Text丨Fang Wen
enemies, and other people.
Robam Appliances has finally released its 2023 financial report, which is less than a week away from the latest release deadline for the annual report required by the A-share market.
The general rule of the market is that the good performers will be the first to release, while the poor performers will step on the deadline to release.
Robam Appliances has dragged on to the "delivery" deadline, in fact, the market has expected that the "results" will not be too good.
Robam Appliances simply released the 2023 annual report and the 2024 Q1 financial report together. Sure enough, the growth rate of Robam Appliances has entered the single-digit era in an all-round way.
1. Low-speed growth, single-digit growth rate of revenue and profit
Robam Appliances has entered the era of single-digit and low-speed growth in an all-round way.
According to the financial report, the revenue of Robam Appliances in 2023 will be 11.2 billion yuan, an increase of 9.06% from 10.3 billion yuan in the same period last year, continuing the low growth trend of last year, and the net profit attributable to listed companies after deducting non-profits will be 1.58 billion yuan, a year-on-year increase of 7.06% from 1.48 billion yuan last year.
It seems that Robam Appliances will not be able to recover from the downturn in the market in a short time. In the 2022 financial report, Robam Appliances once blamed the slowdown in performance growth on the market downturn, and in 2023, Robam Appliances still has not seen a good improvement.
In order to cope with the changes in the market environment, Robam Appliances has formulated a series of development goals in 2022, including expanding the advantages of the first category, leading the second category, and steadily advancing the overall goal of the third category, but judging from the performance in 2023, it is still far from achieving this goal.
The business of Robam Appliances is divided into three categories, namely the smoke stove consumption product group represented by the smoke machine, the electric cooking product group represented by the steaming and baking machine, and the water kitchen appliance product group represented by the dishwasher. Starting from range hoods and gas stoves, Robam Appliances gradually expanded to kitchen appliances such as ovens and dishwashers, and even entered the traditional home appliance business of refrigerators.
But in fact, in the past year, the new business performance of the second and third categories of Robam Appliances has not been good.
Range hoods barely achieved double-digit growth, gas stoves achieved high-single-digit growth, while the second category of all-in-one machines, ovens, and steamers achieved negative growth, and the growth rate of the second category of business was wiped out.
In the third category, dishwashers achieved revenue of 760 million yuan, a year-on-year increase of 28%, water heaters increased by 21.2% year-on-year, and water purifiers achieved negative growth of -25.4%.
It is worth noting that the combined revenue of all businesses in the second and third categories accounts for less than 15%. This means that after several years of tossing, the second and third growth curves of Robam Appliances have not run out.
At the beginning of this year, there is still no low-speed situation. Robam Appliances' 2024 Q1 results were released together with the 2023 financial report, with revenue of 2.24 billion yuan, an increase of only 2.75% over the same period last year, and non-net profit attributable to shareholders of listed companies of 350 million yuan, a year-on-year increase of 3.34%, which is still sluggish.
In 2022, Robam Appliances proposed to build a new Robam Appliances in 2023-2025, and at present, the second and third times have not run out, and the revenue of Robam Appliances will exceed 10 billion yuan in 2022, and if you want to achieve 20 billion revenue in 2025, where to start?
2. The opponent is on the outside
Robam Appliances, once the No. 1 kitchen appliance brand in the engineering channel, has also been affected by the downturn in real estate in the past two years.
On the other hand, in the past, they enjoyed the dividends of external growth, but did not do a good job in their own transformation and upgrading, especially in the new environment, and did not grasp the consumption trend of young people becoming the main force.
The first is the miscalculation of the integrated stove business.
In the past few years, the integrated stove has become one of the fastest-growing categories in the field of kitchen appliances, but it has been missed by Robam Appliances, and its senior management has also publicly stated that each product of the integrated stove is not perfect, the function is not enough, and it will not become a large-scale.
In 2022, Robam Appliances will focus on integrated stoves, and now it has enjoyed the benefits of growth. In 2023, the revenue of Robam Appliances Integrated Cooker Business will be 460 million yuan, a year-on-year increase of 20.6%, which is one of the fastest-growing categories among all businesses.
Similarly, in the online channels that young people prefer, the performance of Robam Appliances is not good enough.
According to the report of Aowei Cloud Network, the retail sales of range hoods and gas stoves in the offline retail market increased by 6.1% and 4.5% respectively over the same period last year, and the online retail sales of online kitchen appliances increased by 5.9% over the same period last year, becoming an important channel to promote sales growth. On the other hand, the market size of the engineering channel was 2.5315 million sets, a year-on-year decrease of 32.9%.
In 2023, in the product portfolio of Robam Appliances, traditional range hoods, gas stoves and built-in steaming and baking machines can still occupy the first position in the offline market, while products such as disinfection, washing, and steaming will rank second.
Online, except for the range hood, which ranks first, other items (excluding suits) can only be ranked third.
It is also worth noting that compared with the market share in 2022, it can be found that the market share of half of the products of Robam Appliances online and offline has declined.
In particular, the competitors of kitchen appliance companies are not peers for a long time, but the original home appliance companies are doing kitchen appliances.
