Time Intercon (1729) held the first general meeting of shareholders after the listing in the Science Park Conference Hall near the company office. The location is indeed quite remote, in case I would like to know more about the company’s business and the company’s management, so I took the time to attend the shareholders meeting.
Before attending the shareholders meeting, I read an annual report and revisited the prospectus, also wrote some key questions for ask at the shareholders meeting. Although there are many problems, the management is also happy to respond the issue of minority shareholders. After the conclusion of the shareholders’ meeting, they took time to chat with us. It feels quite close to the people and willing to communicate, giving us a good impression.
Let me talk about some key issues:
1. Does the company have a dividend payout ratio guide?
Management: There is currently no clear dividend payout guidance which will be considered annually based on various factors such as performance, cash flow and capital expenditure.
2. How much impact does the China-US trade war on business?
Management: The punitive tariffs have just been implemented, the impact remains to be seen, but the company is working closely with customers on various measures to reduce the impact of tariffs, such as tariffs that may be shared by both parties.
3. In the annual report, management has provided optimistic expectations for this year’s income growth, and is the current situation so?
Management: Order growth in the first half of this year is not only in line with their expectations, but even better than expected. Order growth is mainly from data centers and telecommunications divisions. At present, the production capacity has been unable to meet the demand for orders, and the utilization rate of production capacity has reached 113%. Therefore, there is an urgent need to expand production capacity.
4. The data center’s segment gross margin is close to 40%. What are the reasons?
Management: The company has a long-term relationship with its customers. In the past, it has been providing customers with reliable and reliable products, as well as orders that can quickly complete customer-requested components, so the gross profit margin is higher.
Finally, we made a request and hoped that the company could arrange for investors and minority shareholders to inspect the company’s factory premises to further understand the company’s business. The management welcomes us to visit. In fact, even if I read the prospectus and the annual report, I have only a very preliminary understanding of the company’s products, so if time permits, I would like to take the time to visit the company’s factory in Huizhou, through the on-site inspection and listening to the management’s explanation. Looking at the actual product, you should be able to get a deeper understanding of the company’s business.