硅鑫集团(08349) - 2022 Q3 - 季度业绩

Financial Performance Financial Summary The company reported a 28.1% year-on-year revenue decline to RMB 39.6 million for the nine months ended September 30, 2022, while net profit increased by 47.8% Condensed Consolidated Statement of Profit or Loss (For the nine months ended September 30) | Indicator | 2022 (RMB thousands) | 2021 (RMB thousands) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 39,605 | 55,074 | -28.1% | | Gross Profit | 10,386 | 14,487 | -28.3% | | Operating Profit | 2,348 | 2,075 | +13.2% | | Profit for the Period | 776 | 525 | +47.8% | | Basic Earnings Per Share (RMB cents) | 0.19 | 0.13 | +46.2% | - As of September 30, 2022, the company's total equity was RMB 69.022 million, a slight increase from RMB 68.246 million at the beginning of 2022[5] Notes to the Condensed Consolidated Financial Statements This section details the basis of financial statement preparation, highlighting the company's core fiberglass product business and declining sales across key product categories - The Group's principal business is the research, development, production, and sale of fiberglass products in China, primarily through its indirect wholly-owned subsidiary, Nantong Meigu Composite Materials Co., Ltd[7][11] Revenue by Product Category (For the nine months ended September 30) | Product Category | 2022 Revenue (RMB thousands) | 2021 Revenue (RMB thousands) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Fiberglass Grating Products | 18,346 | 28,813 | -36.3% | | Epoxy Wedge Products | 21,259 | 26,101 | -18.6% | | Phenolic Grating Products | – | 160 | -100% | | Total | 39,605 | 55,074 | -28.1% | - The Directors do not recommend the payment of any interim dividend for the nine months ended September 30, 2022[24] - Diluted earnings per share were the same as basic earnings per share due to no potential dilutive ordinary shares during the period[26] Management Discussion and Analysis Business Review and Outlook Management attributes the 28.1% revenue decline to China's zero-COVID policy and global uncertainties, outlining strategies for cost control, technology, and market expansion - For the first nine months of 2022, China's dynamic zero-COVID policy led to economic stagnation, with GDP growth rate decreasing from 9.8% in the same period last year to 3.0%[31] - Internationally, Sino-US relations face greater challenges, with the US tightening restrictions on high-tech exports to China, potentially further impacting the business environment[33] - Future strategies will focus on more active participation in project bidding, improving product technology to control costs, recruiting talent to support R&D and market expansion, and seeking new revenue sources to mitigate risks[33] Operating Results Analysis This section analyzes the 28.1% revenue decrease driven by product sales declines, offset by cost controls and new rental income, leading to net profit growth Sales Performance - Epoxy wedge products became the largest revenue source, accounting for 53.7% of total revenue, with their revenue decreasing by 18.6% year-on-year to RMB 21.3 million; although annual sales declined, third-quarter sales increased by 30.8% quarter-on-quarter[39] - Fiberglass grating product revenue significantly decreased by 36.3% year-on-year to RMB 18.3 million, mainly due to increased prices from rising raw material and transportation costs, leading to a drop in demand[38] Sales Revenue by Region (For the nine months ended September 30) | Region | 2022 (RMB thousands) | 2021 (RMB thousands) | Year-on-year Change | | :--- | :--- | :--- | :--- | | China | 31,129 | 34,612 | -10.1% | | United States | 2,069 | 9,664 | -78.6% | | United Kingdom | 5,058 | 6,143 | -17.7% | | Other | 1,349 | 4,655 | -71.0% | - The average selling price of fiberglass grating products increased by 51.2% year-on-year, but sales volume sharply decreased by 57.9%; the average selling price of epoxy wedge products decreased by 17.1% due to price renegotiation after bidding, with sales volume slightly decreasing by 1.7%[41][42] Cost and Expense Analysis - Distribution costs significantly decreased by 56.0% year-on-year to RMB 1.5 million, primarily due to reduced salaries and customs declaration fees[48] - Administrative expenses decreased by 3.3% year-on-year to RMB 8.8 million, mainly due to reduced research and development expenses[49] - Finance costs significantly decreased by 72.9% year-on-year to RMB 46 thousands, primarily due to repayment of bank loans during the year[50] Profitability and Significant Matters - Net profit for the first nine months increased to RMB 0.776 million (compared to RMB 0.525 million in the same period last year), primarily attributable to (i) recognition of rental income from investment properties leased in December 2021; and (ii) the Group's efforts to reduce distribution costs[51] - On July 19, 2022, the company agreed to sell 100% equity interest in its wholly-owned subsidiary, Nantong Derhui Precision Equipment Technology Co., Ltd., for a total consideration of RMB 31 million, with the transaction not yet completed at the end of this reporting period[52] Shareholder Information and Corporate Governance Directors' and Major Shareholders' Interests This section details the shareholdings of directors and major shareholders, identifying Mr. Li Yubao as the ultimate controlling shareholder with a 40.9% indirect interest - Chairman Mr. Li Yubao is deemed to be interested in 163.6 million shares, representing 40.9% of the company's total share capital, and is the ultimate controlling shareholder of the company[55] Major Shareholder Holdings (As of September 30, 2022) | Shareholder Name | Capacity/Nature of Interest | Number of Shares Held | Percentage | | :--- | :--- | :--- | :--- | | LFS (Note 1) | Interest in controlled corporation | 123,600,000 | 30.9% | | LFB (Note 1) | Beneficial owner | 123,600,000 | 30.9% | | Yunhong (Note 2) | Beneficial owner | 40,000,000 | 10.0% | | Mr. Wu Dong (Note 2) | Interest in controlled corporation | 40,000,000 | 10.0% | | Mr. Huang Xuechao | Beneficial owner | 58,880,000 | 14.7% | | Mr. Yan Qixu | Beneficial owner | 27,920,000 | 7.0% | Compliance and Governance The company affirmed compliance with GEM Listing Rules' corporate governance codes, with the Audit Committee reviewing the unaudited quarterly results - The company has complied with the Corporate Governance Code set out in Appendix 15 to the GEM Listing Rules for the nine months ended September 30, 2022[69] - The Audit Committee, comprising three independent non-executive Directors, has reviewed the Group's unaudited results for the nine months ended September 30, 2022[71] - During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[66]