2020-09-30

The consumer electronics”grocery store” business of Yingqu Technology (002925.SZ)

By yqqlm yqqlm

Consumer Daily Net Financial News September 30, Ying Fun Technology (002925.SZ) issued an announcement stating that the company’s shareholders Directors and senior managers Mr. Yang Ming, Mr. Wang Zhanqing, Mr. Lin Xianfeng, and shareholder and senior manager Mr. Li Jinmiao intends to use centralized bidding for the total reduction from October 29, 2020 to January 15, 2021. Holding the company’s shares does not exceed 126,000 shares, that is, does not exceed 0.03%of the company’s total share capital.

On the last trading day before the holiday, the market was not active and in a state of consolidation, Yingqu Technology‘s 0.03%shareholding reduction ratio did not bring much volatility to its stock price, and finally ended the September trend with a 0.36%drop.

Consumer Electronics”Grocery Store” p>

Ying Fun Technology was formerly known as Malata Group Network, established in 2004 Control Business Unit, Ying Fun Technology was formally established in 2011, and began independent operations, and was listed on the Shenzhen Stock Exchange in 2018.

Yingqu Technology is a UDM model with independent innovation (Also known as ODM intelligent manufacturing model) as the basis, mainly to provide customers with intelligent control components, innovative consumer electronics and other product development, production, and provide smart manufacturing solutions for small and medium-sized enterprises.

Ying Fun Technology intelligent control components are available according to different physical forms Divided into stand-alone and embedded, stand-alone intelligent control components mainly include network remote control, presenter, game controller, wired/wireless 3D mouse, gaming mouse and video conference system, etc. Embedded intelligent control components mainly include coffee machine man-machine interface module, water cooling heat dissipation control system, etc.

Innovative consumer electronics products include electronic cigarette precision plastic parts, household engraving machines, household icon pattern ironing machines, smart trash cans, household food powder dispensers and other products.

Automotive electronic products are divided into body entertainment, body electronics and car networking products. Among them, body entertainment products mainly include car monitors and car central control, etc., body electronics mainly include electronics Anti-glare mirrors, sunroof control modules, seat memory modules, seat ventilation heating modules, seat unlocking control modules and steering wheel heating modules, etc. The connected car products mainly include OBD driving recorders.

Technology research and development services are mainly to provide customers with design, testing, reliability verification, sample production and other services for product development. Other products include household engraving machine consumables, UMS intelligent manufacturing solutions, etc.

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UDM model shaping customized services

Yingqu Technology

Span>’s consumer electronics products can be described as diverse and wide-ranging, which can be called a consumer electronics”grocery store”, which is mainly due to its UDM business model (also known as ODM intelligent manufacturing model). This model is a customer-oriented collaborative research and development, intelligent manufacturing, and intelligent management operating system based on the Internet of Things and intelligence, featuring the deep integration of information technology and manufacturing technology.

Based on the UDM model, Ying Fun Technology can serve as downstream customers Provide two major services:independent research and development and collaborative research and development. Independent research and development means that the company can provide customers with product design and technical implementation solutions directly based on the needs of customers or the market; collaborative research and development means that the company provides productive design solutions and full-process testing services for products formed by customers.

Through in-depth participation in the research and development of customer products and processes, the company can greatly shorten the design and manufacturing cycle of customer products, and provide downstream customers with customized Manufacturing services, customer stickiness can be enhanced and the company’s own manufacturing R&D capabilities can also be continuously improved.

Intelligent manufacturing, based on general automation equipment and self-developed automation equipment for special processes,

The company has established a full-process automated production system; at the same time, the company integrates AIO (ALL In

One) module on its self-developed automation equipment, which can automatically collect and produce And test the parameters of each link; the independently developed ITTS test system, the general production line for various products, can realize the automatic data collection and testing of the whole production line; and the company The use of multi-variety collinear chemical production

realizes flexible production; through the integration of the UMS system into each manufacturing link, the personnel, machinery and equipment, /p>

The flow of information among software systems, suppliers, and customers.

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UDM mode enables Ying Fun Technology to deeply integrate information technology and manufacturing technology, internal production organization and management efficiency High operating costs, reduced operating costs, in-depth exchanges and cooperation with customers, enhanced customer stickiness, of course, the most important thing is the convenience of Ying Fun Technology Flexible production is conducive to promoting product diversification and avoiding revenue fluctuations caused by a single product.

Lifeline e-cigarette products

Although Ying Fun Technology adopts UDM model to promote product diversification , But in fact still has not changed the fate of revenue being kidnapped by electronic cigarette products.

