According to the record of investor relations activities disclosed by Qixin Group, on February 23, Qixin Group accepted more than 30 analysts and investors from Guosheng**, Bosera**, Nord**, Huatai Asset Management, etc., Wang Zhanjun, deputy general manager and secretary of the board of directors, and Luo Jianglong, the representative of the company, gave a detailed explanation of the current situation and future planning direction of the company's B2B business.
Recently, Qixin Group has won the bid for a number of large central state-owned enterprise material procurement projects such as State Grid, Aviation Industry, Sinopec, China Huadian, CRRC, China Railway Construction, Agricultural Development Bank of China, Central Government, China Electronics Technology Group, China General Service, China Electric, etc., covering many business sectors such as office administrative materials and MRO industrial products.
In December 2023, the company reviewed and launched the share repurchase, planning to use 30 million to 60 million of its own funds to repurchase, the implementation period is within 6 months from the date of the company's board of directors to review and approve the share repurchase plan, and the first repurchase will be completed on January 24, 2024.
The following is a transcript of the Q&A
1.What is the recent bid renewal and new bidding status of B2B customers, and which benchmark customers are among them?
A:The company's B2B overall business ** for power grid, postal + postal savings, China Southern Power Grid, Sinopec, Agricultural Bank of China, aviation industry and other large and medium-sized customers, the overall income structure is stable, part of the increase is the increase in the proportion of procurement project units, and the other part is new business, including new business and new development projects in old customers. On the whole, the growth of old customers, the growth of internal proportion, and the direction of new customer reserves tend to be a good trend.
According to the bidding announcement of the public announcement of each bidding network, the company has recently won a number of material procurement projects, covering office administrative materials, MRO industrial products and other business sectors, of which some benchmark customers are: State Grid, Aviation Industry, Sinopec, China Huadian, CRRC, China Railway Construction, Agricultural Development Bank of China, Central Authorities, China Electronics Technology Group, China General Service, China Electric, etc.
2.Please look forward to the follow-up development space of office materials and analyze its growth
A:At present, the stability of customers who have participated in the centralized procurement of office materials is high. According to the industry report, the annual increase or substantial growth of office materials procurement, enterprise customer project-based office material procurement and customer internal management project-based office material procurement drive the bidding company to improve the total amount of centralized procurement, office materials stability growth ** customer annualized project investment.
3.In terms of the company's digital operation management, what are the recent operation management measures and system improvements to improve quality and efficiency?
A:With enterprise operation and maintenance materials collection as the core, Qixin Group is committed to building a full-scenario, full-production chain, digital and intelligent enterprise digital operation platform system, providing one-stop material procurement services for enterprise-level customers, and the core of the service foundation is digital-driven and artificial intelligence empowerment, screening high-quality first-class merchants through digital means, and establishing and centralized procurement customer demand mining and efficient performance through artificial intelligence, so as to achieve a win-win situation for office centralized procurement ecological sharing.
The company continues to invest in digital construction and independent research and development, and actively explores the empowerment of intelligent new technologies for the government and enterprise procurement service industry, such as using artificial intelligence to build a procurement solution model, and improving the inventory structure of service providers and optimizing customer procurement through the labeling management and data model deduction of front-end customer orders through big data and artificial intelligence.
cost, but also can realize intelligent inquiry and price comparison, intelligent order scheduling, automatic recommendation and other functions.
4.What are the company's core competitive advantages in the centralized procurement business?
A:After years of development, the company has formed a relatively complete set of online material collection solutions, covering multiple industry application scenarios. In the field of B2B office supplies, the company has continuously improved its first-class chain integration capabilities and accumulated vertical industry service experience, gathered more than 80,000 high-quality customer resources, especially in energy, finance, communications, transportation, construction and other industries and fields, and has won the trust of more than 200 leading large customers. In the years of fulfillment services, business stickiness has been gradually established.
5.How is the company's buyback progressing?
A:Based on the confidence in the company's future development and the high recognition of the company's value, in order to effectively maintain the company's value and the interests of investors, and enhance investor confidence; At the same time, in order to further establish and improve the company's long-term incentive mechanism and improve team cohesion and competitiveness, the company reviewed and launched the share repurchase in December 2023, and will use 30 million to 60 million of its own funds to repurchase the company's shares, which will be used to implement equity incentives or employee stock ownership plans, and the implementation period of the repurchase of shares will be within 6 months from the date of the company's board of directors to review and approve the share repurchase plan.
Since the first repurchase of the company's shares on January 24, 2024, the company has implemented the repurchase operation according to the market.
6.Will the existing B2B business customers be further improved?
A:The company's existing contracts, major customer renewals, and new customer bids have developed steadily, and the increase is partly the increase in the proportion of procurement project units, and the other part is new business, including new business and new development projects in old customers. On the whole, the growth of old customers, the growth of internal proportion, and the direction of new customer reserves tend to be a good trend. The company continues to strengthen its core business service capabilities and actively gain insight into customer procurement needs.
7.In terms of cloud business, the company's overall strategic plan for this year is as follows:
A:In line with the development strategy of focusing on business scenarios and key regions, Haoshitong focuses on the core areas of the country, such as the Guangdong government state-owned enterprise market and the Pearl River Delta education market. In the future, the cloud** business will achieve efficient operation through industrial focus, standardized products, and large-scale replication.
8.What are the measures to improve the gross profit margin growth of the company's centralized procurement business?
A:The company has continuously optimized the gross profit margin by increasing the internal proportion of Qixin's own brand products, the scale effect of centralized procurement, and increasing the proportion of high-margin products. In the future, Qixin will gradually build a higher core competitiveness such as a higher independent order taking system and a national flexible and controllable delivery network, continue to improve its service capabilities, and bring continuous improvement in gross profit margin. In customer selection, we continue to focus on central enterprises, finance, and local large state-owned enterprises.
9.What is the company's accounts receivable collection?
A:The company has established a complete customer credit assessment and accounts receivable risk control system to ensure a benign and reasonable receivable cycle of business income at the sales end. Accelerate accounts receivable in the client company and strengthen information control management. Most of the company's customers are large central enterprises and financial institutions, and the accounts receivable tend to be stable.