The 2018 annual report released yesterday by the owner’s electrical appliance showed that the company’s revenue was 1.592 billion yuan, a year-on-year increase of 16.89%; and the net profit was 312 million yuan, a year-on-year increase of 20.05%. It is worth mentioning that at the end of the reporting period, due to the increase in sales, the agents The amount of money played was positive. The net cash flow from operating activities of the company reached 558 million yuan, a substantial increase of 200.25% year-on-year.
According to industry analysts who have been tracking boss electronics for a long time, the company’s first-quarter earnings growth and net cash flow growth have been related to new listings and channel diversification.
Focus on technological innovation Frequency 'black technology'
In the first quarter of this year, Boss introduced a subversive central range hood. This product is a systematic product consisting of 'hosts, terminals, power distribution valves, and smart cloud platforms' designed to solve the smoke evacuation of the entire building. For the first time, it has provided a practical and systematic solution to the problem of urban fumes that lack long-term countermeasures. To further enhance the effectiveness of the smoke removal, the owner’s appliance also uses the 'LORA' smart inverter technology to provide high-precision power distribution. Technology and intelligent cloud platform created in cooperation with Alibaba, coupled with its own multiple composite fume purification technology, to achieve intelligent control of fume emissions.
In the same period, there were several new products listed on the Boss Appliances, including the new professional-grade pesticide-removing sink D102, the newly upgraded fourth-generation large-suction 2-fold air pressure hood 8231S, the tri-nuclear intelligent steamer S228, etc.; for the first time in the industry Released a professional professional kitchen cleaning sink, dishwasher, water purifier in one of the professional kitchen cleaning system, to provide a kitchen for the Chinese kitchen cleaning solution.
Previously, Boss Electric established the California Institute of Innovation and the Shenzhen Institute of Innovation. The former mainly completes the task of collecting cutting-edge technologies, while the latter mainly conducts basic research and application research of new materials and new processes. Currently, the company’s R&D personnel account for 16.75%. To reach 662 people. In 2017, Boss Electric filed a total of 373 patent applications, obtained 139 patents, and applied for and obtained patents for the highest number of calendar years.
He Yadong, the vice president of the company’s electrical appliance, once stated that the company has always relied on technology and R&D innovation to promote iterative upgrades to meet the needs of consumers. 'As industry leaders, we cannot wait for 'wind' to subvert ourselves. '
According to the Minsheng Securities Research Report, the growth rate shifts and the new normal has entered. Boss Electronics will increase its investment in product and technology innovation, and will start to drive from the channel to products and technology, especially the production of digital intelligent manufacturing bases. The amount will be further expanded to bring about an increase in the base.
Market-oriented Accelerate channel development
In terms of channel expansion, Boss Electric accelerated its offline retail sales in the first quarter of this year, especially in the third and fourth tier cities. It further enhanced its brand status and high-end influence, promoted the sales of embedded products, and focused on the county towns. Villages and towns, radiating rural villages' cultivating the following markets for the core ideas.
Zhang Licong, chief analyst of household electrical appliance industry of Essence Securities, believes that the first and second tier cities in the year are limited to purchase, and the third and fourth tier cities are accelerating their destocking. Therefore, different local real estate trends have emerged and are now reflected in sales of home appliances. First- and second-tier cities have begun to face pressure on home appliance sales, and sales of home appliances in the third and fourth-tier markets are very good. It is expected that the future of owner-operated appliances will maintain an annual growth rate of 400-500 stores in the third and fourth-tier stores.
In addition, the company continues to maintain its leading position in the field of fine decoration. In addition to establishing a strategic partnership with 70% of China's top 100 housing companies, the company newly invented the central range hood at the same time in the mining and Jingdong. The general manager of mining Du Jun said that products like the Central Range Hood that can solve customer needs may not be developed by the owner's own electronics in the future, nor is Vanke's own research and development, but the two companies jointly develop and research. This is the result of the joint efforts of both parties.
Although the owner’s stock price has experienced some adjustments in the past month, people who have followed the company’s investment institutions for a long time said that this is due to the adjustment of the annual report slightly lower than expected. This year’s employee stock ownership plan and second The agency stock ownership plan may enter into a better time. After further binding related stakeholders, it can better promote business growth.