From 2014 to 2017, the company’s revenue increased from 641 million to 3.267 billion, with an annual growth rate of more than 50%, and net profit increased from 118 million to 984 million. The year-on-year growth rate of profit was as high as 170.33%at the highest and 39.68%at the lowest.

From the product composition of Yingqu Technology, smart Control products, technology research and development services, and automotive electronics products maintain a low growth rate. Therefore, the growth in performance from 2014 to 2017 is mainly due to the rapid growth of innovative consumer electronics products, the most important of which is the benefit of new foreign tobacco With the rapid development of the market, the company’s electronic cigarette precision plastic parts (electronic cigarette parts) have driven the company’s performance to repeatedly peak. In 2018, due to inventory clearance of downstream customers of new types of tobacco, the company’s revenue fell for the first time, with a decline of 14.95%.

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2019 engraving In the case of the sluggish tobacco business, revenues also achieved 38.71%growth. The home engraving machine is an innovative product that combines modern technology with the individual needs of users. Users can use the home engraving machine to make unique pieces of paper, business cards, greeting cards, T-shirts, accessories, etc., which are widely used in children’s education, hand-made, household, entertainment and other fields. At this stage, the United States, the United Kingdom, and Australia are the main consumer markets for home engraving machine products. The diversified application of personalized production, education, and entertainment for home engraving machines has gradually become the mainstream consumer trend for families in the United States, the United Kingdom, and Australia.

Unfortunately, the good times did not last long. In the first half of 2020, the total revenue was 1.705 billion, an increase of 4.64%year-on-year, and the net profit was 387 million, down 7.19%year-on-year. The profit was 342 million, down 9.64%year-on-year. This was mainly due to the decline in the revenue of innovative consumer electronics products. In the first half of the year, the revenue of innovative consumer electronics products was 1.0 billion, down 6.89%from the same period last year. Fortunately, the gross profit margin of this product reached 42.43%in the first half of the year, an increase from the same period last year. 1 percentage point.

In the future, can Ying Fun Technology set sail again? Tobacco precision plastic parts business is particularly important.

Tobacco is a dependent product. However, under the influence of increased tobacco control efforts, increased consumption tax and healthier consumer awareness, the traditional tobacco market has declined year by year, and new tobacco Become the main substitute for traditional tobacco. New types of tobacco include smoke-free and smoke-containing products. Among them, smoke products are represented by heat-not-burn products and atomized electronic cigarette products. Smoke-free products mainly include snus, chewing tobacco, and chemical-containing tobacco products.

Heat-not-burn tobacco products (HNB) use a special heating source to heat the shredded tobacco, and the tobacco in the shredded tobacco is heated

The gutin and aroma substances produce smoke through volatilization to meet the needs of smokers. Different from traditional cigarettes, smoking heat non-combustion type

the tobacco products of tobacco products are in a non-combustion state, so as to minimize the harmful components produced by the high-temperature combustion and pyrolysis of tobacco. HNB products are more effective than traditional cigarettes in reducing harm, and are closer to traditional cigarettes in taste than atomized electronic cigarettes, with better smoking experience and great market potential.

The international tobacco giant Philip Morris International (PMI) launched the heat-not-burn tobacco product IQOS in 2014. In April 2019, the United States approved the product to enter the US market. The United States allows the sale of heat-not-burn tobacco products in the United States. In addition, Japan, the European Union, South Korea, New Zealand and other countries allow the sale of heat-not-burn tobacco products in their own countries.

According to Southwest Securities’ forecasts, IQOS has gained sales access in 51 countries and regions worldwide. Although the overall global market share has increased year by year, However, it is still only around 2%, and there is still a lot of room for development in the future. Ying Fun Technology as a core secondary supplier of Philip Morris International may fully benefit.

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undeniable Yes, Ying Fun Technology also faces many risks. The most important risk is the dependence on major customers, the company’s top five customers Sales of Ying Fun Technology accounted for 83.24%of the total revenue, of which the sales of the largest customer accounted for 42.27 of the total revenue%, investors can’t help but worry a little bit about the seven-inch future held by major customers. In addition, more than 90%of Ying Fun Technology comes from overseas. In recent years, trade frictions have intensified and the international environment has become more complicated. This challenged the development of Ying Fun Technology.

In short, although Ying Fun Technology is like a consumer electronics”Grocery store”, but its main income still relies on the precision plastic parts of electronic cigarettes, which can be said to be the business, but also the business. At present, Ying Fun Technology has experienced bitterness and sweetness in this business. Is Fun Technology consider how to avoid the risks of business income concentration and dependence on large customers and become a real”grocery store”?