The revenue of main products has increased significantly! Export sales have reached 1.59 billion in one year

Since most domestic cross-border sellers are mainly engaged in home appliances, home furnishings, clothing, toys and other products, and the general power machinery industry has many strict regulations, people do not know much about the general power machinery industry, and export companies like Lutian are not well known to everyone. However, the sales revenue of such companies is surprising, and their development momentum is even stronger.

With sales of 1.59 billion in one year , Lutian’s main business income has increased significantly

Although General Power Machinery has a history of more than a hundred years in the world, it started late in my country. It is not easy to occupy a certain scale in the overseas market, but there are also foreign trade companies like Lutian Machinery that can sell their products into hot items.

Recently, Lutian Machinery Co., Ltd., a "big seller" in the general power industry , released its 2021 performance report. Although only preliminary data were announced, the overall figures showed a gratifying growth in terms of the data released.

Lutian Machinery Co., Ltd. was established nearly 20 years ago. At that time, it mainly engaged in general machinery products such as generators. Three years later, it successfully developed high-pressure cleaning machine products independently, which subsequently became one of the company's main products. The sales volume of high-pressure cleaning machines has increased nearly tenfold in four years, reaching more than 1.7 million units . In June 2021, Lutian Machinery was officially listed on the main board of the Shanghai Stock Exchange.

The express report shows that in 2021, Lutian Machinery's total operating income exceeded 1.593 billion yuan , a year-on-year increase of 30.06% . The net profit attributable to shareholders of the listed company was 155 million yuan , a year-on-year increase of 33.88% . The net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 142 million yuan , a year-on-year increase of 36.77%.

Judging from the express data, the main business income of Lutian Machinery maintained a sustained and stable growth, among which the growth of the main business income was more obvious .

In the express report, Lutian Machinery stated that the sales volume and revenue of high-pressure cleaning machine products showed a significant increase, the market share of products continued to increase, and the competitive advantage was prominent. Although the specific data has not yet been released, according to the data released in 2020 , Lutian Machinery's main products, household high-pressure cleaning machines, generator sets, and commercial high-pressure cleaning machines, accounted for 39.22%, 30.02%, and 12.0% of its revenue respectively.

The express report shows that the growth of Lutian Machinery's main revenue was mainly driven by the growth of high-pressure cleaning machines and oil generator sets, and its total profit increased by 31.85% over the previous year . Its " X-MAX, LUTIAN, GREENMAX" and other self-owned brands are very popular in the international market.

In terms of product sales models, Lutian Machinery mainly adopts three models: distribution, direct sales, and agency sales. According to different sales models, products are mainly supplied to domestic and foreign distributors and traders, providing them with OEM production, and constantly expanding e-commerce channels to find end-customer resources. From 2018 to 2020, the total of distribution and direct sales accounted for more than 95% of the three models of Lutian Machinery, and the revenue under the agency sales model accounted for a very small proportion.

In addition, large overseas exhibitions also provide opportunities for Lutian Machinery to gain popularity, such as the International Hardware Exhibition in the United States and the Moscow Hardware Tools Exhibition in Russia.

According to previously released financial report data, Lutian Machinery's operating income in the first half of 2021 was approximately 785 million yuan, a year-on-year increase of 43.42% . The operating income in the third quarter was approximately 365 million yuan, a year-on-year increase of 18.26%. The net profit was approximately 40.79 million yuan, a year-on-year increase of 15.07%.

General power machinery products are mainly a general term for power and its supporting terminal products. Common ones include general small diesel and gasoline engines and generator sets. In this case, it is essential to further enter the international market, increase the construction of own brands and expand sales channels.

Products are exported to Europe and Asia, and Lutian strengthens its own brand building

General power machinery products originated in Europe and the United States and developed rapidly in Japan after World War II. In developing countries such as Asia, Africa and Latin America, the incomplete national power infrastructure construction and the development of mechanization have also increased the local demand for power machinery products, making it a key development market for Lutian Machinery.

Lutian Machinery mainly sells its products overseas, mainly in Europe and Asia. According to the report data in recent years, the two regions account for about 50% of the main business income . In comparison, Lutian Machinery has relatively stable market sales in Asia and South America, and is also actively exploring markets in Oceania, Africa and other places, with sales increasing year by year.

However, with the continuous development of high-pressure cleaning technology, the speed of product replacement is also accelerating. This application field has begun to penetrate into all walks of life and is suitable for civil and commercial scenarios. In the future, products will develop in the direction of diversification, specialization and intelligence. Under the fierce market competition, the company's innovation ability is also facing higher requirements.

While developing OEM business, Lutian Machinery is also actively strengthening the construction of its own brand . After several years of development, its own brand has also gained wide recognition and influence at home and abroad.

Among them, the representative brand "Lutian" is the independent brand that Lutian Machinery has been operating since its inception. It has been recognized as a well-known trademark in China, "Lutian" has been awarded as a well-known trade name in Zhejiang Province, and its product "Lutian generator" has also been rated as a famous brand product in Zhejiang. The "GREENMAX" brand has a high cost-effectiveness advantage and also has strong sales and payment collection capabilities.

Judging from the products, the popularity and output of Lutian Machinery's high-pressure cleaning machines in the industry are also increasing. The company continues to upgrade the technology of its production lines and increase investment in transformation to improve production capacity while ensuring safe production.

Lutian Machinery is also making continuous progress in product research and development and innovation. In 2013, its "Portable Environmentally Friendly Generator" passed the Zhejiang Province Key Technology Innovation Project, and its "Energy-Saving and Emission-Reducing Vortex Single-Cylinder Air-Cooled Diesel Engine" obtained the National Torch Program Project Certificate in 2015 .

The overseas sales environment of Lutian Machinery is favorable. The company's business is mainly concentrated in Denmark, Russia, Brazil and other countries, where there are no unfavorable factors such as anti-dumping investigations against the company, and the external conditions for production and operation are relatively stable.

In addition, Lutian Machinery is also constantly strengthening its marketing capabilities. The company has established cooperative relationships with well-known brands in the industry, continuously improving its brand awareness, and its customer network covers hundreds of countries and regions including Europe, North America, South America, and Africa.

However, with the rapid development of power machinery itself, the demand for high-end talents in production, R&D, sales and other aspects has increased significantly. Lutian Machinery is also facing the problem that its human resources cannot fully adapt to the company's development speed.

Some categories are relatively unpopular in China, but may have a huge market abroad. Sellers should also focus on broadening their horizons, selecting products in a targeted manner based on market demand, and at the same time pay more attention to the construction of their own brands.

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