Share This

Public company info - Chigo Holding Ltd. , 00449.HK

Input the stock code or the company name     Search  
 
 Profile   Information   Data   Financial Ratios   Profit Loss   Cash Flow   Balance   Earnings   Dividend 

Chigo Holding Ltd., 00449.HK - Company Profile
Chairman Li Xinghao
Share Issued (share) 8,434,000,000
Par Currency Hong Kong Dollar
Par Value 0.01
Industry Household Appliances
Corporate Profile Business Summary: The principal activities of the Company and its subsidiaries (the “Group”) are the design, development, manufacture and sale of air-conditioning products. Performance for the year: During the year ended 31 December 2018, the Group’s total revenue was approximately RMB9,169.5 million (2017: RMB10,736.5 million), representing a decrease of RMB1,567.0 million, or 14.6% as compared to the corresponding period in 2017. The Group recorded a gross profit of RMB1,178.9 million for the year ended 31 December 2018 (2017: RMB1,716.3 million), which represented a decrease of RMB537.4 million or 31.3%. The Group’s gross margin deteriorated from 16.0% in 2017 to 12.9% for the year ended 31 December 2018. Business Review: In the first half of 2018, China’s air-conditioning products became more and more popular in the third and fourth-tier markets, and the market saw a continued increase in demand. In China, consumers’ demands and choices for air-conditioning products were also more refined than before. Air-conditioning manufacturers took advantage of this opportunity to develop new consumer networks and end-user markets. Through adopting relevant promotional activities and brand publicity means, such products maintained growth in the domestic market, and recorded a year-on-year sales growth compared to last year. However, the air-conditioning product market witnessed a growth slowdown due to two important factors, namely, the lack of widespread hot weather and the underperformance of China’s real estate market due to purchase restrictions. The air-conditioning products market witnessed a favourable operating environment at the beginning of 2018. However, after entering the second half, this environment reversed. Due to the continuous control over the real estate market by the Chinese government and the uncertain impact of trade friction between China and the United States, consumers and customers were not optimistic about the market. Consumption intentions and order-placing plans suddenly became cautious and conservative, resulting in a decline in the market performance. Due to the worsening market climate, competition in the air-conditioning industry became increasingly fierce, which generated a pressure on the price of air-conditioning products, resulting in a slight year-on-year decline in annual sales. In view of the dramatic changes in the business environment in 2018, the domestic sales team of the Group adopted flexible business strategies and continued to adhere to promoting “monthly promotions and weekly discounts” activities, so as to reduce inventories and stimulate sales. The Group also strived to open up new consumer networks and end-user markets, while starting new retail markets at the same time. During the reporting period, in order to promote sales, the Group has implemented a pilot online wholesale strategy in some parts of the country. As to export of air-conditioning products, according to market data, the Chinese overall market registered a year-on-year growth both in export volume and export sales in 2018. For the year ended 31 December 2018, the continuous increase in labour costs, raw material costs and logistics costs has caused the Group to increase its export price of air-conditioning products. This has prevented the growth of sales to some extent. In addition, air-conditioning products relied heavily on raw materials. The rising prices of raw materials in China has also increased business risks and pressure. Furthermore, changes in the structure of air-conditioning products, low-price competition among enterprises and other factors have also led to a decline in the average export price. The rising costs and falling export prices have further narrowed air-conditioning export enterprises’ profit margins. Since the beginning of 2018, the fluctuation of RMB exchange rate has brought more challenges to export enterprises. In the short run, the depreciation of RMB (the decline in exchange rate) will bring certain price advantages to the export of household air-conditioning products. In the short run, it can enlarge the profit margin in the export of household air-conditioning products, enhance the international competitiveness of such products, and thus to a certain extent, expand the export volume which may, in turn, increase export orders. However, in the long run, the continued depreciation of RMB will increase the bargaining pressure of export enterprises, which is not conducive to the long-term planning of enterprises, and will cause the cost of overseas importers to rise. In addition, the uncertainty of the areas to which air-conditioning products were exported during the reporting period, such as political changes in the Middle-East, also hindered the development of the local market, resulting in a year-on-year decline in the volume of air-conditioning products exported to the