\u3000\u30 Shaanxi Zhongtian Rocket Technology Co.Ltd(003009) 57 Yunnan Botanee Bio-Technology Group Co.Ltd(300957) )
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In 2021, the company realized an operating revenue of 4.022 billion yuan, with a year-on-year increase of 52.57%; The net profit attributable to the parent company was 863 million yuan, a year-on-year increase of 58.77%; The non net profit deducted from the parent company was 813 million yuan, a year-on-year increase of 58.59%, and the net operating cash flow was 1.153 billion yuan, an increase of 167.44% over the same period of the previous year.
In the first quarter of 2022, the company realized an operating revenue of 809 million yuan, a year-on-year increase of 59.32%; The net profit attributable to the parent company was 146 million yuan, a year-on-year increase of 85.74%; The non net profit attributable to the parent company was 124 million yuan, a year-on-year increase of 61.82%. The net operating cash flow was – 167 million yuan, a year-on-year decrease of 429.12%.
Winona, the main brand of powerful products, has steadily built brand barriers, actively expanded the development of multiple channels (Amoy, Beijing, shake, etc.), and firmly built a product matrix with a complete range of popular models and new products
From the perspective of products and brands, the company focuses on providing skin class beauty products for sensitive skin. Therefore, skin care products are the core product type and cornerstone of the company. With the “Winona” brand as the core, the company focuses on the application of pure natural plant active ingredients to provide mild and professional skin care products. Its main products include skin care products such as cream, skin care lotion, facial mask and color makeup products such as isolation cream and BB cream; During the reporting period, the contribution of skin care products to the scale and increment of total revenue continued to remain high. It is further estimated that in 2021, the sales volume of the company’s skin care products is about 728684 million pieces, and the average selling price is about 49.80 yuan, an increase of 41% / 8.80% respectively over the same period of last year. The double increase of volume and price drives the revenue of skin care products to rise; Compared with the same period, the sales unit price of the company’s cosmetics products increased significantly, but the sales volume was under pressure. The average price of medical devices was basically stable, which was mainly driven by the growth of sales volume.
From the perspective of different channels, the company’s main business income of online and offline channels in 2021 was RMB 3. Focus Lightings Tech Co.Ltd(300708) billion respectively. Among them, the self operated retail business including third-party platform operated stores and self built platforms maintained the position of the main force of main revenue, accounting for 82.34%, and the online self operated business achieved 2.532 billion yuan, accounting for 63.19% of the total revenue. At present, the company adheres to the sales channel strategy of mutual penetration and coordinated development of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) channels, and provides positive feedback for the online platform through the layout of offline channels and the operation of private areas through counters. During the reporting period, the company launched the “private domain operation” project in nearly 500 offline outlets across the country, with more than 100000 members joining more than 1000 member communities and opening a new offline direct store.
From a quarterly perspective, the fourth quarter is the company’s traditional peak sales season. The company’s performance in the “double 11” in 2021 was excellent. The core brand “Winona” was listed in the top 6 of tmall beauty and skin care category, and continued to become the only domestic brand in the top 10 of tmall beauty category. The “Shurun nourishing cream” series of single products became the popular product of this year; High moisturizing and repairing face cream, clear sunscreen, extremely moisturizing facial mask, prickly thorn fruit repairing and moisturizing spray and other products all performed well, with an overall year-on-year increase of 57.89% in the fourth quarter. The market competitiveness of core brands and the market influence of the new brand matrix can be seen; In this context, the proportion of single quarter revenue of 21q4 further increased to 47.48%, reaching a new high since 2017. 22q1 in the context of the regional rebound of the epidemic and the relatively low season of market sales, the company continued to focus on the “Winona” brand, promote the strategy of large single products, grasp the timing of festivals including Valentine’s day and women’s day, carry out omni-channel marketing with the theme of “special research, sensitivity and unbridled brilliance”, take the strong breaking circle of clear sunscreen in the “38” as an example, grasp the promotion timing in spring and summer, and the single product sales exceeded 200000, The sales of sunscreen products increased by more than 150% year-on-year, and the overall sales scale and sales revenue of the company increased rapidly in the first quarter.
