KORRUN(SZ:300577)2023-10-31 17:24Group 1: Financial Performance - The company's gross profit margin significantly improved in Q3, primarily due to optimization of the product mix and enhanced operational efficiency [2][3] - The increase in gross margin from contract manufacturing is attributed to a higher revenue share from high-margin clients and products, as well as the implementation of SAP systems that improved production efficiency [3] - The brand management segment's gross margin increased due to the continuous introduction of high-margin new products and a rise in revenue from non-distribution channels [3] Group 2: Foreign Exchange Risk Management - The company incurred certain losses from forward foreign exchange transactions aimed at hedging against market risks, which were necessary to mitigate the adverse effects of significant currency fluctuations on cost control and operational performance [3] - Despite the depreciation pressure on the RMB against the USD, the overall impact of exchange rate fluctuations on the company's performance was minimal, as the losses from hedging were offset by net gains in foreign exchange income [3] Group 3: Capacity Expansion Plans - The company's production bases are globally located in Chuzhou, Indonesia, and India, with capacity expansion being driven by customer order planning [3] - Future capacity expansions will focus on countries and regions with labor cost advantages and favorable import/export tariffs, particularly in Indonesia [3]