Dongfang Electric Heating achieved revenue of 708.87 million yuan in the first three quarters of 2015, a year-on-year decrease of 4.57%, and net profit excluding non-recurring gains and losses of 62.84 million yuan, a year-on-year decrease of 12.08%; in the third quarter alone, revenue was 224.04 million yuan, a year-on-year decrease of 10.26%, and net profit excluding non-recurring gains and losses was 23.87 million yuan, a year-on-year decrease of 5.21%.
The sluggish demand in the air conditioning industry suppressed revenue growth, while the rapid growth of small household appliances and industrial electric heaters contributed to performance. During the reporting period, the year-on-year decline in the company's revenue was mainly due to the high proportion of revenue from air conditioning electric heaters. Affected by the sluggish demand in the downstream air conditioning industry and intensified competition, the revenue from air conditioning electric heaters declined significantly. However, the sales growth of electric heaters for small household appliances and industrial electric heaters was relatively fast, offsetting part of the decline in revenue from air conditioning electric heaters. In the first three quarters, the company's gross margin decreased slightly by 0.36 percentage points year-on-year, mainly due to a significant decline in the selling price of air conditioning electric heaters. In the first three quarters, the company's expense ratio remained stable, and the net profit margin fell by 0.32 percentage points to 9.37%, mainly due to the decline in gross margin.
