This year, due to the sudden increase in cost pressure, ceramic companies' profits are not as expected. Many people in the industry even say that they are already enjoying themselves if they don't lose money this year. Recently, Guangdong Dow Technology Co., Ltd. (hereinafter referred to as "Dow Technology"), Guangdong Dongpeng Holdings Co., Ltd. (hereinafter referred to as "Dongpeng Holdings"), Mona Lisa Group Co., Ltd. (hereinafter referred to as "Mona Lisa") Lisa") will successively announce the third quarter report of 2022.
Looking at the third quarter results alone, two of the three listed companies are still profitable: Dongpeng Holdings’ net profit attributable to shareholders of the listed company was 75.4918 million yuan, and Mona Lisa’s net profit attributable to its parent company was 1.18 million yuan. 100 million yuan; while Dow Technology’s net profit attributable to the parent company was -125 million yuan.
Dow Technology:
Net profit attributable to parent company in the first three quarters was 151 million yuan
A year-on-year decrease of 66.09%
Dow Technology’s report for the first three quarters of 2022 released on October 25 showed that its total operating income in the first three quarters of 2022 was 5.286 billion yuan, a year-on-year increase of 14.88%; the net profit attributable to the parent company was 151 million yuan, a year-on-year decrease 66.09%. Among them, revenue in the third quarter was 1.562 billion yuan, a year-on-year decrease of 14.62%; net profit attributable to the parent company was a loss of 125 million yuan.
In addition, Dow Technology’s operating costs in the third quarter of 2022 were 4.372 billion yuan, a year-on-year increase of 27.9%, which was higher than the 14.9% growth rate of operating income, resulting in a decrease in gross profit margin of 8.4%. The expense ratio during the period was 10.2%, a decrease of 2.4% from last year. Operating cash flow dropped from 236 million yuan to -367 million yuan, a year-on-year decrease of 255.8%.
Data source: Guangdong Dow Technology Co., Ltd. 2022 Third Quarter Report
The report shows that in the third quarter of 2022, Dow Technology made provision for asset impairment of RMB 88.194 million within the scope of its consolidated statements. The price of cobalt and nickel products will fluctuate in 2022. Since it takes a certain period from raw material procurement to finished product shipment, the price drop has led to the emergence of raw materials and unsold products.A certain degree of impairment.
Dongpeng Holdings:
Revenue and net profit attributable to parent companies declined in the first three quarters
The report for the first three quarters of 2022 disclosed by Dongpeng Holdings on October 25 shows that in the first three quarters of 2022, it achieved total operating income of 5.056 billion yuan, a year-on-year decrease of 11.9%; it achieved net profit attributable to the parent company of 194 million yuan, a year-on-year decrease 50.4%. Among them, operating income in the third quarter was 1.924 billion yuan, a year-on-year decrease of 8.94%; net profit attributable to the parent company was 75.4918 million yuan, a year-on-year increase of 2039.37%; net cash flow generated from operating activities was -54.98 million yuan, a year-on-year decrease of 116.74%.
Data source: Guangdong Dongpeng Holdings Co., Ltd. 2022 Third Quarter Report
In response to the sharp decline in net profit attributable to parent companies in the first three quarters of 2022, Dongpeng Holdings stated that the construction and ceramics industry is facing greater challenges under the influence of many unfavorable factors at home and abroad. Liquidity pressure in the real estate industry has not been effectively alleviated. Demand for building materials has shrunk. Energy and raw material prices have risen sharply. Production, operations and performance have been affected by the local epidemic. At the same time, labor costs, depreciation, amortization, advertising and other expenses have increased. Therefore, as of the end of the third quarter this year, Dongpeng Holdings' operating income and net profit attributable to the parent company have declined.
During the reporting period, administrative expenses increased by 35.81%, mainly due to the salary expenses recognized due to the early termination of the recognition of the 2021 restricted stock plan, employee compensation paid for factory demolition and an increase in employee salaries. Other income decreased by 48.95%, mainly due to the decrease in government subsidies received. In addition, at the end of the third quarter, the scale of Dongpeng Holdings' accounts receivable was 1.251 billion yuan, a slight increase of 1.11% from the beginning of this year; in addition, the scale of notes receivable dropped to 138 million yuan, a decrease of 46.28% from the end of the previous year. The report stated that this was because overdue commercial bills from engineering customers were transferred to accounts receivable.
