Tong Ming's revenue this year will still be lower than last year due to selling prices dragged down by raw material costs. However, the company has observed that China's fastener market demand has gradually stabilized since the third quarter of 2023. Under the fierce competition in the whole market, Tong Ming's market share of fasteners in China has not decreased but increased instead, and Tong Ming continues to play a leading role in the industry.
Tong Ming pointed out that since the second half of 2022, the fastener industry has turned conservative and inventory levels have been high. However, by the third quarter of 2023, inventory adjustments in European, American, Oceanian, and Chinese markets have been made, and the overall transaction is more than in the first half of 2023. In the export market, China continues to be suppressed by trade tariffs and affected by the Russia-Ukraine war, so Tong Ming is viewing this market conservatively.
Tong Ming's consolidated revenue in the first three quarters of 2023 was RMB 10.1 billion, a year-on-year decrease of 13.71%; net profit after tax was RMB 258 million, a year-on-year decrease of 64.51%; EPS was RMB 1.27, lower than RMB 3.6 in the same period last year. The company plans to sustainably increase its production capacity in the next 3 to 5 years, which is expected to be up to 80,000 tons.