1. Energy costs soar, Europeans are buying heaters wildly. China's electric heating market ushered in the "spring"
After the Ukrainian crisis, the international natural gas price continued to be at a high level. In particular, Europe is heavily dependent on imports, but this year, natural gas supply has been cut due to geopolitical factors. Now the energy bill has increased by 200% to 300%. Not only Ukraine, but Germany have also recently suffered a "critical hit" from gas and electricity bills: in 2020, the gas and electricity bills are prepaid for about 110 euros per month, the automatic adjustment of prepaid for 96 euros in 2021, and in 2022, 230 euros per month, and from October 1 this year, 314 euros per month will be prepaid for each month.
Faced with the shortage of natural gas and soaring energy prices, many Europeans began to save money for winter. Data shows that Dutch , France, Germany, Polish consumers are quite dependent on heating appliances made in China.
Data from market research company GFK cited by foreign media shows that in the first half of this year, the heaters purchased by German consumers increased by 35% compared with the same period last year. According to the report data, at least 600,000 heaters were sold in Germany in the first half of the year. In August, British home appliance store Lakeland said that its electric blanket sales so far this year were nearly 13 times that of 2021.
China's heating products exports have increased significantly, setting off a "selling wave" and Europeans' "passion" for heating equipment, and have also driven a surge in exports of related products in my country. Cixi City, Zhejiang Province is one of the heater production bases in my country. According to customs statistics, from January to August this year, Cixi heaters exported 3.35 billion yuan, a year-on-year increase of 26.3%, of which exported EU html was 41.53 billion yuan, a year-on-year increase of 55.2%. Unlike the peak season for heating equipment production ended around mid-September in previous years, in order to cope with the "subscription wave" of customers in Europe and other places, many merchants are still busy making orders.
volume and price have risen, bringing the heated heating equipment stocks. Among heating equipment, the sales of electric blankets exports are particularly impressive. General Administration of Customs data shows that in January this year, the monthly number of electric blankets imported by 27 EU countries was 189,000, which increased rapidly to 521,000 in June, and even climbed to 1.29 million in July, an increase of nearly 150% month-on-month. On the AliExpress platform, electric blankets sold for 50 euros, which is almost 3-4 times the domestic price. Now there is a leak in the Nord Stream pipeline, and even if the situation changes, it will not be put into use. This also makes it more difficult for Europe's winter natural gas supply, and may further promote European demand for heating products.
2. Financing analysis of electric heating industry
(I) Market size and growth of electric heating industry
In 2021, due to the warming weather, the increase in heating coverage, the serious homogeneity of products and the rapid development of similar functional competitors, the market demand is serious, and the industry's development is facing a severe situation. According to AVC's omni-channel data, the market size of electric heaters from September 2021 to February 2022 was 5.69 billion yuan, a year-on-year decrease of 38.4%; it is expected that the market size of electric heaters in the same period of 2022 will be 6.29 billion yuan, a year-on-year increase of 10.4%.
Chart 1: Electric heater market size from 2016 to 2022
(II) Sales volume growth
Judging from the distribution of online and offline sales of China's electric heaters, the offline market failed to recover effectively after the epidemic in 2021. In addition, online brands actively conduct online live broadcasts, the online market share of electric heaters remains above 70%. At the same time, the scale of emerging channels is highlighted, and emerging channels continue to maintain rapid growth in the future. In 2021, China's electric heaters online sales accounted for 72.2%, while offline sales accounted for only 27.8%.
Chart 2: Electric heating sales distribution
(III) Industry concentration
In 2021, China's electric heater market is severe, and the brand competition pattern is becoming more and more intense. The concentration of brands in various sub-categories has increased, and the opportunities for new products have decreased. The concentration of the top 10 online is 70.3%, and the concentration of the top 10 offline is 96.3%; the concentration of the top 5 online is 52.4%, and the top 5 offline is 52.4%, and the top 5 offline is 5.3%. The moderate is 89.6%; the concentration of the online Top 3 is 41.8%, and the concentration of the offline Top 3 is 76.0%
Chart 3: Industry concentration of the electric heater market
(IV) Strong overseas demand
Since 2022, due to the comprehensive impact of geopolitical conflicts, high inflation, currency depreciation and other factors, the prosperity of the European market has declined, and the export of the domestic home appliance industry to Europe has also shown a downward trend.According to data from the General Administration of Customs, from January to July 2022, China's home appliance industry exports to Europe were US$14.93 billion, a year-on-year decrease of 9.3%, the largest decline since 2009.
However, in the context of the cold export of home appliances in Europe, the export of heating equipment such as electric blankets and electric heaters to Europe is rapidly rising.
China Home Appliances Association data shows that from January to July 2022, the export volume of electric heaters to Europe was US$490 million, a year-on-year increase of 23%; the export volume of electric blankets to Europe reached US$33 million, a year-on-year increase of 97%. Data from the General Administration of Customs of China shows that in July this year alone, China's exports of electric blankets to 27 EU countries reached 1.29 million, a month-on-month increase of 147.60%.
