Dawei Co., Ltd. was investigated by 7 institutions： Dawei Co., Ltd. has no vehicle cooperation with BYD, and it is one of the suppliers of BYD parts, and the supply is not much (with survey questions
() The Record Form of Investor Relations Activities was released on June 28th. On June 28th, 2022, the company was investigated by seven institutions, including other institutions, fund companies and securities companies.
The main contents of investor relations activities are introduced:
First of all, the secretary of the board of directors of Shenzhen Dawei Innovation Technology Co., Ltd. (hereinafter referred to as "the company" or "Dawei shares") briefly introduced the basic situation of the company, and then began the exchange session:
Q: What is the growth logic of your company?
A: Since its establishment and listing, the company has been mainly engaged in the research, development, production and sales of automobile retarders. With the development of new energy vehicles, the application fields of automobile retarders have narrowed. The company began to try to transform in 2018, and then gradually formed a new generation of information technology industry and automobile manufacturing industry, and three core business sectors: semiconductor memory chips, intelligent terminals and automobiles.
Future direction: first, in the semiconductor memory chip business sector, focus on enterprise-level storage products such as engineering level and vehicle level; Second, in the automobile business sector, the focus is on the fields of special vehicles for new energy and spare parts for new energy vehicles. Through cooperation and equity participation, these businesses are gradually involved in the aforementioned fields, which are still in the trial stage and have limited contribution to the company’s income at present; The company shares in Shenzhen Dawei Hongde Automobile Industry Co., Ltd. (hereinafter referred to as "Dawei Hongde"), with a small proportion of shares, and Dawei Hongde is still applying for product access, and its future development still needs a process. Thank investors for their questions.
Q: Excuse me, leader, do we have any cooperation with ()? Whether there is cooperation with special vehicles.
A: In the field of new energy vehicle parts, the company won the bid for BYD’s tire pressure monitoring system project in 2021, and supplied more than 100 sets of tire pressure monitoring systems to BYD, which have been installed on buses produced by BYD this year.
Regarding the field of new energy special vehicles, Dawei Hongde is a shareholding subsidiary of the company. The special vehicles it produces need to purchase automobile chassis from large car factories for modification. At present, the modified sample vehicles purchase BYD chassis. Thank investors for their questions.
Q: Do we have vehicle cooperation with BYD?
A: Dawei Co., Ltd. has no vehicle cooperation with BYD, and it is one of the suppliers of BYD parts, and the supply is not much. From the perspective of the whole vehicle, Dawei Hongde, the shareholding company of Dawei Co., Ltd., purchased the chassis from BYD for modification. Thank investors for their questions.
Q: The increase of the company’s major shareholders has been reviewed by the shareholders’ meeting. What’s the latest progress?
A: Regarding the non-public projects in 2022, the company declared at the end of May 2022, which was accepted by the China Securities Regulatory Commission in early June, and the first round of feedback was given to the company on June 24. At present, the company is actively preparing to reply to the questions with the intermediary agencies, and will reply within 30 days as required by the CSRC, and the specific reply will be disclosed on Juchao Information Network (www.cninfo.com.cn). Thank investors for their questions.
Q: May I ask the leader, who does the company think are its competitors at home and abroad at this stage? What core competitive advantages does the company have?
A: First, in the field of semiconductor memory chips, related products are provided to consumers by purchasing wafers from domestic and foreign wafer manufacturers and outsourcing them. As far as competitors or peers are concerned, Jiangbolong, Baiwei, Kintec and Shichuang are all better companies in China, among which Jiangbolong’s IPO has passed the examination of the exchange and is being registered. The semiconductor storage industry is a billion-dollar industry with a large market, and every enterprise in the industry also has its own development plan. The company’s focus is on the level of engineering regulations and vehicle regulations. As an enterprise from automobile manufacturing industry, it is familiar with the whole supply chain and technical requirements of automobile manufacturing, so it hopes to have certain development in this field.
Secondly, in the field of intelligent terminals, it is mainly based on the company’s precipitation in the new generation of information technology, focusing on mobile phones, camera modules and other fields. Mobile phones are mainly for consumers in Africa and Southeast Asia and need large-scale production and cost control. Sichuan Oule Intelligent Technology Co., Ltd. (hereinafter referred to as "Sichuan Oule"), a holding subsidiary, built a factory in Luzhou, Sichuan to reduce costs and realize large-scale sales by using overseas sales system.
Third, in the field of automobile business, the company can enter related fields relatively quickly by using the accumulation of industries, channels and resources.