Data source: Guangdong Dongpeng Holdings Co., Ltd. 2022 Third Quarter Report
Previously, Dongpeng Holdings released its 2022 semi-annual report. The report shows that operating income in the first half of the year was 3.132 billion yuan, a year-on-year decrease of 13.61%; net profit attributable to the parent company was 118 million yuan, a year-on-year decrease of 69.45%. This is also the first time that Dongpeng Holdings has experienced a double decline in revenue and net profit attributable to the parent since its listing in 2020. Although net profit attributable to parent companies increased in the third quarter, it was still unable to reverse the year-on-year decline in the first three quarters.
Data source: Guangdong Dongpeng Holdings Co., Ltd. 2022 Semi-annual Financial Report
Dongpeng Holdings stated that the company will actively promote key tasks such as strengthening retail sales, service upgrades, lean operations, cost reduction and efficiency improvement, and digital drive, and promote the operation transformation with efficiency drive as the core, from resource efficiency, management efficiency, and operation Improve operation and management capabilities in multiple dimensions such as efficiency; continue to leverage the advantages of new retail, improve the quantity and quality of offline outlets, and further increase retail customer acquisition and conversion efficiency; continue to leverage the "1 +N" multi-category product advantages, create product solutions for engineering market segments, and strive to become the leading brand of professional engineering solutions for medical and health care, hotels and commercial chains.
Mona Lisa:
Net profit attributable to parent company in the third quarter was 118 million yuan
Monalisa's report for the first three quarters of 2022 disclosed on October 26 showed that its total operating income in the first three quarters of 2022 was 4.694 billion yuan, a year-on-year decrease of 4.7%, of which distribution business income was 2,655.792 million yuan, a year-on-year increase. 6.88%, engineering strategic business income was 1,989.7038 million yuan, a year-on-year decrease of 15.39%; net profit attributable to the parent company was -370 million yuan, a year-on-year decrease of 188.69%. In addition, its operating income in the third quarter was 1.769 billion yuan, a year-on-year decrease of 4.18%; the net profit attributable to the parent company in the single quarter was 118 million yuan, a year-on-year decrease of 12.56%.
Data source: Mona Lisa Group Co., Ltd. 2022 Third Quarter Report
It is worth noting that the scale of Mona Lisa’s accounts receivable from January to September was 1.11 billion yuan, a decrease of 13.2% from the level at the beginning of this year; the corresponding credit impairment losses were approximately 500 million yuan, a year-on-year decrease of 654.05% , mainly due to the expected expansion of default risks of some real estate customers during the reporting period, obvious signs of impairment of receivables, and corresponding credit impairment losses. Previously, Mona Lisa stated that the credit risk of some real estate customers has increased, and the expected default risk has expanded. Based on risk prevention and control, the company has adopted a prudent strategy, proactively shrinking orders from some real estate customers with higher risks, continuing the dealer sinking channel, and developing Blank market to gradually reduce dependence on real estate companies.
Data source: Mona Lisa Group Co., Ltd. 2022 Third Quarter Report
Some industry insiders said that in the face of irreparable bad debts, companies can survive as long as they stabilize their cash flow. By revitalizing inventory products and dispatching dedicated personnel to strengthen the collection of receivables, we will strengthen risk management and control of receivables, increase efforts to collect payment, and enhance the ability to collect sales. Therefore, Mona Lisa’s operations at the end of the third quarter of this year Sexual cash flow increased from -132 million yuan to 465 million yuan, a year-on-year increase of 451.9%.
Data source: Mona Lisa Group Co., Ltd. 2022 Third Quarter Report
Cash flow includes three categories: operating, investment, and financing. The net cash flow generated from operating activities is a key indicator for measuring corporate cash flow. It can be seen from the report that in addition to the sharp increase in this indicator, the net cash flow generated by Mona Lisa's investment activities also increased by 37.76%, mainly due to the year-on-year decrease in the scale of merger and acquisition investment, fixed asset investment, and equipment technical improvement investment during the reporting period. , net cash from investing activities increased year-on-year; while net cash flow from financing activities fell sharply by 101.61%, mainly because Mona Lisa issued convertible bonds in the same period last year, and there were no bond issuances and other fundraising measures during the reporting period. Net cash from financing activities decreased.
The domestic market demand is declining, and the construction and ceramics industry is still deeply affected by the real estate thunderstorm. Most ceramics companies are gritting their teeth and surviving this market downturn. OKIndustry insiders predict that the market environment in the fourth quarter will still not be optimistic, and the economic operation of the industry will still face greater pressure.
