On April 13, Boss Electrical held the 2017 annual performance briefing through the interactive platform. Boss Electric Chairman Ren Jianhua, Vice Chairman and General Manager Ren Fujia, Director Deputy General Manager and Board Secretary Wang Gang, Independent Director Ma Guoxin, Chief Financial Officer Zhang Guofu All executives attended and conducted in-depth exchanges with investors on the 2017 annual performance issues.
On April 10, Boss Electric released its 2017 annual report. According to the announcement, in 2017 Boss Appliances achieved operating income of 7.017 billion yuan, a year-on-year increase of 21.10%, and net profit attributable to shareholders of listed companies was 1.461 billion yuan, an increase of 21.08% year-on-year.
Boss’ 2017 annual performance still maintained double-digit growth. However, due to rising raw material costs, online channel dividends gradually disappeared, Sino-U.S. trade frictions intensified and the kitchen electricity market temporarily cooled in the first quarter. Layout warfare 2018 has become a concern for investors.
Taking this opportunity, Boss Appliance explained and responded to issues such as future performance, risks and strategies, exports, raw materials, price hikes, channel management, embedded devices, integrated stoves, and central hoods.
Boss Electric 2017 annual performance statement 20 questions
1. How much revenue growth can be achieved in 2018? Net profit? Will the 20% growth rate decrease in the future?
Chairman Ren Jianhua: The company will take various measures to ensure 20% growth. Thank you.
2. The overall kitchen appliance market in the first quarter of this year is in a downturn. What specific measures does the company have?
Secretary-General Wang Gang: In the first quarter of 2018, affected by the follow-up impact of the national real estate regulation, the growth rate of the kitchen and electric power industry declined year-on-year. The company will actively upgrade the channel and sink, upgrade the embedded matching rate, and further enhance the brand image and other measures. The company has grown steadily.
3. What is the biggest business risk the company faces and how can it reduce the impact of the risk on the company?
Secretary General Wang Gang: From a business perspective, the current industry competition pattern is stable. Although the industry is subject to fluctuations due to factors such as national real estate regulation, overall, the kitchen and electric industry also has good room for development. Based on the country's promotion of urbanization and With the background of consumption upgrading, the kitchen and electric industry has a lot to offer.
Ren Jianhua, Chairman: In the future, the company will carry out in-depth work on product differentiation, high-end branding, and diversification of channels to achieve stable growth of the company.
4. The market competition for kitchen appliances has become increasingly fierce. It is worried that your growth will be very laborious. Is there this phenomenon?
General Manager Ren Fujia: The kitchen appliance market is still the fastest growing market in the home appliance market. According to Zhong Yekang, it is estimated that the market size of kitchen power in 2018 will exceed 100 billion. In the kitchen power market, the leading position of the owner's appliance is still stable, and the product advantages are as follows: The channel advantage is still significant. In the follow-up, we will further increase channel sinking and product upgrades to expand our market share.
5, Does the company export to the United States?
Chairman Ren Jianhua: At present, the company does not have US export business.
Secretary Wang Gang: The company's current export volume is small, mainly exported to Southeast Asia and Australia.
6. Has the Sino-U.S. trade war led to a further drop in steel prices, is it good for the company?
Chairman Ren Jianhua: The company's main raw materials include stainless steel, copper, and glass. The drop in steel prices will help the company reduce costs to a certain extent.
7. How is the company's raw material cost and ratio of last year compared to last year? Will futures use futures hedging to reduce the impact of raw material price fluctuations?
Chief Financial Officer Zhang Guofu: This year's company's raw material costs have fluctuate little. The company is still considering the hedging of futures contracts, maintaining information sharing between raw material prices and suppliers. Thank you!
8. According to the owner's Shenzhen Marketing Center document, the boss’s offline factory price will increase by 10% from January this year. Will the price increase range include agents nationwide, including KA?