Each business segment of the company has different development directions and plans. At present, the core focus of development is semiconductor memory chips and automobiles. Thank investors for their questions.
Q: The company has a multi-faceted layout and rapid development. What are the company’s plans for financing and equity incentives?
A: As for financing, I have mentioned the progress of the company’s non-public projects in 2022. Regarding equity incentives, the company has not launched relevant plans at present, and will make plans according to the company’s development later. Thank investors for their questions.
Q: How is David Hongde’s business going? Does the company have any further joint venture plans?
A: Regarding Dawei Hongde, in January 2022, Dawei Hongde has obtained the qualification of a civil modified car manufacturer; In February, 2022, David Hongde obtained two certificates of "World Manufacturer Identification Code Certificate" and "Enterprise Name Code Certificate" issued by China Automobile Technology Research Center authorized by the Ministry of Industry and Information Technology. At present, Dawei Hongde’s first clean special vehicle cooperated with domestic large-scale new energy vehicle manufacturers has been off the assembly line, and it is applying for the access of products related to civil modified vehicles according to the requirements of relevant regulations, and applying for qualification, certification or inspection with relevant environmental protection, quality supervision and market supervision departments. Thank investors for their questions.
Q: What is the business scope and main business of Dawei Hongde?
A: Dawei Hongde’s main business scope is the R&D, production and sales of new energy special vehicles, as well as the R&D, production and sales of new energy vehicle parts. At this stage, the main products are new energy special vehicles. Thank investors for their questions.
Q: What is your business plan for 2022?
A: First, in the field of semiconductor memory chips, we will focus on the development of NAND Flash and DRAM products, and strive to achieve breakthroughs and occupy a place in the field of enterprise-level memory products such as industrial standards and vehicle standards.
Secondly, in the field of intelligent terminals, in addition to the existing photoelectric module and mobile phone business, we actively explore the products of wifi routers. Up to now, the Wi-Fi6 router with our own brand and independent intellectual property rights has obtained the necessary certifications such as Radio Transmitting Equipment Type Approval Certification (SRRC) and China Compulsory Certification (CCC), and the market promotion and development will be carried out in the next step.
Thirdly, in the field of automobile business, on the basis of the original automobile retarder business, we will continue to expand the application field, and also actively expand the business in the field of new energy special vehicles and parts. Thank investors for their questions.
Q: What kind of hedging business is the company going to do?
A: There were a large number of export businesses in the company’s business last year. Due to the significant increase in foreign exchange market risks, the company and its holding subsidiaries intend to carry out foreign exchange hedging business to reduce the risk of exchange rate or interest rate fluctuations faced by the company. The company does not engage in speculative and arbitrage transactions purely for profit. Thank investors for their questions.
Q: Seeing that the company has received two patent certificates, what impact will these two patent certificates bring to the company?
Answer: I will introduce the patent recently obtained. The invention patent recently obtained by the company is a patent on automobile hydraulic retarder, which relates to a control system of hydraulic retarder for underground vehicles. The invention is designed to meet the higher explosion-proof requirements of underground vehicles and reduce or avoid the use of electrical components. The invention patent was independently developed by the company, and its related technology and application fields are related to the company’s automobile manufacturing business. The acquisition of the above patents will not have a significant impact on the company’s recent production and operation, but it will help to give full play to the company’s independent intellectual property advantages, further improve the company’s intellectual property protection system and enhance the company’s competitiveness. Thank investors for their questions.
Q: What is your company’s layout in the field of new energy vehicles? Does the fixed use of funds involve the merger and acquisition of major assets?
A: First, in the layout of new energy field, the company has made some attempts in the field of new energy vehicle parts and made some tire pressure chip business; In the field of new energy special vehicles, the company tried to set foot in new energy special vehicles by participating in shares.
However, the above two areas are only the trial stage, and the impact on the company’s income is limited at present.
The funds raised by non-public projects in 2022 are mainly used to supplement working capital. With the expansion and development of the company’s scale, the company’s revenue has doubled in recent years, and the company’s operating funds are under pressure. Therefore, the company wants to meet the daily operating fund needs through fixed increase. Thank investors for their questions.
Q: Is the company about to obtain the manufacturing access of the whole vehicle? If you have the vehicle access qualification, does it mean that the company’s performance is about to usher in a bigger outbreak?
A: At present, the company has no vehicle production qualification, and there is no plan in this regard.
