Yesterday (August 29th), Fuerjia Technology Co., Ltd. (referred to as Fuerjia), based in Harbin, released its 2023 half-year financial report. It is worth noting that this is Fuerjia’s first financial report since its listed.
In the first half of this year, Fuerjia achieved a revenue of 868 million yuan ($119 million), a year-on-year increase of 6.33%. The net profit attributable to shareholders of the listed company was 353 million yuan ($48.42 million), a decrease of 1.09% compared to the previous year. The non-recurring net profit was 342 million yuan ($46.91 million), a decrease of 2.69% year-on-year. Although the net profit declined, it accounted for approximately 40% of the total operating revenue.
Regarding the growth in operating revenue, Fuerjia stated in the financial report that this was due to the continuous growth of online direct sales revenue.
As for the year-on-year decline in net profit, Fuerjia attributed it to three factors. First, the increase in the proportion of online sales resulted in increased related sales expenses. Second, the utilization of the company’s North Beauty Valley base. Third, the continuous increase in research and development investment.
In terms of product categories, Fuerjia’s main businesses are medical devices and cosmetics. In the first half of 2023, revenue from medical devices was 400 million yuan ($54.86 million), accounting for 46.09%; revenue from cosmetics was 468 million yuan ($64.19 million), accounting for 53.91%, an increase of 9.28% compared to the previous year.
It can be seen that the cosmetics business has become the main driver and support for Fuerjia’s performance growth.
In terms of channels, compared to the same period last year, the proportion of Fuerjia’s online channels increased by about 7% in the first half of this year, while the sales proportion of offline channels declined. Among them, revenue from online self-operated business reached 330 million yuan ($45.26 million), accounting for 38.02% of the main business revenue. Revenue from online distribution business reached 617 million yuan ($84.63 million) but with a declining proportion. It is evident that Fuerjia is increasingly focusing on the development and promotion of online direct sales stores.
It is worth mentioning that as of the first half of this year, Fuerjia has 22 research and development personnel, and several ongoing products have made certain research progress. Products in the Class III of medical devices, Class II of medical devices, sunscreens, and repairing lotions are in the process of technological development. Repairing mask products are in the stages of design, development, and technological research.
In the future, Fuerjia will continue to increase research and development efforts and adjust product sales strategies in a timely manner. It will actively protect brand rights and, if necessary, take legal measures to maintain the brand’s image. At the same time, it will adopt interactive marketing methods combining online and offline approaches to promote the positive conversion of marketing expenses into business performance.
