High outsourcing ratio, low R & D investment, generous advertising, as products continue to board the quality inspection black list, small household electrical appliance enterprises Shanghai Feike Electric Co., Ltd. (hereinafter referred to as 'Feike Electrical', 603868.SH ) Face serious problems of sustainable development.
According to "China Business" reporter incomplete statistics, since June 2017, Feifei curlers, Flying Branch sweeping robot (18.280, -0.09, -0.49%), Flying Branch razor and other products have boarded the quality Check the Department of black list, Flychel appliances on the product quality control ability has been questioned by the industry.At the same time, according to Flycheck earnings report in the main business income shows that the company on the electric shaver and hair dryer two products rely on Higher, once the electric shaver and hair dryer industry adverse changes or increased competition, may result in a decline in corporate performance.
Industrial economic critic Hong Shibin that the product is the core competitiveness is a measure of the long-term basis of an enterprise, and fly Branch Electric has been the main 'low-priced brand', but ignored the core technology and quality, relying on the promotion It is hard to achieve long-term effects with publicity.
In response to the above questions, the reporter sent a letter to fly Keji Acting Secretary of the Board of Directors Jin Wencai, as of press release, no reply.
Single product
According to the information, Flyco Electrical was established in 1999 as a non-regional conglomerate specializing in the R & D, manufacturing and sales of razors and small household appliances with a total registered capital of 100 million RMB. April 18, 2016 , Flying Branch Electric successfully listed on the Shanghai Stock Exchange.
In less than two years after its launch, FeKez Electrical Co., Ltd. achieved remarkable results. In 2016, FeKe Appliances achieved revenue of 3.36 billion Yuan, an increase of 20.89% and a net profit of 610 million Yuan, an increase of 22.23% over the same period of last year; In the first half of the year, its operating income was 1.723 billion yuan and its net profit was 379 million yuan, up by 19.04% and 53.93% respectively over the same period of last year; operating revenue in the first three quarters of 2017 was 2.663 billion yuan, up 14.4% over the previous year and net profit was 599 million yuan, up by 42.77%.
However, behind the profit growth, the reporter noted that the issue of too focused on flying electrical products should not be overlooked in the first half of 2017, the company electric razor and hair dryer, respectively, revenue 1.198 billion yuan, 222 million yuan, with a total The main revenue of the company was 82.5%. In 2016, the sales revenue of electric shavers and hair dryer were respectively 2.26 billion yuan and 538 million yuan, accounting for 83.3% of the total.
Obviously, Flytech itself is aware of this problem. In its annual report, the company pointed out that in order to enhance its core competitiveness and seek new profit growth points, it will vigorously expand the product categories of household electric appliances, including humidifiers and air cleaners , Health scales, vacuum cleaners, etc. However, some analysts believe that the current want to compete in the small appliance market too much strength of the business, the multi-Branch of the Branch Electric may not be smooth.
'For the Flying Branch, diversification is the way to go, because the two major products such as electric shavers and hair dryer products after years of operation, to reach the peak, has been unable to support its sales needs, so Flyco Must be through horizontal development to find a way out. "Hong Shibin, industrial economist, believes that the idea of diversification itself is no problem, mainly depends on the future choice of the location of the fly electrical appliances, is' small and beautiful 'or' big and strong '' from the current The situation of the company, big and strong is more arduous, it is not only a profit but also the scale of the enterprise is a big challenge.
Industrial economic observer Liang Zhenpeng expressed concern about the diversified prospects of Flytech in an interview with reporters: 'In the process of diversified layout, we must first make the top three or the top five in each industry, The layout of a product line. If multiple product line layout at the same time, and these product lines are not in the industry upstream, it is difficult to achieve economies of scale.
Quality control absence
It is noteworthy that, in the process of diversified multi-road exploration, the quality control of products is also a big problem.FIKE's production mode for the independent production and outsourcing production, part of the product for production, some outsourced to other manufacturers produce.
