On April 30th, Weixing Xinliao (002372) (SZ002372, share price 17Vegas2webnodepositbonuscodes.56 yuan, with a market capitalization of 27.956 billion yuan) held the 2023 annual shareholders' meeting.

At the time of shareholder exchange, the company's chairman, Jin Hongyang, said that at present, the plastic pipe industry is fighting for price and survival. The company believes that it is not a good thing to rely entirely on scale and price, and the company is also in transition, but pays more attention to doing fine work and good service.

In addition, in 2023, the company hired Liu Shishi to endorse the water purification system and heating system. Jin Hongyang said that the water purifier is in the field of household appliances, which is different from Weixing's original marketing path, the company believes that the product is a sunrise industry, the market ownership rate is low, and the company is a late entrant and needs brand endorsement.

Weixing Xincai 2023 Annual shareholders' meeting Photo Source: photo taken by reporter Huang Xinlei

Foreign trade business is mainly concentrated in Southeast Asia and other regions.

According to the 2023 annual report, Weixing Xincai achieved operating income of 6.378 billion yuan, down 8.27% from the same period last year, and achieved a net profit of 1.432 billion yuan, an increase of 10.40% over the same period last year. The company sold 29.37 tons of pipeline products last year, down 9.53% from the same period last year, with a gross profit margin of 46.33%.

Among them, Weixing new materialVegas2webnodepositbonuscodesThe overseas income reached 283 million yuan, an increase of 2.05% over the same period last year. The company said in the annual report that the focus of foreign trade business, customer development has achieved initial results, the application field is constantly expanding, the core market is growing against the trend, and the profit target has been exceeded throughout the year.

On April 30, Jin Hongyang introduced at the shareholders' meeting that for overseas business, the company still adheres to the idea of "having a market first, then a factory". The Thai factory made a profit as soon as it was put into production that year, and the current production capacity is sufficient to support business demand in Southeast Asia.

Vice Chairman Shi Guojun added that the products of the Thai factory have covered four neighboring countries. Apart from Southeast Asia and South Asia, some of the foreign trade business comes from Europe, and the volume of business in other regions is not large. Shi Guojun also said that the company will use technology, products and systems to increase overseas market share.

Exports of plastic pipes in 2023 were 1.0376 million tons, up 15.91 percent from the same period last year, and exports were $4.162 billion, up 2.22 percent from the same period last year, Weixing Xingliao said in its 2023 annual report, citing customs data. "the increase in the total export volume of plastic pipe products is relatively optimistic, but the export unit price has dropped greatly, which reflects the decline in the profit space of China's plastic pipe products." Weixing new material said.

Compete with Rifeng and Lianyu in South China.

According to the company's 2023 annual report, the revenue of Weixing New Materials in South China was 231 million yuan, an increase of 2.56% over the same period last year. It is the only region growing except for overseas markets.

In response, Jin Hongyang said that in the early years, the company had laid out in southern China, especially in Guangdong Province, but later withdrew. At that time, the local concept of consumption of building materials to uphold the attitude that can be used, and Weixing brand style is not in line with. In recent years, local spending habits have changed, so the company has re-entered.

It is worth noting that Weixing New Materials has two major competitors in South China, Rifeng (002953) (SZ002953, 11.22 yuan, market capitalization 3.943 billion yuan) and China United Plastics (HK02128, 3.300 Hong Kong dollars, market capitalization 10.238 billion Hong Kong dollars). Two local companies cover plastic pipe products from low-end to high-end.

Jin Hongyang said that entering South China is also an attempt to compete with local companies for products and services.

In addition, in 2023, Weixing Xincai also hired well-known actress Liu Shishi to endorse its water purification system and heating system. In this regard, Jin Hongyang said that the water purifier is the field of household appliances, which is different from the original marketing path of Weixing new materials, the company believes that the product is a sunrise industry, the market ownership rate is low, and the company is a late entrant and needs brand endorsement.

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