Net profit fell 50% year on year, yunmi whole category business shrinking

2022-05-06 0 By

Introduction: On March 29, Yunmi announced its 2021 financial results. The company’s annual revenue was 5.3 billion yuan, down 9% year on year.Net profit was 88.605 million yuan, down 48.9 percent year-on-year.As the first home Internet of Things stock, Yunmi Technology (Viot.us) hit a record low in 2021.On March 29, Yunmi announced its 2021 financial report, with annual revenue of 5.3 billion yuan, down 9% year on year.Net profit was 88.605 million yuan, down 48.9 percent year-on-year.Liang Zhenpeng, a veteran observer of industrial economy, told Chaodian think tank that there are three main reasons for yunmi’s performance decline: first, unqualified product supply, poor reputation and poor user experience;Second, it was involved in many patent disputes with Midea and Haier, and the defendant imitated and plagiarized.Third, heavy marketing, lack of core technology, lack of development.Financial results show that the whole category of cloud rice business has basically declined.On March 17, Yunmi released the whole house intelligent “Family bucket”, launched a number of home appliances, continue to expand the product line.Yunmi said the company’s performance decline was mainly due to the continued sharp decline in sales of mio-branded cleaning robots in the fourth quarter.In addition, part of the product profit expansion of the product portfolio adjustment and so on.An email from the tidal think tank yunmi Media Center has not received any reply as of this writing.In addition to the performance is not expected, Yunmi’s performance in the capital market is also not satisfactory.Since its debut on nasdaq in September 2018, Yunmi’s shares have plunged 90% from their peak of $18.99 to $1.85, reducing its market value to $129 million.Yunmi was founded in 2014 and is committed to building an intelligent ideal home. It took 4 years to successfully enter the capital market.The earnings show that in 2018, 2019 and 2020, yunmi’s revenue reached 2.56 billion yuan, 4.65 billion yuan and 5.83 billion yuan respectively;Net profit reached 65.368 million yuan, 290 million yuan and 170 million yuan respectively.It can be seen that in terms of revenue, its scale has been expanding since its listing, but it starts to shrink in 2021.In terms of net profit, the decline began in 2020.In terms of specific business, Yunmi’s revenue mainly includes the household Internet of Things (IOT) field, water purifiers, consumables and small appliances.Among them, the revenue of the Internet of Things in 2021 was 3.4 billion yuan, down 7.4% year on year;Water purification revenue of 740 million yuan, down 15.9% year on year;Consumables revenue of 370 million yuan, down 4.1% year on year;Small household appliances and other income of 790 million yuan, down 10.7% year on year.Both the home Internet of Things (IOT) sector and other sectors have seen varying degrees of decline.Yunmi started as a water purifier, and ushered in rapid expansion by becoming an ecological chain enterprise of Xiaomi.In 2016, Yunmi has begun to transform from small home appliance r&d and manufacturing to home appliance field, and has launched refrigerators, washing machines, water heaters and other products.It is not difficult to see that yunmi’s previous rapid growth mainly relies on the market dividend brought by category expansion.If Yunmi cannot find a breakthrough in a new category in the field of IOT, it must dig deep in a certain category and have its own popular products, otherwise it will be difficult to rescue the difficulties encountered in performance.It’s worth noting that there were some growth bright spots in the results, with Yunmi’s gross margin improving to 22.6% in 2021 from 18.6% in 2020.In terms of customer numbers, the cumulative number of home users at the end of the quarter was approximately 6.6 million.The percentage of households with at least two connected products reached 21.5 percent, compared with 21.1 percent at the end of Q3 2021 and 20.0 percent at the end of Q4 2020.From the perspective of the whole house smart industry, the current track is getting more and more congested.According to market statistics, in 2021, the global market for large household appliances (white electric kitchen appliances, etc.) and TV sets will achieve year-on-year sales growth of 13% and 6% respectively.In addition to huawei, Xiaomi and other leading enterprises in the field of Internet of Things, in the field of home appliances, haier, Hisense, Midea and other brands have also begun to stride forward to whole-house intelligence based on their own home appliance technology or system technology accumulation.From this point of view, yunmi will face more and more challenges.However, as the pioneer of the whole house connected home appliance, Yunmi has been leading the intelligent reform and development of home appliance industry.As early as 2018, when the outside world’s understanding of 5G was still limited to the communication industry, Yunmi established the positioning of the whole house Internet appliance brand and took the lead in proposing the concept of “5G+AI+IoT”, which took the lead in the industry.In 2020, under the overall planning reform of brand, category, channel and operation, the total number of household users of Yunmi will exceed 5.1 million, and the proportion of users who own at least 2 smart connected products of Yunmi will exceed 20%.Just on March 17 this year, Yunmi launched the one-stop whole-house intelligent solution “1=N44”, which includes AI air conditioner, AI refrigerator, AI double-barrel washing machine and other new products.However, in addition to the expanding category, there is a lack of technical highlights and quality problems.As of press time, the number of complaints about “Yunmi Whole House Internet appliances” on the Black Cat complaint platform has reached 900.On the other hand, yunmi’s r&d investment reached 310 million yuan in 2021, up 17.4 percent year-on-year, and r&d expenses accounted for 5.8 percent of the total revenue, according to the financial report.Although research and development expenses have increased, they are obviously not enough compared to the huge product line of Yunmi, which may be the reason for the technical problems of Yunmi products.To sum up, Yunmi must not only enrich its categories, but also break through the technical deficiencies and achieve the best user experience. Only in this way can it compete with many peers in the future.