On April 30, 2022, Huide Technology disclosed the "Announcement on Holding the 2021 Annual Results Briefing" (Announcement No.: 2022-010), on May 6, 2022, Mr. Qian Jianzhong, the company's chairman and general manager, Independent Director Mr. Lu Shimin, Deputy General Manager and Chief Financial Officer Mr. Gu Weixi, Deputy General Manager and Secretary of the Board of Directors Mr. Li Bing attended this briefing, interacted and communicated with investors, and responded to investors' concerns.

The main questions raised by investors and the company's response

The company responded to the general concerns raised by investors at this briefing. The main questions and replies raised by investors in this performance briefing are listed as follows:

Question 1: Please briefly describe the current main business of the company and whether there has been any change in the past year?

Answer: The main business of Huide Technology is the research and development, production, sales and technical services of polyurethane resin products. The main products are polyurethane (PU slurry) for synthetic leather, polyurethane elastomer stock solution and thermoplastic polyurethane elastomer (TPU), Polyester polyol, the above-mentioned products are widely used in the market, mainly in the fields of living and home furnishing, automobile interior, sports and leisure, electronics, rail transit, construction and so on. During the reporting period, there was no significant change in the company's main business.

Question 2: The impact of the Shanghai epidemic on the production of Huide Technology?

Answer: The impact of the Shanghai epidemic on the company is mainly due to the closure of personnel and logistics bottlenecks, but the company has been cooperating with the government's epidemic prevention work. Under the condition of ensuring the safety of epidemic prevention, the company maintains the basic safety production personnel living in the factory closed management mode. Maintain the basic production and operation of the company.

Question 3: Please introduce the operation of the company during the reporting period?

Answer: In 2021, the company will achieve operating income of 3,191,417,631.67 yuan, a year-on-year increase of 113.09%, of which the main business income is 3,043,134,768.93 yuan, a year-on-year increase of 113.54%. The company realized a net profit attributable to shareholders of the listed company of RMB 117,757,909.75, a year-on-year decrease of 5.20%; the net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was RMB 112,811,662.37, a year-on-year decrease of 5.67%.

Question 4: Please introduce the industry of the company during the reporting period?

Answer: In 2021, the overall situation of the polyurethane industry: the rigid foam industry will continue to grow due to the demand for refrigerators and freezers in the domestic and foreign markets, but the actual growth rate has slowed down. rebounded, so the whole year showed an overall growth; the soft foam industry recovered rapidly from the epidemic due to the automotive and upholstered furniture industries. Although the automotive industry was affected by the tight supply of chips and the upholstered furniture was affected by the anti-dumping demand, the overall demand still increased; Polyurethane resin industry: Demand for pulp and polyurethane elastomer dope end products is recovering for leather and shoemaking industries, and production and sales have increased to varying degrees; TPU is simultaneously driven by consumer demand, industrial product demand and export demand, and both production and sales have achieved simultaneous growth.

Question 5: Please introduce the business of solvent-free resin and water-based resin during the reporting period?

Answer: The environmentally friendly solvent-free resin has further broadened the performance of the original car and sofa, and has realized the extension of the application in the fields of shoes, luggage, and automotive rear decoration; successfully realized the anti-fouling surface, polyester polyether Mass production of copolymerization type; continuous development and promotion of environmentally friendly PUR reactive hot-melt adhesives for multi-field applications; expansion of application and development of water-based polyurethane materials; in TPU, shoe soles, polyurethane soft foam and modified bodies, functional polyurethane resins and other application fields A lot of development progress and breakthroughs have also been made, accumulating technical and market foundations for the completion and commissioning of the second phase of the Fujian plant.

Question 6: Please introduce the specific situation of the price operation of each raw material of the company?

Answer: The price performance of pure MDI, AA, BDO and DMF products varies. The price of pure MDI products

At the end of Q1, it rose to the highest level of the year at 28,250 yuan/ton, and then the price in Q2 fell to around 18,700 yuan/ton. The prices of pure MDI in Q3 and Q4 both showed a trend of rising first and then falling, and the price was locked at around RMB 20,500/ton at the end of the year; The price fluctuates little throughout the year. Q1-Q3 fluctuates around 10,000 yuan/ton. After Q4, the price gradually rises. At the end of the year, the price is close to 13,000 yuan/ton. Near the ton, Q3 rebounded strongly to 30,000 yuan / ton, and Q4 always maintained a high price; DMF and AA had similar trends, Q1-Q3 prices remained high and stable, Q4 prices continued to rise to a high of 19,000 yuan / ton, and then fluctuated.

At present, the company's raw material prices as a whole show a downward trend.

Question 7: What are the main reasons for the year-on-year decline in the company's quarterly results last year and this year? What is the trend this year? Can you introduce it, thank you!

Answer: The decline in performance last year was mainly due to the fact that the company's main raw material prices continued to fluctuate at a high level, and the increased costs were not effectively transmitted. The company's main business strategy is to rapidly increase its market share and release the new production capacity of its Fujian factory. The first quarterly report of this year was mainly due to the short-term decrease in production capacity of the Shanghai factory due to the impact of the Shanghai epidemic. The future operating performance will depend on the progress of epidemic prevention and control in Shanghai, and there are uncertainties.

Question 8: Could the company introduce the situation of innovation and expansion of new projects?

Answer: During the reporting period, the company continued to invest in product research and development, adhering to the development concept of being rigorous and realistic, pioneering and innovative; taking advantage of the wide application of fine chemicals, on the basis of continuing the research and development in 2020, combined with the development of marketing work, further expansion Product application and efficient development of customized products for customer needs.

Among them, the environmentally friendly solvent-free resin has further broadened the performance of the original car and sofa, and has realized the extension of application in the fields of shoes, luggage, and automotive rear decoration; successfully realized the anti-fouling surface, polyester polyether Mass production of copolymerization type; continuous development and promotion of environmentally friendly PUR reactive hot-melt adhesives for multi-field applications; expansion of application and development of water-based polyurethane materials; in TPU, shoe soles, polyurethane soft foam and modified bodies, functional polyurethane resins and other application fields A lot of development progress and breakthroughs have also been made, accumulating technical and market foundations for the completion and commissioning of the second phase of the Fujian plant.

At the same time, actively explore the research and development and application of polyurethane products in the field of automobile and new energy, mainly involving bio-based polyester modified polyols, polyurethane buffer and thermal insulation materials for various new energy vehicles; Products such as high-quality thermal insulation patches and support buffer blocks for quick-change power battery packs have been tested and recognized by customers, realizing the extension of the industrial chain from materials to downstream parts.