How is Riad recently? Chairman Li Jun said so...

In September 4th, Riad held investor relations activities. According to the records of investor relations activities released by the company, the event was conducted by teleconference. More than 100 agencies / units attended the meeting. Li Jun, chairman of the company, and Li Nannan, Deputy Secretary General of the board of directors, received the reception.

At the beginning of the campaign, Mr. Li Jun, chairman of the board, gave a brief introduction to Riad's recent situation. In terms of business, the company will show full coverage of the products in the display panel. The 100 inch LCD products can generate revenue this year, and the projection products have also made a large layout. In order to develop in the long term, the improvement of financial position is the main indicator this year. The cultural tourism sector has long been promising and its orders are abundant. It has brand influence and market influence in the new format of Wen's tour. The international situation has been developing steadily, and its growth rate has not been fast in China, but it can grow steadily and continuously for a long time.

In terms of capital, Riad is the best capital period since its establishment, with debt ratio of around 40%, and the total credit line of 60-70 billion. The company did not provide external guarantees, and there was no problem with Riad's safety. Investment is also prudent, and investment cash is less stressful for Riad. There are some small investment mergers and acquisitions, and the scale of goodwill is also strictly controlled.

Finally, Li Jun also stressed that the company does not have a subsidiary to pay wages, and the company has 1 billion of the cash on its books. Li Jun himself has a low mortgage rate, which is currently 18.44%. Prior to its own increase of 1 hundred million, Riad employees increased by 3000-4000. In addition, three quarterly data are being counted and should be growing at a high speed. The goal of the annual report is to strive to achieve the original scope.

Subsequently, Li Jun, chairman of the board and Li Nannan, vice president and deputy general manager, answered the questions raised by investors.

Q: will local governments leverage the growth rate of orders in the second half of this year? Will hand orders shrink now?

A: lighting and Wen brigade have some influence, so we have strategic readjustment. The project of Riad is basically big city, and the cultural tourism project is good, better than expected. The quality of orders will be controlled in the second half of the year, and orders will be better next year. But there is no need to worry about the night travel economy itself. For example, the Shanghai summit in Qingdao has led to more than 30% of Qingdao's tourism industry. The night tour economy is an important promoter of China's consumption upgrading.

Q: will the gross profit margin of future landscape lighting be maintained?

A: the gross profit margin of landscape lighting is between 35-40%.

Q: what is the net interest rate and direct sale difference between direct sale and distribution?

A: the gross profit margin of the channel is 10 points less than that of the direct sale, and the net profit is no less than the direct selling.

Q: in the semi annual report, the company has settled 1 billion of the project and the cost of the project is nearly 1 billion. The growth is very high. What is the situation?

A: the increase is mainly due to the Qingdao summit meeting.

Q: shows that the product has been opened up in the channel. How can we make money without making money? Will there be a shortage?

A: 26 product sharing sessions were held this year. In the first half of the year, there was insufficient capacity, there was an order and there was no problem of pressing goods. The brand influence caused by our direct selling makes you trust us more.

Q: the growth rate of small spacing is relatively high, and the substitution for DLP is irreversible. What is the alternative?

A: small spacing has an alternative to LCD and projectors. The development space is large enough. China's current substitution level is about 10+%. There are only a few points abroad, and the space is very large.

Q: where does the channel go? TC or TB?

A: mostly TB.

Q: now the city landscape lighting is growing fast. Will there be a few years? For example, in 2020, the profit and profit of the company's landscape lighting has taken the lead?

A: the focus of the company is placed on the intelligent display panel. The urban landscape is brightening. Let's go with the flow. We have quality orders, and the government policy is uncertain. Now the policy is a stable lever. We focus on intelligent display. Our smart display now accounts for 2/3, while the other 1/3 is the urban landscape lighting and cultural travel. Landscape lighting panel is not necessarily bigger. Intelligent display is relatively reliable. It is 30-40% every year. We are now developing from two aspects of channel + full coverage, and we need to increase development efforts. We can predict the increment of display plate and appropriately compress the proportion of urban landscape lighting and cultural tourism.

Q: how big is the whole leverage? What does it mean?

A: deleveraging has little effect on small spacing. Now I feel that the deleveraging policy has become a stable lever, and the overall situation is beginning to improve. The most visible effect of night travel economy in government investment is immediate changes in economic growth and urban appearance.

Q: are there any cases of night tours and Wen Bu new formats?

A: Beidaihe project.

Q: will Riad take part in the operation of cultural travel?

A: there are a few meetings. This is a specific project. We will establish some cultural tourism industry fund.

Q: how to do overseas promotion? Geographical distribution?

A: the LED assembly line of Ping DA has been established. The factory in Slovakia has also been established. Now that overseas LED is being replaced by DLP, it is time to see when it breaks out. Overseas applications are slow but steady.

Q: after the company's distribution channels, they are all high-end products. Now, how to achieve brand competitiveness by making cost-effective products?

A: channel is a new product. In order to expand the market share, the middle and low end market of general products is relatively high. Lyad is a global leader in LED, and we will not affect our high-end brands by different product lines, just like BMW has many series. Our channels are only low-end products, and direct sales are high-end products. About how to control the quality of the project, we also monitor and train the use effect of the product. Part of our sharing will be training.

Q: the distribution of user structure of small spacing products? What segments of industry growth did 1-3 years come from? How did Riad guarantee?

A: the largest use of small spacing is the control room market, the original is the DLP screen, command and control more. There are also stations, airports and other places. Other schools, institutions and so on are relatively scattered. In the future, LED small spacing is the mainstream product occupied by indoor display.

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