Fenglin Group(SH:601996) Zheng Quan Zhi Xing·2025-07-27 16:12Core Viewpoint - The company is focusing on differentiation and innovation to navigate the competitive landscape of the engineered wood panel industry, while also addressing market challenges and exploring new growth opportunities [2][4][5]. Group 1: Company Strategy - The company aims to avoid price wars and instead focuses on production based on sales, emphasizing the importance of managing inventory effectively [2][4]. - Differentiation is key, with the company enhancing product functionalities such as moisture resistance, flame retardance, and antibacterial properties to meet diverse customer needs [4]. - The company is expanding its market presence both domestically and internationally, with ongoing exports to countries like Japan, Vietnam, and Dubai [4]. Group 2: Industry Trends - The engineered wood panel industry is closely linked to the real estate sector, which is currently experiencing a downturn, leading to an oversupply situation [5]. - Despite the challenges, there are growth opportunities in new applications of engineered wood panels in sectors like aviation, automotive, and renovation projects [5]. Group 3: Sustainability Initiatives - The company is recognized as a national-level green factory and has implemented significant investments in emissions reduction technologies, achieving emissions well below national standards [6][7]. - The company is actively developing methodologies for voluntary greenhouse gas reduction and exploring carbon footprint initiatives with downstream customers [7]. Group 4: Financial Performance - In Q1 2025, the company reported a net loss of 34.87 million yuan, with a gross margin decline of 10.15 percentage points, primarily due to industry downturn and overcapacity [6]. - The company is committed to improving profitability through refined management practices, quality enhancement, and maintaining healthy cash flow [6].