Jiaxin Silk (002404): Accepted Investigation From 11 Institutions On Issues Of Concern

Jiaxing Silk (002404) released the record form of investor relations activities on November 15, 2023. The company accepted the survey of 11 institutions on November 15, 2023. The types of institutions are other securities companies. Introduction to the main contents of the investor relations activity: On November 15, Mr. Xu Hong, Vice Chairman and General Manager of the company, Ms. Zheng Xiao, Director, Deputy General Manager, Secretary of the Board of Directors, and Mr. Zhou Jun, Chief Financial Officer received the guests of Jiaxin Silk Special Session entitled "Understanding My Listed Company's" Shareholders Are Coming "- Entering the Zhejiang Series Activity". Guests who came to the company visited the company's product exhibition hall, production workshop and Jiaxing Silk Museum, learned about the company's development history, development strategy, R&D design, production and operation, and communicated with the company's executives on issues of concern. The main issues of communication between executives and guests are as follows:

Q: What is the company's business segment and development strategy?

Answer: The company's business covers international and domestic trade, industrial manufacturing, independent brands, industry supply chain platform and other sectors, and has a complete silk industry chain. The development strategy takes "strengthening the main industry and high-quality development" as the main line, improves the "one-stop" of the silk industry, strengthens the "two buckets of gold" of the Golden Three Towers and Golden Silkworm Network, and solidifies the "three supply chain clusters" of Jiaxing local, inland and overseas.

Q: What are the competitive advantages of the company's foreign trade sector?

Answer: The company's competitive advantage is mainly reflected in the business team, supply chain and R&D design. The company has a mature, dedicated and pioneering business team, which started to "go out to sea for orders" in August last year, with obvious results; It has three supply chain clusters of Jiaxing, mainland and overseas, which ensures the digestion ability of continuous incremental orders and strengthens our confidence in business negotiation; The company has certain advantages in R&D and design. ODM mode accounts for a relatively high proportion, and customer stickiness and bargaining power are relatively strong.

Q: How about the company's R&D investment?

A: The company attaches great importance to R&D and design. It has a R&D and design team of more than 100 people. The average annual R&D investment in the past three years has exceeded 50 million yuan, increasing customer stickiness and competitiveness.

Q: What are the company's considerations on supply chain layout?

A: After the start of the trade war in 2019, the company began to carry out industrial chain layout in Southeast Asia and establish production bases in Cambodia and Myanmar. This year, it also invested in the construction of the "Cambodia Garment Production Base Phase II Project" in Cambodia. Later, it is expected to achieve the layout of three supply chain bases, each accounting for one-third of the capacity.

Q: The company attaches great importance to the return of investors and talks about the company's dividend distribution.

A: The company really attaches great importance to the return to investors. Since its listing, it has accumulated 1.117 billion yuan of dividends, which is equivalent to the funds raised by the company from the capital market. The annual dividend rate ranks first among the listed companies in Zhejiang. The company hopes to continue to give back to shareholders through good performance and high proportion of dividends.

Q: Talk about the business model of Jincan.com, which is controlled by the company.

A: The China Cocoon Silk Market (Golden Silkworm Network) was established in 1992, jointly funded by China National Silk Import and Export Corporation, China National Silk Industry Corporation, Zhejiang, Jiangsu, Sichuan Silk Companies and Jiaxing Silk Corporation. As a platform for supply chain management, it serves the whole industry and provides safety Convenient online transactions and a comprehensive cocoon and silk supply chain service system provide financing, warehousing, logistics and information services for small and medium-sized enterprises upstream and downstream of the industrial chain.

Q: What is the path of the company's brand development?

Answer: The company's "Golden Three Towers" brand positioning is pure products, including silk underwear and underwear, silk home clothes, silk gifts, silk cultural and creative products, etc. Silk home clothes have certain advantages in the category of e-commerce platform segmentation, which is the focus of brand development. In terms of product design, we cooperated with Dunhuang Museum, and IP co named "Dunhuang" series of products, using Jiangnan water elements into the design. In terms of marketing, it is promoted through channels such as Tiaoyin and Xiaohongshu. In the later stage, we hope to continuously improve sales and brand influence through continuous product innovation.