Syncmold Enterprise, a leading bearing manufacturer, unveiled its third-quarter financial report today, showcasing a remarkable upswing in shipments of high-value models, coupled with a strategic optimization of its product portfolio. The company’s rigorous cost control measures and enhanced production processes across its factories further bolstered its performance. Notably, Syncmold’s earnings in the third quarter surpassed its first-half figures.
The consolidated operating income for Syncmold in the third quarter reached an impressive 2.516 billion yuan. This surge was attributed to a rebound in shipments of key products during the peak industry season, resulting in a 16.4% quarterly increase and a 2.4% annual growth. The company’s prudent product mix enhancement translated into an operating gross profit of 629 million yuan, accompanied by a gross profit margin of 25%. This signifies a notable 5.4 percentage point increase from the previous quarter and an 8.5 percentage point rise from the same period last year.
Syncmold’s operating profit in the third quarter stood at approximately 319 million yuan, boasting an operating profit rate of 12.7%. This marks a substantial 6.9 percentage point climb from the second quarter and an impressive 10.4 percentage point surge from the corresponding period in the preceding year. In terms of pre-tax figures, the net profit for the third quarter reached around 382 million yuan. The after-tax net profit attributable to the parent company witnessed a substantial increase of 55.9%, amounting to approximately 252 million yuan. Calculated based on the closing equity, the after-tax net profit per share (EPS) for the third quarter stood at approximately 2.03 yuan, surpassing the figures from the second quarter (1.38 yuan), the same period last year (1.31 yuan), and the first half of this year (1.68 yuan).
While Syncmold reported a year-on-year decrease of 18.9% in its cumulative consolidated revenue for the first three quarters, attributed to cautious demand due to customer inventory adjustments in the initial half of the year, the company exhibited a notable recovery. This revival was fueled by heightened shipments of high-value models, an optimized product mix, and the positive impacts of stringent cost controls and improved production processes. Consequently, Syncmold’s gross profit margin for the first three quarters soared to 20.9%, marking a substantial 5.1 percentage point increase from the same period in the previous year.
The cumulative operating profit for Syncmold in the first three quarters reached 484 million yuan, yielding an operating profit rate of 7.4%. This showcases a commendable 4.2 percentage point increase from the same period last year. The pre-tax net profit amounted to 690 million yuan, with an after-tax net profit attributable to the parent company of 460 million yuan. The cumulative after-tax net profit per share stood at approximately 3.72 yuan, outperforming the figures from the same period last year (2.77 yuan).
Looking ahead, amidst the varied challenges foreseen in the PC industry for 2023, Syncmold remains poised for continued growth. The company intends to fortify its competitive edge through relentless pursuit of innovative research and development initiatives, adapting swiftly to the dynamic market landscape. Additionally, Xinjin is set to leverage the collective resources of the group, steering towards novel product applications and diversifying customer segments, in its quest for sustainable and consistent expansion.
