Yinghe Technology: E-cigarette business H1 net profit reached 40 million, becoming the company’s profit growth point
Not long ago, Yinghe Technology released its “Semi-annual Report of 2019”, which showed that in the first half of 2019, Yinghe Technology realized business income of 933 million yuan and net profit of 187 million yuan.
Meanwhile, in the first half of 2019, the company’s net profit rate was 20.88%, an increase of 3.41 percentage points over the previous year; the net cash flow generated by business activities was 8,906.85 million yuan, an increase of 477.41% over the previous year, and the quality of operation was further improved.
What’s noteworthy is that in November 2018, the company purchased 51% of Sikary’s equity for 48.27 million yuan to enter the field of electronic cigarettes. During the reporting period, the company’s electronic cigarette business achieved a business income of 13,530.48 million yuan, net profit of 35.5672 million yuan, and achieved rapid development.
In addition, the company actively introduces industry talents, expands the production capacity of electronic cigarettes, promotes the construction of sales channels and brand promotion, maintains the existing domestic and foreign big customers, and actively expands the American market. The management is optimistic about the rapid development of electronic cigarette business.
According to the company’s performance forecast of 2019H1, there is a strong market demand in Europe, Southeast Asia and other countries. Sikary’s technology revenue and net profit have increased significantly, far exceeding expectations.
The electronic cigarette industry usually enters its peak season from September, and Sikary Technology is expected to fulfill its performance commitment of deducting non-net profit of 60 million yuan for the whole year.
