JAHEN(SZ:300955)2023-10-26 10:37Financial Performance - In the first three quarters of 2023, the company achieved a revenue of 729 million CNY, a decrease of 45.84% year-on-year, equating to a drop of 26.19 million CNY [1] - The net profit margin for the same period was 4.51% [1] - The decline in revenue and net profit is attributed to lower-than-expected industry demand and a reduction in customer orders [1] Operational Insights - The new factory in Huzhou is in the initial production phase, which has led to increased management, R&D, and financial expenses, totaling an increase of 2.37 million CNY [1] - The overall gross profit margin remains low due to high fixed costs associated with depreciation and amortization [1] - The company is actively expanding its customer base and new business opportunities [1] R&D and Market Strategy - The company has increased its investment in R&D, focusing on formula development, packaging innovation, and efficacy testing [2] - Collaboration with large clients is progressing well, with several clients having completed factory inspections and product trials [2] - The company aims to enhance its ODM service capabilities and expand its market presence [3] Customer and Product Structure - The primary customers are well-known domestic and international brands, with a stable customer base [3] - The product offerings mainly include skincare and hair care products [3] Future Outlook - The management expresses confidence in improving profitability as production capacity utilization increases and R&D capabilities enhance [2] - The company anticipates growth in the cosmetics industry, driven by a large population base and low per capita consumption [2]