Financial Associated Press, October 23 (Reporter Wang Bin)Thanks to strong overseas sales, 603129.SH 's performance continued to grow high in the first half of this year, but the situation in the second half of the year took a sharp turn for the worse-the company's performance was lower than expected in the third quarter of the peak season in the industry, and revenue and net profit both declined compared with the same period last year. Affected by this, Chunfeng Power's share price has fallen continuously, and by the close of trading on October 23, the company's share price has fallen 21.77% in the last five trading days.

This afternoon, at the third quarter results presentation meeting of Chunfeng Power in 2023, some investors asked: "at present, the company's share price has plummeted because it fell less than expected in the third quarter. Will the company consider buying back shares?" Lai Minjie, vice chairman and general manager of Chunfeng Power, replied: "if the company has relevant plans, it will fulfill its disclosure obligations in a timely manner."

Financial data show that Q3 Chunfeng Power achieved revenue of 2.881 billion yuan this year, down 22.68% from the same period last year, while its net profit was 250 million yuan, down 5.45% from the same period last year. From a month-on-month point of view, the revenue of Q3 is about 745 million yuan lower than that of Q2, and the net profit is about 90 million yuan.

It is understood that all-terrain vehicles and two-wheeled vehicles are the core sources of revenue of Chunfeng Power. The decline in the performance of Q3 company is mainly due to the month-on-month decline in export income of two-wheeled vehicles and four-wheeled vehicles. Lai Minjie explained that the company's new two-wheeler cycle is strong, and the domestic sales performance of Q3 is better than that of the industry, but overseas exports have slowed down due to short-term disturbances in the order cycle and season. Due to fluctuations in the market environment, there is a certain degree of pressure on the four-wheel business compared with the same period last year. Sales and income have declined compared with the previous year, and sales expenses have increased.

In addition, Lai Minjie comforted investors that the income fluctuation of international two-wheelers is mainly affected by normal order cycle fluctuations, and the current single-quarter income fluctuations are normal; four-wheel products are affected by global economic fluctuations, there are certain fluctuations or declines in the short term, and the company is still optimistic about the development of the power sports industry in the medium and long term. The company adheres to the three guiding directions of market share, operation quality and abundant cash flow, and believes that there will be better performance in the future.

"at present, the overall order on hand is OK, and the company is currently working on promoting retail and controlling channel inventory at a relatively healthy level through promotions and other activities." Lai Minjie said.

At the performance meeting, the inventory of Chunfeng Power was closely watched by investors. On the one hand, investors are eager to know how effective the company's inventory removal is; on the other hand, investors are more worried that the company's inventory situation is severe, which will affect subsequent sales.

However, in Lai Minjie's view, the company's Q3 inventory is in a reasonable and healthy position, and the challenge may be that there is some pressure on the US market channel inventory that has been sold to the market end. "the current inventory level of omni-channel in the US market is high, and we will increase our promotion efforts in the US market, reduce the level of channel inventory, and cope with future market fluctuations. The action of removing inventory has a certain pressure or impact on revenue and expenses in stages, and in the medium to long term, it is conducive to follow-up sales. "

It is worth mentioning that the sales expenses of Spring Wind Power have increased significantly since the beginning of this year, with the company's sales expenses reaching 1.147 billion in the first three quarters, an increase of 84.37 percent over the same period last year. Spring breeze power said that this is mainly due to the increase in promotion-related costs in the US market.

In addition to performance fluctuations, high inventories and rising sales costs, Chunfeng Power is also facing the challenge of a price war. Some investors mentioned that recently, the motorcycle prices of many manufacturers at home and abroad have been greatly reduced, especially the price of Kawasaki ninja 400 has also been reduced by about 10,000.

In this regard, Lai Minjie said that the company will pay close attention to the fluctuations in the domestic secondary market, and make corresponding market strategies in the light of market sales, inventory, consumer acceptance, and competitive products. "it needs to be emphasized that the company still hopes to give domestic consumers a better product experience and after-sales service through the improvement of product power."