I. Overview
Under the influence of the new crown epidemic, the home appliance industry in 2020 suffered an unprecedented challenge, the second quarter of the domestic economic situation has improved, but the impact brought about by the first quarter of the hard to erase the entire home appliance market in the first half of the year still maintains a pessimistic trend. Domestic sales, the demand side of the consumer income decline, confidence in the fall, the real estate market downturn and other factors on the purchase of home appliances caused by the inhibition; supply-side competitive pressures have increased significantly, the product prices continue to rise from the continued downward trend, coupled with the impact of the epidemic and transportation costs, the profitability of the enterprise has weakened significantly. With the heating of the "house economy", by the health of consumers to enhance the demand for health and consumer behavior more rational factors such as the impact of forcing enterprises to accelerate the adjustment of product structure, product quality and service capacity to accelerate the improvement of channel change to accelerate innovation.
Export, the global epidemic since March began to spread rapidly, many countries began to take closed measures, global trade activities nearly stagnant, the risk of uncertainty in U.S.-China relations continue unabated, to the home appliance industry exports increased negative impact; with the cancellation of large-scale exhibitions or delays in the expansion of export enterprises were hindered to expand new customers, and some countries have also taken the policy of restricting imports and tariff increases. In addition, the epidemic has also brought opportunities, the main manufacturing countries overseas epidemic is still serious, orders gradually shifted to China, different countries demand varies greatly, segmented products to meet the growth opportunities.
During the reporting period, the company took "one side, two points" as its guiding principle, that is, to take the commercial inventory as the core to drive the supply chain, manufacturing, logistics, etc., to improve the overall efficiency; through the benchmarking, the output of the online and offline competition strategy and product strategy that are highly compatible with the market, and the implementation of the "product leadership", marketing transformation, efficiency breakthroughs, teamwork, and the "product leadership". Through the benchmarking, the company outputs online and offline competition strategies and product strategies that are highly compatible with the market, and implements the "product leadership, marketing transformation, efficiency breakthrough, and team activation" annual operation policy. In the face of the impact of the epidemic, the company's business units to take the initiative, turn crisis into opportunity, around the effective implementation of existing orders, the use of opportunities or policies to seize new orders, to ensure the security of the supply chain, the capacity utilization rate continued to improve the first quarter of the anti-epidemic bottomed out in the second quarter of the market to stop slipping and net profit over the same period in 2019 to achieve growth, has entered the normal production and operation track.
In the first half of 2020, the company realized operating income of 6.796 billion yuan, a year-on-year decline of 25.59%; net profit attributable to the parent company of -21,013.06 million yuan, a year-on-year decline of 486.74%; of which, in the first quarter of 2020, the company realized operating income of 2.282 billion yuan and a net profit attributable to the parent company of -270.81 million yuan, and in the 2020 The second quarter realized operating income of 4.514 billion yuan, net profit attributable to the parent company of 59,877,500 yuan.
