Amway shares: Cooperation with Apple remains stable, and is actively contacting Huawei and others

Recently, Amway shares stated in an institutional survey that in mid-October 2021, relevant personnel from Apple Inc. in the United States visited Amway shares to discuss business and fully recognized the company's development, production, and quality control capabilities. At present, the company's cooperation with Apple and its related foundries remains stable, and the development of multiple new projects is being actively promoted. The future cooperation situation is good, but the specific cooperation project information is still confidential. The company's cooperation with Apple has a driving and promoting effect on further expanding the market in the field of electronic products. The company is actively contacting and approaching customers such as Huawei and Xiaomi, striving to become bigger and stronger and increase its share.

In addition, Amway Group and brand customers such as NIKE, Toyota, Great Wall, and IKEA are in the cultivation and foundation-laying stage in 2021 and the first half of 2022. In the short term, their contribution to the company's full-year revenue in 2021 is relatively small; in the medium and long term, they are "incremental opportunities and incremental space", which are the company's strong new growth points and important new driving forces in the future, and will drive the company's continuous, healthy and rapid development.

In recent years, new energy vehicles have developed rapidly. Anhui Province covers most of the new energy vehicle industry chain, which is an excellent opportunity for Amway. Hefei focuses on "chip-screen-auto integration, lifelong intelligence", actively plans and develops strategic emerging industries such as new energy vehicles. Well-known new energy vehicle companies such as BYD, Weilai, and Volkswagen have developed in Hefei, creating favorable conditions for Amway to increase and accelerate development in the field of new energy vehicles. The automotive interior market is one of the emerging market areas that the company focuses on developing. The company will seize the opportunity, take advantage of the situation, actively contact new energy vehicle manufacturers, seek cooperation opportunities, and strive to expand business and market share.

However, the price increase of upstream raw materials has also affected the operating conditions of Amway Co., Ltd. In the first three quarters of 2021, the company's operating income increased by about 41.89% compared with the same period last year. Among them, the operating income in the third quarter still increased by about 8% on the basis of a higher base in the same period last year, and increased by about 5% compared with the second quarter. According to Amway Co., Ltd., since the second half of 2021, the prices of the company's main raw materials such as DMF, BDO, and PTMEG have generally risen by about 100-300%, the price of base fabrics has risen, and the supply is tight and the price has risen, resulting in a corresponding substantial increase in the company's production costs. In late September 2021, the company actively took measures such as price increases to resolve the risk of rising costs. This price adjustment basically covers about 70-80% of the company's customers. Among them, the sales prices of some domestic and foreign brand customers are negotiated every 3 or 6 months, and have not been adjusted synchronously in the third quarter, and there is a certain lag in the transmission of product prices.

Amway shares stated that although the multiple unfavorable factors in the macro environment have brought certain risks and challenges to the company, the company's overall orders are sufficient, brand customer cooperation has increased, and the company has actively raised prices. The product structure and customer structure have been significantly optimized, and production and operation have remained stable overall. Judging from the current production and operation situation, the company's current capacity utilization rate is about 85-88%. The company's operating performance in the fourth quarter of 2021 may remain stable or increase or decrease on the basis of a high base last year. Of course, the company's operating performance is affected by many factors such as the macro environment, market demand for customer products, company product development, quality, market fluctuations and industry competition. It does not depend entirely on the company and is uncertain. Overall, the company's production and operation have maintained a stable and progressive, stable and improving situation, and are entering a new development channel. The company's continued improvement and long-term improvement pattern remain unchanged, and the company is full of confidence in the future. Good and fast development.