DOJJ(SZ:002798)2022-11-21 15:36Group 1: Financial Performance - The company achieved a revenue of 4.6 billion yuan from January to September 2021, representing a year-on-year growth of 16.05% [1] - Net profit decreased by 13% year-on-year, with a significant drop in the third quarter due to surging upstream energy and procurement costs [2][3] - Operating cash flow improved, with a net cash flow of 41 million yuan for the first nine months and 160 million yuan for the third quarter [2] Group 2: Business Strategy and Market Position - The company is focusing on optimizing product and customer structures, with a 61% increase in bathroom business revenue and a 12% increase in tile business revenue [1][2] - The strategy includes maintaining valuable customers in the large B segment while expanding the small B segment, with the small B share rising to approximately 35% and expected to exceed 40% by year-end [3] - The company is transitioning from a short-distance runner to a marathon runner, indicating a gradual adjustment process for long-term growth [2] Group 3: Challenges and Future Outlook - The decline in net profit is attributed to increased costs from upstream energy and procurement, alongside rising expenses in channel development and product innovation [2][3] - The company anticipates that the average price of tiles may decrease by around 10% due to competitive pricing strategies among major real estate developers [3] - Future pricing will be influenced by industry average costs, with expectations of price increases despite ongoing raw material cost pressures [3][4] Group 4: Innovation and Sustainability - The company is actively responding to carbon neutrality policies by enhancing R&D capabilities, focusing on green and functional product innovations [2] - Plans for new production capacity are aligned with energy consumption indicators, ensuring compliance with regulatory requirements [4] - The company remains confident in its ability to navigate industry challenges through product and channel innovation [4]