General Manager Ren Fujia: Shenzhen agent's price increase behavior at the beginning of this year was individual behavior, not the overall action of the boss's electrical appliances. Thank you.
9. The company's sales revenue has grown rapidly in the past two years. In 2017, the revenue of 248 million yuan was only 9.15 million.
Chief Financial Officer Zhang Guofu: The famous company is expanding its market, strengthening offline outlets and investing more. Thank you!
10. In the future, cooperation will begin with multi-brand layout. What is the specific approach?
Ren Fujia, general manager of the company: The company has long been in the layout of the multi-brand, for the low-end market launch of famous brands, launched in the luxury market Ze Ding-brand, follow-up we will continue to improve the layout of the multi-brand according to the company's strategic needs.
11. Are the company's multi-brands shared in research and development and production or are they separate and separate?
General Manager Ren Fujia: The research and development of famous brand and owner brand are relatively independent, production is shared, and with the rapid growth of fame size, we will promote the independence of the famous system in a timely manner. Thank you.
12. What measures does the company take to deal with the e-commerce dividend fading away? Where does e-commerce come from?
Director Wang Gang: The changes in e-commerce channels are industry-based and social phenomena. At present, e-commerce sales account for about 30% of the company’s total sales revenue, which is already an important and indispensable channel for the company. The company will further explore new opportunities in the future. The business model, especially the new retail that integrates e-commerce with offline channels, has actively promoted the growth of e-commerce channels. Thank you!
General Manager Ren Fujia: We will continue to strengthen the integration of multiple channels and accelerate the implementation of new retail sales. We will also actively monitor changes in channels, adjust sales strategies in a timely manner, and promote the steady development of e-commerce channels. Thank you.
13. What is the reason for the large increase in bills receivable and the recent turnover?
Chief Financial Officer Zhang Guofu: In the year of 17th, JD.com increased its bill settlement, resulting in increased bills receivable. Thank you!
14. Is Jingdong's 500 million bills receivable?
Chief Financial Officer Zhang Guofu: The increase is mainly based on JD. Thank you!
15. How does your company treat the integrated cooker industry and will it develop in the future?
General Manager Ren Fujia: Hello, The growth rate of the integrated cooker industry in the past two years is indeed relatively fast, social attention is relatively high, and there are certain sales advantages in certain specific regions. From our company’s point of view, we It will not go to the production of integrated stoves, but it does not rule out entering the industry through mergers and acquisitions. Thank you.
16. Embedded growth in 2017 is less than expected. What specific response measures are there?
Director Wang Gang: In 2017, the growth of embedded ovens and embedded steam ovens fully met the sales plan at the beginning of the year. Less than expected was mainly embedded dishwashers and water purifiers. The main reason was that the products had not yet been produced. Production. Since the beginning of the water purifier start production in early 2018, and since dishwashers are expected to start producing at the end of 18th, the growth of these two categories will increase dramatically!
17, Q: The Central Range Hood was first created by the boss. If there are other companies that also do Central Range Hoods, is it infringement?
General Manager Ren Fujia: Hello, Thank you for your reminding. We have applied for a number of patents for central range hoods to better create our technical barriers. If you find any violation of our company's patents, welcome to our company. Feedback.
18, Q: Will the introduction of the Central Range Hood and the continuous increase of engineering channels affect the overall gross profit margin of the company?
Ren Fujia, general manager: At present, the proportion of engineering channels is not high. Under the premise of ensuring stable growth of the company, the company will provide differentiated products to increase the gross profit margin of the channel.
19. What are the issues that the chairman of the board cares most about in management operations?
Ren Jianhua, Chairman of the Board: The company's goal is to be a century-long enterprise, with the most concern for long-term stable development. Thank you.
20. Hello, Mr. Dong, Does your home kitchen use your own company's products? Is your family usually cooking or your wife?
Ren Jianhua, Chairman of the Board: Hello, All of the company's products are used. Thank you.