Yinghe Technology Achieves Strong Growth in Q3 2023

On the evening of October 23rd, e-cigarette star company Sikary's parent company, Yinghe Technology (300457.SZ), released its third-quarter report for 2023. According to the report, the company achieved a revenue of 2.696 billion yuan this quarter, representing a year-on-year growth of 35.52%. The net profit attributable to shareholders of the listed company reached 213 million yuan, marking a year-on-year increase of 139.89% and a quarterly increase of 9%. As of the end of the third quarter, the company's accumulated revenue reached approximately 7.497 billion yuan, with a year-on-year growth of 13.37%. The net profit attributable to shareholders of the listed company was approximately 511 million yuan, representing a year-on-year increase of 44.74%.

Despite significant performance growth, the stock price of Yinghe Technology experienced a sharp decline on October 24th. By the market close, the company's stock was valued at 20.72 yuan per share, reflecting a decrease of 5.52%.

Although Yinghe Technology has not specifically disclosed the revenue situation of its Sikarye-cigarette business, according to the data from the company's previous semi-annual report, the company's profit growth is mainly attributed to the contribution of its Sikarye-cigarette business.

According to the data, Yinghe Technology achieved a net profit of 298 million yuan in the first half of the year, a year-on-year increase of 12.81%. The net cash flow generated from operating activities showed a significant increase of 471.14%, reaching 525 million yuan. In addition, the e-cigarette business generated operating revenue of 1.433 billion yuan, a year-on-year increase of 1477%, with a gross profit margin as high as 40.91%, a 26 percentage point increase compared to the previous year. Subsidiary Sikary of Yinghe Technology recorded a net profit of 417 million yuan in the first half of the year, while another subsidiary, Huizhou Yinghe Technology, only achieved 170 million yuan.

Experienced professionals in the e-cigarette industry have commented that the third quarter is typically considered a slow season for e-cigarettes due to factors such as a higher number of Europeans traveling abroad and supply chain adjustments. However, based on the financial report data from Yinghe Technology, it can be inferred that Sikary, with Europe as its main market, has not experienced a decline in performance.

According to information gathered from Sikary job postings and industry insiders, 2FIRSTS has learned that the UK is currently discussing whether to ban the sale of disposable e-cigarettes. As a result, distributors are stocking up on supplies. This means that the demand for Sikary's products has not only remained steady but has actually increased, leading to a rise in the company's revenue.

Furthermore, it is understood that Sikary not only holds a leading position in the UK market but also is the leading brand in the disposable e-cigarette market in the Netherlands. In addition, the company has also expanded its presence in markets such as North America and the Middle East. These factors are crucial in ensuring the stable performance of Sikary.