Half-year revenue of 700 million! Zhejiang's big sales net profit soared

In recent years, various small household appliances with diverse functions, smart and convenient functions have become the "new favorites" of the younger generation, especially small kitchen appliances, which have occupied half of the small household appliance market. Data shows that in 2021, the retail sales of small household appliances in major global markets reached US$142.4 billion, of which small kitchen appliances accounted for 38%.

With the promising prospects of the small kitchen appliances industry, sellers in this category have also ushered in rapid development. Recently, the newly listed "first air fryer stock" - Biyi Shares announced its 2022 semi-annual report: revenue decreased slightly, but net profit saw a substantial increase.

Exports suffered setbacks, while domestic sales increased rapidly

Biyi shares is a company with heating kitchen appliances as its core business . Its main products include three categories: air fryers, air ovens, and deep fryers . Among them, air fryers account for the largest proportion of Biyi shares' main business. In 2021, Biyi shares' air fryer sales reached 5.66 million units.

Financial report data shows that in the first half of 2022, Biyi shares achieved operating income of 720 million yuan, a decrease of 5.24% compared with the same period last year. The net profit attributable to shareholders of the listed company was 75.91 million yuan, an increase of 43.46% compared with the same period last year.

Revenue fell slightly, but net profit increased significantly, which is closely related to the adjustment of Biyi's business focus. Biyi said that the change in operating income was mainly due to the decrease in export revenue.

It is reported that Biyi shares takes ODM/OEM as its main business model, and its customers are mainly internationally renowned home appliance manufacturers and brand owners, and its products are mainly sold to North America, Europe, South America, the Middle East, etc. In this case, Biyi shares' revenue level is closely related to changes in the global macro-economy.

However , in the first half of 2022, the overseas market was affected by factors such as the international situation and inflation in Europe and the United States, and the overseas consumer end was slightly weak. Biyi’s export revenue also declined accordingly, and domestic sales increased rapidly.

In the first half of 2022, Biyi’s export business achieved operating income of 570 million yuan, down 21.23% from 724 million yuan in the same period last year; while domestic sales revenue soared 332.25% compared with the same period last year to 146 million yuan.

The adjustment of business focus has reduced the sales cost of Biyi Shares by RMB 37.6 million in the first half of the year, and the profit level has increased significantly compared with the same period of last year. Although Biyi Shares' product sales are still mainly exported, with the breakthrough of domestic sales, its future revenue situation may improve.

Air fryers are growing rapidly despite the market downturn

In the first half of 2022, the development of the small kitchen appliance industry is not very optimistic .

As for the overseas market, the penetration rate of small household appliances in developed countries such as Europe and the United States is extremely high . At the same time, affected by severe inflation and the decline in consumer shopping desire, the demand for small household appliances in the overseas market was relatively weak in the first half of the year. According to data from Aowei Cloud Network , the domestic small kitchen appliance industry also showed a downward trend in the first half of the year.

In the context of the overall sluggish market, the air fryer category has bucked the trend and become the "darling" of the small kitchen appliance industry, with an impressive growth trend. Compared with traditional ovens and deep fryers, air fryers have become the choice of many young consumers due to their obvious advantages such as easy operation and easy cleaning.

According to data from Aowei Cloud Network, in the first half of 2022, the domestic retail sales of air fryers exceeded 3.5 billion yuan, with year-on-year growth rates of online and offline sales of 161% and 107.2% respectively .

As the "first stock of air fryers", Biyi shares also saw a substantial increase in sales of this type of product. In the first half of 2022, Biyi shares' air fryers achieved sales revenue of 513 million yuan, accounting for 71.57% of the main business revenue, an increase of 10.99% compared with the same period last year.

In addition, the air oven and deep fryer products achieved operating revenues of 101 million yuan and 70.65 million yuan respectively, accounting for 14.03% and 9.86% of the main business revenue, a decrease compared with the same period last year.

Under the influence of the global epidemic, health has become the first priority attribute for consumers when purchasing small kitchen appliances. The air fryer, with its oil-free and healthy concept, has been welcomed by consumers around the world and is expected to continue to maintain a steady growth trend in the future.

Biyi shares are also developing new products based on consumer demand. In the first half of 2022, Biyi shares launched the industry's first smart air fryer with weighing function. The newly developed series of visual air fryers have also been put on the market and achieved good sales. The multi-functional steam air fryer has also entered the mass production stage.

Plans to invest 700 million yuan to expand production

As the scale of Biyi shares expands, its existing capacity utilization rate has reached saturation. It is reported that the production and sales rate of Biyi shares' main products has remained above 95% in the past three years. With the increase in order volume, it is also crucial to improve the level of production equipment and increase production capacity.

In February this year , Biyi shares were successfully listed on the Shanghai Stock Exchange. In the prospectus, Biyi shares revealed that it plans to invest 718 million yuan, mainly for projects such as "construction and expansion of an annual output of 10 million small kitchen appliances", "technical transformation of an annual output of 2.5 million air fryer production lines", "R&D center construction", and "information system upgrade construction".

Among them, the construction and expansion project with an annual output of 10 million small kitchen appliances and the technical transformation project of an air fryer production line with an annual output of 2.5 million units are planned to invest a total of 473 million yuan, mainly used to expand the production capacity of heating small kitchen appliances, which will help the long-term development of Biyi’s main business .

The construction of the R&D center can further strengthen the R&D of existing products, improve product performance, and enhance the level of product intelligence. In addition to the main air fryer, Biyi shares said that it will also expand new small household appliances according to the development trend of the industry, and will focus on the future R&D direction of the company, such as multi-functional breakfast machines, multi-functional steaming and baking machines, and other new heating kitchen appliances.

In the latest announcement, Biyi shares revealed that the above projects have actually invested 99.63 million yuan. The construction of these projects is centered around Biyi shares' main business, which will help improve the competitiveness of the main business products and further increase the company's market share.

In its future development plan, Biyi Co., Ltd. stated that it will continue to vigorously develop the heating kitchen small appliance business and continuously develop new trendy products, developing potential market demand on the basis of maintaining existing customers.

In general, its future development strategy is divided into two aspects: on the one hand, by increasing R&D investment, expanding product categories, improving product quality, and enhancing competitiveness in the ODM/OEM field; on the other hand, by broadening the visibility of its own brands and enhancing brand influence through e-commerce channels.

With the growing demand in the air fryer market, Biyi shares' future development prospects are also very bright.

Big Sell

Semi-annual report