Hubei Dinglong published their first quarter results, recording a year-on-year 51.33% decrease in profits.
In the first quarter of 2023, the company realised operating income of ¥547 million ($79 million/ €71.56 million), a year-on-year decrease of 4.04% and net profit attributable to shareholders of listed companies of ¥34.73 million ($5.02 million/ €4.54 million), a year-on-year decrease of 51.33%.
Hubei said in its announcement that the main reasons for the year-on-year change in the company’s operating performance are affected by downstream customer demand, the sales revenue of high-margin products decreased year-on-year and also the company continued to increase R&D investment.
During the reporting period, the R&D investment amounted to ¥86.92 million ($12.55 million/ €11.37 million), a year-on-year increase 37.59%.
Hubei added that the installation of automated production lines for its consumables have brought about phased results and the ink cartridge business has strengthened. Hubei explained: “On the whole, the sales scale of the company’s mature products has basically remained stable, the products in the market development stage have maintained a good growth trend, and the new products in the research and development and verification stages have advanced rapidly as expected, laying a good foundation for the subsequent recovery of the company’s performance.”