According to the 2016 Annual Report data, the purchasing cost of small household electrical appliances outsourced by the Company was 1.391 billion yuan, accounting for 66.61% of the total cost of the current period, of which the purchase cost of the electric razor was 612 million yuan, the purchasing cost of the hair dryer was 3.66 100 million yuan.
In Liang Zhenpeng view, not their own factories, outsourcing procurement, the brand side is difficult to strictly control all aspects, so prone to quality problems.
Reporter combing found that on December 26, 2017, Ganzhou City Administration of Industry and Commerce released the 2017 annual circulation of small household electrical appliances quality sampling results, including nominal 'Shanghai Branch Electric Co., Ltd.' production of flying electric shavers FS623 was found to be unqualified due to non-conformity of the marks and specifications. In November 2017, Shanghai Consumer Protection Commission released the test results of 25 intelligent sweeping robots. During the testing process, a product of FC9601 In June 2017, Guangdong Provincial Bureau of Quality and Technical Supervision released "2016 Guangdong Province skin and hair care appliances and other six special product quality supervision and inspection results" show that Feifei curlers in the continuous disturbance voltage of this project In the unqualified.
In the Annual Report, Feike Electric explained that the production mode in which the Company adopts the combination of independent production and outsourcing production is to guide the specialized division of labor in the industrial chain, enhance the supply capability of products, and focus on the improvement of R & D, brand building and sales management Of the core competitiveness.In fact, compared to enhance research and development capabilities, Flying Branch Electric seems to pay more attention to advertising.
Earnings information shows that in the first half of 2017, the company invested in advertising expenses accounted for the highest proportion of sales costs, reaching 50,914,300 yuan, while the R & D cost of only 23,372,700 yuan, less than half of advertising costs; in 2016, Feike Electric advertising costs The same high, reaching 160 million yuan, while research and development expenditures only 36,789,300 yuan.
Hong Shibin pointed out that advertising and promotion expenses are necessary expenses for home appliance enterprises, but its low R & D investment is a big problem.Enterprises must have the core competencies in order to win the market, go further, advertising is only suitable for initial sales , The market has played a certain role in stimulating, but when the business sales more and more high, consumers will return to the essence of the product.
Defective work
In addition to advertising is not generous, the Flying Branch Electrical keen to buy financial products, can be described as 'unprofessional' Some media statistics, as of October 2017, Flying Branch Electric holds more than 50 financial products.
On November 24, 2017, Flytech released a notice that the Company purchased structured deposit products from Shanghai Songjiang Sub-branch of Bank of Shanghai on November 23, 2017, totally using the idle raised funds of 3000 Million, financial management period of 63 days.
On January 2, 2018, Flyco again announced the purchase of wealth management products, and the Company and its subsidiaries intend to continue to use their own funds with an amount not exceeding RMB1.5 billion to purchase short-term and medium-term short-term bank wealth management products. From Dec. 31 to Dec. 31, the Company realized a revenue of RMB 7.8605 million through the purchase of wealth management products, as of December 31, 2017, the Company rolled a total of RMB5.147 billion of investment bank wealth management products with its own funds.
It is not difficult to see that, regardless of flying electric appliances investment in financial management, or advertising are 堪称 generous, only to R & D investment 'cash-strapped'.
Earlier in the industry, said in an interview with reporters, listed companies use idle funds to buy wealth management products is understandable, in line with its economic interests.But for non-investment, financial management, financial enterprises, this is a cross-border and has nothing to do with the past Behavior, risk can not be ignored.
'Now for the fly the most important electrical upgrade core technology capabilities but this point was neglected by the company, in fact, fly the electrical appliances in the small household appliances market is a relatively weak brand, the main' low price card 'in brand premium ability Not strong case, there is no core technology patents, no way to balance the price, quality, performance and technology, but blind diversification, blind expansion, blind investment, it is easy to counter-productive. "Liang Zhenpeng said.