Xiaosong shares' net profit attributable to shareholders in the first half of the year grew 675%, wi

On the evening of August 30, Xiaosong shares released its mid-year report for 2023. Benefiting from the continuous expansion of domestic and international markets and multi-channel business layout, the company saw an increase in sales of health appliances and vaping products in the first half of the year, as well as a significant increase in sales of rechargeable fan series products driven by the ongoing high temperatures. The company's revenue for the first half of the year was 872 million yuan, a year-on-year increase of 32.15%; net profit attributable to shareholders was 30.2089 million yuan, a substantial increase of 674.72% year-on-year.

In the first half of this year, Xiaosong shares continued to focus on enhancing the comprehensive strength of its dual main businesses of "small appliances + engineering construction," actively strengthening the channel and product capabilities of small appliances, and high-quality expansion and implementation of quality engineering projects. Meanwhile, in line with its strategic development direction, Xiaosong shares accelerated the development of its new vaping business and gradually improved the layout and integration of its industrial chain, forming new performance growth points.

Rapid Growth of Small Appliance Business

Since its establishment, Xiaosong shares has focused on the research and production of small appliance products, which mainly include lighting fixtures, fans, air purifiers, and various health-related small appliances, forming a full industrial chain manufacturing capability characterized by "full coverage, flexibility, and quick response," giving it a certain scale advantage in the industry. The company's business currently covers over 120 countries and regions globally, with a high level of recognition and market position in both domestic and international markets.

In the first half of the year, Xiaosong shares' small appliance business achieved revenue of 438 million yuan, a year-on-year increase of 25.57%, and the gross profit margin level also improved significantly, increasing by 8.09 percentage points compared to the same period last year.

Since the second quarter of 2023, there has been a noticeable recovery in appliance exports, especially under the influence of high temperatures in many parts of the world, leading to a surge in exports of summer cooling appliances such as fans and air conditioners, continuously driving the recovery of the appliance export market.

Xiaosong shares' fan products include rechargeable dual-use fans, air conditioning fans, handheld fans, etc., mainly used in outdoor travel, camping leisure, indoor home, and office environments. In the first half of this year, due to the high summer temperatures caused by the El Niño climate phenomenon, the company's fan product revenue increased by 49.70% compared to the same period last year, driving a 30.22% year-on-year increase in the company's overseas small appliance business revenue.

In terms of health small appliances, the company has successively launched air purifiers, desktop air conditioning fans, dehumidifiers, personal care beauty appliances, and pet appliances to meet the public's pursuit of a better living environment. In the first half of the year, the sales revenue of the company's health appliance products increased by 22.69% compared to the same period last year.

Vaping Business Forms New Performance Growth Point

Based on market demand and its own strategy, the company has fully leveraged its business advantages to strategically layout its vaping business, forming a trend of endogenous layout and external mergers and acquisitions. In the first half of the year, the vaping business began to contribute revenue, bringing new performance growth points to the company.

In terms of endogenous layout, the company has obtained the "Tobacco Monopoly Production Enterprise License" issued by the National Tobacco Monopoly Administration (for electronic cigarette processing enterprises), establishing a solid qualification foundation for the company to conduct business in the domestic vaping field.

In terms of external mergers and acquisitions, Xiaosong shares has conducted industrial chain layout in the upstream and downstream segments of the vaping industry. Public information shows that after investing in the domestic vaping brand Bode Technology and the nicotine production enterprise Ganghua Bio, the company continued to extend its vaping industry chain in the first half of this year, including investing in the vaping atomization production enterprise Zhenghe Bio through an industrial fund.

Currently, Xiaosong shares has achieved complete coverage of the vaping industry chain, including nicotine for vaping, atomization materials, heating wires for vaping, production/processing, and brand ownership, constructing a complete vaping industry chain layout matrix, solidifying the core competitiveness of the company's vaping business.

As consumers' acceptance of vaping products continues to increase, the global vaping market is showing a strong growth trend, prompting vaping manufacturers to accelerate innovation and product development processes. Leveraging its complete supply chain advantages, Xiaosong shares is expected to seize the important opportunity of vaping brands going global, creating a new profit growth point.