① Xinlong Health's net profit was pre-reduced by more than 85%. The company said that due to the inventory digestion of major dealers and retailers in the industry falling short of expectations, the company's order volume and shipment volume decreased by nearly 50% compared to the previous year. ② In terms of performance, the “highlight moment” of 2021 was not renewed; in fact, Xinlong Health began to experience a decline in orders in 2022.
Financial Services Association, January 29 (Reporter Lu Tingting) The downward trend in performance has not stopped. The net profit of Xinlong Health (002105.SZ), which mainly supplies bicycle spare parts products, is expected to drop by more than 80% in 2023, a new low in the past four years. A Financial Services Association reporter noticed that Xinlong Health repeatedly expressed “overall market demand contraction” in relevant financial reports for 2023.
Xinlong Health revealed its annual results forecast this evening. Net profit returned to mother last year is estimated to be 18 million yuan to 27 million yuan, a decrease of 85.73% to 90.49% from the previous year. The company said that due to the inventory digestion of major dealers and retailers in the industry falling short of expectations, the company's order volume and shipment volume decreased by nearly 50% compared to the previous year, and the decline in revenue led to a decline in profits.
Despite the rise in domestic cycling popularity, Xinlong Health's performance did not continue its “highlight moment” in 2021. In fact, in 2022, Xinlong Health began to experience a decline in orders. In addition, by sales area, the company's domestic sales fell from 48.62% in 2020 to 35.72% in 2022. Meanwhile, sales in the Americas, Europe, Asia and other regions increased from 47.13% in 2020 to 58.17% in 2022.
Xinlong Health executives said at a performance briefing held in 2023 that the consumer spending power of bicycles in the European and American markets and emerging countries was clearly insufficient due to high inflation rates and the food crisis. After 3 years of market accumulation from 2020 to 2022, the middle- and low-class traditional mountain bike and urban bicycle markets are becoming saturated, forming a backlog of finished vehicles and parts inventories of major retailers, dealers and car builders in the terminal market.
According to Xinlong Health's annual financial reports, net profit attributable to mother in 2019-2022 was 42 million yuan, 165 million yuan, 273 million yuan, and 189 million yuan, respectively. According to the 2022 annual report, the sales and shipment volumes of the company's two main businesses, “bicycle spare parts business” (accounting for 82.04% of revenue) and “sports fitness and rehabilitation equipment business”, were 44.5181 million units and 5089,000 units, respectively, a year-on-year decrease of 30.71% and 0.16%, respectively.