In addition to electric blankets and electric heaters, the export of air source heat pump products has also grown rapidly since 2022. Industry online data shows that from January to August, the cumulative export volume of air source heat pumps increased by 63.1%, and Europe is the main buyer of heat pumps produced in China. CITIC Securities data shows that China exported 1.061 million air source heat pumps to Europe in 2021, accounting for 78.1% of the overall export of my country's air source heat pumps.
According to CCTV Finance, since 2022, the number of orders for heating facilities from Europe has been increasing. Some electric heater manufacturers said that companies are currently working overtime every day to complete orders, and the current order volume will be scheduled until October. A heat pump manufacturer said that the current order volume in hand is 10 times that of last year. Why can
heating equipment be sold well in Europe? In this regard, Jiang Han, a senior researcher at Pangu Think Tank, believes that for various European countries, under the current market conditions, energy shortage will become a problem that needs to be faced this winter. The heating equipment such as electric blankets produced in China not only have price advantages but also meets heating needs, and is naturally popular among European consumers.
The main reason why China's heating equipment is selling well in Europe is the energy problems faced by Europe. Affected by the Russian-Ukrainian conflict, Europe is currently facing the energy crisis , and energy prices have risen sharply. In addition, due to the extreme weather in recent years, the temperature in winter may be low, which will stimulate the growth of sales of heating equipment such as electric blankets and electric heating.
3. Analysis of key enterprises - Rainbow Group
(I) Rainbow Group Enterprise Overview
During the reporting period, the company's main business and main products did not undergo major changes. The company is committed to providing solutions for fine life scenarios, creating safe, warm, sanitary, and environmentally friendly home environment products for consumers. Home flexible heating appliances
The company is committed to providing solutions for fine life scenarios, creating safe, warm, sanitary, and environmentally friendly home environment products for consumers. For a long time, the company has focused on the household flexible heating equipment and household sanitary insecticide products industries and expanded related fields. Adhere to the business philosophy of user-centeredness, quality first and user-first. Home flexible heating appliances include: electric blankets (pads), electric hand warmers, electric cloaks, body warmers and other indoor and outdoor heating supplies.
company integrates research and development, procurement, production and sales, forming a full business chain system covering production and sales, and adheres to market-oriented, and reasonably arranges the specific work in the procurement, production and sales links based on the actual operating conditions of the company.
production model: The company uses annual business plan to guide the annual production and operation activities, and uses the monthly product demands formulated by the sales department as the basis for production arrangements. The production plan and production rhythm of the parent company and production subsidiary shall be unified and arranged by the parent company's production department, optimize resource allocation, centralized management, reasonable scheduling, integrate and give full play to the group's advantages in production factor resources, meet market needs, and save production costs.
sales model: The company has many product categories and a wide sales area. It has long adopted a sales model based on distribution and established a stable sales channel. With the popularization and application of Internet technology and the improvement of the logistics and distribution system, online direct sales have gradually occupied an important position. Under the distribution model, the company's dealers mainly include chain retail supermarkets, regional dealers in various regions, and Internet dealers, and the marketing center and e-commerce center are responsible for business management.The company adheres to the marketing strategy of coordinated development online and offline, focuses on the stability of chain retail supermarkets and regional distributor teams, broadens channels, and at the same time, it works hard to build channels in depth to promote channels to deepen their cultivation and sink. Keep up with the situation online, cooperate in depth with major platforms, improve the penetration rate of , adapt to the new business model, explore new channels such as Douyin , Kuaishou, live streaming and other goods, follow up community group buying , and consolidate market advantages.
(II) Financial status analysis
In the whole year of 2021, the company achieved operating income of 1144.149 million yuan, a year-on-year increase of 7.47%, and achieved net profit attributable to shareholders of listed companies of 110.8675 million yuan, a year-on-year decrease of 1.51%. The net profit attributable to shareholders of listed companies after deducting non-operating items was 105.0143 million yuan, a year-on-year increase of 3.70%. The results of the financial status of the company through Smartword Chuangxiang.com are as follows:
1. Stable operating capacity
Chengdu Rainbow Electrical Appliances (Group) Co., Ltd. In 2021, the inventory turnover days were 276.61 days, 278.14 days in 2020, and 1.53 days shortened from 2020, indicating that the company's inventory monetization speed has accelerated and liquidity has been enhanced.
The main reason why the inventory turnover days in 2021 were lower than the same period last year is: the average inventory in 2021 was 492.9973 million yuan, an increase of 7.84% compared with the same period last year; in 2021, the main business cost of was 641.6287 million yuan, an increase of 8.44% compared with the same period last year. While the operating costs of enterprises have increased, the average inventory has increased, and the growth rate of operating costs is slightly higher than that of the average inventory growth rate.
Chart 4: Inventory turnover days
Chengdu Rainbow Electrical Appliances (Group) Co., Ltd. Accounts receivable turnover days in 2021 is 42.00 days, 47.36 days in 2020, and 5.36 days shortened from 2020. This shows that the efficiency of liquidity utilization has been improved and the time it takes for funds to be occupied by foreign units has been shortened.
