Kaisheng New Energy: Taking a series of measures to reduce losses, increase efficiency, and improve the ongoing loss situation

Investor Question:

Hello, Secretary of the Board! According to the recent performance briefing of companies listed within China National Building Material Group, while other systems’ listed companies maintain good performance and profitability, Kaisen New Energy has suffered continuous losses for many years, with the loss amount increasing steadily. Has the listed company and the actual controller shareholders formulated any reform measures to address the worsening operating conditions, in order to reverse the ongoing losses and protect the legitimate rights and interests of small and medium shareholders?

Secretary of the Board’s response (Kaisen New Energy SH600876):

Hello! Thank you for your concern about the company. In recent years, due to supply and demand mismatches in the photovoltaic industry, the price of photovoltaic glass has continued to decline, which has also had a strong impact on the company’s operating condition. Against this background, the company has taken a series of measures to reduce losses and increase efficiency. Specific measures include坚持推进“三大攻坚战” (persist in advancing the “Three Major Battles”), strengthen receivables management, improve cash flow, adhere to the strategy of stopping small projects and building large ones, enhance the proportion of large-tonnage advantageous capacity, further concentrate the company’s capacity in regions with market advantages to reduce costs such as energy consumption and transportation; continuously promote product high-endization and differentiation, increase the proportion of high-value-added products such as high-transparency and ultra-thin, stabilize orders and prices, strive to develop international markets, increase export order share, and improve the company’s gross profit margin from sales; leverage China National Building Material Group’s centralized procurement platform to increase bulk raw material purchasing, reduce raw material procurement costs. Through these measures of scale cost reduction and lean operation, the company aims to strictly control production costs, improve operating performance, reverse the continuous loss situation, and effectively safeguard the interests of investors.

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Disclaimer: This information is excerpted by Sina Finance from public sources and does not constitute any investment advice; Sina Finance does not guarantee the accuracy of the data, and the content is for reference only.