Home » Martian Interim Report “Quality Inspection”: revenue of 922 million surpasses Zhejiang American University’s sales expenses to reach 1.7 times of net profit for the first time_Integration

Martian Interim Report “Quality Inspection”: revenue of 922 million surpasses Zhejiang American University’s sales expenses to reach 1.7 times of net profit for the first time_Integration

by admin

Original title: Martian Interim Report “Quality Inspection”: revenue of 922 million surpasses Zhejiang American University’s sales expenses and net profit by 1.7 times

Martian Interim Report “Quality Inspection”: revenue of 922 million surpasses Zhejiang Meida’s sales expenses for the first time, reaching 1.7 times of net profit

Original2021-08-11 23:52·

China Times (www.chinatimes.net.cn) reporter Lu Xiao, trainee reporter Yan Xiaohan reports from Beijing

As the elder brother of the domestic integrated stove industry, Zhejiang Meida now has to sigh with emotion, fearing for the future. Recently, the two giants of integrated stove Zhejiang Meida and Martian both announced their semi-annual reports for 2021. In the first half of the year, Martian’s revenue was 922 million yuan, surpassing Zhejiang Meida’s 909 million yuan for the first time. “China Times” reporter combed the financial report and found that in 2014, Zhejiang American University’s revenue was still three times that of the Martian, and by 2020, the gap between the two has been reduced to about double.

On August 11, the two home appliance analysts interviewed by a reporter from China Times said that the rapid development of Martian is not only in the rapid development stage of the integrated stove track itself, but also seized the trend of e-commerce development. , And continue to strengthen publicity.

But behind the realization of high revenue growth, the Martian has the hidden worry of high sales expenses swallowing net profits. In the first half of 2021, the Martian’s net profit was only 139 million yuan, which was far lower than Zhejiang Meida’s 254 million yuan. Since 2016, the Martian net interest rate has not been able to narrow the gap with Zhejiang American University.

Regarding the ways to maintain performance growth in the future, reporters from China Times contacted the two integrated kitchen companies by email. But as of press time, no reply has been received yet.

Selling expenses reached 1.7 times of net profit

As a rising star, the growth momentum of Martians cannot be ignored.

On August 8, Martian announced that in the first half of 2021, its revenue and net profit increased by 79.67% and 178.23%, respectively, far higher than Zhejiang American University. However, this is not the first time that the Martian net profit has doubled. In the six years from 2015 to 2020, the Martian net profit growth rate has exceeded 100% for four years. In 2015, its net profit growth rate was as high as 322.43%. .

See also  The Dollar Regains Ground After Three Weeks of Decline, Bitcoin Surpasses $42,000

Compared with such a rapid development momentum, the former wave of Zhejiang Meida, which was established in 2001, began to fall behind.

According to data from Zhongyikang, in the first half of 2021, the overall market retail sales of integrated stoves increased by 66.6% year-on-year, and Zhejiang Meida’s 40.69% revenue growth rate has fallen behind the industry.

The total market value of the Martians is currently more than twice that of Zhejiang American University. As of August 11, the total market value of the Martians is 247.33 yuan, and the total market value of Zhejiang American University is 100.65 yuan. The Martian’s stock price is nearly four times that of Zhejiang American University.

However, the report card handed over by Martian failed to boost its stock price. On August 9, the day after the announcement, the Martian share price rose 2.17%. Then it fell for two consecutive days. As of the close on August 11, the Martian share price was trading at 61.07 yuan, down 2.29%.

Behind this, in contrast to the rapid growth in revenue in the past few years, although Martian’s net profit is also growing rapidly, its value is still low in its peers. High sales expenses may be one of the reasons for the weak profitability of Martians.

Senior home appliance industry observer Liu Buchen believes that the best performers in the integrated stove market are Zhejiang Meida and Martians. The Martians seem to develop faster, which has a lot to do with their marketing efforts.

