During the reporting period, the company achieved operating income of 1.688 billion yuan, a year-on-year increase of 22.16%; The net profit attributable to the parent company was 327 million yuan, a year-on-year increase of 49.71%. After a brief "downturn" in 2022, the company's operations returned to the growth channel.
The highlights of this annual report are not only dazzling data, but also reveal the business wisdom of the good wife. 2024 is the first year of the new development strategy and business plan of Mrs. Hao in the next five years, and with such an exciting annual report, it will undoubtedly lay a solid foundation for the company to realize the grand vision of "the world's leading smart home enterprise".
The "profit" of smart home products has increased three times in a row
147 times, which is how often the word "smart" appears in the Good Wife's 2023 annual report. Acting towards wisdom is the focus of the company's work in recent years.
From the perspective of business composition, the revenue of Mrs. Hao is mainly contributed by the two major businesses of smart home products and drying racks. In 2017, the proportion of the two major businesses in revenue was still "evenly divided", and in 2023, the revenue contributed by smart home products has reached 84.86%, which can be called the absolute main force of revenue.
Behind this, the smart home product business of Haotai has achieved year-on-year growth in revenue and gross profit for three consecutive years. From 2020 to 2023, in terms of revenue data, the business will be 704 million yuan, 1.082 billion yuan, 1.134 billion yuan, and 1.433 billion yuan respectively; In terms of gross profit data, the business was 353 million yuan, 498 million yuan, 547 million yuan and 761 million yuan respectively.
There are two reasons for this good growth momentum. First, the huge dividends contained in the smart home market, iResearch data show that the smart home market size is expected to hit one trillion yuan in 2026, and the total market volume will exceed 1.8 trillion yuan in 2028, with an average annual compound growth rate of 25% to 30%; Second, Mrs. Hao keenly captured the rigid needs of the market: consumers' intelligent needs for drying and home security.
Mrs. Hao's smart home product business is mainly composed of two major segments: smart drying and smart door locks. The former is an important foundation of the company's business, and although the latter is still in the growth stage, its development potential should not be underestimated.
The smart market space for clothes dryers is huge. According to CSHIA Research research data, in 2023, smart clothes dryers will become one of the fastest-growing smart home categories with a growth rate of 22.1%, with a market size of 12.7 billion yuan, and it is expected that by 2026, the market size of smart clothes dryers will exceed 20 billion yuan. As a post-cycle category of real estate, with the increase in the number of stocks to be renovated and incremental houses in the market, as well as the demand for renovation of old communities, the replacement of stock will also bring about a further increase in the penetration rate of smart clothes dryers. Roland Berger research predicts that the market size of "replacement" of clothes dryers may reach 12 billion yuan in 2028.
As the first pass of home security, with higher security, convenience and intelligent experience, the popularity of smart door locks continues to increase. According to data, in 2023, the omni-channel retail volume of China's household smart door locks will reach 18.7 million sets, a year-on-year increase of 3.6%, and by 2027, the market size of China's smart door lock industry is expected to exceed 40 billion yuan.
But latent demand alone is obviously not enough to win the market, and a good product is the key. In this regard, Mrs. Hao's R&D investment has helped a lot. In 2023, the company's R&D expenses increased by 21.32% compared to the same period last year. In the meantime, with the thinking of accurately meeting the needs of users, Mrs. Hao continues to accelerate the exploration of transforming needs into products, and the company has continuously tackled industry-leading technologies such as intelligent stroke adaptation and gesture sensing, sun tracking and drying, and has achieved breakthroughs in a number of key technical fields including sterilization and disinfection, intelligent interaction, and human body sensing, ensuring the full competitiveness of products. During the reporting period, Mrs. Hao completed 64 new product development projects, with a mass production achievement rate of 88.89%, 179 new products on the market, and 14 international and domestic awards for new products.
The omni-channel layout helps reduce costs and increase efficiency
In addition to the revenue and gross profit data hitting a new high, the gross profit margin of the smart home products business also broke through the high point of 50.14% in 2020 to 53.1%. At the same time, the gross profit margin of the drying rack business also hit a new high in the past three years, at 44.04%, while the company's overall sales gross margin data for 2023 is 51.35%, a new high since its listing.
