Buydeem Group(300824)2022-11-11 05:13Group 1: Financial Performance - The company achieved a revenue of 370 million CNY in the first half of 2022, representing a year-on-year growth of 4.11% [2] - The OEM business saw a decline in revenue by 20.42% due to weakened overseas demand, while the "BUYDEEM" brand business generated approximately 300 million CNY, growing by 12.32% [2] - Domestic revenue for the BUYDEEM brand reached 265 million CNY, a year-on-year increase of 9.41%, while overseas revenue was 33.65 million CNY, growing by 41.9% [2] Group 2: Cost Management and Investment - Despite significant impacts from the pandemic and other factors, the company maintained its investment in key areas such as product R&D, talent development, and digital infrastructure [2] - The company plans to adopt a more cautious approach to expense allocation in the second half of the year, reflecting the need for long-term sustainable growth [3][4] Group 3: Product Development and Strategy - The company introduced new products including an "electronic temperature control kettle" and a "36cm non-stick grill pan" to enhance its product matrix and user experience [2] - Future product launches will focus on exploring new scenarios, expanding existing categories, and updating specifications [3] Group 4: Market and Channel Strategy - The company is actively optimizing its mature channels while exploring new ones, maintaining a commitment to direct sales channels [2] - Adjustments in the opening of offline stores are being made, with a focus on profitability and efficiency [4] Group 5: Overseas Market Challenges - The company has faced significant challenges in overseas markets due to a general decline in consumer demand, impacting both its own brand and OEM businesses [5] - A strategic review of overseas channels is underway to transition from rapid growth to more refined operations [5] Group 6: Gross Margin Analysis - The overall gross margin has declined, primarily due to rising raw material costs and increased logistics expenses, particularly in the overseas business [6][7] - The domestic brand business's gross margin was affected by rising material costs without significant price adjustments [6] Group 7: Future Outlook - The company remains optimistic about its market potential, emphasizing that there are still many consumers who are not familiar with the brand [10] - Plans for expanding product categories and enhancing existing offerings are in place to capture more market share [11][12]