Sellers buy money with electricity, and boss electrical appliances invest in 2 years to earn a small goal

(Text/Xie Hongjuan Editor/Yo-Yo Ma) From 200 million yuan of test water investment to 3 billion rolling funds, the boss electrical appliances' own idle funds financial package is getting bigger and bigger.

Recently, Boss Electric Appliances issued an announcement that it decided to purchase Liduoduo Company's Tianli 22JG6026 RMB structured deposit product from The Hangzhou Linping Branch of Shanghai Pudong Development Bank Co., Ltd. in the near future, with a total subscription fund of 200 million yuan from the company's own idle funds, with an expected annualized yield of 0.3%-4.2%.

After the completion of the transaction, in the 24 months ended January 12, 2022, Boss Electrical Appliances used its own idle funds to purchase 19 unexpired wealth management products, totaling 2.4 billion yuan.

At the same time, in the 24 months ended January 12, 2022, Boss Electrical Appliances had used its own idle funds to purchase 12 wealth management products that had matured, with a total investment of 3.76 billion yuan and an actual income of 117 million yuan. So much so that some netizens ridiculed his "two years of financial management can easily earn a small goal." ”

The highest income of a single investment is 12.732 million yuan

As early as December 2012, Boss Appliances began to manage idle funds while developing household appliances. At that time, the board of directors agreed to use its own idle funds of not more than 200 million yuan to purchase low-risk, short-term (not more than one year) capital-protected wealth management products.

The first wealth management product purchased was SPDB Liduoduo Corporate Wealth Management Plan 2012 Issue HH492. According to the data, the total subscription funds of Boss Electrical Appliances are 30 million yuan, and the product term is from November 15, 2012 to May 16, 2013, due to the small amount of funds, the investment results have not been announced.

In the following years, Boss Electrical Appliances suspended its investment moves until 2017, which was also a wealth management product with high investment security, good liquidity and an investment period of no more than 12 months, but the self-owned idle funds allowed to invest increased to 1.5 billion yuan.

In less than a year, Boss Electric appliances have spent the 1.5 billion yuan on investment products, before and after buying Ping An Bank's RMB products for public structured deposits (linked interest rates) in 2017, Bank of Shanghai "Steady Advance" No. 2 SD21701Y021A structured deposit products, Postal Savings Bank of China Postal Savings Bank Caizhi • Shengying 2017 No. 73 (capital protected) RMB wealth management products and other 10 wealth management products, the product types are mainly structured deposits and capital protected floating income wealth management products.

The first product to mature is CITIC Wealth Management's win-win interest rate structure 17478 RMB structured wealth management product - C17AU0178, boss electrical appliances subscribed for 100 million yuan, and achieved a return of 1.1332 million yuan after 3 months; Ping An Bank's public structured deposit (linked interest rate) 2017 0436 RMB product investment period is longer, with a subscription of 100 million yuan and a half-year income of 2.5035 million yuan.

As of February 2018, Boss Electrical Appliances had used its own idle funds to purchase a total of 800 million yuan of expired wealth management products in one year, with actual income of 18.1512 million yuan, accounting for 1.23% of the net profit attributable to the mother in 2017 of 1.461 billion yuan.

Although 1.5 billion yuan of its own idle funds can be recycled and used on a rolling basis, the boss electrical appliances are not satisfied with this. In April 2019, at the tenth meeting of the fourth board of directors of Boss Electric Appliances, the self-owned idle funds used for investment were changed to no more than 3 billion yuan, which can also be used on a rolling basis within the quota.

In the 24 months ended January 12, 2022, Boss Electrical Appliances had accumulated a total of 3.76 billion yuan of matured wealth management products purchased using its own idle funds, and the actual income amount was 117 million yuan. From the perspective of product investment targets, Boss Electrical Appliances prefers short-term capital-protected wealth management products issued by banks.

