Core ideas:

Affected by COVID-19 's epidemic situation, the demand for family garden leisure products in overseas markets has increased, and the company's investment in brand and e-commerce sales has increased. Zhejiang Yongqiang's North American and European markets, which originally had advantages, have recovered strongly. Driven by this, the company's operating income in the first half of the year rose sharply to 4.206 billion yuan, an increase of 42.86% over the same period last year, setting a new high for the same period since the company went public in 2012.

In addition, the company has also actively increased the development of the domestic market, expanded domestic e-commerce sales channels, and tried to use self-media and other forms to promote the development of the domestic market, and achieved certain results. In the first half of 2021, the company's revenue from the domestic market reached 263 million yuan, a year-on-year increase of 133.43%.

Affected by the rising prices of raw materials and labor costs, and the superimposed adjustment of accounting standards, operating costs have increased significantly. Gross profit fell to 715 million yuan from 927 million yuan in the same period in 2020, down 22.91% from the same period last year. Gross margin also fell to 17.63%, down 14.56 percentage points from a year earlier. Affected by the fluctuation of the securities market, the company realized investment income and fair value change income of transactional financial assets by 84 million yuan compared with the same period last year. As a result, the net profit belonging to the shareholders of the parent company reached 458 million yuan, down 24.57% from the same period last year.

In order to improve the effectiveness of management, the company continues to improve and build the business department platform, increase internal integration, and give factories and related business departments competitive incentive mechanisms to improve production efficiency and reduce production costs. during the period of the company, the expense rate has declined to a certain extent. The company's period expense rate fell to 6.49% in the first half of 2021, down 6.86 percentage points from a year earlier.

Looking to the future, due to the influence of COVID-19 's epidemic situation, the demand for family garden leisure products in overseas markets is still increasing. According to the statistics of the company's current orders and intended orders, it is expected that the number of orders in the 2021-2022 business year (July 2021 to June 2022) will increase by more than 30% compared with the same period last year, while the company's operating revenue is expected to maintain high growth.