, hello! Thank you very much for your attention and support to the company ! The company’s product structure needs to be further optimized to increase the proportion of high-margin products such as nursing products and health products in operating income, and the overseas market needs to be accelerated. 16. Investors: Will we launch new products with high gross profit this year? Recently, Xinxinxiangxiang and Qingfeng have new products. They are promoting promotion activities in cooperation with Jingdong in supermarkets. Will we also carry out promotion activities? In fact, the same activities feel that promotions in communities are more welcome than promotions in supermarkets. Please think about it. Answer: Dear investors, hello! Thank you very much for your attention and support to the company! The company continues to launch high-end and high-margin products such as koi, oil painting art series products, and cotton soft three- dimensional embossing . Some of the high-end series products will be launched and promoted on important online and offline platforms and terminals. Community activities and promotions are also One of the important promotion channels. 17. Investors: 1. How is the integration of pulp and paper going? 2. How to deal with the pressure from the cost side? Has the company’s product price been adjusted recently? Answer: Dear investors, hello! Thank you very much for your attention and support to the company! 1. The first phase of the Bamboo Pulp Paper Integration Project in Dazhou, Sichuan 100,000 tons of daily use The paper project has started construction in 2022, please refer to the announcement for specific progress. 2. The company is actively improving the supply chain system, optimizing internal processes, etc.; continuously optimizing the product structure, further increasing the sales share of high-end and high-margin products; activating and boosting the business growth of emerging categories and emerging channels; overall, through Multi-dimensional high-quality systematic linkage improves overall operation and synergistic efficiency, Reduce costs and increase efficiency. |