On August 30, Chaoyun Group (6601.HK) released its 2022 interim performance report. The report shows that in the first half of 2022, Chaoyun Group achieved operating income of 1.022 billion yuan and net profit of 89 million yuan. In a situation where leading consumer industries have been affected by the epidemic and their performance in the first half of the year has turned from profit to loss, Chaoyun Company is still able to maintain strong profitability and strong resilience. In the first half of the year, Chaoyun Group took multiple measures to actively respond to various difficulties and challenges to ensure the orderly operation of the business. further improved its product structure optimization, sales channel coverage and strategic investment; in the second half of the year, the growth strategy is clear and will continue to be implemented. Multi-brand, multi-category and omni-channel development strategy, continuous R&D and innovation, and optimization of category structure to increase overall gross profit margin. At the same time, the board of directors decided to pay an interim dividend, with the dividend payout rate being approximately 25%, bringing good news to the market!
Author | Unicorn Researcher Editor | Echo
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Strengthen production management, actively face uncontrollable factors, and enhance the ability to resist risks
In the first half of 2022, all product categories of Chaoyun Group remained profitable. Specifically, in terms of categories, pet product revenue was 32.07 million yuan, an increase of 22.6%; household care products (including insecticide and mosquito repellent products, household cleaning products and air care products) revenue was 942 million yuan, and personal care products revenue was 4,434 yuan. Ten thousand yuan. In terms of channels, in the first half of 2022, the company's online and offline channel revenue reached 273 million yuan and 749 million yuan respectively. From 2020 to 2022, the compound growth rate of online channel revenue reached 25.3%.
- In terms of product categories, the Group continues to upgrade existing product lines and develop new high-profit products, and launches differentiated, time-effective and healthy product categories to focus on solving consumer needs. In the first half of 2022, new products such as long-lasting mosquito repellent, pet freeze-dried snacks, and personal care sophora soap will be launched one after another to gradually improve the industrial structure. It is expected that the group's profitability will be further improved.
- In terms of sales channels, for offline channels, the group continues to strengthen the distribution of high-margin products, improve the quality and coverage of distribution points, and strengthen the professional brand image by building brand terminal image standard stores; for online channels, the group steadily develops original There are channels such as the "Taoxi" direct sales platform, Jingdong and Pinduoduo . At the same time, it operates independently on the Douyin channel to find new incremental opportunities.
In the first half of the year, various uncontrollable factors such as repeated epidemics, extreme weather, and turbulent international situations brought unfavorable factors to the consumption and sales environment. The Group strengthened the production management of various channels and categories, and adopted robust financial control policies to ensure Strengthen the ability to resist risks. As of June 30, 2022, the group's cash, cash equivalents, and bank deposits totaled RMB 2.199 billion, maintaining sufficient cash flow, enhancing its ability to resist risks, and providing guarantee for the company's healthy and sustainable operation and development.
The pet sector continues to unleash its growth potential, growing by 22.6%, and will continue to "build the core competitiveness of the channel" in the second half of the year.
According to the financial report, the pet sector, as a strategic business that Chaoyun Group has focused on in recent years, achieved an operating income of 3,207 in the first half of 2022. million, a year-on-year increase of 22.6%. Chaoyun Group continues to improve its pet business layout through the "endogenous + extension" method. In order to improve the core competitiveness of the pet business, Chaoyun Group continues to promote pet food research and development cooperation, and cooperates with the Asia-Pacific Pet Care (International) Research Center and Shandong Shuike , Wuhan Zhongbo Green Asia and other top R&D and supply chain resources have reached strategic cooperation, and continue to develop and launch a variety of new pet staple foods, pet snacks, pet supplies and other products that meet market demand.
html On the 329th, the "2022 Chaoyun Group Pet Business Partner Exchange Meeting" was held in Guangzhou to continue to deepen the company's influence as an industry leader. At the meeting, the Chaoyun team focused on explaining to hundreds of dealers and partners Chaoyun team adheres to the determination of multi-brand, multi-category and omni-channel strategy, and adheres to the concept that R&D is the lifeblood of corporate development.
The market operation strategy of the pet business in the second half of this year is based on "building the core competitiveness of the channel" as the core, and draws on the successful experience of its sister unit Liby Technology Group to empower the channel terminals, complete the channel layout, and fully explore the Chinese pet market; at the same time, Focus on the channel product strategy , leverage the industrial chain advantages of the group and the brand, formulate strategic plans, achieve online and offline product synergy, help the sustainable development of the channel, and achieve a win-win situation.
The industry has broad prospects and a clear growth strategy. The group’s future performance is worth looking forward to.
In the past ten years, the improvement of economic level has brought about the growth of per capita disposable income . People’s requirements for the quality of life are getting higher and higher, which has promoted consumption upgrades. and daily chemical product category segmentation, and further stimulated the potential growth of China’s daily chemical market. The increasingly popular social networks and private channel traffic, short videos, social e-commerce (KOL sales) and other marketing methods, as well as the upgrading of logistics technology and payment technology, have promoted the continued vigorous development of online sales channels. Thanks to the huge market and developed online marketing and online sales channels, China's daily chemical industry has developed and has broad prospects.
In the second half of 2022, Chaoyun Group will continue to implement a multi-brand, multi-category and omni-channel development strategy, continue R&D innovation, and optimize category structure to increase overall gross profit margin. In addition, the company will continue to develop an omni-channel strategy to strengthen the distribution of high-margin products and seize incremental opportunities in emerging channels. On this basis, the company will also establish and improve independent distribution channels for pet products to achieve sustainable development of the company.
In addition to the sustained profitability and solid financial control demonstrated by the data disclosed in the interim financial report, the industry prospects, business sector layout, R&D innovation and omni-channel strategy have laid a good foundation for the development of Chaoyun Group and promoted the medium and long-term development of Chaoyun. The group’s future performance is promising, let’s wait and see!
