Under a seemingly beautiful semi-annual report, there are all kinds of doubts concealed as to where is Feike Electric's development path.
Since its establishment, it has experienced 19 years of rapid development and has a high reputation and market share in the field of personal care appliances.
However, with the "winter" in the field of small home appliances, Flying Branch, which has just grown up, has also fallen into a slowdown in both revenue and profits. In the first half of 2018, Feike Electric achieved operating income of 1.816 billion yuan, a year-on-year increase of 5.41%, and the growth rate dropped by nearly 14 percentage points. A year-on-year decrease of 49%. In its annual report for the first half of the year, there are still situations such as a decrease in monetary funds, a sharp increase in accounts receivable, and abnormal cash flow.
Financial report data is worryingAlthough Feike Electric's revenue and profit have increased to varying degrees in the first half of 2018, the upward momentum is far less than before.
In the first half of this year, Flying Branch's operating income increased by 5.41% year-on-year, which was significantly slower than the 19.04% growth rate in the same period in 2017 and the 9.89% growth rate in the same period in 2016. The growth rate of operating profit also dropped from 47.22% in the same period in 2017 to 5.31% in the current period. In response, Flying Branch Electric stated in a written information to the Investor News: “In the first half of 2018, the company’s revenue growth rate slowed down to a certain extent, but it was still within the company’s development expectations, mainly around the Spring Festival. The shortage of labor in some factories has led to insufficient supply, which has caused shortages of some explosive models, which has affected the growth of sales revenue. In fact, the second quarter has returned to rapid growth."
While revenue has grown, the net cash flow generated by Flying Branch's operating activities has decreased by 15.3% to 240 million yuan, which makes people very puzzled. In addition, the decrease in the net cash flow generated by operating activities also affected the monetary funds of Flying Branch. At the end of the 2018 semi-annual report period, Feike Electric held 443 million yuan in monetary funds, a year-on-year decrease of 31.12%, a decrease of 28.31% from the beginning of the period, and accounted for 15.2% of total assets. What is more worthy of scrutiny is that Feike Electric’s current receivables reached 295 million yuan, compared with 184 million yuan in the same period last year, an increase of 60% year-on-year. While the net profit only increased by 19 million yuan year-on-year, the company's accounts receivable increased by 60% to 111 million yuan, which squeezed the company's cash flow. From a dialectical point of view, the increase in the company's sales will also lead to an increase in accounts receivable. But in contrast, Feike Electric's mid-term revenue only increased by 5.41%. It reflects from the side that Feike Electrical Appliances may have problems with its upstream and downstream control.
In response to the above problems, Flying Branch Electric stated in its written information to the Investor News: “For e-commerce customers such as JD.com and Suning.com, the company will provide A certain amount of credit sales and credit period. In recent years, with the growth of e-commerce customers with a certain period, accounts receivable have increased to a certain extent. In addition, the company’s inventory has also increased, and accounts receivable and accounts receivable have increased. The increase in average inventory has led to a year-on-year decrease in net operating cash flow. On the other hand, Flying Branch will distribute cash dividends of 653 million yuan this year, which is a larger increase compared to last year’s 436 million yuan. The company’s monetary funds have therefore also increased year-on-year. Reduce."
The shaver is "difficult to support"?Flying Branch has a clear leading advantage in the domestic personal care appliances field, especially in the fields of electric shavers and hair dryers, and has formed a duopoly with Philips in the field of electric shavers. Focusing on the company’s main product categories, even in the state of revenue, Feike Electric’s main revenue comes from razors and hair dryers, accounting for approximately 83.3% of the total revenue in the first half of this year. Among them, the largest proportion is electric shavers, with revenue of 1.269 billion yuan, a year-on-year increase of only 3.65%. The revenue of vacuum cleaners and electric irons fell the most, down 39.93% and 29.62% year-on-year, respectively. Relying on one or two product categories to feed a company is normal for small home appliance companies, but the drawbacks are obvious, which will cause the company's ability to resist risks relatively weak.
Even so, Flying Branch appears to be extremely stingy in terms of investment in product research and development. From 2011 to 2013, the research and development expenses of Feike Electrical Appliances were 11.3346 million yuan, 12.678 million yuan and 15.6856 million yuan respectively. In the past three years, the research and development investment of Feike Electrical Appliances accounted for less than 1% of operating income. Even in the first half of 2018, the fee was only 20.81 million yuan, accounting for only 1.15% of operating income. Compared with Philips, another giant in the razor market, the company's R&D investment reached nearly 6.6 billion yuan, and R&D investment accounted for 10.43% of operating income. With its technological advantages, Philips firmly occupies the lucrative high-end electric shaver market, while Flying Branch can only control the low-end electric shaver market of about 100 yuan.
The breakthrough road of Feike Electrical AppliancesFaced with such a dilemma, Flying Branch also made various attempts. In fact, as early as the 2017 annual report, Flying Branch Electric has publicly pointed out that it must vigorously develop the product categories of electrical appliances and seek new profit growth points to enhance core competitiveness, but the bottleneck of diversified expansion of this category is temporarily difficult to break through. .
In order to continue to maintain its competitive advantage and enhance its core competitiveness, Flying Branch Electric stated that it will actively increase R&D investment, further promote the diversification of related small home appliances and product iterative upgrades. Development of small household appliances for life. In addition, Flying Branch will vigorously expand overseas markets while ensuring its leading position in China. At present, Feike Electric has established substantial cooperation with two domestic cross-border e-commerce customers, namely Global E-scouring and Tongtuo, and overseas e-commerce customers such as the United Kingdom and India. Diversification of related categories and overseas market expansion will become the two-wheeled driving force of the company's development.
In addition, an announcement on October 16, 2018 stated that Feike Electrical Appliances intends to invest in the construction of Feike Electrical Appliances Lijingyuan Industrial Base in Lishui, Zhejiang, in order to improve its own production capacity to meet the needs of domestic and foreign markets. After the project is completed, it will mainly produce small household appliances such as razors and hair dryers. The planned investment amount is 1.52 billion yuan. The implementation of the project is conducive to the company's further expansion of production scale. Whether the establishment of a new industrial park can bring positive impacts such as reducing operating costs and improving production efficiency for Flying Branch, it will take time to consider.
30 Inch Aio,Aio Computer,30 Inch All In One Pc,All In One Pc Adapter
Guangzhou Bolei Electronic Technology Co., Ltd. , https://www.nzpal.com