Baotai Co., Ltd.(600456) released an investor relations activity record form on November 8. On November 7, 2023, the company accepted surveys from 15 institutions, with institutional types being others, fund companies, and securities companies. Introduction to the main contents of investor relations activities:

Question: How was the company's business performance in the third quarter?

Answer: The company achieved revenue of 5.611 billion yuan in the first three quarters of 2023, a year-on-year increase of about 10%. In the first three quarters, it achieved net profit attributable to the parent company of 549 million yuan, a year-on-year increase of about 6.9%.

Question: Please introduce the company's export business?

Answer: The company enjoys a certain reputation in the international aviation market. Since its establishment, the export volume of titanium materials has maintained a good development trend. It has passed the quality system and product certification of many internationally renowned companies such as Boeing Company of the United States, French Aerospace Company, Airbus, Rolls-Royce Company of the United Kingdom, and RMI of the United States, including all passes for entering high-end application fields such as the world's aerospace industry.

Question: How difficult is the production of the company's titanium products?

Answer: The melting, pressure processing and heat treatment of titanium are relatively difficult, with complex processes and high technical content. Titanium and titanium alloys generally require three steps: preparation of titanium sponge, preparation of titanium materials and application of titanium materials from melting to final products. The first two steps are technically complex and difficult to prepare, which are difficult and key links in titanium application. The quality of sponge titanium and titanium materials directly determines the quality of titanium products.

Question: What is the self-sufficiency rate of the company's raw material sponge titanium? Are there specific measures to increase product gross profit margins?

Answer: The company's raw material procurement is based on the production plan, in accordance with the principles of comparison of quality and price, and unification with the outside world. It is obtained through internal production (Baotai Huashen, a holding subsidiary of the company, can meet part of the needs of the company's main material, sponge titanium) and external procurement.

Question: How is the construction status of the company's fundraising projects?

Answer: The company is promoting the construction of fundraising projects. The main equipment in the fundraising projects has been trial production. Please refer to the relevant announcement disclosed by the company on June 21 when each fundraising project is expected to be ready for use.

Question: What parts of aero-engines can our company's titanium alloy products be used?

Answer: Titanium materials for aviation can be used in aeroengine fans, high-pressure compressor aircraft discs, blades and other parts.

Question: What emerging areas is the company expanding? What kind of layout is it roughly?

Answer: The company closely tracks market development trends, deepens product layout adjustments, increases market docking capabilities, focuses on developing titanium for high-end markets such as aviation, aerospace, shipbuilding, nuclear power, and ocean, and strives to expand electronics, medical, architectural decoration, and new emerging markets such as energy, 3C, ocean engineering, and titanium for daily use, continue to cultivate new efficiency growth points and promote high-quality and sustainable development.