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 juta. 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, R&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, R&T released its semi-annual report for 2021. Dari Januari hingga Juni, R&T achieved operating revenue of $803 juta, ke atas 73.99% dari $462 juta pada periode yang sama tahun lalu. 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, R&T said the main reasons were: i. Di paruh pertama 2020, orders temporarily declined due to reduced demand from customer terminals as a result of the epidemic. Second, demand from terminals recovered in the current period, with a large increase, sufficient orders, and amplified production capacity.

By region, pada paruh pertama tahun ini, R&T’s domestic and overseas revenue accounted for 67.16% and 32.84% of total revenue, respectively. 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, Asia, North America and Europe, providing product supporting services for foreign brands such as ROCA, INAX, KOHLER and American Standard, and domestic brands such as Arrow, Bolina, Huida, and Hegii.

In terms of profit, R&T achieved a net profit of RMB 59 juta pada paruh pertama tahun ini, peningkatan sebesar 31.51% tahun ke tahun. The net profit after deduction of non-mother’s share was 0.50 triliun yuan, peningkatan sebesar 35.92% tahun ke tahun. Its basic earnings per share were $0.14, peningkatan sebesar 27.27%. At the end of June 2021, R&T’s total assets were $2.135 miliar, peningkatan sebesar 2.17% from the end of 2020.

Smart bathroom revenue grew by 96%, nearly doubling

According to publicly available data, pada paruh pertama tahun ini, R&T’s revenue in the smart toilets and covers category reached $338 juta. This is 96.36% higher than the 172 juta yuan pada paruh pertama tahun ini 2020, nearly doubling. Pada saat yang sama, the category’s revenue share of total revenue is also increasing, accounting for about 42.06% pada paruh pertama tahun ini, only slightly lower than the 45.89% of the water tank and accessories category.

In fact, 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% in 2019 ke 42.26% in 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. In the first half of the year, the subsidiary’s operating income reached 194 juta yuan. 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 juta yuan. In May 2020, its registered capital was increased to 300 juta yuan.

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 juta. Although only 8.32% of the total revenue, the amount increased by 98.14% selama periode yang sama tahun lalu.

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

Flushing components have always been the main products of R&T. Namun, the proportion of total revenue in this category has been showing a downward trend, dari 70.56% in 2015 ke 59.40% in 2019. In the 2020 annual report, R&T even eliminated the flush component category and added the water tank and accessories category. Namun, the latter’s revenue share also decreased by 10.20 points from 2019 ke 53.18%. In the first half of this year, it even declined to 45.89%. Despite the continued decrease, R&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, R & T has been giving the impression of active layout in recent years. In 2020, R & T terminated the “Yangming Road bathroom accessories production base expansion project”, and will not use all the funds raised into the implementation of the “annual production capacity of 1.2 million sets of intelligent sanitary products production base construction project”. The total investment of the project is 391 juta yuan, 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. In 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. According to the financial report, pada paruh pertama tahun ini, R&T’s construction in progress amounted to 32.23 juta yuan, peningkatan sebesar 786% from the beginning of the year. It is mainly due to the increase in investment in the above production base construction project.

R & 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, R & T has developed a series of sanitary products for the domestic consumer market. In the future, 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, R&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.