It can be seen that in 2022 and 2023, the performance of original kitchen appliance companies such as Martian, Zhejiang Meida, and Wanhe will be relatively poor, but the original home appliance companies such as Haier, Hisense, and Midea will have become a growth point.
According to various financial reports, Haier's global revenue from kitchen appliances in 2023 will be 41.654 billion yuan, and the annual revenue of the high-end brand Casarte will increase by more than 10%;Hisense's kitchen appliances in 2023 will increase by 66% year-on-year, and the export scale of kitchen appliances will increase by 250.5% year-on-year.
Even the old rival Fotile, according to the content announced at the dealer conference of Fotile last year, the retail target of Fotile kitchen appliances in the first half of 2023 will reach 126%, and the sales will increase by 20%, achieving double-digit growth in operation.
No matter how you look at it, Robam Appliances is lagging behind.
3. Equity incentive or penny?
In order to motivate the growth of the enterprise, Robam Appliances has also launched a manager-to-partner plan and an equity incentive plan. It's just that the fierce assessment standards of Robam Appliances are low.
According to the announcement, in order to promote the core management team to change from "managers" to "partners", Robam Appliances provides stock incentives to directors (excluding independent directors), general managers, deputy general managers, senior directors, directors and other management personnel.
Among them, the source of funds is the special fund for the stock ownership plan.
The second phase of the business partner stock ownership plan of Robam Appliances disclosed that the company will withdraw 0.5% of the corresponding net profit after deducting non-profits in 2023 as the basic incentive fund in accordance with the principle of special fund withdrawal, and transfer it to the stock holding plan fund account, and purchase the underlying shares with the stock holding plan securities account.
The incentive assessment standard of the management is to take the compound growth rate of annual revenue of 5% as the trigger value, 10% as the target value, and the annual non-net profit attributable to the parent shall not be lower than the level of 2023.
According to the profit of Robam Appliances in 2023, the partner stock incentive fund should be around 8 million.
Previously, Robam Appliances carried out business partner stock ownership plans in 2021 and 2022, but in the end, the assessment was not completed because it did not meet the condition of "not less than the non-net profit deducted by the parent in 2020". Similarly, in 2023, the incentive plan failed to be achieved because the net profit after deducting non-profits from the parent company was 1.584 billion yuan, which was lower than 1.585 billion yuan in 2020.
In fact, the requirements of 10% revenue growth and non-net profit attributable to the parent in the base year are not high, but they have encountered a decline in the market in 2020-2022, which has led to the collapse of the shareholding plan of Robam Appliances.
It can be seen that this year's partner plan of Robam Appliances has lowered the standard, reducing the revenue growth standard from 10% to 5% as the trigger value and 10% as the target value. To put it simply, under the condition that the non-net profit attributable to the parent is not less than 2023, the revenue growth of more than 5% can be incentive, and the incentive to increase the profit increment by 10% when it reaches 10%.
In addition, Robam Appliances also provided 5.75 million shares worth about 129 million yuan in a stock incentive plan.
According to the announcement, Robam Appliances provided 5.75 million shares of incentives to 341 key employees, with an exercise price of 18.92 yuan, and the assessment standard was also 5% of the trigger value and 10% of the target value. If the performance increases by more than 10%, the exercise ratio can be 100%, the performance will be exercised by 60% before 5% and 10%, and the exercise ratio below 5% will be 0.
In fact, the equity incentive plan and business partner plan of Robam Appliances are equivalent to giving money.
On the one hand, Dong Gaojian has changed from a manager to a partner, and the announcement of Robam Appliances is to optimize the salary structure, give full play to the subjective initiative, and take the initiative to assume the company's long-term growth responsibility, but in fact, there is a sentence in the plan to "promote the consistency of the interests of all shareholders and the company's core management team and revenue sharing".
You know, if you set the trigger value of your annual revenue growth target at 5%, if you don't meet this target, I'm afraid the management team should be punished instead of rewarded.
On the other hand, in fact, in the past year, the executives of Robam Appliances have also raised their salaries to varying degrees.
Deputy General Manager Zhou Haixin joined Robam Appliances from Haier in May 22, and the annual salary in 22 years has risen from 2.63 million to 3.28 million, which is the highest annual salary among all directors and senior supervisors; General Manager Ren Fujia and Major Marshal of Robam Appliances have also increased their annual salaries from 1.21 million in 22 years to 1.31 million in 23 years, and Deputy General Manager He Yadong has risen from 1.15 million to 1.61 million.
In August last year, Hangzhou Jinchuang Investment, a shareholder of Robam Appliances, planned to reduce its holdings by 260,000 shares, but it was not implemented in the end, and Hangzhou Jinchuang was a company under the name of Ren Jianhua, chairman and founder of Robam Appliances.
After the release of the financial report of Robam Appliances, the market feedback was poor, and the stock price fell nearly 7% today, closing at 22.5 yuan per share, a decrease of 5.46%, compared with the highest point of 46 yuan per share in 21 years, and the current market value is 21.4 billion yuan, evaporating by half.