ORIENTAL YUHONG(SZ:002271)2022-12-06 10:50Group 1: Financial Performance - The company reported good growth in revenue and net profit compared to the same period last year, with an increase in gross margin attributed to lower raw material prices, economies of scale, process improvements, and strict cost control [3]. - The engineering channel segment's contribution to the company's output value has expanded compared to the same period last year, driven by a strategic focus on increasing market share [3]. Group 2: Engineering Channel Development - The engineering channel has successfully transitioned from a bottleneck in business to a growth area, with distributors evolving from mere resellers to partners, significantly increasing generated output [3]. - The company plans to enhance support for distributors, including technical guidance and training, to transform them from simple resellers to service providers [3]. Group 3: Market Position and Challenges - The company holds a leading position in the waterproofing industry but acknowledges the challenges posed by competitors and the real estate sector's impact on its business [4]. - Despite the decline in the real estate industry since 2013, the waterproofing sector has continued to grow, and the company remains optimistic about future development [4]. Group 4: Product and Market Strategy - The company aims to raise awareness of the importance and professionalism of waterproofing products through various promotional activities targeting end consumers [3]. - The company is exploring expansion opportunities in the civil construction sector, with a focus on developing derivative products such as tile adhesives and grouts [3]. Group 5: Future Plans and Investments - The company is progressing with announced plans to build R&D and production bases, considering investment scale and necessary approvals [4]. - The company maintains strict control over management expenses while managing sales expenses based on business expansion needs [4].