From the perspective of profit side, the net profit attributable to the parent company after deducting non net profit decreased by 50 million yuan compared with the net profit. Non recurring gains and losses during the year were mainly affected by two factors: the investment income increased by 107971 million yuan year-on-year, while the income obtained from entrusted financial management increased by 156997 million yuan to 188304 million yuan year-on-year; In addition, in order to fulfill its social responsibility, the company’s external public welfare donation expenditure (non operating income and expenditure decreased by 4.4802 million yuan to -5.2832 million yuan) to support the fight against covid-19 epidemic. 22q1 non recurring profit and loss increased by 117115% year-on-year to 215486 million yuan. The reasons for the significant increase are as follows: ① government subsidies increased by 1.1488 million yuan year-on-year, mainly due to the receipt of enterprise listing incentives; ② The investment income increased by 4.8221 million yuan year-on-year, mainly due to the profit and loss from changes in the fair value of trading financial assets; ③ The income tax increased by 3.579 million yuan, mainly due to the increase of the company’s sales scale and total profit.
In 2021, the annual comprehensive gross profit margin decreased by 0.24pct, and the period expense rate decreased by 0.31pct; In 2022q1, the comprehensive gross profit margin decreased by 0.32pct year-on-year, and the expense rate during the period increased by 0.76pct
In 2021, the company’s profitability remained stable for a long time. From the perspective of gross profit margin, the overall gross profit margin decreased slightly by 0.24 percentage points, mainly because the gross profit margin of skin care products with the highest sales proportion was lower than that of medical devices, and there was a slight decline during the year. From the perspective of expenses, the company’s expenses were effectively controlled in 2021, and the expense rate decreased by 0.31 percentage points year-on-year. Among them, the sales expenses increased by 573 million yuan to 1.681 billion yuan year-on-year, mainly due to the continuous increase of brand image promotion expenses (a year-on-year increase of 438 million yuan to 1.249 billion yuan), personnel expenses (a year-on-year increase of 81 million yuan to 267 million yuan) and e-commerce channel expenses with the rapid growth of sales scale in the reporting period. The growth of sales expenses in the reporting period basically matched the growth of sales scale. In addition, the company’s R & D expenditure continued to grow. In 2021, the R & D expenditure increased by 50 million yuan to 113 million yuan year-on-year, an increase of 78.47% over the same period last year. Financial expenses decreased by 9.189 million yuan to -10.068 million yuan year-on-year, mainly due to the increase of 122277 million yuan to 147938 million yuan in the interest income from demand deposits of commercial banks obtained by the company during the reporting period compared with the same period of the previous year.
The net interest rate of 2022q1 company has increased, which is mainly due to the sharp increase of 283.44% in investment income due to the interest income from demand deposits of commercial banks during the reporting period, an increase of 2.6588 million yuan to 3.5969 million yuan, offsetting the increase in expenses caused by the increase of marketing R & D efforts and the increase of management personnel costs.
Stabilize the two popular models, build a multi brand matrix, and focus on mild, professional and natural green social feelings
At the brand building level, the company takes the “Winona” brand as the core and focuses on the application of pure natural plant active ingredients to provide mild and professional skin care products, focusing on sensitive skin, including skin care products, make-up products and medical devices. During the reporting period, the company continued to improve the reputation, popularity and leading brand strength of “Winona”. Join hands with tmall small black box to release the first new anti-aging product dedicated to sensitive muscles – “Shuangxiu activating essence” series products, which are honored with tmall small black box sensitive muscle Anti-aging Essence No.1, leading the new trend of sensitive muscle efficacy skin care anti-aging.
