On April 16th, Supor organized the 2017 annual report performance briefing through the interactive platform. Su-President General Manager Su Mingrui, Independent Director Wang Baoqing, Chief Financial Officer Xu Bo, Vice President and Secretary of the Board of Directors Ye Jide attended the meeting and discussed the 2017 annual performance issues. The media and investors conducted in-depth discussions and exchanges.
On March 30th, Supor announced the 2017 annual report. During the reporting period, the company’s operating income was 14.187 billion yuan, up 18.75% year-on-year; the net profit attributable to shareholders of listed companies was 1.307 billion yuan, up 21.37% year-on-year; basic earnings per share was 1.601 yuan. The year-on-year increase of 21.38%; at the same time, the company's net profit margin in 2017 was 9.22%, an increase of 0.20 percentage points year-on-year.
Among the main business income of Supor in 2017, electrical appliances accounted for the largest proportion, followed by equipment: electrical main business income of 9.077 billion yuan, an increase of 21.59%; bedding main business income of 4.956 billion yuan for the entire year , YoY increased 13.75%. However, due to the increase in raw material costs, the gross profit margin of Q2 and Q3 in 2017 decreased year-on-year, resulting in a significant slowdown in pretax profit growth. It is reflected in the company's annual report: the company's main business cost is RMB 9.873 billion. 20.51%; the main business gross profit rate was 29.77%, which was a decrease of 1.06% from the same period. In addition, its domestic foreign trade grew steadily: The main business of domestic sales achieved 100.83 billion yuan in revenue for the whole year, an increase of 21.00% over the same period; the main foreign trade business The annual revenue reached 3.975 billion yuan, an increase of 13.21% over the same period of last year.
At the annual results presentation meeting, SEB series products, sales of WMF business, price trends of raw materials, strategic adjustments of the company in the future, and Sino-US trade warfare issues were introduced in terms of repurchasing shares that investors were concerned about. A clear answer.
Previously, Supor announced that it would repurchase the shares at an average cost of no more than RMB 46.18 per share. Ye Jide said that the company plans to use its own funds to repurchase public shares that do not exceed 2% of the total share capital by not exceeding RMB 46.18 per share. After the repurchase, it is used for cancellation to reduce the registered capital, which is beneficial to further increase the company's earnings per share and equity, effectively return the shareholders and enhance investor confidence.
As to whether or not it will gradually introduce SEB series products, Su Mingrui said that in the past few years, the company has introduced SEB Group's Songs/KRUPS and the latest WMF brands and products. Future companies will be based on the actual needs of the Chinese market and consumers Consider whether to introduce SEB Group's other brands and products.
As we all know, the actual controller of Supor is SEB Group. Will the related transactions with SEB Group and its related parties affect the company's performance? Ye Jide said that the daily orders of Supor and the actual controller SEB Group accounted for the company's exports. About 90% of the business has a significant impact on the company's export business, and it also has an important impact on the overall performance. He also stated that the total amount of related transactions between the company and the SEB Group in 2018 was approximately RMB 5 billion, an increase of more than 30% year-on-year in 2017. The cooperation with the parent company in export orders is good, and it is expected to maintain sustained and stable growth in the future.
Regarding sales after the acquisition of WMF China business, Su Mingrui provided data that the overall revenue of China's WMF consumer product business in 2016 was approximately RMB 320 million. 'We completed the acquisition of this business by the end of 2017 and from 2018 Began to officially incorporate Supor's overall performance. The business is currently underway.'
Regarding the impact of raw material price movements on gross profit margin, Su Mingrui said that raw material prices have risen sharply in the second half of 2017, but tend to ease after entering 2018. He emphasized that the company has improved its internal production efficiency through the supply chain. The optimization, together with the supplier partners to face challenges. At the same time through product innovation, optimization of the sales structure, and strive to stabilize the gross margin.
Supor has maintained healthy and stable development in the past few years. For the company's future strategic adjustment plan, Su Mingrui said that the company will continue to adhere to product innovation, strengthen and expand the two core business of cooking utensils and electrical appliances, and seize the upgrading of consumers and the market Divide the development opportunities. At the same time, we will actively develop the four emerging businesses of kitchen and kitchen appliances, home appliances, kitchen appliances, and high-end brands. We will continue to nurture new business growth points to ensure the sustainable and healthy development of Supor as a whole.
Finally, on how to deal with the upcoming trade war between China and the United States, Su Mingrui also gave a reply: The company’s revenue from U.S. exports is relatively small. At the same time, the company has a Vietnam base in the industrial layout. Some U.S. orders can be directly Vietnam base exports, the overall risk is controllable.