Yinghe Technology's Semi-Annual Report: Sikary Revenue Grows 7.4% to 1.539B Yuan, Accounting for 35% of Total Operating Income

On August 23, Shenzhen Yinghe Technology Co., Ltd. (hereinafter referred to as "Yinghe Technology", stock code: 300457) released its 2024 interim financial report. The financial data shows that the company achieved operating income of 4.427 billion yuan in the first half of 2024, a year-on-year decrease of 7.79%; net profit attributable to shareholders of the listed company was 338 million yuan, a year-on-year increase of 13.46%. Although overall revenue has declined slightly, the company's profitability has significantly improved, with the e-cigarette business emerging as the biggest highlight.

Business revenue decreased by 7.79% year-on-year.

In the first half of 2024, Yinghe Technology's operating income decreased by 7.79% compared to the same period last year, dropping from 48.01 billion yuan in the first half of 2023 to 44.27 billion yuan. The main reason for the decline in revenue was the underperformance of the lithium battery equipment business.

According to the financial report, the business revenue decreased from 32.59 billion yuan in the same period of 2023 to 26.77 billion yuan, a year-on-year decrease of 17.85%. However, due to effective cost control and refined management, the company's net profit increased instead of decreasing, with a year-on-year growth of 13.46% to reach 3.38 billion yuan. This growth mainly came from the control of management and sales expenses, as well as the positive contribution of non-recurring gains and losses.

The e-cigarette business saw a year-on-year growth of 7.4%, accounting for 35% of the company's revenue.

The e-cigarette business of Yinghe Technology is operated by its controlling subsidiary Shenzhen Sikary Technology Co., Ltd. (hereinafter referred to as "Sikary"). Sikary focuses on the research, development, production, and sales of e-cigarettes and their accessories, with main products including disposable e-cigarettes, pod systems, and related accessories. Since 2022, Sikary has increased its brand promotion efforts, leading to significant market share gains in the European market, particularly in the UK and Germany, and has obtained European e-cigarette new product TPD certification.

In the first half of 2024, Sikary's e-cigarette business revenue reached 15.39 billion yuan, accounting for approximately 35% of the company's total operating income, representing a 7.4% increase from the same period last year.

The report states that Sikary has gradually achieved its strategic goal of "rooted in the UK, radiating Europe" with its advantages in product technology and channel resources. During the reporting period, the company increased its efforts to expand into the North American and Southeast Asian markets, continuously expanding its sales areas and enhancing brand awareness through various means such as advertising, social media interaction, and ground promotion.

The report indicates that Yinghe Technology plans to increase its investment in the e-cigarette business and further expand into overseas markets. The company aims to strengthen its leading position in the European market through continuous research and development innovation and product upgrades, and actively explore emerging markets such as North America and Southeast Asia.