Fuerjia's annual report and quarterly report have finally come out, and the data is generally in line with expectations. Among them, some of the data is even more eye-catching, exceeding my expectations.
In 2023, the revenue will be 1.933 billion yuan, a year-on-year increase of 9.29%, the net profit deducted from the non-attributable parent will be 728 million yuan, a year-on-year decrease of 5.06%, and the operating cash flow will be 825 million yuan, a year-on-year decrease of 8.1%. After reading this data, at first glance, I believe you will definitely ask: why did profits and cash flow decline slightly when revenue was obviously growing and hit a record high? Next, let's take a look at them one by one according to revenue, channels, profits, expenses, sales volume, etc., to find the answer.
1. On the income side, it has been growing positively for four consecutive years, hitting a record high of 1.9 billion yuan, and performing very well. In addition, in the first quarter of 2024, its revenue also increased by 9.65% year-on-year, and if nothing else, its revenue is expected to cross the 2 billion mark in 2024.
From the perspective of income structure, it is actually a slight surprise, because cosmetics products are growing rapidly.
In 2023, the sales revenue of its device products will be 850 million, a year-on-year decrease of 1.79%, accounting for 43.98% of revenue, and the revenue of cosmetics products will be 1.083 billion, a year-on-year increase of 19.92%, accounting for 56.02% of revenue.
From the perspective of revenue structure, device products remained stable, mainly the old explosive business, white film and black film. Cosmetics products are the main growth driver, and the second growth curve is good.
2. The online direct sales channel exceeded expectations. In 2023, the online direct sales channel will be 790 million, with a year-on-year growth rate of 33.89%, accounting for an increase of 7.5 percentage points in one year, which is a bright spot, which is very beneficial to the long-term operation of enterprises, which is equivalent to a great improvement in the ability of enterprises to dialogue with consumers. The proportion of corresponding offline distribution is declining, from 59.38% to 52.23%.
3. The profit side is slightly affected. This should be the most important concern for golfers who care about Shierga. The main reason for the impact on the profit side is that the official statement in the annual report is that the growth of online sales has led to an increase in related sales expenses, as well as the depreciation and amortization of capacity expansion.
Careful analysis of the cost side, in 2023, the sales expenses of Fuerjia will be 532 million yuan, accounting for 27.52% of the revenue, an increase of 36.44% year-on-year, which is significantly faster than the overall revenue growth rate, but it just matches the growth rate of online channel revenue!
Then part of the expenditure, it can be understood that the company has increased expenditure in order to gain a competitive advantage in the future, which is a short-term behavior, and it is likely to be reversed in the next few quarters. Looking carefully at the expenditure structure, Fuerjia has expanded the sales expenses of online channels, which is a layout, and the future economic recovery will be able to take more opportunities.
In addition, the management expenses in 2023 will be 90.2224 million, accounting for 4.65% of revenue, an increase of 89.74% year-on-year, and the increase in management expenses is mainly due to the increase in depreciation of housing equipment, new property fees and office furniture. It can be seen that the personnel side is also expanding.
R&D expenses are also increasing. In 2023, it will begin to increase investment in R&D, and R&D expenses will increase rapidly, with R&D expenses of 32.8388 million yuan, accounting for 1.69% of revenue, an increase of 112.88% year-on-year.
In terms of investment, the growth in the next two quarters and the growth of the whole year can basically be expected.
4. The profit margin is very stable, and it has maintained a consistent and steady style. The gross profit margin of these two categories of products remained basically stable, with the gross profit margin of medical device products being 84.74% and the gross profit margin of cosmetics being 80.26%.
5. The core of the cosmetics industry is still to look at the products, several large single products are performing well, and there are constantly new products in research and development. In 2023, Fuerjia has 5 single products with annual sales of more than 100 million, namely Medical Sodium Hyaluronate Repair Patch (White Film), Fuerjia Acne Cleansing Repair Patch, Medical Sodium Hyaluronate Repair Patch (Black Film), Fuerjia Centella Asiatica Soothing Repair Patch and Fuerjia Niacinamide Whitening and Spot Repair Mask. In addition, it has newly filed 15 cosmetic products, including 13 ordinary cosmetics and 2 special cosmetics.
6. Sales, production and sales, and inventory are very benign. In terms of sales volume, in 2023, the total sales volume will be 190.64 million standard sticks/stickers, a year-on-year increase of 13.23%, and the total output will be 178.29 million standard stickers/stickers, a year-on-year decrease of -1.07%. In 2023, Fuerjia will produce 78,025,200 pieces/patch of device products and 100,274,000 pieces/patch of cosmetic products. Overall, inventories are decreasing, and production and sales are currently in a healthy state.
In summary, the financial report of Fuerjia this time, those who will look at it, should be able to increase the confidence of growth. At present, the company is playing a "three-board axe": new product opening, R&D support, and channel investment.
Online direct sales channels are a strategic competitive area for the cosmetics industry, and it is necessary to continue to increase investment in this direction, especially in the period of economic downturn, and to consolidate the position and prevent missing the competitive opportunity when consumption recovers.
Although this move will have a slight impact on profit growth in the short term, from the perspective of long-term competition, effective self-owned channels can share greater dividends in the skin care industry.
After the listing of this ticket, it fell more, and it has basically stabilized recently, and the previous mistake has formed a gold pit, and it is very rare to have such a gold track and pit position in the consumer goods track. We can't afford to miss this opportunity again.