The company adheres to stabilizing the two super popular products of “face cream lotion + sunscreen”: on the one hand, it has stabilized the market position of special care cream, continued to launch the “high Moisturizing Series” product line, and the lotion / face cream category has grown steadily; On the other hand, maintain the high explosive growth of “clear sunscreen” series products. Focus on consolidating the “Shumin essence” as the core, seize the opportunity of high market growth, and launch a series of “freeze-dried facial mask” products with soothing and repairing effects, which have successfully “come out of the circle”. Under the dual penetration of efficacy circle expansion and category innovation, try to launch new products focusing on “whitening + anti-aging”, build a multi-function skin care matrix, and help the brand spiral circle expansion. In addition, around the successful “Winona” brand, the company continues to derive on this basis, and the multi-level brand matrix has taken shape. The flagship store of “winonababy” brand tmall, which focuses on professional infant care, was officially put into operation in 2021, and then became the dark horse in the industry. It ranked the top 20 in the year. The “double 11” activity became famous for the first time, ranking the top 10 in the subdivided industry category, with a year-on-year increase of more than 10 times. Product packaging is also one of the highlights of the company. The company is committed to building a green packaging supply ecosystem, adopting the full life cycle assessment system (LCA) to promote the green transformation of the packaging supply chain, and optimizing the overall packaging scheme through innovative packaging structure, the use of new environmental protection materials and other ways. During the reporting period, the company’s product packaging continued to increase the proportion of “FSC Forest Management Committee certified paper” to help the recycling of forest resources. At the same time, environmental protection technology is adopted in the packaging and printing process, and environmental friendly ink reduces volatile organic compounds (VOC) to help environmental protection.
At the R & D level, the company continued to focus on the R & D of functional skin care products, increased the resource investment in the innovation and development of core technologies, and simultaneously carried out the R & D layout of functional foods. Continue to focus on the research related to Yunnan characteristic plants, including basic research, evaluation method development, formula research, raw material screening and evaluation and process innovation, carry out systematic R & D system construction and continuously improve the functions of each module of the R & D system. During the reporting period, more than 40 new products were successfully developed and listed, such as “barrier repair”, “firming repair”, “clear water sense sunscreen”, “Zirun terun”, “high moisturizing repair” and “soothing and soothing skin”. At the end of 2021, the total number of patents authorized by the company was 80, including 22 inventions, 27 appearances and 31 utility models, of which 23 were newly approved during the reporting period.
At the end of the reporting period, the company had 9 works copyrights, 17 software copyrights and 387 trademark rights, of which 45 were newly approved during the reporting period. By the end of 2021, the company has completed clinical research and effect observation of dermatology in 63 hospitals, published 154 academic papers, been included in core journals such as SCI, completed 15 national expert guidelines and consensus, and participated in the formulation of 20 group standards. In addition, the company continued to promote the combination of production and research. The Yunnan Botanee Bio-Technology Group Co.Ltd(300957) Research Institute independently / jointly successfully developed a variety of Yunnan Botanee Bio-Technology Group Co.Ltd(300957) exclusive active substances, such as Physalis calyx extract and kidney tea extract. At the same time, it also built a public platform for characteristic plant industry research and development with Yunnan provincial government, Yunnan Institute of medicine, Yunnan University and Yunnan Agricultural University, Actively promote large-scale academic exchange activities of dermatology in China and public welfare skin care activities of dermatology patients in hospitals, and build high brand barriers with rich scientific research resources.
