Gelonghui, January 29丨Lukang Biochemical (002868.SZ) announced its 2023 annual results forecast, with operating income of 51 million yuan to 520 million yuan; net profit loss attributable to shareholders of listed companies of 21 million yuan to 230 million yuan, loss of 121.94 million yuan in the same period last year; net profit loss after deducting non-recurring profit and loss of 225 million yuan to 250 million yuan; loss of 123.21 million yuan for the same period last year; basic earnings loss per share of 1.35 yuan/share — 1.48 yuan/share.

During the reporting period, the company's revenue increased by 54% to 58% compared to the same period last year. The main reason: ① The production capacity of neomycin sulfate in the IPO fund-raising project in the animal insurance business climbed, and the market share gradually increased. ② The company completed the acquisition of Jiangxi Weike New Material Technology Co., Ltd. (renamed Lukang (Yushan) Adhesive Film Material Co., Ltd., hereinafter referred to as “Lukang Yushan”) to enter the photovoltaic film industry and increase Lukang Yushan photovoltaic film revenue.

Comprehensive gross margin declined sharply during the reporting period. The main reason: ① The boom in the farming industry is declining, and the price index for veterinary drug raw materials continues to decline. Coupled with multiple factors such as depreciation of fixed assets, although income from the sports insurance business has increased, gross margin has declined. ② Affected by the widening price difference between POE particles and EVA particles this year, downstream component customers used EPE film to replace POE film in terms of component packaging materials in order to reduce costs. However, before the acquisition, Lukang Yushan only imported POE film on the client. During the reporting period, it was only able to produce POE products. It completed EPE product development and customer import work in December. In order to maintain normal production and sales relationships with customers, Lukang Yushan sells some POE film products at the EPE price. Since the price of EPE film is far lower than that of POE film, there is a negative gross profit margin.