Since it was born in Guangzhou in 06993, Blue Moon Group (1992) has been standing in the leading position of daily chemical industry after realizing the rapid leadership of domestic detergent market and hand sanitizer market respectively. Reviewing the development history of Blue Moon in the past 30 years, from 1992 to 2007, it changed from oily detergent to establishing the brand status of hand sanitizer; in 2008, it began to launch detergent and expanded and upgraded its various products, thus gradually entering a period of rapid development.

In terms of market share, Blue Moon has ranked first in the domestic detergent market and hand sanitizer market for 11 consecutive years (2009-2019) and 8 consecutive years (2012-2019), respectively.

After years of leading the industry, Blue Moon officially went public at the end of 2020. As the only local high-quality large-scale leading company listed in Hong Kong, Blue Moon officially presented its first annual report to the market on March 29.

Net profit increased by 21.3% over the same period last year to achieve four years of sustained growth

In 2020, Blue Moon achieved operating income of HK $6.996 billion, net profit of HK $1.309 billion, up 21.3 per cent from a year earlier, and gross profit margin remained relatively stable to 64.5 per cent, according to the financial report. Earnings per share (basic and diluted) were HK26.03 cents and HK25.97 cents, with a proposed dividend of HK6.9 cents per share. On the whole, in the face of the fluctuations of the industry under the influence of the epidemic, Blue Moon resisted the impact in 2020 and showed its sound operation and sustainable profitability.

Blue Moon performance has shown solid and sustained profitability since 2017-2020, with net profit rising from HK $90 million in 2017 to HK $1.309 billion, a compound annual growth rate of 144.1 per cent.

Specifically, clothing cleaning care has always been the core business of Blue Moon, with an income of HK $5.596 billion in 2020. In 2020, under the influence of the epidemic, the demand for personal cleaning care products and household cleaning care products increased explosively. In 2020, Blue Moon personal cleaning care products achieved revenue of HK $836 million in 2020, an increase of 99.7% over the same period last year, accounting for 11.9% of total revenue, up from 5.9% in 2019. Household cleaning care products generated HK $565 million in revenue in 2020, up 24.5 per cent from a year earlier and accounting for 8.1 per cent of total revenue.

Zhitong Financial APP learned that so far, Blue Moon has more than 80 varieties of products in three major categories: clothing cleaning care, personal cleaning care and household cleaning care. From the perspective of historical growth performance, the revenue of each segment has achieved rapid growth in the past few years, and the historical growth rate is much higher than the industry average.

In addition, the continuous improvement of Blue Moon's profitability also depends on its sound operating ability and flexible control of the market. In the face of the impact of the sudden outbreak of black swans in 2020, Blue Moon, through continuous optimization of management and operation, coupled with government subsidies, its sales and distribution expenditure as a percentage of revenue decreased by 4.13 percentage points in 2020.

In terms of cash flow, as of December 31, 2020, Blue Moon had bank deposits and cash of HK $10.939 billion without any loans, with a quick ratio of 3.48 times and a significant increase in its net profit level. It is rare in the special year of 2020, and it fully reflects the strong risk resistance ability of Blue Moon, which also forms a safety pad for future product research and development and territory expansion.

Brand, R & D and channel make efforts to build a solid basic plate.

From the perspective of growth logic, Blue Moon, as one of the leaders in the local Jiaqing industry, its strong R & D foundation ensures continuous product promotion and high channel sensitivity, and continues to consolidate the brand power of "Blue Moon". Together to create a solid foundation for the company to achieve long-term sustainable growth.

In 2020, Blue Moon has won the first brand strength of C-BPI detergent and hand sanitizer industry for the tenth year in a row, and its comprehensive brand influence ranks first in China's detergent and hand sanitizer market, and has built an unshakable national brand status in the industry.

According to CITIC's research report, in terms of product structure, Blue Moon has promoted the growth of its product gross profit margin higher than the industry average by creating a better product structure. The superposition of product advantages enriches marketing and occupies the minds of consumers, making brand recognition a powerful barrier to Blue Moon.

In terms of product research and development, Zhitong Financial APP learned that Blue Moon set up an R & D Technology Center at the beginning of its operation and set up Blue Moon washing Research Institute in 2015 to develop and evaluate laundry products and methods. As of December 31, 2020, Blue Moon has obtained a total of 678 registered trademarks, 158 patents and 173 copyrights in China.

Among them, Blue Moon mainly adopts the two-line R & D strategy of launching new products around consumer demand and user experience, developing and sharing scientific and practical cleaning methods with consumers. In 2020, with the increase in consumer awareness of cleaning care and the demand for cleaning and bacteriostatic products during the epidemic, Blue Moon launched a foam bacteriostatic hand sanitizer and upgraded its high-end hand sanitizer to enjoy amino acid hand sanitizer to further expand the product matrix.

In terms of distribution channels, as the first company in the Jiaqing industry to use online sales and distribution channels, Blue Moon consolidated its partnership with major e-commerce platforms in 2020, deepening product penetration and reach range online. achieved an increase of 13.4% in online sales channel revenue compared with the same period last year.

At the same time, Blue Moon also continues to strengthen offline cooperation with national and regional retailers and dealers, making use of an extensive offline network of customer partners to reach more local community consumers. The offline retail layout has been expanded to cover new retail outlets such as pharmacies, cosmetics stores, mother-and-baby stores and gas stations.

According to CITIC in the research report, by mid-2020, nearly 70% of Blue Moon's offline distributors were located in third-tier and below cities. With the upgrading trend of overall consumption, emerging markets in third-tier and other cities have gradually become the main incremental market for detergent. According to Frost Sullivan, third-tier and other cities are expected to maintain double-digit growth in the next five years. Therefore, the Blue Moon, which is already in the leading position, there is still a lot of room for development and improvement in the offline channel system.

At present, China's household cleaning market is developing steadily and remains the market with the greatest potential among major economies. According to Frost&Sullivian 's estimate, the size of China's clean care market is 110.8 billion yuan in 2019, and the CAGR in 2015-2019 is 5.3%, which is higher than the global average and the major developed countries' markets (about 1% Mur4%).

Driven by the upgrading of consumption and the promotion of health concepts in the post-epidemic era, the growth of China's household cleaning market is expected to further accelerate in 2019-2024, with CAGR reaching 8.4% in 2019-2024. Among them, Blue Moon's main business, clothing cleaning business, is the largest track.

On the whole, Blue Moon, as a leading brand in China's household cleaning care market, withstood fluctuations and achieved steady growth under the impact of the epidemic in 2020. At the same time, the company has established a strong moat in the three aspects of products, channels and brands, forming a basic plate to ensure steady growth, and there is still a foreseeable room for growth in products and channels.