Revenue increased by 14.43% year-on-year, and net profit increased by 15.24% year-on-year, which is the 2023 performance of Xiaoxiong Electric, the "first share of creative small household appliances". Although both earnings have achieved double-digit growth, this answer is not "perfect".
On the evening of April 8, Xiaoxiong Electric released its 2023 results: revenue increased by 14.43% year-on-year to 4.712 billion yuan, net profit increased by 15.24% year-on-year to 445 million yuan, and basic earnings per share were 2.8461 yuan.
This seemingly dazzling performance did not exceed outside expectations. At the beginning of 2024, Huaan Securities evaluated Xiaoxiong Electric and predicted that its revenue in 2023 would be 4.981 billion yuan and net profit would be 461 million yuan, both higher than today's actual performance.
Xiaoxiong Electric's profit growth is also slowing. In 2022, its net profit will be 386 million yuan, a year-on-year increase of 36.2%, compared with a slowdown of more than 20 percentage points in 2023.
The proportion of pillar businesses declined
Founded in March 2006, Xiaoxiong Electric Co., Ltd., which started with yogurt makers, is mainly engaged in the research and development, design, production and sales of small household appliances. From the perspective of revenue composition, small kitchen appliances account for more than 70% of the revenue, which is the company's pillar business.
In 2023, Xiaoxiong Electric's revenue from small kitchen appliances will be 3.644 billion yuan, accounting for 77.33% of revenue. The sector is further divided into five categories of products according to function: pots, electric heaters, pots, Western-style and electric. During the reporting period, the revenue of pots and pots in small kitchen appliances increased the most, from 1.0047 billion yuan in 2022 to 1.204 billion yuan in 2023, and the proportion of revenue increased from 24.4% in 2022 to 25.55% in 2023, which is the product with the largest proportion among all kinds of products of Xiaoxiong Electric.
In contrast, in the small kitchen appliances sector, the revenue of Xiaoxiong Electric's electric heating and Western-style electrical appliances both declined. In particular, the revenue of Western-style products decreased by 16.99%, and the revenue decreased from 685 million yuan in 2022 to 568 million yuan in 2023, and the proportion of revenue also decreased by nearly 4 percentage points.
It is worth mentioning that from the perspective of the overall development trend of small household appliances, the traditional advantages of Xiaoxiong Electric's small kitchen appliances will not be able to leave the downward range in 2023. According to the total data of AVC's omni-channel push in 2023, the overall retail sales of small kitchen appliances were 54.93 billion yuan, down 9.6% year-on-year, the retail volume was 265.43 million units, down 1.8% year-on-year, online retail sales were 42.2 billion yuan, down 10.7% year-on-year, and offline retail sales were 12.7 billion yuan, down 6.0% year-on-year.
In this context, in 2023, as a pillar business, the revenue of Xiaoxiong Electric, which has been accounting for more than 8% of the small kitchen appliances, will drop to 77.33%, which is reflected in the financial report data, in 2023, the revenue growth rate of Xiaoxiong Electric's sector will only be 8.4%, which is the lowest among the three major sectors.
Changes in the proportion of revenue of small household appliances of Xiaoxiong Appliances Kitchen Appliances Drawing: Ma Yunfei
In contrast, in 2023, the revenue of small household appliances of Xiaoxiong Electric will increase by 22.8% year-on-year to 485 million yuan, accounting for 10.3% of the revenue, and the revenue of "other small household appliances" including non-traditional categories such as personal care, mother and child and kitchenware will surge by 67.54% year-on-year to 546 million yuan, accounting for 11.58% of the revenue. In 2022, neither of these two sectors will account for more than 10% of revenue. However, although the revenue growth rate of these two major sectors is relatively fast, due to the small size, it is difficult to carry the revenue banner of Xiaoxiong Electric for the time being.
There is an urgent need to tell a new story
In August 2019, Xiaoxiong Electric was successfully listed on the Shenzhen Stock Exchange, becoming the high-profile "first stock of creative small household appliances", and it was in the limelight for a while. On the day of listing, the share price of Xiaoxiong opened at a high of 41.1 yuan/share, an increase of 20% compared with the issue price of 34.25 yuan/share, and finally closed at 49.32 yuan/share, with a market value of more than 5 billion yuan.
Subsequently, the share price of Xiaoxiong Electric soared, once exceeding 163 yuan per share in August 2020. However, after the stock price reached its highest level, it began to fluctuate downward, as of the close of April 9, Xiaoxiong Electric closed at 54.53 yuan per share, with a total market value of 8.553 billion yuan, a decline of more than 6% from the market value high in 2020. In the face of the weakness of the stock price, Xiaoxiong Electric has publicly announced a share repurchase plan twice, after the actual controller also increased its stake in the company.
However, in the downturn of the track market and the intensifying competitive situation, for Xiaoxiong Electric, market value management is by no means a problem that can be solved by one or two repurchases, but needs to tell a new story to the market and give new expectations.
In October 2023, at a conference call attended by representatives of as many as 188 research institutions, the management of Xiaoxiong Electric said that from the perspective of the company's underlying logic, Xiaoxiong's category extensibility is very wide, and the company will explore the miniaturization of large electricity in the future to break the boundary of category creation. In addition, the management also said that for the follow-up product strategy, on the one hand, it will expand and strengthen the traditional categories, focus on long-term and large-scale categories, and on the other hand, continue to actively expand emerging categories and seize market opportunities.
According to the financial report, in 2023, the number of R&D personnel of Xiaoxiong Electric will be 389, a year-on-year increase of 21.18%, and the amount of R&D investment will be 143 million yuan, a year-on-year increase of 3.93%. From the perspective of R&D projects, the products cover electric pressure cookers, rice cookers, garment steamers, humidifiers, heaters, pet feeders, foot baths, smart water dispensers, coffee machines and other small household appliances.
For future development, Xiaoxiong Electric said in the financial report that the company will make full use of the existing comprehensive advantages in the next few years, based on the brand positioning of "small household appliances that young people like", increase investment in technology research and development, and implement differentiated competition strategies; While improving R&D and manufacturing capabilities, the company will continue to improve and improve the existing product categories and channel layout, strengthen brand power and user refined operation capabilities, and strive to continue to expand its market share at home and abroad in the next few years and enhance the company's brand influence.