3D Printing Products Surge by 43%, Guanghua Weiye Reports First-Half Revenue of 243 Million CNY in 2024

Guanghua Weiye（光华伟业）, a leading Chinese manufacturer of consumer-grade 3D printing materials, under the brand name eSun(易生), achieved a revenue of 243 million CNY in the first half of 2024, with a net profit of 18.17 million CNY, according to reports from Panda3dp.com on September 5, 2024.

Listed on NEEQ under code 836514, Guanghua Weiye's financial results indicate a 9.79% increase in revenue, up from 221 million CNY during the same period last year. However, net profit declined by 49.50%, falling from 35.98 million CNY in the prior year. While the company has continued to expand its business scale, it is currently undergoing channel reforms. On the one hand, revenue from high-margin polylactic acid fiber products has dropped year-on-year, contributing to the profit decline. On the other hand, factors such as rising shipping costs and brand promotion expenses have also impacted profitability. Fortunately, some of these factors have already diminished, and the company's future outlook remains promising.

Panda3dp.com further noted that Guanghua Weiye's revenue from 3D printing products reached 204 million CNY in the first half of 2024, marking a robust growth. However, the gross profit margin slipped to 34.63%, representing a 3% decrease. Domestic sales accounted for approximately 50.44 million CNY, but the gross profit margin improved by 7.46%. Meanwhile, overseas revenue stood at 192 million CNY, though the gross profit margin declined by 3.68%.

1. Revenue increased by 9.79% year-on-year during the reporting period, with 3D printing products continuing to demonstrate robust growth, contributing 204 million CNY to the total, reflecting a 42.74% increase in revenue year-on-year. Environmentally friendly biodegradable materials, however, saw a 46.93% decrease in revenue, largely due to a significant decline in polylactic acid fiber business. Meanwhile, chemical product trade revenue dropped by 71.68% as the company strategically scaled back its trading operations.

2. Operating costs rose by 10.43% year-on-year, primarily driven by a substantial increase in last-mile delivery costs due to an expansion in e-commerce sales.

3. Overseas sales increased by 16.35% year-on-year, driven by the company's efforts to optimize its sales channels, expand its e-commerce platform, and successfully develop overseas customers, thereby sustaining growth in foreign sales revenue.

△ Hubei Xiaogan eSun, specializing in the production, research, and sales of environmentally friendly biomaterials and 3D printing consumables, generated 128 million CNY, serving as a key revenue contributor for the company.

Guanghua Weiye's Business Model:

The company operates in the "C2659 Chemical Raw Material and Chemical Product Manufacturing Industry - Synthetic Material Manufacturing - Other Synthetic Material Manufacturing" category, serving as a producer, operator, and service provider of environmentally friendly biomaterials. The company's product portfolio includes 3D printing products and environmentally friendly biodegradable materials. The primary 3D printing products consist of non-metallic fused filament, with photopolymer resin as a secondary product. The fused filament is mainly composed of polylactic acid and petroleum-based polymers, blended and co-polymerized with other materials before being processed into 3D printing materials. The environmentally friendly biodegradable materials primarily include polylactic acid fibers and non-woven fabrics, lactate esters, modified polylactic acid, polycaprolactone, polylactic acid-coated paper, and biodegradable products.

In addition, the company's trading business includes products such as phosphate series, benzene series, citric acid series, lactic acid series, alcohols, and more.

The company adheres to a market-oriented production model, predominantly based on production-to-order with supplementary inventory. Production plans are determined based on orders and raw material availability, ensuring efficient utilization of resources and effective production organization. The production department, guided by sales forecasts and actual inventory levels, engages in necessary preemptive production of core products to maintain reasonable inventory levels. During production, each production line strictly adheres to the company's operational procedures, safety management regulations, and quality control standards to ensure the production process meets quality control benchmarks.

The company's sales model is primarily direct-to-consumer, with supplementary distribution channels. The direct sales model includes both offline and e-commerce platform sales, covering major domestic regions as well as key international markets. The company promotes its products and brand through industry exhibitions, direct outreach to potential customers, and online advertising. Given the company's strong standing in the 3D printing industry and its expertise in producing various environmentally friendly biodegradable materials, many clients approach the company for potential business partnerships, spurred by the positive impact of national plastic restriction policies on the downstream market for eco-friendly materials.

The company has established a nationwide sales network, with a concentration in North China, East China, South China, and Central China. To better serve domestic and international customers, the company began opening sales channels on platforms such as Tmall and Amazon in the second half of 2017, creating a seamless online and offline sales model that facilitates timely product sales and customer satisfaction. To further expand sales, the company has continued to improve product quality while promoting its products and brand through exhibitions and advertising, resulting in favorable outcomes.

The company's primary revenue stream comes from product sales, with a strong focus on its core business.