Specifically, the highest actual income amount is the IB Wealth Management Golden Snowball Yuexiang [1] [A] net worth wealth management products. The product fundraising period is November 2, 2020, the maturity date is November 2, 2021, the total subscription funds of Boss Electrical Appliances are 300 million yuan, and the actual income amount is 12.732 million yuan.

The worst performer was Li DuoDuo's Tian Li 21JG8251 RMB Structured Deposit. The product offering period is December 8, 2021, the total subscription funds of Boss Electrical Appliances are 200 million yuan, and the actual income amount is only 645,000 yuan due to the early redemption on January 5, 2022.

In this regard, boss electrical appliances said that under the premise of ensuring normal operation and capital security, the company purchases bank wealth management products with its own idle funds, which will not affect the company's daily capital normal turnover needs and will not affect the normal development of the company's main business. In addition, through moderate financial management, it is conducive to improving the efficiency of the use of funds and obtaining certain investment returns, which is in line with the interests of the company and all shareholders.

Market capitalization down 11% from the beginning of the year

Although boss electrical appliances have performed well in investment and financial management, the industry is not optimistic about this move, believing that "there is surplus money that should be invested in scientific research, or buy back shares to boost market confidence."

According to public information, the key product planning of boss electrical appliances focuses on the kitchen field, and all products are divided into three category groups: the smoke stove consumption product group represented by the smoke machine, the electrified cooking product group represented by the steam box, and the water and kitchen appliance product group represented by the dishwasher.

In the first half of 2021, Boss Electrical Appliances achieved operating income of 4.326 billion yuan, an increase of 34.72% year-on-year. Among them, the revenue of the tobacco stove consumption product group was 3.375 billion yuan, accounting for 78.02% of the total revenue; the income of the electrified cooking product group was 410 million yuan, accounting for 9.49% of the total revenue; and the income of the water and kitchen appliance product group was 244 million yuan, accounting for 5.65% of the total revenue.

Zheshang Securities report shows that in terms of products, the dishwasher developed by Boss Electrical Appliances is the most suitable for Chinese use, the four-axis three-pronged spray arm adapts to the eating habits of Chinese heavy oil, and the height of the boss dishwasher is also more suitable for the height of Chinese. Benefiting from this, the retail sales share of offline dishwashers in the first three quarters of 2021 reached 17.9%, an increase of 8.2% year-on-year.

However, in recent years, the proportion of investment in research and development of boss electrical appliances has declined. The data shows that from 2015 to 2020, the total R&D investment of boss electrical appliances has continued to increase, respectively, 150 million yuan, 195 million yuan, 233 million yuan, 293 million yuan, 299 million yuan and 303 million yuan, but its proportion in operating income is 3.31%, 3.36%, 3.32%, 3.95%, 3.86%, 3.73%, which has been decreasing since 2018.

As of the third quarter of 2021, boss electrical appliances invested 232 million yuan in research and development, accounting for only 3.29% of operating income.

It is worth mentioning that because the boss electrical appliances provide an overall solution covering range hoods, gas stoves, steaming and grilling machines, dishwashers, integrated stoves and other embedded kitchen appliances, its demand arises from the kitchen decoration link after the purchase of the house, with certain "decoration" and "furniture" attributes, so its demand is greatly affected by the fluctuations in the real estate market.

According to the report of Beijing Capital Securities, the number of days of turnover of accounts receivable of Boss Electrical Appliances in the first three quarters of 2021 increased by 15.63 days to 51.81 days year-on-year, mainly due to the conversion of bills receivable from customers such as Evergrande into accounts receivable.

While uncontrollable factors are increasing, the market value of boss electrical appliances is also facing greater fluctuations. According to the data, on January 18, 2022, the total market value of Boss Electrical Appliances was 34.307 billion yuan, a decrease of 4.394 billion yuan from 38.701 billion yuan at the beginning of 2021, a year-on-year decrease of 11.35%.

As of the close of trading on January 19, Boss Electrical Appliances rose 2.32% to 36.99 yuan / share, with a total market value of 34.504 billion yuan.

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