Luyang Energy Saving: Due to changes in the market competition landscape and delays in the startup progress of some petrochemical industry project clients, the company's operating revenue has declined year-on-year.

Securities Star News, Luyang Energy Saving (002088) responded to investor questions on the investor relations platform on March 9.

Investor: Why did the performance drop significantly last year?

Luyang Energy Saving Secretary: Due to changes in market competition and delays in the startup of some petrochemical industry project clients, the company’s operating income declined year-on-year. The downward pressure on product prices and adjustments in sales structure jointly led to a narrowing of profit margins. Additionally, the company’s rigid operating costs and expenses did not decrease proportionally with revenue. This period, the net profit was affected by the subsidiary’s additional value-added tax payments and late fees. Multiple factors combined resulted in a year-on-year decline in operating profit and net profit.

Investor: Hello, Secretary! What percentage of the company’s product sales revenue is from EU member countries? Are all sales made directly by the company?

Luyang Energy Saving Secretary: The company’s overseas market development mainly focuses on Southeast Asia, South Korea, Japan, the Middle East, and other regions. According to the exclusive distribution agreement signed with the major shareholder, the European and American markets (excluding Russia) and the Indian market are operated by the major shareholder as the exclusive distributor of the company’s products. Please refer to the company’s periodic reports for details. Thank you for your attention to the company!

Investor: Why did the performance drop significantly last year?

Luyang Energy Saving Secretary: Due to changes in market competition and delays in the startup of some petrochemical industry project clients, the company’s operating income declined year-on-year. The downward pressure on product prices and adjustments in sales structure jointly led to a narrowing of profit margins. Additionally, the company’s rigid operating costs and expenses did not decrease proportionally with revenue. This period, the net profit was affected by the subsidiary’s additional value-added tax payments and late fees. Multiple factors combined resulted in a year-on-year decline in operating profit and net profit.

The above content is compiled from public information by Securities Star and generated by AI algorithm (Wang Xin Suan Bei 310104345710301240019), and does not constitute investment advice.