Wuxi Online Offline Communication Information Technology Co.Ltd(300959) optimize the flow of public areas and cultivate private areas, innovate business forms and increase the operation flexibility of the company
At the channel level, the company did continue to rely on e-commerce platforms such as tmall, jd.com and vipshop to carry out cosmetics online sales business. At the same time, the company continued to increase resource investment in the emerging e-commerce marketing platform represented by the Tiktok platform, and expanded the brand user group through various marketing methods such as short video, content grass planting, store self broadcasting and talent cooperation. The online self operated platform enhances the operation control ability of the company and gives full play to the long-term value of private domain traffic of the counter service platform. Offline focus on the development of mature commercial companies and direct supply customers, as the main force of offline distributors, differentiated sales of medical device products. In 2021, the company will take the counter outlets as the private pool and continue to strengthen the layout of offline channels. Through the “dermatology photo album” project, help doctors record the picture information of the affected area and store medical data, and assist professional dermatologists to improve the efficiency of patient course management, so as to better treat and serve patients. The company has launched the “private domain operation” project in nearly 500 offline outlets across the country, with more than 100000 members joining more than 1000 member communities. In recent years, with the transformation and upgrading of China’s chain pharmacies, the willingness of the industry to cooperate with the beautiful health industry has been significantly strengthened. During the reporting period, the company’s in-depth cooperation mode with OTC customers tried to go out of Yunnan and actively launched strategic cooperation projects with regional chain leaders such as Shandong and Shaanxi. At the same time, actively embrace the opportunities of Internet-based chain pharmacies and digital transformation of pharmacy members, actively integrate into the new offline retail cooperation system and model, and win the recognition and trust of OTC customers.
In terms of supply, the company allocates supply resources by planning production capacity in advance and reserving common parts, so as to accurately respond to the peak of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) promotion and ensure product supply. The optimization of supply chain operation strategy has a great impact on the company: ① through the omni-channel middle platform system, the order data of all business departments and brands and the national inventory information of the company are obtained, so as to realize the efficient coordination and unity of order standardization, whole warehouse and inventory management, physical circulation tracking and information flow matching; ② During the reporting period, the company’s self built logistics base in Shanghai took the lead in realizing warehousing automation. Through professional advanced equipment such as four-way warehouse, AGV, box conveyor line and screw elevator, the company realized fully automated and unmanned operation of commodity warehousing, picking and replenishment, which not only improved the efficiency and accuracy of logistics operations, but also effectively alleviated the industry pain point of personnel shortage under the background of the novel coronavirus pneumonia epidemic; ③ During the reporting period, the company’s supply chain tried the warehouse management system (WMS) “going to the cloud” for the first time, which greatly guaranteed the safety and integrity of Beijing Vastdata Technology Co.Ltd(603138) during the “June 18” and “double 11” promotion activities; ④ The “supply chain planning control tower” project was successfully launched during the reporting period, effectively combing and optimizing the index system and statistical methods of the supply chain, unifying the company’s supply chain data analysis caliber, landing with information tools, effectively guiding the root cause analysis and business adjustment of the business through multi-dimensional and multi perspective business analysis, and increasing the company’s business flexibility. The optimization of supply chain will effectively connect Wuxi Online Offline Communication Information Technology Co.Ltd(300959) business forms and occupy a stronger initiative in market competition.
Investment advice
The company’s main products focus on skin class beauty products, which have certain mandatory attributes for consumers of sensitive muscle groups. The growth rate of the company’s dermatological beauty products industry is significantly better than that of the whole beauty industry and skin care categories in the same period. Compared with developed countries, China’s per capita consumption level is obviously low. Among the main causes of sensitive muscles, excessive and wrong use of cosmetics, high-intensity and high-pressure working and living conditions, stimulating spicy diet and the popularization of medical beauty are the mainstream factors that are difficult to avoid in modern times. Therefore, there is a large space for demand growth in the future; As a leading enterprise in the subdivided track, the company can enjoy the dividend of the rapid development of the industry. In addition, the company is good at attracting new products through accurate and efficient marketing channels; In the offline channel, with the help of Ba and other personnel advantages, it forms differentiation with ordinary beauty products in terminal outlets such as pharmacies / specialty stores, brings incremental supplement and ensures the market share. To sum up, we believe that the company has channel and marketing advantages in the short term. With the help of public traffic and industry dividends, the company can realize the rapid expansion of Guangsan network, and further enhance the brand influence by relying on the fine operation of private traffic; In the medium and long term, the implementation of new production capacity in fund-raising projects and the upgrading and iteration of information system can quickly respond to potential changes in market demand. We predict that the company will achieve revenue of 5% in 2022, 2023 and 2024 respectively
