Sanhua Intelligence Control (002050) issued a notice on September 16, 2021: Zheshang Securities Zhang Zixian, Golden Eagle Fund Yin Lei, Wu Haifeng and Jericho Capital Gu Yuzhou conducted a survey of our company on September 15, 2021, which was hosted by Li Xuan and Wu Meijing.

The main contents of this survey are as follows:
Question 1: the impact of rising prices of bulk raw materials? A: the company's main raw materials are copper and aluminum. Copper, which is mainly used in refrigeration business, has a relatively perfect price linkage mechanism with customers, and the cost increases brought about by the price increases of most raw materials can be transmitted downstream, avoiding the negative impact of the price increases of raw materials to a certain extent. Auto zero business mainly uses aluminum, most of which do not have a fixed price linkage mechanism, but have been actively negotiated with customers, both sides are looking for a suitable solution, the future will find a balance and customers to form a win-win situation.
Question 2: the competition pattern and company advantage of new energy automobile industry? A: in the long run, the competition in the new energy vehicle industry is mainly in R & D and design capabilities and cost and quality capabilities. In the future, the new energy vehicle industry will change the original supply chain form and develop towards more specialization, socialization and openness. In the future, new energy automobile parts will tend to standardized manufacturing, and the importance of flattening and specialized division of labor will become increasingly prominent. At present, the company already has the advantages of products, customers and scale. In the face of increasingly fierce competition in the future, Sanhua pays more attention to the building of its own product strength, and is committed to supporting Sanhua's global customers from technology, products and services to provide them with more high-quality products and more comprehensive solutions.
Question 3: the development trend of modular components? A: with the continuous improvement of the automation level of car factories, higher requirements have been put forward for suppliers, and the supply of modular components will be the direction and trend in the future. Sanhua's products cover valve, pump, heat exchange and other three categories of components, rich in product categories, with the ability of vertical integrated production, high self-control rate of integrated modular components, and has advantages.
Question 4: electronic expansion valve for refrigeration products? A: with the promulgation and implementation of the new energy efficiency standards, China's energy efficiency standards have exceeded many countries and have reached the world's leading level. The permeability of the air conditioning electronic expansion valve increases rapidly. The electronic expansion valve is a software + hardware product with a high technical content, with a global market share of more than 50%, and in a steady increase, the competition pattern is relatively clear.
Question 5: the status of the company's new energy vehicle business orders? A: the world's well-known new energy vehicle companies, the company has basically covered, the company has won Volkswagen, Daimler, BMW, Volvo, Audi, PSA, GM and other new energy vehicle platform orders, the main domestic Geely, BYD, NIO Inc., ideal, XPeng Inc., SAIC and other products, mainly supporting valves, pumps and heat exchangers and other products. The proportion of components continues to increase, thanks to a highly integrated cooperation model with the mainframe factory.

Sanhua Intelligent Control main business: refrigeration equipment, automatic control components, pressure pipe components, electromechanical hydraulic control pumps and other electromechanical hydraulic control components production and sales (limited to branches), undertake external testing, testing and analysis services of refrigeration accessories products, engaged in import and export business. (projects subject to approval according to law shall be approved by relevant departments before business activities can be carried out.)

Sanhua Intelligence Control 2021 reported that the company's main income was 7.674 billion yuan, up 44.3% from the same period last year; net profit from its parent was 824 million yuan, up 28.03% from the same period last year; deducting non-net profit from 720 million yuan, up 23.63% from the same period last year; debt ratio 49.81%, investment income 97.4002 million yuan, financial expenses 49.3044 million yuan, gross profit margin 27.0%.