Net profit exceeded 100 million yuan, another big seller on Amazon and independent sites!

As the domestic e-commerce market becomes increasingly saturated and cross-border e-commerce develops rapidly, domestic big sellers have not chosen to lie low, but are scrambling to enter this market. JD.com, which we are familiar with, is expanding its presence on Amazon and overseas shopping malls, while TikTok and Nanjiren are also building their own e-commerce platforms. InHand, a big seller of routers, is no exception and is increasing its presence in the cross-border e-commerce market.

With an estimated net profit of over 100 million yuan, InHand is making great efforts to expand into Amazon and independent websites

Recently, Beijing InHand Network Technology Co., Ltd. (hereinafter referred to as "InHand"), a hot-selling router company, released its 2021 performance forecast. Financial data shows that InHand's net profit attributable to the parent company's owners is expected to be between 95.8 million yuan and 105 million yuan in 2021 , an increase of 55.38 million yuan to 64.58 million yuan compared with the same period last year (statutory disclosure data), a year-on-year increase of 137.02% to 159.78%.

Founded in Beijing in 2001, InHand Technology is a company whose main business is the research and development and application of industrial Internet of Things technology. Its main products include industrial Internet of Things communication products such as industrial wireless routers, wireless data terminals, edge computing gateways, vehicle gateways, industrial Ethernet switches , as well as innovative Internet of Things solutions such as smart distribution network status monitoring system products, smart vending control system products, and smart Internet of Vehicles system products. Its products are currently sold to developed industrial countries such as China, the United States and Germany through a combination of direct sales, distribution and e-commerce.

Like many domestic big sellers, InHand is also increasing its layout in overseas markets. It has set up companies in the United States, Canada, Germany and other places. In order to improve the company's competitiveness, InHand has established a digital marketing department and is vigorously deploying Amazon and independent websites to cope with the purchasing power of scattered customers. In the future, InHand will increase investment in digital marketing and publicity, and will strengthen promotion through mobile Internet media to achieve the goal of attracting traffic to online sales channels.

According to the performance data of Yinghantong in the first half of 2021, the company's operating income was 198 million yuan, and the net profit attributable to shareholders of listed companies was 33.6874 million yuan. Among them, the industrial Internet of Things communication products achieved operating income of 101 million yuan ; the smart distribution network status monitoring system products achieved operating income of 40.9308 million yuan; the smart vending control system products achieved operating income of 26.1278 million yuan, a year-on-year increase of 231.60% , the largest growth rate.

In terms of operating income from 2018 to 2020, it was RMB 276 million, RMB 296 million and RMB 311 million respectively, and its net profit was RMB 46.55 million, RMB 51.77 million and RMB 40.42 million respectively. The overall operating level and net profit of Yinghantong are relatively stable, among which the company's gross profit margin is relatively stable, maintaining above 45%. Even under the influence of the global epidemic, Yinghantong has not lost its footing. While accurately grasping the global direction, it continues to expand the market and drive the steady improvement of the company's profitability.

In terms of revenue structure, industrial IoT communication products and intelligent distribution network line status monitoring system ( IWOS) contributed the largest operating income to InHand. Among them, industrial IoT communication products accounted for the largest proportion of revenue, accounting for 47.90% in 2020, followed by IWOS, accounting for 25%.

The company's success is inseparable from its increased investment in R&D of key core technologies and new products and technologies. It is understood that Yinghantong focuses on core areas and has developed a number of new products to meet the needs of customers at different levels in order to overcome technical pain points.

R&D accounts for 10.50% of the company's total , and InHand seeks steady progress

Compared with the R&D investment of a number of cross-border e-commerce giants, Yinghantong is not inferior. In the first half of 2021 alone , Yinghantong's R&D investment reached 20.7785 million yuan, accounting for 10.50% of its operating income. In addition, the company's R&D headcount has also been steadily increasing, and has remained at around 40% in recent years .

Not only that, Yinghantong's period expenses have generally shown a downward trend in recent years. The period expense rate in the first three quarters of 2021 alone reached 24.56%. Among them, the R&D expense rate fluctuated relatively little, but sales expenses and administrative expenses both declined.

The success of Yinghantong is also inseparable from the following points ↓

Deeply explore industry needs and actively deploy market segments. InHand first focuses its business on key areas such as smart power and smart manufacturing. It also deeply explores new industry needs and launches products that meet new industry needs. The smart distribution network online status monitoring system product (IWOS) supporting Beidou positioning has been applied in Xiong'an, and the low-latency, high-speed InBOX720 5G product equipped with 5G network has been released.

Expand and enrich product lines and comprehensively layout high, medium and low-end product markets. In response to market changes, the company actively promotes product line research and development, and has also launched a series of industrial Internet of Things communication products, including industrial-grade LTE routers, edge computing gateways, data transmission terminals and other product models to meet the application needs of different customers, while stepping up comprehensive layout of high, medium and low-end markets.

In line with the development of the times, the company comprehensively promotes digital marketing strategies. With the help of digital marketing methods, the company has opened up online and offline sales channels to form a dual-wheel drive. With the opening of JD.com, Tmall, and Amazon, the company has increased investment in digital marketing and publicity and improved the digital marketing process system.

The overseas market expansion has achieved remarkable results, and the contribution rate of operating income has increased. During the reporting period, the company continued to expand overseas markets, mainly in developed industrial countries, and many of the company's products have obtained certification for overseas markets. When the overseas epidemic spread seriously, the company's sales performance in overseas markets remained gratifying, achieving steady and rapid growth.

Judging from the current situation, the future development of InHand is highly anticipated. The United States, the European Union, Japan and other countries have issued relevant bills, making the Internet of Things an important strategic goal of current development, which coincides with InHand's concept of going international and expanding the international market.

According to a survey report by market research company Marketsand Markets, the application potential of the Industrial Internet is huge. In 2018, the global Industrial Internet of Things market size was approximately US$64 billion, and is expected to exceed US$90 billion in 2023, with a five-year compound annual growth rate (CAGR) of 7.39 % from 2018 to 2023.

Many industry insiders compare InHand to the "eyes" of the new power system and the leader of intelligent distribution network, which is enough to show InHand's own advantages and charm. Judging from the support of various countries for the industrial Internet of Things and other fields, this track has great potential.

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