Zhitong Financial App News, Weir shares (603501.SH) disclosed the 2022 annual results pre-reduction announcement, the company expects the annual net profit attributable to shareholders of listed companies of 800 million to 1.2 billion yuan, a decrease of 73.19% to 82.13%. The net profit belonging to shareholders of listed companies after deducting non-recurring gains and losses was 90 million yuan to 135 million yuan, a decrease of 96.63% to 97.75% compared with the same period last year.
During the reporting period, due to the impact of the global epidemic and the overall poor performance of the consumer electronics market, consumer electronics demand, represented by smartphones, was strongly impacted, and also had a greater impact on the company's main business. Shipments in some market segments declined, product sales prices were under pressure, and the company's revenue scale and product gross profit margin were lower than last year.
During the reporting period, under the influence of the decline in demand in the downstream consumer electronics market, competition in the consumer electronics market represented by smartphones intensified, and the unit prices of some products declined. In the first three quarters of 2022, for products whose net realizable value is lower than cost and some products with longer storage age, the company has prepared for a price drop of 493 million yuan.
In the fourth quarter of 2022, although the company's inventory level has dropped significantly, the demand in the consumer electronics market is still lower than expected, and the inventory destocking pressure of enterprises in the supply chain continues to rise, resulting in intensified price competition. the net realizable value of some of the company's products (for example, 64 million pixel image sensor products used in mobile phone terminals) is expected to decrease further, from a cautious point of view. Based on the information available so far, the company estimates that the inventory price reduction for the whole of 2022 is expected to be 1.34 billion to 1.49 billion yuan.