Core Viewpoint - The financial report of Fujian Sait New Materials Co., Ltd. indicates a decline in gross profit margins across various product categories, with specific reasons outlined for the changes in sales prices, raw material costs, and market competition dynamics [1][2][3]. Financial Performance - The main business gross profit margin is reported at 29%, down 4 percentage points year-on-year. The gross profit margin for foreign sales is 35%, also down 4 percentage points, while the margin for intermediary sales has decreased by 15 percentage points to 21% [2][3]. - The company's main business revenue accounts for 99.76% of total revenue, indicating that the overall gross profit margin is primarily influenced by the main business gross profit margin [3]. Product Analysis - The gross profit margin for vacuum insulation panels is 29.34%, down from 33.30% the previous year. The sales price decreased by 1.48%, while unit costs increased by 4.36%, with direct material costs rising by 2.11% [3][4]. - The gross profit margin for thermal boxes is reported at 23.75%, down from 25.11%, attributed to rising unit costs exceeding the increase in sales prices [4][5]. Market Dynamics - The company experienced a 13.04% decline in overseas sales revenue, primarily due to a 12.09% drop in sales volume. This was influenced by saturated production capacity and shifts in procurement strategies by foreign clients [7][8]. - The gross profit margin for domestic sales is lower than that for foreign sales, with domestic sales revenue at 51,529.83 million yuan and a gross profit margin of 25.21%, compared to foreign sales revenue of 39,992.33 million yuan and a gross profit margin of 34.67% [8]. Supplier and Procurement Insights - The top five suppliers accounted for 44% of total procurement, with a 13 percentage point decrease year-on-year. Prepayment balances increased by 194% to 0.21 billion yuan, mainly due to prepayments for raw materials [14][15]. - The company has established stable relationships with key suppliers, focusing on local sourcing to enhance supply chain stability and cost efficiency [20][21].

Core Viewpoint - The company is responding to regulatory inquiries regarding its 2024 annual report, particularly focusing on the decline in gross profit margins across various product lines and the implications of its sales strategies in domestic and international markets [1][2]. Group 1: Gross Profit Margin Analysis - The company's main business gross profit margin is reported at 29%, a decrease of 4 percentage points year-on-year, with international sales gross margin at 35% and intermediary sales gross margin at 21%, reflecting declines of 4 and 15 percentage points respectively [1][2]. - The primary factor affecting the overall gross profit margin is the vacuum insulation board, which has seen a sales price decrease of 1.48% and an increase in unit costs by 4.36% [4][5]. - The gross profit margin for vacuum insulation boards is 29.34%, down from 33.30% the previous year, influenced by rising costs of raw materials and manufacturing expenses [4][6]. Group 2: Sales and Market Dynamics - The company’s international sales revenue decreased by 13.04% year-on-year, primarily due to a 12.09% drop in sales volume, attributed to saturated production capacity and shifting procurement strategies of external clients [8][11]. - The company maintains strong relationships with well-known domestic and international appliance manufacturers, indicating potential for future growth in international markets despite current challenges [8][12]. Group 3: Supplier and Procurement Insights - The top five suppliers accounted for 44% of total procurement, a decrease of 13 percentage points year-on-year, with a significant increase in prepayments for raw materials [15][16]. - The company has established a stable supply chain with its main raw material suppliers, focusing on local sourcing to enhance cost efficiency and supply reliability [19][20]. - The increase in prepayments is justified by the rising prices and tight supply of glass fiber, necessitating proactive measures to secure raw material availability [18][20].