region. The main business strategies adopted by the Group in export include (1) giving priority to profits and taking into account the scale of sales; quickly adjusting its price strategy and appropriately reducing orders which will bring loss, especially through strengthening the control over the number of orders from low-price regions; (2) strengthening the products, and maintaining investment. The Group saw a significantly-increased sales share of its new series products. According to the different consumption habits and energy efficiency requirements of the markets of different countries, the Group continuously increased investments in research and development of inverter technology, speeded up research and development of environmentally-friendly refrigerant products, and developed more suitable products for different markets; (3) optimizing the layout to ensure the completion of the key tasks. The Group, in a timely manner, made adjustments to its marketing strategy and market layout to maintain its sales in Latin American and North American markets; (4) enhancing brand image and promoting development. The Group developed more diversified independent brand products to enhance brand influence, which had driven the rise of the gross profit and the increase in OEM brand sales; and (5) strengthening internal capability and enhancing management. The Group has always regarded quality as the lifeline of enterprises, and its goal is to create world-class quality. In recent years, through the help of production system and the improvement of product quality system, the quality of the Group’s product has improved comprehensively. Throughout the year 2018, the Group’s commercial air-conditioning sector continued to maintain good performance. The Group recorded a decent growth in all aspects, i.e. sales volume, amount of sales, average unit price of products, and product profits in respect of this sector, which has made a good contribution to the Group’s performance for the year ended 31 December 2018. Prospects: In view of the volatility of the market in 2019 and the continued impact of the trade war, the domestic sales team of the Group has slightly lowered the marketing growth goal in 2019, and plans to increase sales by improving product structure and lowering cost, in order to increase average price and gain greater gross margins. The market economy in 2019 is still uncertain. In order to respond to this situation, the Group has implemented internal reforms, such as establishing six profit centres and business departments for the purpose of breaking bad habits in product R&D and internal management and optimizing its operation strategy and costs, in order to boost the confidence of the teams and customers in the development of the Group and to prove itself through performance. As to overseas markets, the Group expects that local trade risks still exist. The adjustment of the tariff policy resulting from Sino-US trade war has a certain negative impact on China’s air-conditioning manufacturers. However, China is the global manufacturing centre of the air-conditioning industry. It is expected that China’s air-conditioning industry will not be shakened by these trade frictions in this market position. Chinese brands have comprehensive advantages in technology, products, market, pipeline and manufacturing. The development of Sino-US trade frictions has also brought great uncertainty to the fluctuation of exchange rate. Since the beginning of 2019, the RMB has been appreciating, which will increase the pressure on air-conditioning export enterprises. In order to respond to all the above situations, the Group will increase R&D investment overseas. Also, the Group will focus on standardized, smart and customized air-conditioning products in the future under the technology development trend, which will be increasingly energy-saving and environmentallyfriendly. In addition, under the changing macro-demand, the Group will upgrade from its traditional output capacity, foreign exchange earnings, and OEM model to one focusing on self-brand promotion, technological innovation, local adaptation and so on. As at 31 December 2018, the Group had no plans for material investments or acquisitions of capital assets, but will closely monitor market trends and explore potential business collaboration opportunities with various domestic and international well-known enterprises.

Information from the financial statements of listed companies

Mobile | Full
Forum rule | About Us | Contact Info | Terms & Conditions | Privacy Statment | Disclaimer | Site Map
Copyright (C) 2024Suntek Computer Systems Limited. All rights reserved
Disclaimer : In the preparation of this website, 88iv endeavours to offer the most current, correct and clearly expressed information to the public. Nevertheless, inadvertent errors in information and in software may occur. In particular but without limiting anything here, 88iv disclaims any responsibility and accepts no liability (whether in tort, contract or otherwise) for any direct or indirect loss or damage arising from any inaccuracies, omissions or typographical errors that may be contained in this website. 88iv also does not warrant the accuracy, completeness, timeliness or fitness for purpose of the information contained in this website.