Net profit increased by 124%! Meiya's hot-selling suppliers made a fortune

At present, the economic situation is cooling down and the market growth is slowing down . Against such a background , many sellers, especially in the cross-border industry, are suffering from poor order volume, and the financial reports of many listed cross-border companies have also shown negative signals.

But surprisingly, cup and pot brands such as Hals and YETI achieved counter-cyclical growth and submitted a high-scoring answer sheet .

Half-year revenue of 1.3 billion, suppliers of popular products from Meiya make huge profits

Not long ago, Hals, one of the main suppliers of YETI, a popular brand on Amazon , disclosed its latest financial report. The report showed that Hals' revenue in the first half of this year reached 1.296 billion yuan, a year-on-year increase of 20.71%; the net profit attributable to shareholders of listed companies was 127 million yuan, a year-on-year increase of 124.29%; the non-net profit was 114 million yuan, a year-on-year increase of 129.74%.

Zhejiang Hals Vacuum Vessel Co., Ltd. ( hereinafter referred to as Hals ) was first established in 1985 and is headquartered in Yongkang City, Zhejiang Province. It has been working in the cup and pot industry for more than 20 years and is one of the most influential brand operators and manufacturers in the cup and pot industry in China.

In 2011, Hals was listed on the Shenzhen Stock Exchange, becoming the first listed company in China's cup and pot industry .

After more than 30 years of continuous development , Hals' main market has gradually shifted from domestic to overseas, and its products are exported to more than 80 countries and regions , making it a veritable multinational company. Over the past few decades, Hals has been awarded honors such as China's Export Quality and Safety Demonstration Enterprise, and its total export foreign exchange earnings have ranked first in Yongkang City for five consecutive years .

It is understood that Hals mainly develops, designs, produces and sells cup and pot products made of various materials including stainless steel, titanium, glass, plastic, aluminum, etc. The company's main brands include Hals ( HAERS), SIGG, SANTECO and NONOO.

In addition, its sales modules are divided into OEM business, ODM business, and OBM business ( i.e., independent brands ) . In 2021, the proportion of its OBM business has increased year by year, and now accounts for 23.63%.

Regarding the net profit of 1.3 billion in half a year, Hals said that this year the company mainly relied on foreign trade business, and the overseas sales business maintained a steady growth trend , with new orders increasing day by day .

According to the financial report, in the first half of this year, Hals' overseas market revenue reached 1.13 billion, accounting for 87.09% of the total revenue. The overseas territory continues to expand, and the revenue increased by 23.3% compared with last year.

However, senior executives such as Hals also revealed that the order growth in the second half of this year is expected to be weaker than in the first half. The main reasons are : 1. The uncertainty of international trade shipping and the imbalance of epidemic prevention policies among countries have led to a lot of uncertainty in export business ; 2. The company's core customers are mainly concentrated in the United States. The United States will experience severe inflation in the first half of 2022. Customers are under pressure to destock, and orders will slow down in the second half of the year.

Even so, in such an environment, the company still achieved a revenue of nearly 1.3 billion, and its overseas market is still expanding, which is truly an outstanding performance.

Meiya's hot-selling products generated nearly 5 billion yuan in revenue in the first half of the year, with cups and pots accounting for the majority

YETI , an American brand specializing in outdoor products founded in 2006 , is one of the main purchasers of Hals' cup and pot products.

YRTI brand water cups have always performed very well on e-commerce platforms. They are not only sold on their own official website, but also on e-commerce platforms such as Amazon .

When searching for products such as "thermos" and "portable water bottle" on Amazon , YETI brand products appear first on the search page.

From the specific product information, we can see that various types of cups and pots of the YE TI brand are very popular. The number of reviews for most YETI water bottles is calculated in thousands, and there are many styles of products with more than 10,000 reviews. Among them, the most popular product has more than 150,000 reviews, and its rating has 91% five-star rating , which shows the market and consumers' recognition of its product quality, price, usage experience and other aspects.

In addition, many styles of YETI water bottles have become regulars on Amazon's Best Seller list, and some products are labeled "Amazon Choice".

In fact, in addition to outdoor water cups, portable thermos cups and other cups and pots, YETI's products also include coolers, luggage, wine utensils , bottle openers and other outdoor sports related products . Its market is also distributed in North America, Australia, Europe, Asia and other parts of the world, and its layout can be said to be extensive .

Its brand is popular in the global market, and its revenue data naturally performs well.

According to YETI's financial reports for the first and second quarters of this year, YETI's operating income reached US$714 million in the first half of this year (equivalent to RMB 5.09 billion at the current latest exchange rate of 7.1). Compared with the same period last year, YETI's revenue in the first and second quarters increased by 18.61% and 17.44% , respectively, with net profits attributable to the parent reaching RMB 25.66 million and RMB 46.25 million , respectively, which is a gratifying growth trend.

At the same time, although YETI's product lines are relatively broad, its main business structure shows that the revenue from cup and pot drinking utensils accounted for 56.06% of its revenue in the first half of this year, reaching more than US$ 400 million in revenue.

If divided by market, YETI's main market is still the United States. The revenue of this market reached US$ 628.2 million in the first half of this year , accounting for 88.02%. Other international markets accounted for only 11.98%. This shows that YETI's focus is still on the brand's local birthplace.

As an "evergreen" on Amazon's BS list, YETI's market management capabilities and brand influence cannot be underestimated. At the same time, it can also be seen that with the easing of the epidemic, more and more consumers are returning to outdoor life, which has led to outdoor sports products becoming high-demand products in the market.

The market value of the sub-category is 6.5 billion US dollars, and the future is promising

In the past two years, especially in 2020, due to the global lockdown caused by the epidemic and supply chain issues, the market growth of portable water bottles such as thermos bottles has almost stagnated in the past two years.

However, as the epidemic eases, consumers are able to return to outdoor places such as companies and schools, and the global outdoor market has ushered in a new round of bonus period .

Taking thermos as an example, Fortune Business Insights magazine pointed out in its article titled "Thermos Market 2021-2028" that the global thermos market size was US$4.67 billion in 2020 , and it is expected that this category will grow from US$4.75 billion in 2021 to US$6.5 billion in 2028, with a compound annual growth rate of 4.6% during this period.

In addition to thermoses, data from NPD Group also shows that in the past twelve months ending in May this year , American consumers spent $3.3 billion on portable drinking water containers, an increase of 20% from a year ago. During this data survey period, Americans purchased 315 million portable drinking water container products.

It can be seen that thermos cups and other cups and pots, as daily outdoor consumer products, have stable and continuous market demand.

However, with the upgrading of residents' consumption and the increasing importance of personalized needs, the consumer attributes and social attributes of many products have gradually expanded . Industry insiders said that nowadays, the recognition of high-quality, high-value, and intelligent cup and pot products will become higher and higher .

In addition, due to the love for drinks such as juice and coffee, the demand for cups and pots among consumers in North America will continue to grow, and this market is expected to occupy the largest share.

As outdoor life returns to pre-pandemic levels, outdoor products will also rise to their previous popularity, or even higher demand, so the future market for related categories is expected to be optimistic. However, it should be noted that safety certification for cups and pots is very important, and standards vary from country to country. Sellers should be careful not to suffer losses due to such problems.

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