ZFGF(SZ:300695)2022-12-03 10:24Financial Performance - In Q1 2019, the company achieved a net profit of 31.1 million yuan, representing a year-on-year increase of 8.54% [2] - The company's R&D expenses in 2018 amounted to 31.68 million yuan, a 3.31% increase from the previous year, accounting for 6.37% of total revenue [3] - The revenue from the third generation wheel hub bearing units reached 397 million yuan, making up 79.83% of the total annual revenue in 2018 [4] Market Challenges - The company faced significant impacts on its U.S. export business due to the U.S.-China trade tensions, leading to a decline in revenue [5] - Fluctuations in the USD to RMB exchange rate resulted in notable foreign exchange losses [3] Strategic Initiatives - The company is actively adjusting its sales structure to mitigate risks associated with concentrated export regions, focusing on expanding domestic and other international markets [5] - It is also enhancing its digital factory initiatives and integrating advanced technologies to improve operational efficiency and competitiveness [3][4] Product Development - The company has been increasing its investment in R&D to innovate and develop new technologies and products, particularly in the automotive wheel hub bearing sector [3] - The integration of components in the third generation wheel hub bearing units has led to higher added value and profit margins compared to earlier generations [4]