Financial Performance - For the three months ended September 30, 2022, the company reported revenue of RMB 16,264,000, a decrease of 19.7% compared to RMB 20,255,000 for the same period in 2021[4] - Gross profit for the same period was RMB 4,677,000, representing a gross margin of 28.7%, down from RMB 5,928,000 and a gross margin of 29.3% in the prior year[4] - The company achieved a net profit of RMB 939,000 for the three months ended September 30, 2022, compared to a net loss of RMB 54,000 in the same period last year[4] - For the nine months ended September 30, 2022, total revenue was RMB 39,605,000, a decrease of 28.1% from RMB 55,074,000 in the same period of 2021[4] - The company reported a basic and diluted earnings per share of RMB 0.23 for the three months ended September 30, 2022, compared to a loss per share of RMB 0.01 in the same period last year[4] - The pre-tax profit for the nine months ended September 30, 2022, was RMB 7,645,000, a decrease of 22.0% from RMB 9,786,000 for the same period in 2021[16] - The company recorded key management personnel compensation of RMB 1,445 thousand for the nine months ended September 30, 2022, compared to RMB 1,060 thousand for the same period in 2021[26] - The group recorded a net profit of approximately RMB 776,000 for the nine months ended September 30, 2022, compared to a net profit of approximately RMB 525,000 for the same period in 2021[51] Sales and Revenue Breakdown - For the three months ended September 30, 2022, the sales of fiberglass products amounted to RMB 16,264,000, a decrease of 19.7% compared to RMB 20,255,000 for the same period in 2021[14] - The sales of epoxy wedge products for the nine months ended September 30, 2022, were RMB 21,259,000, down 18.5% from RMB 26,101,000 for the same period in 2021[14] - The total revenue from rental income of investment properties for the nine months ended September 30, 2022, was RMB 1,433,000, with no rental income reported for the same period in 2021[15] - For the nine months ended September 30, 2022, the revenue from fiberglass grating products decreased by 36.3% to approximately RMB 183.5 million from RMB 288.1 million for the same period in 2021[38] - Revenue from epoxy wedge products decreased by approximately RMB 48 million or 18.6% to approximately RMB 213 million for the nine months ended September 30, 2022, from approximately RMB 261 million for the same period in 2021[40] - Sales to the Chinese market decreased by approximately 10.1% to about RMB 311.3 million for the nine months ended September 30, 2022, from approximately RMB 346.1 million for the same period in 2021[46] - Sales to the U.S. market decreased by approximately 78.6% to about RMB 21.7 million for the nine months ended September 30, 2022, from approximately RMB 97.6 million for the same period in 2021[46] Cost and Expenses - The company incurred research and development costs of RMB 1,554,000 for the nine months ended September 30, 2022, down 60.3% from RMB 3,908,000 for the same period in 2021[16][17] - The financial costs, including bank loan interest, decreased to RMB 36,000 for the nine months ended September 30, 2022, from RMB 170,000 for the same period in 2021, a reduction of 78.8%[16] - Distribution costs decreased by approximately RMB 1.9 million or 56.0% to approximately RMB 1.5 million for the nine months ended September 30, 2022, from approximately RMB 3.4 million for the same period in 2021[48] - Administrative expenses decreased by approximately RMB 0.3 million or 3.3% to approximately RMB 8.8 million for the nine months ended September 30, 2022, from approximately RMB 9.1 million for the same period in 2021[49] Market and Future Outlook - The company continues to focus on research and development of fiberglass products, which is its main business in China[12] - The company expects the overall fiberglass market in China to steadily rise in the future, driven by the material's excellent performance as a relatively new alternative to traditional materials[29] - The company remains cautiously optimistic about its long-term business prospects while closely monitoring the latest developments of the COVID-19 pandemic and its overall impact on the industry[35] - The company anticipates that the international political landscape, particularly U.S.-China relations, will face greater challenges, which may affect its operations[33] - The company will seek to explore new revenue sources to mitigate business risks in light of the ongoing pandemic[35] Corporate Governance and Compliance - The company confirmed compliance with the corporate governance code as per GEM Listing Rules during the nine months ended September 30, 2022[69] - The Audit Committee was established on December 16, 2016, consisting of three independent non-executive directors[70] - The Audit Committee's main responsibilities include reviewing financial reporting procedures and internal controls[70] - The group reviewed its unaudited performance for the nine months ended September 30, 2022[70] Shareholder Information - As of September 30, 2022, Mr. Li holds 163,600,000 shares, representing 40.9% of the company's equity[55] - Major shareholders include LFS and LFB, each holding 123,600,000 shares, accounting for 30.9% of the company's equity[61] - The company did not enter into any related party transactions that require disclosure under GEM Listing Rules during the nine months ended September 30, 2022[64] - No purchases, sales, or redemptions of the company's listed securities were made by the company or its subsidiaries during the nine months ended September 30, 2022[65] Other Notable Information - The company has not disclosed specific future outlook or guidance for the upcoming quarters in the report[4] - The company operates through its wholly-owned subsidiary, Nantong Meigu Composite Materials Co., Ltd., located in Jiangsu Province, China[8] - The financial results for the nine months ended September 30, 2022, are unaudited but have been reviewed by the company's audit committee[10] - The company has maintained consistent accounting policies in preparing its financial statements for the current period[9] - The company did not declare any interim dividend for the nine months ended September 30, 2022, consistent with the same period in 2021[23] - Nantong Meigu agreed to sell 100% equity of its wholly-owned subsidiary Nantong Derhui Precision Equipment Technology Co., Ltd. for a total consideration of RMB 31,000,000[52] - The Chinese government's dynamic zero-COVID policy has significantly impacted economic activities, with GDP growth only reaching 3% for the nine months ended September 30, 2022, down from 9.8% in the same period of 2021[32]
硅鑫集团(08349) - 2022 Q3 - 季度财报