ERA(SZ:002641)2022-12-04 10:48Group 1: Company Overview and Performance - The company is currently operating normally, adhering to the principle of "expanding sources, saving costs, preventing risks, and ensuring implementation" [2] - Sales revenue dropped by over 300 million due to the COVID-19 pandemic in Q1, but production and sales have fully recovered since April, aiming to match last year's sales levels in the first half of the year [2] - The company targets to keep the growth rate of net profit not lower than that of operating revenue [2] Group 2: Sales Structure and Growth - The sales model is primarily channel distribution, accounting for approximately 70% of total sales, with real estate and export as supplementary [2][3] - Real estate business grew over 30% in 2019, and the company plans to deepen cooperation with major real estate developers like Vanke, Evergrande, and China Overseas [3] Group 3: Financial Management and Projections - The company has seen an increase in advance payments due to promotional activities in Q1 [3] - The company aims to achieve a target of 10 billion RMB in tax-inclusive sales over the next three years, with a potential to reach 10 billion RMB in sales without tax in four years [5] - The net profit margin improved in 2019, primarily due to cost control and market expansion, but still has room for improvement compared to peers [5] Group 4: Market Expansion and Product Pricing - The company is expanding its brand influence in weaker regions, having established six logistics centers in cities like Guiyang and Xi'an by the end of 2019 [4][5] - Average sales prices have decreased year-on-year following promotional activities, but prices are gradually recovering [5] - The company is increasing raw material inventory during low price periods and using futures to hedge against price fluctuations [4]