On October 22, Financial Associated Press (Reporter: Wu Chao) reported that CIMC Enric (301559.SZ) had previously disclosed that starting from the second quarter, downstream customers accelerated the pace of picking up containers, customer inquiries became active, and the number of company orders continued to increase. Looking at the financial report released tonight, in the third quarter of CIMC Enric, compared with the first two quarters of this year, the decline in revenue and net profit narrowed slightly, but the improvement was not significant.

According to CIMC Enric's financial report, in the first three quarters, the company's revenue was 2.354 billion yuan, a year-on-year decrease of 38.63%; the net profit attributable was 0.18 billion yuan, a year-on-year decrease of 62.98%, showing a trend of declining revenue and net profit.

According to Wind data, in the first three quarters, the company's gross margin was 16.78%, a decrease of 5.16 percentage points compared to the same period last year; the net margin was 7.55%, a decrease of 5.06 percentage points compared to the same period last year.

Looking at the quarterly performance, CIMC Enric achieved a total operating income of 0.964 billion yuan in Q3, a year-on-year decrease of 24.23%, and a quarter-on-quarter increase of 25.19%; the net profit attributable was 65.0366 million yuan, a year-on-year decrease of 49.32%, and a quarter-on-quarter increase of 3.14%.

Public information shows that CIMC Enric is the world's largest and technologically leading manufacturer of tank containers and full-lifecycle service provider. In the first half of this year, the company's global market share of tank containers ranked first. The tank container industry is a typical cyclical growth industry, with demand mainly linked to global chemical logistics demand. However, the industry has experienced pressures over multiple quarters, showing a weak recovery trend, leading to a slowdown in the demand for tank containers.

Additionally, in the first three quarters, part of the impact of exchange rate fluctuations on cash and cash equivalents, CIMC Enric incurred a loss of 15.3646 million yuan, while in the same period last year it had a positive income of 29.3995 million yuan. Furthermore, due to exchange rate fluctuations, in the first three quarters, the company's financial expenses increased by 54.40% compared to the same period last year.

During recent investor relations activities, CIMC Enric mentioned that the proportion of the company's main products sold overseas is relatively high, and they are mainly settled in US dollars, making them more significantly affected by the RMB exchange rate. The company's orders are generally priced in US dollars, and fluctuations in exchange rates can affect the company's profitability. The company constantly monitors the forex market and timely uses financial instruments such as forward contracts to minimize the impact of exchange rate fluctuations on profitability.

Other operating expenses have all decreased, in the first three quarters, the company's selling expenses decreased by 18.12% year-on-year, administrative expenses decreased by 9.81% year-on-year, and research and development expenses decreased by 27.3%.

Of note, in order to expand the market, CIMC ENRIC is actively seeking more potential application areas for tank containers. The company indicates that with the continuous growth in demand for battery electrolytes and the rise of high-tech industries such as chips and semiconductors, the company has developed electrolyte tank containers, electronic-grade coating tank containers to meet industry development needs; leveraging its high-precision soldering experience in the medical field, the company is expanding into new businesses in medical testing, industrial, and scientific research fields, and has researched and developed pharmaceutical-grade medium tank containers with high cleanliness, precise temperature control, and sterile environments.