II. Risks faced by the company and countermeasures (a) Possible risks and countermeasures In the second half of 2020, the home appliance industry as a whole is still facing a severe and complex situation and unprecedented profound changes. At the same time, with the normalization of the impact of the epidemic, the second half of the home appliance market demand will be further released. In the face of objective factors such as more intense competition in the home appliance market, the environment for the survival of enterprises will be even worse. The company will face the risks of weak macroeconomic growth, severe industry situation, intensified competition, rising costs, the spread of the global epidemic of new crown pneumonia, the trade war between China and the United States, new business models and the impact of the Internet era. In view of the above risks, and in conjunction with the industry situation in the second half of the year and the shortcomings in the first half of the year, in the second half of the year 2020, the Company will seize the opportunities, turn crisis into opportunity, and implement the business plan in the following aspects. (II) The second half of the business plan Under the guidance of strategic planning, the Company takes "one side, two points" as the guiding ideology, and will continue to carry out operation and management in the second half of 2020 focusing on "product leadership, marketing transformation, breakthrough in efficiency, and team activation", and will also do the following work for each product line in terms of market strategy. Market strategy, but also to do the following work: 1. Refrigerator cabinet industry Domestic market, "product leadership, channel transformation, organizational optimization, efficiency improvement" as the core action, adhere to the quality of the king of the "boutique" + cost is king! "Explosive" strategy, focusing on creating "fresh, thin, clean" industry Meiling business card, with the product as the leader, to promote the product, technology leadership and cost, efficiency; through the hard core technology research, to promote the product iteration and innovation, for the product and brand empowerment, to create a self-contained High-margin products with traffic flow, omni-channel synergy, and comparative advantages in medium- and high-end products; relying on efficiency improvement, we will enhance product competitiveness through localized product focus and the establishment of high-efficiency lines. In terms of overseas market, we will continue to optimize the product structure and strengthen the adaptability of product research and development to different regions; sort out the strategies of core markets and core customers, and strengthen the ability to cope with different markets; increase the investment in brand teams and products, and continue to push forward the construction of overseas private brands. 2. Air-conditioning industry In the domestic market, we will continue to promote the construction of base markets, form the competitive mechanism of striving for the upper echelon, and build a channel system based on our own channels; we will carry out model innovation and sort out the value chain in non-base markets. As for overseas markets, we will focus on key markets and important customers, grasp the big and strong; focus on developing countries and seek new business models; make up for the products in blank markets, and improve the product definition and service capability. 3. Washing machine industry Washing machine industry in the second half of the year, focusing on effective channels to import new self-produced drum, focusing on the explosive large-capacity wheel to promote the main volume. Give full play to the wave washing machine "one key smart washing", "small volume and large capacity" and drum washing machine "thin" + "smart" core advantages. "The core advantage of the full use of self-produced drum washing machine launch momentum, Mitsubishi washing machine to carry out a comprehensive category structure upgrade. At the same time, relying on self-produced washing machine layout of overseas business, expand ODM / OEM customers, to achieve rapid breakthrough in the scale of Meiling washing machine. 4. Kitchen and small appliances industry Focus on "water ecological appliances" product line, expanding the influence of the industry. In the second half of the year, we will focus on promoting dual-brand technology and supply-side synergy to enhance our technological advantages and bargaining power, and improve our market competitiveness. Promote new marketing, live broadcasting to build, on the one hand, to enhance their own live broadcasting capabilities and store construction capabilities, and on the other hand, with the platform of the head of the star effect, to promote cooperation, to achieve brand exposure, to enhance sales. 5. Biomedicine The Company unswervingly implemented the development strategy of "diversification based on the biomedical field", and focused on the strategic layout of the three major businesses of life sciences, intelligent cold chain and family health, and continued to promote the deepening of life sciences business channels, product upgrading, and quality enhancement, and steadily pushed forward the expansion and channel extension of the intelligent cold chain business based on the life sciences channel system. Relying on the life science channel system, we will steadily promote the expansion of the intelligent cold chain business and channel extension, and at the same time promote the listing of family health products, such as oxygen concentrators, and the construction of the channel system, so as to promote the growth of the Company. The above business plan and business objectives do not represent the listed company's profit forecast for the year 2020, and whether they can be realized depends on a variety of factors such as changes in market conditions, the degree of effort of the management team, and so on, and there is a great deal of uncertainty, so please pay special attention to investors.