Martian was established in 2010, nine years later than Zhejiang Meida, perhaps because of his late debut. Facing the brand advantage of Zhejiang Meida, Martian is more willing to spend money on marketing. In the five years from 2016 to 2020, its sales expense ratio remained above 20% for the remaining four years except for 17.71% in 2017. In the first half of 2021, Martian’s sales expense ratio reached 25.81%, and sales expenses reached 1.7 times the net profit. In the past five years, Zhejiang Meida’s sales expense ratio has never exceeded the Martian.

See also  China plans to carry out the third national soil census for four years | China_Sina News

If you compare profitability, Zhejiang Meida, the big brother who has been in business for 20 years, has the advantage. In the first half of 2021, Zhejiang Meida’s net profit of 254 million yuan was 1.8 times that of the Martian. At the same time, from the point of view of net interest rate, the gap between the two parties is even more obvious. In the first half of 2021, Zhejiang American University’s net interest rate was 27.94%, which was nearly twice the net interest rate of Martian 15.08%.

In a survey of investment institutions on April 26, 2021, Martian also stated that marketing expenses are its biggest expense, and the company’s most concern is whether traffic can generate sales. Martian also stated in a survey of investment institutions in April that on the basis of the 2021 operating income growth target, the company plans to appropriately reduce the advertising sales expense rate, but the absolute amount will still increase appropriately.

E-commerce channel revenue accounted for 41.11% of revenue

In addition to the influence of marketing efforts, e-commerce channels are also the factors that make Martian’s revenue surpass Zhejiang Meida for the first time.

Gao Hongxuan, research manager of the kitchen appliance division of Alvi Cloud Network, also told the reporter of China Times that the strengthened layout of the online market has laid the foundation for the development of Martian.

According to data from the Prospective Industry Research Institute, the proportion of online sales in the integrated stove market has gradually expanded. In 2019, the online sales of integrated stoves increased by 10% compared with the previous year, accounting for 38%. Affected by the epidemic in 2020, Zhongyikang data shows that the sales of integrated stoves in the online market increased by 20.4% year-on-year, while offline retail sales decreased by 17.6% year-on-year.

Although it has the advantage of laying down solid offline channels, it is obvious that Zhejiang American University did not pay enough attention to e-commerce channels in the past few years. At the performance briefing meeting in April 2021, Zhejiang Meida stated that e-commerce channels accounted for only about 6% of revenue in 2020.

See also  The Rising Cost of Lunch in Medellín: Implications for Restaurants and Consumers

Martians pay more attention to the layout of online channels. Previously, it was mentioned in the prospectus that its online sales revenue accounted for the proportion of its main business revenue to increase from 25.56% in 2017 to 42.93% in January-June 2020. The semi-annual report shows that in the first half of 2021, Martian e-commerce channel revenue was 379 million yuan, accounting for 41.11% of total revenue.

According to data from Ovi Cloud, the online market share of Martian integrated stove ranks first. In H1 of 2021, the online retail sales share of Martian integrated stoves was 22.3%, and Zhejiang Meida ranked fourth. However, Gao Hongxuan also told the reporter of China Times that integrated stoves are currently mainly distributed offline. According to the total data of Aowei Cloud Network, the online proportion of 2021H1 has reached about 20%.

Due to the late establishment, although Martian is also accelerating its offline layout, its offline channel stores are still not as good as Zhejiang Meida. The financial report shows that as of the first half of 2021, Martian has a total of nearly 1,900 dealership stores, including more than 400 KA stores. Zhejiang Meida has 3,400 marketing terminals, with nearly 2,000 stores in home appliances KA stores and building materials KA stores such as Gome and Suning.

“At present, many traditional kitchen appliance brands rely on their original channel advantages to deploy KA stores and increase the proportion of KA. In the future, with the growth of hardcover and building materials channels, the sales of integrated stoves will also be broader.” Gao Hongxuan said.Return to Sohu to see more

Editor:

Disclaimer: The opinions of this article only represent the author himself. Sohu is an information publishing platform. Sohu only provides information storage space services.

.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy