| Stock code: 002508 | Abbreviation of securities: Robam | Announcement No.:2019-032 |
Hangzhou Robam Appliances Co., Ltd. 2019 Semiannual
Report Summary
I. Important NotesThis summary is extracted from the full semiannual report. In order to fully understand the Company’s operating results,financial status and future development plan, investors should read the full semiannual report carefully disclosed on themedia designated by China Securities Regulatory Commission (CSRC).Statement of objections by directors, supervisors and senior management?Applicable √ Not applicableNotes of non-standard audit opinion?Applicable √ Not applicableThe plan for the common stock profit distribution or the plan for converting reserved funds into share capital during thereporting period was reviewed by the board meeting
□ Applicable √ Not applicable
The company plans not to distribute cash dividends, not to send bonus stocks, not to convert reserved funds into sharecapital.The plan for the distribution of preferred stock profits during the reporting period is adopted by the board of directorsthrough resolution
□ Applicable √ Not applicable
II. Basic status of company
1. Company profile
| Stock abbreviation | Robam | Stock code | 002508 | |
| Stock exchange for stock listing | Shenzhen Stock Exchange | |||
| Contact person and contact information | Secretary to the board of directors | Securities affairs representative | ||
| Name | Wang Gang | |||
| Office address | No. 592 Linping Av., Yuhang Economic Development Zone, Hangzhou, China | |||
| Tel | 0571-86187810 | |||
| wg@robam.com | ||||
2. Major Accounting Data and Financial Indicators
Whether the Company needs to retroactively adjust or restate the accounting data of the previous years
□Yes √No
| Reporting period | Amount for corresponding period last year | Increase / decrease this year compared to the previous year | |
| Operating income (yuan) | 3,527,413,882.96 | 3,496,662,565.47 | 0.88% |
| Net profits attributable to shareholders of listed companies | 670,403,994.20 | 660,339,506.06 | 1.52% |
| (yuan) | |||
| Net profits attributable to shareholders of the listed company after deduction of non-recurring profits and losses (yuan) | 622,539,579.01 | 596,465,164.81 | 4.37% |
| Net cash flow from operating activities (yuan) | 658,691,084.58 | 1,121,788,027.98 | -41.28% |
| Basic EPS (yuan/share) | 0.71 | 0.70 | 1.43% |
| Diluted EPS (yuan/share) | 0.71 | 0.70 | 1.43% |
| Weighted average return on net assets | 10.51% | 12.07% | -1.56% |
| End of the reporting period | End of previous year | Increase / decrease at the end of this reporting period compared to the end of the previous year | |
| Total assets (yuan) | 9,451,869,196.46 | 9,455,361,508.83 | -0.04% |
| Net assets attributable to shareholders of listed companies (yuan) | 5,960,135,662.02 | 6,045,384,387.57 | -1.41% |
3. Number and shareholding of the company's shareholders
Unit: share
| Total number of common shareholders at the end of the reporting period | 67,606 | Total number of preferred shareholders with voting rights restored at the end of the reporting period (if any) | 0 | ||||||
| Shareholdings of the top 10 shareholders | |||||||||
| Shareholder's name | Shareholder nature | Shareholding ratio | Number of shares held | Number of shares held with limited sales conditions | Pledge or freeze | ||||
| Status of shares | Quantity | ||||||||
| Hangzhou Robam Industrial Group Co., Ltd. | Domestic non-state legal person | 49.68% | 471,510,000 | ||||||
| Hong Kong Securities Clearing Co. Ltd. | Overseas legal person | 9.00% | 85,408,035 | ||||||
| Shen Guoying | Domestic natural person | 1.29% | 12,240,000 | ||||||
| China Merchants Bank Co. Ltd.－Everbright PGIM Advantageous Hybrid Securities Investment Fund | Other | 1.16% | 10,980,236 | ||||||
| China Construction Bank Co., Ltd.－Anxin Value Selected Stock Securities Investment Fund | Other | 1.01% | 9,579,475 | ||||||
| Hangzhou Jinchuang Investment Co., Ltd. | Domestic non-state legal person | 1.00% | 9,451,985 | ||||||
| Shenzhen Guoshi Capital Management Co., Ltd. - Guoshi Capital - Robam Agent Holding Stage 2 Structured Private Equity Fund | Other | 0.88% | 8,311,165 | ||||||
| SSF - Six Combinations | Other | 0.77% | 7,306,072 | ||||||
| Hangzhou Yinchuang Investment Co., Ltd. | Domestic non-state legal person | 0.74% | 7,020,000 | |||
| GIC | Overseas legal person | 0.68% | 6,449,837 | |||
| Description of the above-mentioned shareholder association or concerted action | The actual controller of the Company’s controlling shareholder Hangzhou Robam Industrial Group Co., Ltd. and the shareholder Hangzhou Jinchuang Investment Co., Ltd. is Mr. Ren Jianhua, and the natural person shareholder Shen Guo Ying is the wife of Ren Jianhua. The above shareholders have the possibility of acting in unison. | |||||
4. Changes in controlling shareholder or actual controller
Change of controlling shareholders during the reporting period
□ Applicable √ Not applicable
No change in controlling shareholders during the reporting period.Changes in actual controller during the reporting period
□ Applicable √ Not applicable
No change in actual controller during the reporting period.
5. Total number of preferred shareholders and the top 10 preferred shareholders’
shareholdings of the Company
□ Applicable √ Not applicable
During the reporting period, the Company did not have preferred shareholders holding shares.
6. Corporate Bond
Whether the Company has bonds publicly issued and listed on the stock exchange that have not expired or expired butnot paid in full on the date of approval of the semiannual reportNoIII. Discussion and Analysis of Operation
1. Overview of Business Operation during the Reporting PeriodDoes the Company need to follow the disclosure requirements of special industriesNoIn the first half of 2019, the international political and geopolitical situation was complicated, the domesticreal estate industry was affected by the increasingly strict regulatory policy of "one policy for one city",and the kitchen appliance industry as a whole continued depression. According to the retail monitoringreport published by The Yee, the sales amount of range hoods, gas stoves and disinfection cabinets, asthe main kitchen appliances, was increased by -5.86%, -4.09% and -17.72% respectively.In the face of the sluggish market, the company, as the leading enterprise in the kitchen applianceindustry, established the working policy of "practicing internal skills to keep out the winter and seekingimprovement in stability to promote growth" for 2019 at the end of last year, and strove to ensure thecompany's stable performance and steady increase of market share. During the reporting period, thecompany achieved the operating income of 3,527,413,882.96 yuan, an increase of 0.88%, and realizedthe net profits attributable to shareholders of listed companies of 670,403,994.20 yuan, an increase of
1.52%.
According to the retail monitoring report published by The Yee, the market share and market position ofthe retail sales of company's major product categories as of the end of June 2019 are shown in thefollowing table:
| Range hood | Gas stoves | Built-in microwave oven | Built-in disinfection cabinet | Built-in steam oven | Built-in steam oven- oven | Built-in oven | Built-in dishwasher | |
| Retail sales share | 25.54% | 23.13% | 34.95% | 26.58% | 31.67% | 17.39% | 25.92% | 8.00% |
| Market position | 1 | 1 | 1 | 2 | 2 | 2 | 3 | 3 |
In the first half of 2019, the marketing sector practiced innovation for customer requirements centered onthe customer, and made concerted efforts with multiple channels to ensure the company's performancegrowth in the face of the overall industry downturn. In terms of retail, the company, in the face of overallKA channel downturn, continued to optimize the franchised store system, strengthened the integration ofmultiple channels, realized the coordinated online and offline development and adhered to providecustomers with quality services and actively explore the primary and secondary stock market. In terms ofreal estate channels, benefiting from the national real estate refined decoration policy, the companycontinued to deepen the cooperation with the real estate developers such as Evergrande, Vanke,Country Garden and Sunac with differentiated products and high-quality brand services and continued toboost the development of strategic real estate channel customers through the central purifier system.The real estate channel sales increased 80% year-on-year. According to the monthly real estate refineddecoration monitoring data published by AVC, the market share of ROBAM range hood was 37.8%,firmly ranking first in the industry. In terms of innovation, the company actively explored the new retailmode, developed the innovative channels and regional outlets and stimulated the vitality of the homedecoration market through in-depth cooperation with the cabinet companies such as OPPEIN andSCHMIDT and the family decorating companies such as ikongjian, Gold Mantis and Dongyirisheng. Interms of overseas development, the company made its first appearance at the 2019 Decorex SAexhibition in South Africa, made positive progress in the development of overseas markets in AsiaPacific, Australia and New Zealand, and steadily promoted brand globalization.In the first half of 2019, the technology sector was committed to building an innovation-oriented R&Dmechanism, creating an open innovation platform, building an efficient organization and creating afirst-class technical team in the industry, and made remarkable achievements in new category expansion,patent development and national standard establishment. In the first half of the year, the companyapplied for 274 patents, including 64 invention patents and obtained 237 patents licenses, including 8invention patents. The range hood 27X6 and steam oven-oven C906 won the "German Red Dot Award"and "American IDEA Award", while the range hood 700X, gas stove 666B, steam ovens S228 and SZ01won the “American IDEA Award”. Meanwhile, the company led the establishment of industry standardssuch as Environment Friendly Range Hoods, Steam Oven-Oven, Minimum Allowable Values of Energy