According to the Announcement of the Ministry of Industry and Information Technology of the People’s Republic of China (No.4, 2022) published on the website of the Ministry of Industry and Information Technology of the People’s Republic of China on January 29, 2022, Dawei Hongde, who holds 10% of the company’s shares, has obtained the qualification of a civil modified vehicle manufacturer, which is different from the qualification of vehicle manufacturing. At present, Dawei Hongde is applying for access to products related to civil modified vehicles according to the requirements of relevant regulations, and applying for qualification, certification or inspection to relevant environmental protection, quality supervision and market supervision departments. At present, the company’s shareholding in Dawei Hongde is only 10%, which has little impact on the company’s performance. Thank investors for their questions.
Q: How is the company’s business in semiconductor chips laid out? What is the core positioning?
A: The company’s semiconductor chip business is carried out by Shenzhen Dawei Chuangxin Microelectronics Technology Co., Ltd. (hereinafter referred to as "Dawei Microelectronics"), which is a semiconductor memory product and solution provider integrating R&D, design and sales. In 2022, Dawei Microelectronics will focus on developing NAND Flash and DRAM products; Focus on segmentation, continue to innovate technology, research and develop new products, and strive to achieve breakthroughs and occupy a place in the field of enterprise-level storage products such as engineering level and vehicle level through product design, brand and customer experience; Actively develop and expand major customers in consumer-grade industries, enhance the market share of consumer-grade storage products, and focus on the development of industrial applications of communication products, commercial display products, mini consoles and other products. Thank investors for their questions.
Q: Could you please tell us about the progress of the mentioned tire pressure chip project?
A: Tire pressure chip is a product jointly developed by the company. Tire pressure chip, ABS and airbag are the three major safety systems of automobiles. The company is mainly engaged in TPMS (Direct Tire Pressure Monitoring System). At present, domestic listed companies (), () and Daotong Technology have deep layouts in this field. As a new entrant in this industry, the company has accumulated certain resources mainly based on the automobile business sector as its traditional business. The company has deep accumulation in the bus field, both in technology, channels and products, so the company first cut into the bus field. In addition, tire pressure chips are divided into front-loading and rear-loading markets, and the company is currently cutting into the front-loading market. In July last year, the company participated in the bidding for tire pressure monitoring products of BYD commercial vehicles, became its tire pressure monitoring product supplier through bidding, and entered BYD supply chain. In December last year, the company supplied the first batch of more than 100 sets of tire pressure monitoring products "direct tire pressure monitoring system (TPMS)", which was installed in Qingdao BYD factory in March this year and installed on buses. Tire pressure chip belongs to the field of automotive electronic products, which is in line with the company’s development direction. At the same time, the competition in the tire pressure chip industry is fierce and cruel. The tire pressure chip project is an important attempt for the company to explore the integration and innovation of automobile business and accelerate the cultivation of new growth points in automobile business. The company will strengthen technical investment and market development in order to gain a place in this market. Thank investors for their questions.
Q: What are the application scenarios of the company’s current smart terminal business?
A: At present, there are two main application scenarios in which production and sales revenue have been realized. The first is the mobile phone (including function machines and smart phones) developed and produced by Sichuan Oule, a holding subsidiary, for consumers in emerging market countries around the world, such as Africa, Southeast Asia, the Middle East and South America. The second is the electronic equipment products and services such as communication equipment accessories, photoelectric modules and semiconductors provided by Shenzhen Teerjia Information Technology Co., Ltd., a wholly-owned subsidiary. Another application scenario is the WiFi router mentioned above. Up to now, the WiFi6 router with the company’s own brand and independent intellectual property rights has obtained the necessary certifications such as radio transmitter type approval certification (SRRC) and China compulsory certification (CCC). The company’s products have been sent to major domestic operators and tested, and the next step will be to carry out market promotion and development.
Thank investors for their questions.
Q: The company mentioned the qualification of an intelligent terminal in its annual business plan. Please describe it in detail.
A: The qualification of this smart terminal is the WiFi router I mentioned earlier. At present, it has obtained the necessary certifications such as the type approval certification (SRRC) of radio transmitting equipment and the compulsory certification (CCC) of China, and the market promotion and development will be carried out in the next step. Thank investors for their questions;
Shenzhen Dawei Innovation & Technology Co., Ltd. has developed the dual main businesses of automobile manufacturing industry and new generation information technology industry. The main business is the research and development, manufacturing and sales of eddy current retarding devices and the design, research and development and sales of memory chip products. The main products are eddy current retarder and memory chip. The company is the first batch of national high-tech enterprises specializing in the research, development, production and sales of embedded vehicle auxiliary braking products (retarder) in China, and is the founder and pioneer of China automobile retarder industry.
Details of participating institutions are as follows: