Shanghai Jahwa (600315): Minutes of factory visits and 19-year interim report exchange meeting

Shanghai Jahwa (600315): Minutes of factory visits and 19-year interim report exchange meeting

First, company introduction: 1.

Company performance In 19H1, annual revenue increased by 7
%, operating at budget pace, and gradually striving to achieve double-digit growth goals.

19Q1 and 19Q2 revenues exceeded value-added by 5, respectively.

03%, 9.

08%, the growth rate increased month-on-month.

19H1 e-commerce GMV has increased by 31% per year, and 19Q2 is faster than 19Q1 (+ 26%). The company hopes that the e-commerce channel revenue share will increase.

19H1 maximized operating profit margin3.

58PCT to 13
.

56% purity profit grows 40% per year.

12
%, the net profit margin gradually increased 2.

68PCT to 11.

32% of the company’s two associates (respectively located in Beijing and Shanghai) increased their revenue contribution and contributed a net profit of 70 million yuan.

19H1 selling expense ratio 43.

50%, a decline of 0 every year.

36PCT and 19H2 content marketing continued to be launched, and the expected sales expense ratio was unchanged from the same period last year.

19H1 management expense ratio (including research and development expenses) 12.

64%, a decrease of 0 every year.

76PCT, continued to decline in the past ten quarters.

The sales expense ratio and the management expense ratio decreased overall, demonstrating the company’s long-term expense management ability.

Non-recurring gains and losses1.

USD 8.3 billion was mainly due to the relocation of Shanghai Jahwa Biomedical Technology Co., Ltd. to confirm the gains from asset disposal and the increase in fair value of Ping An Consumer and Technology Fund.

The deducted non-net profit is 2.

61 ppm, an increase of 9 in ten years.

52%, faster than revenue growth.

2.

By brand: Liushen is the company’s largest brand. The number of revenues in 19H1 increased, an improvement from the previous 18 years, mainly 5?
In June, the sales of Liushen summer products were affected by the temperature of the main sales area at the same time in the early years. The Liushen shower gel series suffered strong competition from international giants and the sales were not expected. (The company has calculated that for every degree of temperature rise, Liushen toilet water will increase sales by 25,000 bottles.).

Herborist actively adjusted channel inventory in 19Q1, and 19Q2 mainly promoted explosives such as freeze-dried facial masks, which led to two figures in overall revenue growth. In 19H1, revenues remained flat and fell slightly. Among them, the sales of freeze-dried facial masks were beautiful, gross margins were reduced, and overall gross margins were lowered.
In the second half of the year, we will focus on creating Herborist Taiji essence.

In 19H1, Goff’s revenue declined slightly, mainly because Goff’s conversion from moisturizing series to oil control series in 19H1 still needs time.

In 19H1, the number of U.S. and Canadian net revenues decreased, and sales decreased. In the first half of the year, sales accounted for 20%. In the second half of the year, high-end hand cream series were launched to cater to the trend of consumption upgrade.

Qichu’s 19H1 revenue exceeded 25% of the added value. Jia’an, Yuze, and Pianzai increased by 30?
55%.

3.

By channel: E-commerce revenue has increased by more than 25%. Special channels have been affected by external objective factors such as policy supervision in 18 years. In 19 years, rapid growth resumed, with an increase rate of more than 60%.

19H1 company ‘s online (including special channel) revenue accounted for 22% of online channels. Tmall, JD.com, etc. are directly operated, and Vipshop is a distribution model, and only sells the two brands of Herborist and Gough. Other brands of the company are online.Adopt direct sales model.

In 19H1, the number of supermarkets, mothers and infants, and CS channels increased. Among them, the Watsons in the CS channel increased the growth rate of Watsons in 19, and the Goffs entered Watsons. At present, Yuzao, Herborist, Liushen, etcWatsons; department stores suffered from international big-name pressures, revenue in 19H1 dropped by double digits, and the decline in 19Q2 was narrower than in 19Q1.

4.
Earnings and operating indicators: 19H1 gross margin decreased year by year2.

66PCT to 61.
94%, mainly for the new factory (formally launched at the end of June 18, 18H2 cream workshop put into use, 19 years of liquid washing workshop and perfume workshop put into use) additional depreciation cost of more than 30 million yuan, changes in sales structure (the minimum SKU gross profit margin is notThere are changes in the average sales of Gough and Herborist with high gross profit margins. Among them, the gross profit margin of the hot-selling Herborist freeze-dried masks in the first half of the year has risen relatively, and the gross profit margins of other brands are generally stable.

Net inventory decreased by 2 compared with the same period last year.

17%, the first decline in nearly ten quarters, the inventory turnover days fell from 121 in the same period last year to 111 days in 19H1, reflecting the company’s good inventory management level.

The number of days of accounts receivable increased from 49 days in 18H1 to 52 days in 19H1, mainly due to the delayed payment of certain e-commerce platforms. At present, it has been basically resolved. Excluding this part of the impact, the amount of accounts receivable increased.

2%, which is comparable to the level of income growth and is at a normal level.

5,

Marketing status of major brands: Herborist: 19H1 Herborist completed brand positioning adjustments, adhered to high-end and TCM and Chinese herbal medicine brand tone; at the same time focused on product efficacy focusing on major skin issues at different stages of women’s lives.

In terms of product promotion, we focus on star products. In summer 2019, we will focus on lyophilized masks as drainage explosives. In winter, we will focus on resources to promote new Tai Chi essence.

Department stores focus on retail services, membership maintenance and development, and e-commerce focuses on young customers.

Combining lyophilized facial masks with innovative products, the first launch of a topical and disseminated “beauty is the best revenge” viral video, using the four major social media platforms as the main dissemination, topic performance and click-through rate on each platformBoth are higher than the industry average.

In addition, for the first time, I tried hotspot marketing and used “seeking water” as the starting point to cooperate with Xiao Jingteng concert.

During 618, Xinqibai lyophilized mask was successfully recruited, and the number of new guests accounted for more than 70%. During the transmission period (5?
June) Become the star product of the brand’s top sales.

In May, Mayor Yingyong and Herborist visited Portugal to showcase “Shanghai Fashion”.

Liushen: The Liushen brand continues its brand rejuvenation strategy. Liushen Hualushui and Shanghai’s well-known crayfish restaurant Shanghai Hutong jointly pop-up “Xia Yefeng Liang Pavilion” and launches the “Extreme Ice Drunk Crayfish” with the taste of Qiluhualu; also sponsored by industryIdentity cooperates deeply with Tencent’s S + level network comprehensive “Children of Tomorrow 3” and creates a fully connected content marketing model through the fan effect of spokesperson Hua Chenyu.

Gao Fu: In August, he deeply cooperated with Douyin to build the reputation and popularity of “Long-term Oil Control Gaufu” products. The video playback volume exceeded 1.5 billion and the total number of participating videos exceeded 1.8 billion (until August 6).3 times that of the industry.

The follow-up to the annual hot drama “Chang’an Twelve Hours”, the pre-TV conversion rate of OTV is as high as 15%, more than three times the average of developing countries.

Yuzawa: Category NO in Ali Super Category Day Body Milk Session in January 2019.

In January and May, the brand-new “Hyaluronic Acid Ampoule Repair Serum” was launched, debuting on Tmall Facial Essence-Ampoule Sales

1.
Qichu: August named Einstein genius special war, 8?
It was opened to the public at the Shanghai World Expo Hall in October; Qichu and Herborist gave gifts to Israeli ambassadors and other foreign guests.

6.

618 sales data: Herborist set up a network of word-of-mouth, differentiated products and excellent product word-of-mouth, viral video transmission and other content marketing through early water storage and planting of grass. 618 Tmall flagship store GMV increased at least 24% on the day, and the entire network GMV value-addedAt a speed of 34%, Tmall ‘s flagship store revenue increased by nearly 20%.

Yuze County’s brand reputation, product power, excellent repurchase rate, U-first trial, professional live broadcast, word-of-mouth planting on the entire network, etc., the 618 Tmall flagship store increased by over 80% each time.

Actively embrace new ways of playing e-commerce, and cooperate with regular live bloggers and head influencers (such as Wei Ya).

Second, Chairman Zhang summarized 1.

Industry boom, consumers are upgrading to high-end brands, mid- to high-end brands, are looking for better products, the industry has great potential, waiting for the company to tap; 2.

Recently, the Sino-US trade war, exchange rate, and Hong Kong issues have frequently occurred. However, Shanghai Jahwa’s categories, products, channels, and supply chain have multiple capabilities to protect the company’s overall ability to resist risks.

3.

The company has a solid foundation and has eight major channels. The mid- and long-term planning has already begun in 2017 and 2018. Now is the second year of implementation. Everything is going well. In the future, we will focus on improving the brand power and product power.

Products and brands have a gradual step, different brands have their own cycles, inject new elements according to the brand’s injection, and continue to upgrade, and brand updates must not be too early or too late.

19H1 followed the upgrade of Herborist’s own cycle with good results.

The investment returns to the company’s future long-term development. The company has injected all enthusiasm and resources to develop good products and brands.

4.

The leaders are stable, the core leaders have not left, and the leadership team has continued to grow. Talents with international perspectives such as the 80s and 90s are in the team.

The shareholder structure is stable and increasingly high-quality, and the major shareholders are very supportive of the company’s development.

Questions and exchanges: (1) Herborist 1.

19H1 Herborist freeze-dried mask brings 70% new customers, with a new purchase rate among new customers?

President Han: The company has an e-commerce data bank. The relevant data can be detected, but it is not convenient to leak.
Customers of lyophilized facial mask supplements will help promote new products in the second half of the year.

2.
The inventory level of Herborist at the end of June 19?

Mr. Ye: Both online and offline are declining. The growth rate of terminal retail is higher than the growth rate of billing revenue.

In the past, Herborist’s product inventory was scattered. In the first half of 19, Herborist focused on the creation of star products. Therefore, in terms of inventory, old products were reduced in inventory, and new products were kept in inventory.

In October and November of 18, the offline dealers made a firm offer. The firm result was smaller than the company’s data. At the end of June 19, Herborist inventory fell by 7?
8%, 15 days lower than the end of 18.

The decline in online inventory has increased, and Tmall, JD.com and other direct-operated companies have no channel inventory backlog. Vipshop will use a distribution model. At the end of June 19, it was 30% lower than the end of 18?
40%.

3.

Content marketing layout?

19 total: has participated in the live broadcast since the early 19’s.

Wei Ya lived for 1 hour, before breaking through one million yuan, brands such as Herborist, Yuze (mainly Herborist) participated, and the overall effect exceeded expectations; Li Jiaqi, who is about to cooperate soon, will continue to increase content marketing efforts in the second half of the year.

4.

The marketing plan of Taiji Essence?

Total: It is expected that the department store terminal counter will be available at the end of September, and the transmission is expected to begin in early August, achieving the full connection of “grass planting-spreading-harvesting”.

5,

Content marketing ROI indicators change?

Total: Thematically complete event closing for each wave of activities, including a number of indicators such as exposure, interaction, and comment rate.

Combined with third-party monitoring reports, review each EPR project, and establish your own database. The first half of the lyophilized mask spread from May, during which the ROI (revenue / expense) was 2.

5 times, the industry average is 1 times, and the highest level is 3 times.

ROI is only one of the indicators. The company will combine multiple indicators to look at, and the ROI assessment is short. In fact, there will still be new sales after the content marketing is put out, and this part is not included in the ROI.

6.

What is the percentage of Herborist in marketing release?

Total: Slightly higher than the company average.

7
Herborist product line and marketing plan?

Total: Herborist adheres to the positioning of mid-to-high-end herbs, and is different from previous marketing methods to enhance communication with young consumers. For the first time, lyophilized masks have been vigorously disseminated on content marketing platforms: 1) The challenge was launched in DouyinThe week ‘s exposure has exceeded billions of times, and the fans ‘participation has been continuously competing with competitors; 2) The Xiaohongshu published ads, and the click-through rate (CTR) 7.

6%, higher than the average of the beauty industry3.

6%.

The 19H1 freeze-dried mask has excellent results in recruiting new customers, which meets the company’s expectations.

Herborist lacked star products in the past. In the past, there were a lot of scattered marketing, and it did not insist on exerting force on certain product lines. In the second half of the year, it is planned that Tai Chi series will become the star product line of Herborist.It went on sale around the month and launched intensive content marketing. Through the early water storage and outbreak, the harvest was carried out to the last double eleven.

2020 will continue to focus on the Taiji product line, and continue to launch other heavy new products in the first half of next year. The marketing resources of the next few years 杭州桑拿网 will focus on the Taichi series for heavy building, because 2/3 of the marketing resources of international brands in the past ten years have been focused onStar products, so Herborist needs to continue to shape the brand image in the hearts of young people through marketing.

8.

The unit price subsidy of freeze-dried facial masks mainly promoted in the first half of the year, and the unit price of Taiji essence in the second half of the year will be higher. Will it affect the marketing effect of planting grass?

Total: The unit price of freeze-dried mask is about 200 yuan, the original unit price of Taiji essence is more than 600, and the price is higher; the freeze-dried mask is positioned to recruit young consumer groups. Considering that the young customers who consume 200 yuan mask may not be able to afford more than 600 yuan.Tai Chi Essence, at the same time, department stores and e-commerce merchants have different age groups and different price acceptance capabilities. Therefore, Tai Chi Essence, which was launched in the second half of 19, is divided into two sizes, 600 yuan and 300 yuan, and is sold in all channels.The essence of the version is in line with the online consumption characteristics of mainstream consumers in e-commerce.

9.

The pace of marketing of Herborist Taiji essence in the second half of the year?

Total: The first wave of marketing builds the reputation of the brand; the second wave of marketing focuses on the youthfulness of Tai Chi products, and there are existing marketing solutions; the third wave has better spokespersons appearing, and the time rhythm will be in line with Double Eleven.
10.

Essence products of other international brands have already appeared on platforms such as Xiaohongshu and Weibo. Is the company’s promotion of essence marketing slower than its peers in the second half of the year?

Total: There are advertisements throughout the year, no morning or evening.
Essence is a must-have for high-end beauty brands. Only by occupying consumers’ minds in the field of essences can they be regarded as high-end brands.

The listing rhythm is related to resource allocation, and the second half of the year is the peak sales period.
11.

Development of Herborist Channels?

President Ye: Herborist’s offline forms include department stores, Yangmei space single-brand stores, and CS stores. Among them, department stores have direct sales and distribution models. Yangmei Space is mainly opened in shopping malls, with a target of 300 in 2019. CS stores mainly passEnter the classic series.

12
Herborist’s offline channel development plan?

Mr. Ye: The offline channel traffic has generally declined, and Herborist has no star single products. The sales of each single product are average. Facing strong competition from international brands in department store channels, it has led to new customer traffic acquisition and storage challenges.

Strengthening content marketing, new customer acquisition and joint consumption empowerment of offline department stores: the first half of the year focused on the creation of freeze-dried facial masks. The freeze-dried facial masks are already the original 3?
4 times, bringing new customer traffic to the brand, and the combined consumption of this part of the customer base will empower offline department store channels.

In the second half of the year, we will focus on creating Tai Chi series, and we will continue to focus on single product creation in the future.

Pilot new retail for department store channels: The department store channels have established cooperation with major Internet traffic platforms, and gradually piloted in different channels to divert the department store channels and improve the profitability of department store channels.

Layout of shopping malls through health-care spaces: Considering the decline in department store channel traffic and the increase in shopping mall traffic, we continue to promote the format of single-brand stores in health-care spaces (mainly in shopping malls). According to the flow of people in different business districts, consumer positioning, and strengthen store expansion planning.

The development of Yangmei Space will not compete with the original department store channel, because the former pays attention to the nursing experience, with incidental product sales, and incidentally focuses on high-end products, such as Tai Chi series.

13
Shanghai Herbor Cosmetics Co., Ltd. has a net profit of more than 20 million in 19H1 and $ 100 million in 18H1. Segmentation?

President Han: This subsidiary is mainly responsible for the sales of Herborist Department Store channels.

The company sells Herborist to the company, which in turn is responsible for department store channel sales.

The company will make tax adjustments, and its financial data is not very informative.

14.

The highest growth range of Herborist in 19?

The company has a common goal for each brand and channel.

In 19H1, Herborist has met expectations, and hopes that the sales of Tai Chi essence will exceed 100 million in the second half of the year.

In the early days, hope that Herborist will recover.

(B) the six gods 1.

Liushen’s expected sales growth target?

Total: There are shortcomings in achieving Liushen’s double-digit growth in 19 years.

Liushen retail mainly concentrated 5?
August, July?
In August, retail terminals will strengthen promotion and drainage.

Target Liushen 19H2 revenue is significantly larger than in the first half.

2.

How does Liushen shower gel enhance competitiveness?

Mr. Kwong: The shower gel category is fiercely competitive, big brands are doing promotions, and many pure online e-commerce brands continue to emerge.

In 18 years, the online channel launched Liushen Fragrance Shower Gel. Fragrance Shower Gel is one of the fast-growing segmented categories in shower gels. In 19 years, it was added offline; volume, foundation, and cleansing shower gels were comprehensiveI made new attempts in marketing, hoping to make breakthroughs in gross profit margins, and at the same time continue to reduce costs to improve marketing efficiency.

3.

Liushen channel and inventory development?

Mr. Ye: Liushen’s offline revenue accounted for more than 90%. Online direct sales were adopted, and the growth rate was higher than offline. 19H1 inventory was unchanged from the same period last year.

(C) other brands: 1.

Will other brand budgets be affected by Herborist?

President Ye: The budgets between brands are independent. It was determined at the beginning of the year that there is no budget for Herborist to invade other brands.

2.
In the first 18 years of Qiqi, the income growth rate was 40% in ten years. Is there a sudden increase in 19H1 growth rate?

Mr. Ye: Qichu’s overall market share is increasing, the transformation scale is increasing, and the abrupt growth rate is normal.

3.
Neutral white and blue moon postcards in daily chemical channels over ten billion?

The development plan of Jia’an, Pianzai and other brands?

Mr. Ye: The company entered the supermarket channels such as RT-Mart through FMCG, soap and other fast-moving consumer goods earlier. The profit of a series of cakes and market industries is low. Li Bai and Blue Moon are round kilograms.High-end liquid positioning, 23 yuan / kg, high-end quality, good consumer experience, innovative functions such as positioning enzymes, and innovative concepts to remove odors. At the same time, product costs need to be reduced.High-end laundry gel.

At present, Jiaan has established a brand reputation and gradually won market share quickly.

The company’s Pien Tze Huang toothpaste is 30% more expensive than Yunnan Baiyao, which is in line with the trend of high-end consumption and has a high annual growth rate.

(IV) Product and supply chain: 1.

New product planning?

General Manager: The trend of skin care and makeup consumption is gradually segmented.

Each team of the company studies the domestic and foreign markets and pays attention to the opportunities in the segmented fields, so the company’s future products will pay more attention to the opportunities in the segmented fields.

2.

Development of make-up business?

General Manager: The prosperity of the make-up industry. Some of the make-up products listed by Herborist in 18 years. The core category of Herborist is skin care products. Make-up is just an extension of Herborist. The company plans to acquire and purchase cosmetic brands from outside.

3.

Facing the rapid change of industry trends, what is the company’s ability to respond quickly?

Mr. Ye: The company’s product development has two lines: the traditional development process: brand initiation, the research and development department is responsible for formula research, stability testing, mold opening, transportation pieces, packaging, evaluation, etc. The complete new product development process is at 9?
12 months ;; fast process: mainly for e-commerce, do not test film in the fast process (usually 3?
5 months), apply mature formula (more stable formula for testing); the rapid process system has been established in the first half of 19 years, and new products will be launched in August.

4.

Skin care shows a high-end trend. How will the company grasp the potential of high-end in the future?

General Manager: The company expands the high-end market through Herborist, and develops comprehensively in terms of products and marketing; and, Shuangmei brand positioning is high-end, and preparations for the past two years have achieved rapid development. The only offline store is located in Tianzifang, Shanghai.Expenditure exceeded 500,000 yuan, and a flagship store was opened online. At present, Shuangmei’s new products and channels are expanding. It has been communicating with retailers and channel vendors. It is worth looking forward to in 2020.

(V) Marketing: 1.

New product marketing process?

Formal General: One month before the product is officially launched, the company established an initial reputation on the peripheral platform to store water.

Later, he combined traditional and new media and participated in the sales rhythm of various channels to achieve a good acceptance.

It will last 3 months from the initial storage to the completion of product sales.

2.

Has the company considered acquiring an MCN organization to internalize marketing?

General CN: The company mainly considers the brand in the merger and acquisition, and has not considered the acquisition of MCN for the time being, because MCN is the company’s partner for content marketing inside and outside the site, and the specific marketing plan is still mainly completed by the company.

3.

How to reasonable marketing expenses and expenditures?

Mr. Zhang: Expenses include channel costs (assessment of sales staff, rebates for dealers), and are mainly responsible for Mr. Ye, and brand marketing expenses (brand new product development, launch, etc.) are mainly responsible for Mr. Qi.

The company’s expense ratio is higher than its peers, mainly due to the different internal operating models of different companies. The company guarantees 15% of annual expenses to brand building, establishes communication with young consumers, and the profitability of each of the eight channels is different.Super, online, department stores, and other channels have different expense rates. There are 300,000 controllable outlets, and the rate of delivery is very high (according to third-party data monitoring, Liushen ‘s delivery rate is 100%). There are more dedicated services for controllable outlets in the future.There is still room for the expense ratio to fall, with an average annual net interest rate increase of 1PCT.

The company’s management expense rate control is particularly prominent. The Baoding Road R & D Center has more than 1,000 million stable building foundations, and the rent from the headquarters to the Shangpu Center is tens of millions (excluding decoration and depreciation) / year. The cost of new factories to start production is increasing, but the costsThe overall rate is still declining.

President Ye: The company is multi-brand, multi-channel development, different stages of development of different brands, different stages require different inputs, small brands need to quickly establish brand awareness, early intervention, follow-up needs to be optimized.

The history of Herborist has been interrupted for 8 consecutive years. In 2010, the profit of Herborist began to exceed Liushen. Consumers need to know Herborist and like Herborist needs a process.

Jiaan has built a good reputation for ten consecutive years, and now Jiaqing products have been more successful. Jiaan air conditioner cleaners are currently No. 1 in the country and the brand has achieved profitability.

Qi Chu is currently performing well, with a development history of 6 years, at least 5 years in a row, and has now ranked second in the infant and daily chemical market, second only to Johnson & Johnson, which has been No. 1 for many years, and Qi Chu has also continued for five years.
Pianzai was profitable in the third year. 19 years was the third year Pianzai was founded, and it achieved profit in the third year. In three years, it achieved profitable performance and transformed the competition.

Jahwa is constantly investing in the development of new brands and planning for future long-term development.

Improve channel efficiency through multiple channels: 1) Mutual drainage of brands (such as buying A and then B has a discount); 2) Cross-border cooperation (such as cooperation with Child King, Mead Johnson, Abbott, etc.)Consumption of milk powder, or purchase of milk bottles, there will be a discount); 3) By planting grass outside the station, drainage to the station to cope with the increasing cost of online platform traffic.

(6) Channels: 1.

What is the specific situation of changing Tmall operators in early 19th?
Mr. Ye: In 19 years of Herborist, Gough, the US and Canada net e-commerce operators have adjusted.

The company recommends replacing professional TP vendors, such as operating mother-to-child products instead of mother-to-child TPs.

The company is better at planting grass, diversion, unit price per customer, and overall operating efficiency is improving.

2.

What is the proportion of sub-platforms in e-commerce channels?

Mr. Ye: The overall change is not large; the Tmall flagship store has a certain increase in cat over-proportion.

In 18 years, JD platform was cut into direct management.

3.

What is the proportion of online and offline company marketing?

Total: The company’s overall media placement is 70% online and 30% offline traditional media placement; the company will adjust according to the overall industry level.

4.

Development of special channels?

Mr. Ye: Special canal 19H1 has a recoverable growth, and hopes that the share of special canal income in 2019 will return to the level of 2017.

The special channel business model continues the original golden housekeeper cooperation model, increasing the sales expansion of other business segments of Ping An System.

Future online (including special channels) revenue target accounts for 50%.

(VII) Other finances 1.

Non-recurring benefits in the second half of the year?

President Han: At present, there are no unexpected non-recurring gains and losses.

2.

Expense rate optimization?

President Han: The sales expense ratio will continue to be optimized in the future. In 2019, it will expand offline Watsons, online and other channels, and increase content marketing and marketing efforts. It is expected that the sales expense ratio in 2019 will be consistent with 2018.

Management expense ratio: The background management fee control will be strengthened, and the management expense ratio will not decrease significantly in the second half of the year.

The overhead rate continued to decline to 10 in 2019.

5%, the average net profit growth rate exceeds income growth.

3.

Supplement to government subsidies in deferred income 1.

US $ 6.7 billion, mainly due to the disposal gains from the new factory relocation and biotech company relocation. When will this part of the deferred revenue be released?

Mr. Han: This part of the deferred income can only be finally confirmed when the actual cash is received. The new plant was put into use in 18 years, and the government subsidy was only in place in 19 years. Last year, it has entered the government ‘s part of the book. The remaining part is based on the actual operation of the factory.Situation, 5?
Amortization varies over 20 years.

4.

Impact of factory depreciation on company costs?

President Han: The total investment in the new plant is 12.

500 million, the equipment is scheduled to be the world’s leading, office equipment meets US environmental protection requirements, and the new factory’s annual amortization discount is about 1360.

Routine maintenance of two factories (personnel, hydropower, machinery and equipment) increases cost rate1.

5%.
5,

16 years of other payables have a bias increase?

President Han: It is mainly the payment of fees, which is not related to the confirmation of fees. The fees are entered on an accrual basis and have all been confirmed.

The payment is the result of an increase in the bargaining power with the supplier in accordance with the due date.