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] - Gross profit for the same period was RMB 3,325,000, representing an increase of 5.4% compared to RMB 3,155,000 in the previous year[4] - Operating profit for the first quarter of 2022 was RMB 411,000, a significant recovery from an operating loss of RMB 318,000 in the same period of 2021[4] - The company recorded a profit before tax of RMB 405,000, compared to a loss before tax of RMB 381,000 in the prior year[4] - The basic and diluted earnings per share for the period was RMB 0.03, a turnaround from a loss per share of RMB 0.12 in the same quarter of 2021[4] - The company's pre-tax profit for the three months ended March 31, 2022, was RMB 126,000, compared to a loss of RMB 468,000 for the same period in 2021[26] - The company’s operating performance improved from a loss of approximately RMB 468,000 for the three months ended March 31, 2021, to a profit of approximately RMB 126,000 for the three months ended March 31, 2022, primarily due to an increase in gross margin from product sales, rental income from investment properties, and cost reduction efforts[48] Revenue Sources - For the three months ended March 31, 2022, the company recorded sales revenue of approximately RMB 131 million, a decrease of about RMB 0.5 million or 3.9% compared to RMB 136 million for the same period in 2021[33] - The decrease in sales revenue was primarily due to a reduction in revenue from fiberglass grating products, which was partially offset by a significant increase of approximately 31.4% in revenue from epoxy wedge products during the same period[33] - Revenue from epoxy wedge products, the largest revenue source, increased by approximately RMB 2.2 million or 31.4% to about RMB 9.1 million, representing approximately 69.4% of total revenue for the three months ended March 31, 2022[39] - Domestic market sales increased by approximately 15.8% to about RMB 10.4 million, accounting for approximately 79.1% of total sales for the three months ended March 31, 2022, up 13.5 percentage points from 65.6% in the same period of 2021[36] - Sales to the Chinese market increased by approximately 15.8% to about RMB 10.3 million, driven by significant sales of epoxy wedge products[45] - Sales to the US market decreased by approximately 56.6% to about RMB 0.8 million, primarily due to rising tariffs and the adverse impact of the COVID-19 pandemic[45] Expenses and Costs - Administrative expenses rose to RMB 2,797,000 from RMB 2,375,000, indicating increased operational costs[4] - Employee costs, including director remuneration, amounted to RMB 2.518 million for the three months ended March 31, 2022, down from RMB 3 million in the same period of 2021, representing a decrease of approximately 16%[25] - Research and development costs for the three months ended March 31, 2022, were RMB 450,000, a decrease of 50% from RMB 900,000 for the same period in 2021[33] - Distribution costs significantly decreased by approximately RMB 458,000 or 48.3% to about RMB 490,000 for the three months ended March 31, 2022[46] - Administrative expenses increased by approximately RMB 422,000 or 17.8% to about RMB 2.8 million, mainly due to rising employee costs and rental expenses[46] - The company incurred a net foreign exchange loss of RMB 107,000, an improvement from a loss of RMB 154,000 in the same period last year[15] - The company’s financial costs, including bank loan interest and lease liabilities, totaled RMB 6,000 for the three months ended March 31, 2022, down from RMB 63,000 in the same period of 2021[21] Market Outlook and Strategy - The company continues to focus on the research, development, production, and sales of fiberglass products in China[12] - The company expects steady growth in the overall fiberglass market in China, driven by the material's superior performance and potential applications in various industries[32] - The company plans to enhance product technology and hire senior talent to achieve goals in product development and market expansion[35] - The group remains cautiously optimistic about long-term business prospects, focusing on stable and effective business development[35] - The company’s gross profit margin is expected to improve as it expands its product offerings and market reach in the fiberglass sector[32] Corporate Governance - The financial results for the period are unaudited but have been reviewed by the company's audit committee[10] - The audit committee reviewed the unaudited results for the three months ended March 31, 2022, ensuring oversight of financial reporting and internal controls[70] - The board confirmed compliance with the corporate governance code as per GEM listing rules during the three months ended March 31, 2022[67] Shareholder Information - As of March 31, 2022, Mr. Li Yubao holds 163,600,000 shares, representing 40.9% of the company's equity, through controlled corporations[49] - Major shareholders include LFS and LFB, each holding 123,600,000 shares (30.9%), and Yunhong holding 40,000,000 shares (10.0%) as of March 31, 2022[60] - The company did not purchase, sell, or redeem any of its listed securities during the three months ended March 31, 2022[64]
硅鑫集团(08349) - 2022 Q1 - 季度业绩