as a leading enterprise in the field of small household appliances, Joyoung Co.Ltd(002242) performance began to decline
On March 29, Jiuyang disclosed the annual performance report of 2021. According to the data, Joyoung Co.Ltd(002242) achieved a revenue of 10.54 billion yuan, a decrease of 6.09% over the same period last year; The net profit was 746 million yuan, a year-on-year decrease of 20.69%.
According to the statement of Joyoung Co.Ltd(002242) in the financial report, its nutritional cookers and cookware products have achieved good growth, food processing machine products, Western electrical products and other products have maintained steady development, and the company's product structure has been continuously optimized.
However, compared with the performance data in recent years, the decline of profitability in Joyoung Co.Ltd(002242) 2021 has significantly expanded. According to the data, from 2018 to 2020, the growth rate of net profit was 9.48%, 9.26% and 14.07% respectively.
cost increase or performance drag
From the perspective of classified products, the income of Joyoung Co.Ltd(002242) products in 2021 has increased or decreased differently.
Among the products with reduced revenue, Jiuyang food processing machine series achieved a revenue of 4.354 billion yuan, a decrease of 17.87% over the same period of last year, accounting for 41.31% of Jiuyang's operating revenue; Western style electric appliance series achieved a revenue of 1.325 billion yuan, a year-on-year decrease of 13.49%, accounting for 12.57% of operating revenue.
Among the products with increased revenue, Jiuyang nutrition pot series products achieved a revenue of 3.832 billion yuan, a year-on-year increase of 11.87%, accounting for 36.35% of operating revenue; Cookware series achieved a revenue of 752 million yuan, up 68.7% year-on-year, accounting for 7.13% of operating revenue. Jiuyang specifically mentioned in the financial report that cookware series has developed into one of Jiuyang's key product lines. The company expects that this series of products may achieve better development and larger market scale in the future.
However, the reporter noted that the gross profit margin of Joyoung Co.Ltd(002242) main series products decreased in 2021. Among them, the gross profit margin of food processing machine series products in 2021 was 34.62%, down 2.14% year-on-year; The gross profit margin of nutrition pot series products was 19.4%, down 3.72% year-on-year; The gross profit margin of Western electrical appliances was 29.07%, down 3.83% year-on-year.
In addition, in terms of sales channels, the decline of Joyoung Co.Ltd(002242) offline sales performance is greater than that of online sales performance. The gross profit rate of online sales decreased by 24.24% year-on-year, with a year-on-year decrease of 2.0261 billion yuan and 24.4%; Offline sales were 4.367 billion yuan, a year-on-year decrease of 8.58%; The gross profit margin was 25.44%, a year-on-year decrease of 5.91%.
Joyoung Co.Ltd(002242) said in the financial report that in 2021, international commodity prices continued to rise compared with last year, bringing pressure on companies in the industry to increase production costs. The slow recovery of offline market, accelerated changes in online market and fragmentation of channel traffic have become a trend. These adverse factors have brought great pressure and difficulties to the development of 2021.
According to Liu buchen, an expert in the household appliance industry, the performance of Jiuyang in 2021 is not ideal, which is due to both industry factors and Jiuyang's own factors, "In terms of industry factors, the performance of the small household appliance industry soared in 2020, raising the (overall) base, making 2021 (maintained) Sustained growth has become more difficult. In addition, the sharp rise of upstream raw materials in 2021 also poses a great test to the profitability of enterprises. Jiuyang's own operation and new product promotion in 2021 are relatively weak compared with its competitors. Under the background of increasingly fierce overall competition in the small household appliance industry, its competitive advantage is relatively reduced ".
On March 30, the reporter of the international finance news sent an interview letter to Joyoung Co.Ltd(002242) on the reasons for the decline in performance and improvement measures, but no further reply has been received as of press time.
growth underperforms competitors
Jiuyang, which claims to be the leading brand of high-quality small household appliances, is mainly engaged in the R & D, production and sales of small household appliances. According to the official website, in 1994, Jiuyang invented the world's first soybean milk machine. After 2004, it gradually developed from soybean milk machine to a variety of small household appliances, and was listed on the Shenzhen Stock Exchange in 2008.
At present, Jiuyang products have covered a number of catering appliances, including soybean milk machines, wall breaking machines, rice cookers, air fryers, cooking utensils and water purifiers. The consumer groups are mainly for young people represented by generation Z, middle-class families represented by Baoma, and middle-aged and elderly people represented by health preservation.
Joyoung Co.Ltd(002242) mentioned in the financial report that it continued to focus on the core mainstream categories. In 2021, it focused on the launch of Hongmeng Zhilian hand wash free wall breaking machine y521, visual steam air frying pan SF series, intelligent carbon steel kettle electric rice cooker f921, damowang wear-resistant non stick frying pan, hot small clean RO reverse osmosis heat purification integrated machine and other products.
In addition, the reporter noted that Jiuyang once said on the investor interaction platform on January 24 that it has used shark, the first brand of American cleaning appliances, to enter the field of cleaning small household appliances, covering a number of cleaning appliance product categories such as floor sweeping Siasun Robot&Automation Co.Ltd(300024) and so on; In this regard, it was also mentioned in the financial report, saying that the shark brand first promoted the industry's explosive floor washing machine products (shark floor washing machine ED200), steam electric mop T21, suction and drag integrated floor washing machine V5 and other products.
However, in Liu buchen's opinion, as an old brand, Jiuyang is well-known, but compared with other emerging small household appliance brands such as stone, bear, Ecovacs Robotics Co.Ltd(603486) etc., its product power is not outstanding, and it gives the impression of brand aging, "Although Jiuyang intends to develop young groups and middle-class families in recent years, the effect is average. Moreover, at present, small household appliances are the world of new forces. If they can't be as classic as Dyson, they can win through product innovation, but this is not the advantage of Jiuyang."
Liang Zhenpeng, a senior industrial economic observer, told reporters that although China's small kitchen appliance market is extremely saturated and the growth rate is slow, some enterprises still achieve growth in performance, such as Zhejiang Supor Co.Ltd(002032) and Midea, but Jiuyang's turnover and net profit are declining, indicating that it has problems in brand competitiveness, product competitiveness and market competitiveness, This is mainly due to the slow development of diversification and the lack of product technology innovation ability. In the future, if Jiuyang fails to solve the above problems, it will further widen the gap with Zhejiang Supor Co.Ltd(002032) , Midea and Haier in the business of small household appliances.
