Financial Performance - For the three months ended March 31, 2022, the company reported revenue of RMB 13,094,000, a decrease of 3.9% from RMB 13,623,000 in the same period of 2021[4] - The gross profit for the same period was RMB 3,325,000, representing a gross margin of 25.4%, compared to RMB 3,155,000 and a gross margin of 23.2% in Q1 2021[4] - Operating profit for Q1 2022 was RMB 411,000, a significant improvement from an operating loss of RMB 318,000 in Q1 2021[4] - The company achieved a profit before tax of RMB 405,000, compared to a loss before tax of RMB 381,000 in the previous year[4] - The net profit for the period was RMB 126,000, a recovery from a net loss of RMB 468,000 in Q1 2021[4] - Basic and diluted earnings per share for Q1 2022 were RMB 0.03, compared to a loss per share of RMB 0.12 in the same quarter of 2021[4] - The company reported a profit attributable to owners of the company of RMB 126,000 for the three months ended March 31, 2022, compared to a loss of RMB 468,000 for the same period in 2021, resulting in basic earnings per share of RMB 0.03[24] Revenue Sources - The company’s sales of fiberglass products included RMB 4,013,000 from fiberglass grating and RMB 9,081,000 from epoxy wedge strips[14] - The decrease in sales revenue was primarily due to a reduction in revenue from the sale of fiberglass grating products, which was partially offset by a significant increase of approximately 31.4% in revenue from the sale of epoxy wedge products during the same period[30] - Sales of epoxy wedge products became the largest revenue source, accounting for approximately 69.4% of total revenue, with revenue increasing by RMB 2.2 million or 31.4% to RMB 9.1 million[43] Market Performance - Domestic market sales increased approximately 15.8% to about RMB 10.4 million, representing 79.1% of total sales for the period, up from 65.6% in the same period last year[36] - Sales to the Chinese market increased by approximately 15.8% from RMB 8.9 million for the three months ended March 31, 2021, to RMB 10.3 million for the three months ended March 31, 2022, primarily due to a significant increase in sales of epoxy wedge products to Chinese customers[49] - Sales to the US market decreased by approximately 56.6% from RMB 1.9 million for the three months ended March 31, 2021, to RMB 0.8 million for the three months ended March 31, 2022, mainly due to rising tariffs and the adverse impact of the COVID-19 pandemic on the US economy and market conditions[49] - Sales to the UK market decreased by approximately 28.4% from RMB 1.6 million for the three months ended March 31, 2021, to RMB 1.2 million for the three months ended March 31, 2022, primarily due to a reduction in sales orders from major customers in the UK market due to the COVID-19 pandemic[49] - Sales to other regions decreased by approximately 35.7% from RMB 1.2 million for the three months ended March 31, 2021, to RMB 0.7 million for the three months ended March 31, 2022, mainly due to a decrease in sales orders from Denmark and Taiwan due to the COVID-19 pandemic[49] Cost Management - Distribution costs significantly decreased by approximately RMB 458,000 or 48.3% from RMB 948,000 for the three months ended March 31, 2021, to RMB 490,000 for the three months ended March 31, 2022, primarily due to reductions in wages and customs fees[51] - Administrative expenses increased by approximately RMB 422,000 or 17.8% from RMB 2.4 million for the three months ended March 31, 2021, to RMB 2.8 million for the three months ended March 31, 2022, mainly due to increased employee costs and leasing expenses[51] - Financial costs significantly decreased by approximately RMB 57,000 or 90.5% from RMB 63,000 for the three months ended March 31, 2021, to RMB 6,000 for the three months ended March 31, 2022, primarily due to the repayment of bank loans in the year ended December 31, 2021[51] Research and Development - The company continues to focus on research and development, production, and sales of fiberglass products in China[12] - Research and development costs for the three months ended March 31, 2022, amounted to RMB 450,000, a decrease from RMB 900,000 for the same period in 2021[30] - The company plans to enhance product technology and recruit senior talent to achieve goals in product development and market expansion[33] Future Outlook - The company expects steady growth in the overall fiberglass market in China, driven by the material's superior properties and potential applications in various industries[29] - The company has identified significant potential for fiberglass composite products in sectors such as aerospace, energy, and transportation, indicating a strategic focus on market expansion[29] - The company remains cautiously optimistic about long-term business prospects, closely monitoring the impact of COVID-19 on the industry[35] - The company aims to explore new revenue sources to mitigate business risks amid an uncertain political and economic environment[35] - The company will continue to participate in bidding for potential projects in both domestic and overseas markets[33] Shareholder Information - As of March 31, 2022, Mr. Li holds 163,600,000 shares, representing 40.9% of the company, through controlled corporations[55] - Major shareholders include LFS and LFB, each holding 123,600,000 shares, representing 30.9% of the company[61] - No purchases, sales, or redemptions of the company's listed securities occurred during the three months ended March 31, 2022[64] - The company confirmed that there were no interests held by directors or their close associates in any business that competes directly or indirectly with the group's operations during the reporting period[65] Audit and Review - The audit committee reviewed the unaudited performance of the group for the three months ended March 31, 2022[69]
硅鑫集团(08349) - 2022 Q1 - 季度财报