① The gross margin in China continues to rise month-on-month, and the appreciation of RMB will reduce the company's procurement costs and have an overall positive impact on increasing the company's gross sales margin; ② Sanya International Duty Free City Phase I, Site 2 (Area C) now has the conditions for opening and is awaiting approval from relevant departments.
Financial News Agency, November 21 (Reporter Hu Haoqiong) At the China Exemption (601888.SH) third quarter results briefing held today, many investors once again raised questions about the company's huge decline in stock prices. “Why isn't it being bought back” and “are there any confidence in the company's profit of 10 billion yuan (yuan) next year?”
In response to the above investor concerns, Wang Xuan, chairman and general manager of the company, said that stock price trends in the secondary market are affected by multiple factors such as policies, macro conditions, industry changes, market and sector hot spots, and investor sentiment. Also, if there is a plan to repurchase shares, the company will promptly disclose it in accordance with relevant regulations.
However, Wang Xuan said that benefiting from the increase in the share of offline business and the narrowing of discounts, the company's gross margin continued to rise month-on-month, the inventory level was healthier, the inventory turnover rate increased significantly, the operating cash ratio, the labor productivity of all employees, and the R&D investment intensity all increased year-on-year, and the product structure continued to be optimized. In the first three quarters of 2023, the gross margin of the company's main business continued to recover in a single quarter, to 28.75%, 32.47%, and 34.27%, respectively.
As for the investor's question of “the appreciation of the RMB against the US dollar in recent days, if the RMB continues to appreciate against the US dollar, the impact on the company's performance”, Wang Xuan explained that the appreciation of the RMB will reduce the company's procurement costs, and overall it will have a positive impact on increasing the company's gross sales margin. At present, the company has also dealt with exchange rate fluctuations through negotiations with upstream suppliers, price terminal adjustments, and bank settlement concessions.
The rent negotiations between the company and the airport have also attracted investors' attention. Yu Hui, the company's chief accountant, said that the rent contract between the company and the airport is currently being carried out normally.
Regarding policies related to customs closure in Hainan, Wang Xuan said that the Hainan market has broad scope for development, but policies relating to customs closure in Hainan are still being studied and formulated. Regarding the progress of the opening of Sanya International Duty Free City Phase I, Area 2 (Area C), Wang Xuan said that the conditions for opening are now in place and are awaiting approval from relevant departments.
According to financial reports, in the first three quarters of 2023, the company achieved operating income of 50.837 billion yuan, an increase of 29.14% over the previous year, and realized net profit attributable to shareholders of listed companies of 5.206 billion yuan, an increase of 12.49% over the previous year. Among them, the third quarter achieved operating income of 14.979 billion yuan, an increase of 27.87% over the previous year, and realized net profit attributable to shareholders of listed companies of 1,341 billion yuan, an increase of 94.22% over the previous year.