Monalisa(002918)2022-11-19 01:26Group 1: Financial Performance - In Q1 2022, the company's consolidated operating revenue was 1.064 billion CNY, representing a year-on-year increase of 6.74% [2] - Revenue from the distribution channel was 564 million CNY, with a year-on-year growth of 13.81% [2] - The engineering business revenue was approximately 500 million CNY, remaining stable compared to the previous year [2] - The net profit attributable to shareholders was -73.81 million CNY, primarily due to seasonal factors and rising costs [2] Group 2: Cost and Profitability - The increase in costs was attributed to high prices of natural gas, coal, and raw materials, significantly impacting profitability [2] - The overall gross profit margin decreased by 5.48%, with the distribution channel's margin declining by 8.7% [3] - The company implemented internal controls to mitigate external uncertainties, focusing on reducing waste and costs [2] Group 3: Market Strategy and Channel Development - The company plans to continue expanding its distribution channels, particularly in underdeveloped markets [4] - In 2021, the revenue structure showed that distribution accounted for approximately 51%, while strategic engineering accounted for about 49% [3] - The company aims to support distributors in small B projects, maintaining a credit limit of 30% for risk management [3] Group 4: Industry Context and Competition - In 2021, the national ceramic tile production decreased by 4.6%, with 1,048 companies remaining in the market [5] - The company's market share is currently around 2%, with expectations for increased concentration in the industry due to rising costs and stricter regulations [5] - The company is focusing on developing high-quality clients in the engineering channel, considering factors like gross margin and payment risks [5]