Event: The company released its three-quarter report for 2023. The third quarter of 2023 achieved revenue of 274 million yuan, a year-on-year increase of 10.01%, and net profit of 225 million yuan, a year-on-year increase of 3.95%; the first three quarters of 2023 achieved a total revenue of 710 million yuan, a year-on-year decrease of 14.73%, and net profit of 77 million yuan, a year-on-year increase of 22.17%.
Revenue stopped falling year over year to profit, and profitability remained stable. Affected by the decline in sales prices caused by falling raw material prices, the company's revenue for the first three quarters fell 14.73% year on year. Looking at the first three quarters, the year-on-year differences in the first three quarters were -30.17%, -20.94%, and 10.01%, respectively, and there was a clear quarterly improvement trend.
At the same time, although affected by raw material prices, the company's Q3 gross profit margin was 19.74%, down 1.62% from the previous month, but benefiting from the company's “raw materials+fixed processing costs” model, unit product profit was still at a good level. Net profit per unit of product was still at a good level. Net profit for the first three quarters of 2023 increased by 22.17% year on year.
There have been remarkable results in fee control and efficiency, and the cost rate has declined over the period. 2023Q3 had sales expenses of 12 million yuan, a sales rate of 4.23%, a year-on-year decrease of 0.03 pcts; an administrative fee of 0.7 billion yuan, a management fee rate of 2.63%, a year-on-year decrease of 0.36 pcts; R&D expenses of 0.07 billion yuan, an R&D rate of 2.60%, a year-on-year decrease of 0.56%; and financial expenses of -01 million yuan, mainly due to a decrease in loan interest expenses and an increase in fund management interest income.
The domestic leader in microelectronic welding materials, and the steady development of cooperation at home and abroad. In 2023, due to the decline in the price of raw materials, the sales prices of the company's main products all declined along with it, leading to a decline in the company's revenue. As the price of tin stabilizes, according to iFind statistics, since the end of June, the average market price of solder bars and other products has begun to rise, and the Q3 company's revenue has achieved a positive year-on-year increase in revenue. At the same time, the company's IPO fund-raising projects are also being actively promoted. Production will be achieved in 2024 and 2025 respectively. After delivery, solder paste and solder wire will increase annual production capacity by 1,444 tons and 900 tons to 2,604 tons and 1,612 tons, respectively, bringing new performance increases to the company. In October 2023, the company issued an announcement stating that it will separately establish overseas wholly-owned subsidiaries, Weiteyou New Materials (Hong Kong) Co., Ltd., and Weituo New Materials (Singapore) Co., Ltd.; and a Singaporean subsidiary, as the investor, an overseas subsidiary, will be established. Combined with the globalized industrial pattern of the electronic information industry, the establishment of overseas companies will ensure that the company can better meet the needs of international customers, improve service quality and efficiency, and enhance the company's international competitiveness. At the same time, the company plans to set up a wholly-owned subsidiary in Jiangsu to carry out R&D, production and sales of electronic special materials for the entire photovoltaic industry chain, further integrate resources, optimize allocation, broaden the company's business scope, and enhance the company's profitability to achieve the company's long-term development strategic goals.
Risk warning: risk of raw material price fluctuations, downstream demand falling short of expected risk, new project construction falling short of expected risk