Efficiency and Energy Efficiency Grades for Electric Ovens, Zhejiang Manufacturing Standard forDishwashers and Electric Steam Ovens, in which, the Zhejiang Manufacturing Standard for Dishwasherswon the standard innovation award. Moreover, the company actively created the second type of Chinesestyle steam ovens, such as SZ01 lower built-in steam oven, ST01 desktop steam oven and C906/905steam oven-oven, to meet different customer needs with diverse product forms, inherit and carry forwardChina's excellent cooking and food culture, and meet the people's demand for health, nutrition andcooking efficiency of high-quality life.In the first half of 2019, the production sector strove to build a first-class manufacturing benchmark inthree directions: "comprehensively build the industry-leading supply chain system", "technology-drivencomprehensive innovation", "deepen lean production and build a sustainable and efficient organization",improved the delivery consistency and timeliness and promoted supply chain collaboration projects;reduced WIP and sluggish inventory, started pull production projects, formed a systematic and scientificcontrol system, and promoted the efficient operation capacity of production system informatization.Moreover, Maoshan Intelligent Manufacturing Park project of the company was constructed smoothlyand, after its completion, it will promote the iteration of the company's intelligent and integrated high-endkitchen electric appliances and upgrading of the intelligent manufacturing, laying a solid foundation forthe company's long-term development.In the first half of 2019, the brand sector fully implemented the concept of "creating a new Chinesekitchen", creating a high-tech, high-end, professional and young brand image. The company participatedin 2019 AWE and created the exhibition theme of “Robam 40 years, creating new Chinese kitchen”.Robam exclusively sponsors the CCTV column Chinese Flavor and serves as the food creator ofChinese Restaurant 3 to transmit Chinese cooking culture; held the press conference of "Steamed flavorof China. Exploring flavor of ten cities" and offline activities such as "Lei Jiayin, a high-power player inthe kitchen, is challenged to cook 100 steamed dishes", invited cooking masters and intangible culturalheritage inheritors to create a steam culture tour of "one city, one flavor and one inheritor", publishedChina’s Steamed Flavor Map - 100 Steamed Dishes, Long Volume of China's Steaming Feast, etc andcooperated with local TV stations, print media and local transportation media (high-speed rail, airport,subway, etc.) to occupy the commanding heights of brand communication, continuously interact withconsumers, enhance brand exposure, and convey brand value.In the first half of 2019, Mingqi put forward the new strategic layout of “big business recruitment, Suningcooperation, engineering layout and home decoration integration" based on the core channel idea of"strengthening counties, piloting cities and digging towns"; with "focus on the oven, expand Shuangshuiand innovate new retail of integrated stove" as the new category promotion model, the company shippedup to 14% gas heaters and purifiers in the first half of the year and won TOP10 integrated stove in onlineand offline activities of Jingdong 618; promoted and completed more than a thousand light blastingactivities around the "monthly activities and weekly blasting" and created a new high sales volume ofnationwide linkage activities in “Mingqi tenth anniversary celebration, Gratitude to regular customers”.In the first half of 2019, the company continued to be recognized by the capital market in terms of
corporate governance, internal management and shareholder returns, and won the "Best Board Award","Best New Media Operator Award" and "Best Board Secretary Award" at the “Tianma Award - The 10
th
Listed Company Investor Relations Selection” of Securities Times, the 13
thChina listed company valueselection "Top 50 SMEs Board Value", "Excellent SMEs Board Secretary", "Outstanding Board Secretaryof Information Disclosure" and other awards at the 13
th
Chinese Listed Companies Value Appraisal.
2. Matters related to financial statements
(1) Explanation of changes in accounting policy, accounting estimates and accounting
methods when compared to the financial statements of the previous accounting period
√Applicable □ Not applicable
The 12
thmeeting of the 4th Board of Directors reviewed and adopted the Proposal on Changing SomeAccounting Standards. Relevant accounting policies were implemented according to the Notice onRevising and Issuing the Format of Financial Statements for Ordinary Enterprises in 2019 (CK [2019]No.6) released by the Ministry of Finance. This change of accounting policies is conducted according tothe laws, administrative regulations or unified national accounting system requirements, only involvesthe presentation and adjustment of financial statements, and has no substantial impact on thecompany’s total assets, net assets, operating income and net profit.
(2) Explanation of rectification of major accounting error in the reporting period which needs
to be tracked and restated
□ Applicable √ Not applicable
No rectification of major accounting error in the reporting period which needs to be tracked and restated.
(3) Explanation of changes in the scope of combined financial statements when compared
with financial statements of the previous accounting period
□ Applicable √ Not applicable
No changes in the scope of combined financial statements in the reporting period.