Third, the core competitiveness analysis (a) brand capacity The company is one of China's leading manufacturers of electrical appliances, with refrigerators, freezers, air conditioners, washing machines, small appliances and other product lines. "Meiling brand is listed as one of the most valuable brands in China. In recent years, the Company has continued to build its core competitiveness by remodeling its brand image, continuously innovating its core technology and developing high-end intelligent products. In remodeling brand image, for In the core technology innovation, the company on the one hand, in response to the industry and market development needs, and constantly promote the innovation of intelligent, inverter technology, to maintain the leading position in the industry. On the other hand, in the consumer upgrading boost, in order to meet consumer personalization, differentiation and diversification needs, Meiling through the "water molecule activation preservation technology" application, return to the essence of the refrigerator preservation; through the research and development of the comprehensive thin GLS integrated technology, the first "refrigerator 1 cm free embedded ", to achieve thin body, box thin and door thin trinity; at the same time unique "multi-metal nano-catalytic odor purification technology", through physical adsorption and chemical catalysis, continuous purification of a variety of odor molecules, decomposition into carbon dioxide and water, so as to achieve long-lasting purification of the smell and active sterilization, to achieve a lot of fast, good and very good! It can purify the whole refrigerator in ten minutes, overcoming the shortcomings of traditional refrigerators, such as slow speed, poor effect and short service life; through the development of three black technologies, namely, inner drum conical expansion technology, slanting cylinder stabilization technology and cloud condensation technology, it has developed the "Very Thin" drum washing machine, which provides users with a brand-new embedded experience program. The continuous innovation of key core technologies highlights Meiling's ability to specialize. In high-end intelligent product development, through continuous technological innovation, product innovation. In recent years, the company has released CHiQ intelligent series products, "M Fresh Life" series of refrigerators, "M Fresh Life" comprehensive thin series products, "very clean" refrigerator products, through the aforementioned High-end intelligent product innovation, to create "Meiling fresh", "Meiling thin", "Meiling net" three brand name card, not only to meet the market demand in a timely manner, but also to enrich and enhance the Brand image. Through the continuous upgrading of products to promote the reshaping of brand capacity, Meiling will realize the brand image of rejuvenation, internationalization, specialization, through the beautiful origin, the circle of good life and the gradual creation of a beautiful ecosystem, so that Meiling has become a more humane artist of white goods, a more intelligent technology expert, a more trustworthy life butler. (B) Product capabilities Over the past 30 years, the company has focused on the refrigeration industry, has developed a variety of different models of refrigerator products, including "MELNG Meiling, CHiQ, Athena" three brands of series products. Mainly including the water molecule activated freshness technology equipped with "M Fresh Life" series of freshness refrigerator, "very pure" series of freshness and clean refrigerator, comprehensive thin product extension 503 series of refrigerators, CHiQ series of high-end intelligent refrigerators and air conditioners, 0.1 degree double precision frequency conversion Refrigerator, North American air-cooled products, vertical display cabinets, YC-90EL low-temperature medical refrigerator. In particular, the company released the "very clean" series of clean refrigerator, the application of "multi-metal nano-catalytic odor purification technology", the use of special technology made of catalysts to efficiently catalyze the air generated by the activated oxygen, to achieve the rapid removal of odors and eliminate bacteria. The company has more advanced and perfect R & D and quality assurance system, passed ISO9001, ISO14001, OHSAS18001 and other management system certification, the company's products are characterized by excellent quality and reliable performance. In terms of technology development, the company has a national technology center and a national industrial design center, vigorously invested in basic technology research, in the intelligent, air-cooled, freshness, clean taste, frequency conversion, thin-walled, deep-cooled, the company has advanced, ahead of peers in the core technology. In terms of product development, the Company updates the annual product planning and development outline by combining the technological research results and the demand for consumption upgrading, and the product structure is increasingly upgraded, and the Company has increased its efforts in the development of medium- and high-end products such as air-cooled, large volume, inverter, intelligent, freshness preservation, clean flavor, thin-walled, deep-cooling and so on, and developed competitive core products, and the upgrading of the product structure has been obvious. (III) Operational Capability The Company has continued to carry out "benchmarking" work to continuously improve its internal management capability. The Company has established a hierarchical sharing system with clear objectives, quantitative indicators and performance-oriented performance assessment and incentives to activate internal productivity. With value chain management as the main line, we have continued to carry out value creation work to enhance the competitiveness of the company. Continuously improve the internal control system and enhance the ability to prevent risks. (D) Marketing ability The company has established a relatively perfect sales network and service system, accelerated marketing transformation, realized marketing transformation from product line-oriented sales management to channel and user-oriented operation and service, and from single-category marketing to all-category marketing, worked around the organization, system, system, process, account set, etc., and actively studied the intelligent transaction mode to accumulate power for subsequent development; overseas market through the increase of overseas own brand, marketing organization, and the development of the company's marketing strategy. Overseas market by increasing the overseas own brand, marketing institutions, R & D bases, production bases and other inputs, and internationally renowned home appliance brands, distributors, optimize the customer structure and enhance the product mix, and actively seize the order to open up the overseas market.