Song Zhi shares actively broaden the market space of mobile air conditioning

Over the years focused on mobile air conditioning of pine Zhi shares, the first half of this year in the track car air-conditioning breakthrough, successfully won the Dalian and Chongqing part of the subway train air-conditioning orders, while in the two or three-line urban public transport market has been vigorously expanded. Chen Fuqian, Chairman of Song Zhi, said in a recent interview with China Securities News reporter that the company will seize the rapid development of urban public transport and rail traffic opportunities, and actively expand the mobile air conditioning market space, focus on the main business, increase product development, and timely selection of appropriate objects for mergers and acquisitions, The company's goal is to reach tens of billions of dollars in 2020 sales scale. Expand rail to air conditioning market China Securities newspaper: The first half of this year, song Zhi shares in rail car air-conditioning breakthrough, won the Dalian and Chongqing subway train air-conditioning orders. How will the next step be extended? Chen Fuqian: Rail-delivered train air-conditioning for the new business of Matsumoto shares, the progress is more smooth, has obtained the Shanghai Subway 1, Line 3 Line 3 coordinates the maintenance order, the Dalian Subway 1, Line 2 line new vehicle air conditioning project obtains 3 trains the sales order, and signs 8 trains the sale contract with Chongqing Subway. Rail car air-conditioning industry has technical barriers, high entry threshold. The company has passed a series of international standard certification, master independent core technology, with the early technology and automotive air-conditioning industry experience accumulation, product access to market recognition, the company in this business area has occupied a certain advantage. The future of the company will be in the rail car air-conditioning repair and new air conditioning two aspects at the same time development, this block business profitability will be stronger than the traditional automotive air-conditioning business. At present, the company has been in and more than 10 cities to negotiate, continue to participate in rail train air-conditioning bidding. The company's goal is to be able to become the national Rail-train air conditioning market before the top three market competitors. Suppose each city each year about one to two rail lines to traffic, the average of a line of air conditioning procurement in the amount of 40 million to 50 million yuan, the entire market space is huge. China Securities Daily: for city bus air-conditioning market expansion, Pine Zhi shares have any plans? Chen Fuqian: The first half of the company's large and medium-sized passenger car air-conditioning business income 473 million yuan, an increase of 3.65%, gross profit margin of 38.87%, down 0.09%. In the first-tier cities, the company's products still maintain a high market share, maintain a strong market position. The company vigorously develop two or three-line market, the development of 22 new customers for the pine-chi air-conditioning in the two or three-line bus market opened up the situation. China has more than 100 two or three-line cities, the future demand for public transport air conditioners will increase by more than 20% a year. The company's goal is to be able to get half of the two or three-line city market share. In addition to bus air-conditioning, the company has won the Nanjing Green Olympic Car order intention. In the next ten years, we believe that the development of bus air-conditioning is still the golden period, the company's goal is to sell 35,000 passenger car air-conditioning this year, sales 40,000 units next year. China Securities newspaper: The company in the field of passenger car air-conditioning, what else is worth looking forward to? Chen Fuqian: The first half of pine Zhi shares of passenger car air-conditioning operating income of 299 million yuan, a significant increase of 29.9%, gross margin of 18.76%, withthan the growth of 4.78%. The company obtains seven new project development right, some vehicle's matching share has obtained the promotion in 2012, for the car air conditioning new project development creates the advantageous condition. At present, the company's main customers include Changan, Jianghuai, Liu Steam, southeast and other independent brand manufacturers, and joint-venture brand passenger car air-conditioning mainly Delphi, Valeo and other joint venture brand manufacturers Monopoly, the company is expected to enter new customers including Shenyang Gold Cup, brilliance Automobile, Guangzhou auto brand passenger car. It is expected that with new customer development and independent brand sales recovery, the company passenger car air-conditioning sales are expected to improve. The company is also actively seeking access to the joint venture passenger vehicle market and is expected to break through in the coming years. The right time for mergers and acquisitions China Securities newspaper: The company acquired by the acquisition of Jianghuai Pine Zhi 65% stake, will consolidate the report, mergers and acquisitions to the Pine Zhi shares brought what? In which direction will future mergers and acquisitions activities focus? Chen Fuqian: The company announced in May to 67 million yuan acquisition by Mr. Chen Jingxi Holdings of Jianghuai Pine Zhi 25% equity. After the completion of the acquisition, Pine Zhi Holdings of 65% shares of Jianghuai Pine Zhi, will be on the Jianghuai pine and the realization of the table. The acquisition of Jianghuai Pine zhi stock price cheap, Jianghuai pine zhi 3 years of net profit of 53.64 million yuan, 35.08 million yuan and 41.36 million yuan, the purchase price of the equivalent of Jianghuai pine zhi 268 million yuan, only corresponding to 2012 6.5 times times PE. Jianghuai Pine cheese is mainly for Jianghuai auto car air-conditioning, accounting for 95% of the share. If Jianghuai Auto Sales 2013 back to growth track, Jianghuai Pine Zhi 2013 years of net profit will reach or exceed the same period last year. Future mergers and acquisitions will still focus on mobile air-conditioning, with the emphasis on the acquisition of the original mobile air-conditioning manufacturers. It is also possible to expand to automotive electronics and auto parts because of the high gross profit margin in this area. Now a lot of mobile air-conditioning and automotive electronics, parts and components manufacturers, financial constraints, research and development difficulties, market share has been declining, mergers and acquisitions prices have been decreasing, and pine Zhi shares since the listing of capital, brand and talent have a huge leap, the company will be in the right time to carry out mergers and acquisitions. China Securities Daily: Can you talk about the development of the company? Chen Fuqian: The company invests 700 million yuan to build passenger car and rail train air-conditioning production base in Shanghai Xinzhuang industrial Zone, of which 1 to 200 million yuan is dedicated to the construction of environmental simulation laboratories, specializing in mobile air-conditioning refrigeration research and development, the establishment of a PhD team, has five doctors to join, after the car manufacturers can take the vehicle to our laboratory for testing, It is expected to be operational by the end of 2014 to early 2015.