"On the basis of the cost reduction measures in 2022, the company will continue to further promote the implementation of cost reduction and efficiency improvement measures in 2023, optimize the production process, and reasonably control costs. For the improvement of the gross profit margin of the main business, Mrs. Hao said in the annual report that it was the result of "reducing costs and increasing efficiency".
In 2023, Mrs. Hao will further promote the implementation of cost reduction and efficiency improvement measures, and the end-to-end cost management of the whole process will achieve remarkable results. On the one hand, through the standardization of materials and components, process standardization, design modularization, data standardization and other systems, the company has effectively improved the advantages of centralized procurement of raw materials, shortened the R&D cycle of new products, strengthened the company's agile development capabilities, and laid the foundation for the overall cost reduction and efficiency increase of the whole link; On the other hand, the company has built a "flexible supply chain", realized the balance of SKU quantity and scale effect, manufacturing and procurement coordination, and the combination of general materials and special materials, which effectively reduced the marginal cost of the supply chain and provided the basis for the "high quality and high cost performance" of products.
Another major reason for the increase in gross profit margin is the simultaneous growth of omni-channel sales. In 2023, the company sold 1,283,300 sets of smart home products, an increase of 17.77% over the same period of the previous year. The sales channels of Good Wife mainly include the online model represented by Tmall, JD.com, Pinduoduo and Douyin, as well as the offline model represented by dealers, engineering and direct sales. Grasping both online and offline is the key idea of the current channel layout of Mrs. Hao.
For a long time, online has been an important sales channel for the smart home industry. In the smart door lock market in 2023, online channels will account for nearly 35%, which is the key driving force for the upward trend of omni-channel scale. According to iResearch's survey data, among the channels through which consumers plan to buy smart clothes dryers, online purchase channels such as JD.com, Tmall and live broadcast account for 60%, and offline specialty stores, experience stores and other purchase channels account for 40%.
Online is also an important source of revenue for good wives. In 2023, the company's online revenue will exceed 1 billion yuan, accounting for nearly 60%. For online business, Mrs. Hao's strategy is global integration: maintain the data stability of the head platform, focus on "goods to find people" on interest e-commerce platforms, and pay attention to both traffic and the growth of brand potential. During the reporting period, the company successfully won an award - e-commerce has led the industry in sales for 8 consecutive years.
As for offline, a good wife is also determined to win. In 2023, the company's offline revenue will soar by 37.51% year-on-year to 666 million yuan. Behind the achievements, Mrs. Hao takes channel diversification as the starting point, deeply empowers dealers, completes the fine combing of "people, goods and yards", and achieves accurate matching. During the reporting period, the company accelerated the sinking of channels, deepened the layout of new channels such as hardware stores, new retail, and KA, introduced multi-level full-chain store management standards and store digital terminal systems, improved the quality of terminal retail operations, and built a more complete and stronger terminal marketing system with stronger radiation capacity with the help of precise investment promotion in different cities and regions, so as to achieve market breadth and depth coverage, and consolidate and increase market share.
It is worth mentioning that while the omni-channel layout, Mrs. Good pays more attention to the creation of brand image. With the opportunity of the Hangzhou Asian Games, the company joined hands with the "Asian Games Concept" to create the "Smart Asian Games New Product Launch", and with the help of a series of integrated marketing activities such as "Chinese Clothes Festival", "920 Good Wife Festival" and "Listing Anniversary", the good wife successfully associated the interesting theme with smart home life, and ushered in a multiple harvest of traffic, orders and word-of-mouth. The research report of Bohai Securities pointed out that in the intelligent drying rack industry, Mrs. Hao has a market share of 40%, demonstrating a strong brand influence.
![The size is wrong, the quality is flawed, and a man in the city reported that there are many defects in the customization of the whole house of Opai Home[fig]](data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACwAAAAAAQABAAACAkQBADs=)