Revenues Increased By 74%. This Record Is A New High Since The IPO. Smart Bathroom’s Revenue Nearly Doubled, How Did It Do It?

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According to R&T’s recently released semiannual report for 2021, the company’s first-half revenue reached $803 мільён. Its year-on-year increase hit a new high since 2016, with revenue growth of 96.36% for smart toilets and covers. As a well-known domestic manufacturer of flush components, Г&T has undergone a strategic transformation in recent years, actively laying out the intelligent sanitary field. Its results have begun to be reflected in the operating data.

Revenue growth in the first half hit a record high since the IPO

On the evening of August 16, Г&T released its semi-annual report for 2021. Са студзеня па чэрвень, Г&T achieved operating revenue of $803 мільён, наверсе 73.99% ад $462 мільён у той жа перыяд мінулага года. It continued the growth trend seen since the second half of last year and hit the highest value since its IPO in 2016. For the revenue growth, Г&T said the main reasons were: i. У першай палове 2020, orders temporarily declined due to reduced demand from customer terminals as a result of the epidemic. Другі, demand from terminals recovered in the current period, with a large increase, sufficient orders, and amplified production capacity.

Па рэгіёне, У першай палове года, Г&T’s domestic and overseas revenue accounted for 67.16% і 32.84% агульнага даходу, адпаведна. The proportion of domestic revenue increased compared with the same period of the previous year, while the proportion of overseas revenue declined slightly. It is understood that R&T products are exported to more than seventy countries and regions in South America, Азія, North America and Europe, providing product supporting services for foreign brands such as ROCA, Ані, KOHLER and American Standard, and domestic brands such as Arrow, Супраць ветру, Палёт, and Hegii.

З пункту гледжання прыбытку, Г&T achieved a net profit of RMB 59 мільён у першай палове года, павелічэнне 31.51% з года ў год. The net profit after deduction of non-mother’s share was 0.50 мільярдаў юаняў, павелічэнне 35.92% з года ў год. Its basic earnings per share were $0.14, павелічэнне 27.27%. At the end of June 2021, Г&T’s total assets were $2.135 мільярд, павелічэнне 2.17% from the end of 2020.

Smart bathroom revenue grew by 96%, nearly doubling

According to publicly available data, У першай палове года, Г&T’s revenue in the smart toilets and covers category reached $338 мільён. This is 96.36% вышэй, чым 172 million yuan in the first half of 2020, nearly doubling. Пры гэтым, the category’s revenue share of total revenue is also increasing, улік каля 42.06% У першай палове года, only slightly lower than the 45.89% of the water tank and accessories category.

У рэчаіснасці, the revenue of the R&T Smart Toilet and Cover category has continued to grow in recent years. It has increased its revenue volume from 26.28% ст 2019 каб 42.26% ст 2020. If the category maintains its current growth momentum in the second half of the year, it is expected that the proportion of revenue for the whole year will also appear to a new high.

It is understood that R & T’s subsidiaries in charge of intelligent bathroom business are mainly Xiamen a little intelligent technology Co. У першай палове года, the subsidiary’s operating income reached 194 мільёнаў юаняў. A little bit of intelligence is a wholly-owned subsidiary of R&T. It was established on June 6, 2018. It has a registered capital of 100 мільёнаў юаняў. У маі 2020, its registered capital was increased to 300 мільёнаў юаняў.

In addition to smart sanitary ware, the category in which R&T’s revenue grew by more than 90% in the first half of the year was homogeneous drainage products. The category’s operating revenue was $67 мільён. Although only 8.32% of the total revenue, the amount increased by 98.14% За той жа перыяд мінулага года.

Flushing components of the “single champion” to accelerate the strategic transformation

Flushing components have always been the main products of R&T. Аднак, the proportion of total revenue in this category has been showing a downward trend, ад 70.56% ст 2015 каб 59.40% ст 2019. У 2020 annual report, Г&T even eliminated the flush component category and added the water tank and accessories category. Аднак, the latter’s revenue share also decreased by 10.20 points from 2019 каб 53.18%. In the first half of this year, it even declined to 45.89%. Despite the continued decrease, Г&T is currently ranked No. 1 in the domestic market share of flush components and in the top three in the global market share of flush components, according to the company.

In the share of revenue of flushing components narrowed at the same time, the share of revenue of categories such as intelligent sanitary ware and same-level drainage products is increasing. Especially intelligent sanitary ware, Г & T has been giving the impression of active layout in recent years. У 2020, Г & T спыніў “Yangming Road bathroom accessories production base expansion project”, and will not use all the funds raised into the implementation of the “гадавая вытворчая магутнасць 1.2 million sets of intelligent sanitary products production base construction project”. Агульная сума інвестыцый праекта складае 391 мільёнаў юаняў, mainly for the production of intelligent toilets. This can be seen as a signal of R & T to accelerate the strategic transformation.

It is revealed that R&T entered the field of intelligent toilet research and development as early as 2009, and is a domestic listed company that entered the industry earlier. У 2020, affected by the epidemic, intelligent sanitary ware is favored by the emerging consumer groups. This also became the background for R&T to change the production base of bathroom accessories to the production base of intelligent sanitary ware. Згодна з фінансавым дакладам, У першай палове года, Г&T’s construction in progress amounted to 32.23 мільёнаў юаняў, павелічэнне 786% from the beginning of the year. It is mainly due to the increase in investment in the above production base construction project.

Г & T general manager Zhang Jianbo said in a previous media interview that the company believes that the basis for manufacturing companies to achieve transformation is still the product, and currently, Г & T has developed a series of sanitary products for the domestic consumer market. У будучыні, not only in the intelligent toilet, but the company will also extend in the field of the entire bathroom. The company continues to build its own brand of products. And in this semi-annual report, Г&T will also be intelligent bathroom products and the same layer of the drainage products side by side. The report said the two major businesses will constitute the company’s performance drivers.