Caifinance News on November 5 (Reporter: Xiao Lianghua) shandong pharmaceutical glass (600529.SH) reported a slight decline in revenue and profit in Q3 2024 compared to the previous quarter, causing concerns among investors. The easily achievable incentive thresholds also face investor scrutiny.

During the earnings conference for the third quarter of 2024 held this morning, the General Manager of shandong pharmaceutical glass, Zhang Jun, stated that the sales in October exceeded the average level of Q3. In terms of costs, the price of the main raw material caustic soda has decreased, but the energy prices have risen, with overall costs currently remaining stable.

According to shandong pharmaceutical glass's 2024 third-quarter report, the company's Q3 revenue was 1.24 billion yuan, a 1.0% year-on-year decline and a 6.0% decrease from the previous quarter; the net income attributable to the parent company was 0.25 billion yuan, with a 7.2% year-on-year increase and a 3.6% decrease from the previous quarter.

In response, Zhang Jun explained that in Q3 2024, apart from the decline in subsidiary Baotou Fenghui Packaging's paper packaging products, all other business areas remained stable compared to the same period last year; the subsidiary Fenghui Packaging was mainly affected by the dairy industry, leading to a decrease in operating income. Additionally, in Q3 this year, the company's pharmaceutical factory had slightly longer maintenance time than usual.

Regarding the situation in Q4, Zhang Jun mentioned that the decline in business in Q3 has somewhat improved. Based on the current situation, it is anticipated that Q4 will be better than Q3.

Regarding the impact of the tenth round of centralized procurement on the company, Zhang Jun stated that the company is waiting for the official document release, and the specific impact is difficult to determine. Currently, the market and prices are stable, and the company's performance in 2025 and the prospects for borosilicate products are expected to continue to grow steadily.

Regarding the product structure, Zhang Jun mentioned that the company's borosilicate glass tubing currently accounts for about 70%, with a 5%-10% gap compared to Schott and Corning.

At the earnings conference, many investors questioned that the company's incentive fund management method, which has been in place since 2005, has a threshold that is too low (only requires a 6% growth), this extraction condition cannot play a good incentive role.

Zhang Jun replied that since the implementation of the incentive fund management method, the company's performance has maintained stable growth, playing a very good positive incentive role.

It is worth noting that after the release of the third-quarter performance in 2024, the company's stock price fell for 5 consecutive trading days, with a drop of over 10%. Some investors questioned whether the company's Q3 performance information may have been leaked in advance. Zhang Jun did not respond to this.