Jiangfeng Electronics (300666) issued an announcement on September 6th, 2021: Zhang Fei, Miao Meihui, Zheng Shuangchao, Haitong, Zhang Zhaotong, Zhao Yingzhou, and Li you of Tianfeng Securities Qiao Min, Xiao Yunjin of Changxin Fund, Cheng Qingyun of Penghua Fund, Li Yun of pioneering Securities, Zhou Yan of Taikang Capital Management, Li Zhongwei of Guorong Securities, Zheng Shuangchao of Pu Yin Axa Fund, Guo Zhutong of Hengyue Fund, Han Bing of Everbright Securities and Pan Di of Pacific Securities investigated our company on September 2, 2021. Jiang Yunxia, secretary of the board of directors and director of investment, is responsible for the reception of this survey.

The main contents of this survey are as follows:
Investors conduct question-and-answer exchanges with relevant personnel of the company by teleconference, the specific contents of which are as follows:
1. Why did the company choose to expand its flat panel display capacity significantly this year? Reply: in recent years, with technological innovation breakthroughs and iterations, the flat panel display industry chain has accelerated the migration to Chinese mainland, there is a large domestic alternative space for sputtering targets on the upstream raw materials, and the market scale growth is expected. For this reason, the company applies to issue convertible bonds to non-specific objects, which is mainly used to build production bases of flat panel display targets and components in Huizhou and Wuhan, so as to expand the production capacity of flat panel display targets.
2. Apart from the different purity requirements of semiconductor targets and flat panel display targets, what is the degree of versatility in technology, process and equipment? Reply: the difference between semiconductor target and flat panel display target is mainly reflected in the following aspects: (1) the purity of semiconductor target is higher than that of flat panel display target; (2) the size of flat panel display target is larger than that of semiconductor target. (3) the semiconductor industry has the highest requirements for the quality of sputtered targets and sputtered films, so the targets used for semiconductors have more stringent requirements for the control of internal texture. Because the downstream customers such as VLSI and flat panel display have different requirements for the quality and performance of sputtering targets, and there is a great difference in size between high-purity metal sputtering targets for semiconductors and high-purity metal sputtering targets for flat panel display, most of the target production equipment in different application fields can not be used.
3. What are the types of products on the new production line of the company's convertible bond raising and investment project? Reply: the company's investment project for issuing convertible bonds to non-specific objects is mainly to build production bases of flat panel display targets and components in Huizhou and Wuhan. 3 main products are aluminum targets, copper targets and molybdenum targets for flat panel display. The implementation of the fund-raising project can supply targets and machine-related components to flat panel display manufacturers nearby, which can further ensure the timeliness of supply and shorten the transportation distance, break through capacity bottlenecks, and expand production capacity and scale advantages. it is helpful for the company to further expand the production capacity and market share of high-purity metal sputtering targets and related machine components for flat panel display, and enhance the company's profitability and comprehensive competitiveness.
4. what is the pricing method of the company's products? Reply: the company's products mainly adopt the principle of cost plus pricing, and determine the quotation of the products by adding a certain proportion of profits on the basis of raw materials, processing costs and labor costs, at the same time, make appropriate adjustments according to the scale of customer orders, cooperation and market supply and demand.
5. What is the comparison between the company and the overseas leading companies in terms of products? Reply: the company insists on scientific and technological innovation and authorizes patents covering a series of production processes, such as metal purification, crystal orientation control, welding technology, precision processing, cleaning and packaging, etc., and constructs the independent intellectual property protection system of the company's ultra-high purity sputtering targets. With continuous R & D and innovation and reliable product quality, the company's ultra-high purity sputtering target products have entered the international first-class chip manufacturers and applied to the cutting-edge technology node.
6. Are R & D and quality control teams trained for themselves? Since its inception, the company has attached great importance to technological innovation. The company has excellent R & D personnel team and perfect R & D personnel training mechanism. By the end of 2020, R & D personnel accounted for 15.13%, and the vast majority of R & D team members were trained by the company. The company has established a complete quality control system, and the members of the quality control team are mainly trained independently by the company.

Jiangfeng Electronics main business: general projects: electronic special materials research and development; electronic special materials manufacturing; electronic special materials sales; electronic components manufacturing; electronic components retail; electronic special equipment manufacturing; electronic special equipment sales; non-ferrous metal Calendering processing; common non-ferrous metal smelting; non-ferrous metal casting; metal material manufacturing; new material technology research and development; software development; information system integration service Intelligent control system integration; Internet of things application services; Internet of things technical services; artificial intelligence basic resources and technology platform (except for projects that must be approved according to law, independently carry out business activities according to law on the strength of business licenses). Licensed items: inspection and testing services; technology import and export; import and export agents; import and export of goods (projects that must be approved according to law can only be carried out with the approval of relevant departments, and the specific business projects shall be subject to the results of examination and approval).

Jiangfeng Electronics 2021 report shows that the company's main income is 723 million yuan, up 35.68% from the same period last year; net profit from the home is 60.6359 million yuan, up 48.49% from the same period last year; deducting non-net profit from 40.2145 million yuan, up 12.46% from the same period last year; debt ratio 57.22%, investment income-20300 yuan, financial expenses 15.6962 million yuan, gross profit margin 27.41%.