The growth rate of small household appliances is obviously weak and high gross margins are difficult to support good performance

For Ai Shi Da, although it achieved nearly 1.7 billion yuan in revenue in the fry pan business in the first half of the year, accounting for 1/6 of total revenue, and gross profit as high as 51.91%, it still could not hide the company's revenue and Weak performance in terms of profit.

Recently, Aishida released its semi-annual report for 2011. The company achieved operating income of 1.026 billion yuan, a slight increase of 4.2% year-on-year, and net profit after deducting non-recurring gains and losses was down 8.64% year-on-year. Jiuyang shares suffered the same difficulties. In the first half of the year, the company’s revenue increased by 7.83% year-on-year, and net profit after deducting non-recurring gains and losses only increased 0.21% year-on-year.

Ye Zhiqiu. Even if they have high gross profit “protection”, small household electrical appliance companies may not be able to cast a “wall of iron” on performance.

Explosive growth goes far

In the first half of this year, ASD's revenue from cookers was 948 million yuan, a year-on-year increase of 3.63%; revenue from small appliances was 70.37 million yuan, a year-on-year increase of 10.27%. One year ago, the growth rate of ASD's cookbook revenue was 46.96%, and the growth rate of small home appliance revenue was 71.71%.

However, in just one year, the growth rate has dropped significantly. The performance of Jiuyang in the first half of this year was also lackluster. According to the 2011 mid-year report, the company's revenue for the first half of the year was 2.596 billion yuan, a year-on-year increase of 7.83%, and net profit of 275 million yuan, an increase of 0.8% over the same period of last year. The nine-young food processing machine series (soymilk series) revenue was 1.765 billion yuan, a year-on-year decline of 4.55%.

Prior to this, when interviewed by a reporter from the "Daily Economic News", a person from the Securities Department of Jiuyang Securities Co., Ltd. said that sales of the company's soya-bean milk maker had a 20% to 30% year-on-year decline in May and June this year.

From 2008 to 2010, the growth rate of Joyoung’s revenue in soybean milk machines was 150.7%, 19.1%, and 11.6% respectively. The growth rate gradually slowed until this year's sales volume declined. What is worth pondering is that the growth rate of the performance of these two companies has dropped sharply in the second year of listing.

Hong Shibin, deputy director of the China Home Appliances Commercial Association Marketing Committee, said in an interview that this phenomenon shows that small household appliances enterprises have entered the era of large-arms regiment operations. Only companies with stronger overall strength may have sustained good performance.

In addition to Aishida and Jiuyang, the current owners of small appliances, kitchen appliances, Vantage shares, Wanhe Electric, and Wanjiale, which announced financial reports, have achieved significant growth, but have returned to a reasonable range of growth. There is no explosive growth.

Gross margin is under pressure

Joyoung said in the announcement that changes in the company's performance were affected by multiple adverse effects such as increased production costs, fierce competition in product markets, and slower growth of small home appliances.

Aishida said that since the beginning of this year, the economic situation at home and abroad has seen greater uncertainty. The sluggish employment rate in developed countries and the continued rise in domestic price levels are the decline in consumer confidence, which has caused a sharp slowdown in consumer demand. .

However, it is worth noting that the average gross profit margin of small household appliances is still higher than other products. In the first half of this year, the average gross profit of Jiuyang's small household appliances was 35.63%, of which the soybean milk machine series exceeded 40%. The gross profit of ASD is 28.95%, the gross profit of small household appliances is 20.56%, and the gross profit of the frying pan is as high as 51.91%.

The gross profit of large home appliances is dwarfed. Gree's gross profit for air conditioning in the first half of the year was 15.34%, and ST Kelon was even lower, with air-conditioning gross profit only 13.94%.

However, the high gross profit of small household appliances can neither contribute to a substantial increase in revenues, nor create conditions for profit growth. Therefore, under multiple pressures from home and abroad, many companies can only be forced to reduce gross margins.

Aishida said in the announcement that there are many small and medium-sized enterprises in the kitchen and small household appliance industries. In the environment of low market demand, high raw material prices, and continuous increase in labor prices, enterprises must first adopt low-cost competition to maintain the survival of enterprises in order to survive. .

ASD’s gross profit for small appliances dropped by more than 3% in the first half of the year. Jiuyang’s gross profit for small appliances dropped by 1.4%. Boss’ gross profit for appliances dropped by 3.3% on average. Although Vantage's consolidated gross profit grew by 1.78%, stove gross profit fell by as much as 16.2%.

Hong Shibin believes that after the home appliance industry is integrated, it will gradually return to reasonable growth and a reasonable profit margin.