The main reason why the number of accounts receivable turnover days in 2021 is less than the same period last year is: the average accounts receivable in 2021 was 133.486 million yuan, a decrease of 4.69% compared with the previous year; the operating income in 2021 was 114.4149 million yuan, an increase of 7.47% compared with the previous year. The average accounts receivable of the enterprise remained basically the same, and the operating income increased.
Chart 5: Accounts receivable turnover days
Chengdu Rainbow Electric (Group) Co., Ltd.'s operating cycle in 2021 was 318.61 days, 325.50 days in 2020, and 6.89 days shortened from 2020, indicating that the company's capital turnover speed has accelerated.
Judging from the relationship between the turnover speed of inventory, accounts receivable and accounts payable, the capital occupation of the company's operating activities has not changed much and its operating capacity is relatively stable.
Chart 6: Business cycle
2. Operating net profit remained basically unchanged
Chengdu Rainbow Electrical Appliances (Group) Co., Ltd. 2021 net asset return rate was 8.58%, compared with the same period last year, the year-on-year change was -2.68%, with little change. The small change in the return on net assets is due to the fact that the net profit in 2021 was 115.0649 million yuan, with a growth rate of -2.46%; the average owner's equity in 2021 was 134.1408 million yuan, with a growth rate of 27.98%. The net profit of the enterprise remains basically unchanged, the average owner's equity has increased, and the average owner's equity has increased, resulting in a small increase in the average owner's equity. This shows that the profitability of the company's owner's equity has not changed much.
Chart 7: Return on net assets
Chengdu Rainbow Electric (Group) Co., Ltd. in 2021, the return on asset was 6.21%, which was 6.21%, compared with the same period last year, and the year-on-year change was -2.20%, with little change. It shows that asset utilization efficiency and the overall profitability of enterprises to use all assets have not changed much.
Chart 8: Return on Assets
Chengdu Rainbow Electric (Group) Co., Ltd. cost and expense profit margins from 2019 to 2021 were 11.75%, 15.04%, and 13.37%, respectively. The changes in the cost and expense profit margins of enterprises showed a trend of rising first and then falling, and the fluctuation was rising, and the decline in that year was slightly lower than the increase last year.
Chengdu Rainbow Electric Appliances (Group) Co., Ltd.'s cost and expense profit margin in 2021 changed by -1.67% year-on-year, a slight decrease. The slight decline in cost and expense profit margin is due to: the total profit in 2021 was 132.2334 million yuan, with a growth rate of -4.30%; the total cost of in 2021 was 988.8872 million yuan, with a growth rate of 7.67%.The total profit of the enterprise remains basically unchanged, the total cost and expenses have increased, and the increase in the total cost and expenses has been small. This shows that the price paid by enterprises to obtain profits has increased slightly, and the profitability of enterprises has decreased slightly.
Chart 9: Cost and expense profit margin
3. Reasonable financial expense control
2021 operating cost was 641.6287 million yuan, an increase of 8.44% compared with 591.6806 million yuan in 2020. Operating costs accounted for 56.08% of operating income in 2021, which was not much change compared with 55.58% in 2020. This shows that the cost control level of the main business is basically stable and no major changes have occurred.
Chart 10: Operating cost change chart
2021 sales expenses of Chengdu Rainbow Electric (Group) Co., Ltd. were RMB 238.6965 million, an increase of RMB 204.9211 million in 2020, an increase of RMB 16.48%. While sales expenses increase, sales revenue has increased. The company has adopted a relatively successful sales strategy and improved marketing efficiency.
Chart 11: Sales expense change chart
2021 management expenses of Chengdu Rainbow Electric (Group) Co., Ltd. were RMB 108.6557 million, a slight decrease from RMB 112.055 million in 2020, a decrease of RMB 2.99%. In 2021, administrative expenses accounted for 9.50% of operating income, a slight decrease from 10.52% in 2020. When sales revenue increases, management expenses are basically effectively controlled, the profit level of operating business remains basically stable, and the growth of other expenses and costs should be appropriately controlled.
Chart 12: Trend Change of Management Expenses Chart
After analyzing the financial status of Rainbow Group, the company's net sales profit margin remained stable and its operating profit did not change much compared with the same period last year. Rainbow Group has a reasonable asset structure and reliable development capabilities, has sufficient economic strength, brand reputation and corporate vision to seize opportunities under the new situation and promote the further development of heating supplies.
Conclusion : Diversified and personalized strong consumer demand will drive the stable development of the industry, the application of new technologies, new processes and new materials will make the creation of new functions of electric heating products possible, and promote the healthy development of the industry. At the same time, the further implementation of energy-saving and environmental protection policies will balance the relationship between the realization of the carbon peak and carbon neutrality goal and people's heating needs to be heated and exhausted, and find more economical and reliable, clean and energy-saving heating projects. The performance of the electric heating industry is worth looking forward to.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-