Hangzhou Robam Appliances Co., Ltd. 2019 Semiannual Report Summary
Stock code: 002508 Abbreviation of securities: Robam Announcement No.:2019-032
Hangzhou Robam Appliances Co., Ltd. 2019 Semiannual
Report Summary
I. Important Notes
This summary is extracted from the full semiannual report. In order to fully understand the Company’s operating results,
financial status and future development plan, investors should read the full semiannual report carefully disclosed on the
media designated by China Securities Regulatory Commission (CSRC).
Statement of objections by directors, supervisors and senior management
Applicable √ Not applicable
Notes of non-standard audit opinion
Applicable √ Not applicable
The plan for the common stock profit distribution or the plan for converting reserved funds into share capital during the
reporting period was reviewed by the board meeting
□ Applicable √ Not applicable
The company plans not to distribute cash dividends, not to send bonus stocks, not to convert reserved funds into share
capital.
The plan for the distribution of preferred stock profits during the reporting period is adopted by the board of directors
through resolution
□ Applicable √ Not applicable
II. Basic status of company
1. Company profile
Stock abbreviation Robam Stock code 002508
Stock exchange for stock listing Shenzhen Stock Exchange
Contact person and contact
Secretary to the board of directors Securities affairs representative
information
Name Wang Gang
No. 592 Linping Av., Yuhang Economic
Office address
Development Zone, Hangzhou, China
Tel 0571-86187810
Email wg@robam.com
2. Major Accounting Data and Financial Indicators
Whether the Company needs to retroactively adjust or restate the accounting data of the previous years
□Yes √No
Amount for Increase / decrease this
Reporting period corresponding period year compared to the
last year previous year
Operating income (yuan) 3,527,413,882.96 3,496,662,565.47 0.88%
Net profits attributable to 670,403,994.20 660,339,506.06 1.52%
shareholders of listed companies
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Hangzhou Robam Appliances Co., Ltd. 2019 Semiannual Report Summary
(yuan)
Net profits attributable to
shareholders of the listed company
622,539,579.01 596,465,164.81 4.37%
after deduction of non-recurring
profits and losses (yuan)
Net cash flow from operating
658,691,084.58 1,121,788,027.98 -41.28%
activities (yuan)
Basic EPS (yuan/share) 0.71 0.70 1.43%
Diluted EPS (yuan/share) 0.71 0.70 1.43%
Weighted average return on net
10.51% 12.07% -1.56%
assets
Increase / decrease at
the end of this reporting
End of the reporting
End of previous year period compared to the
period
end of the previous
year
Total assets (yuan) 9,451,869,196.46 9,455,361,508.83 -0.04%
Net assets attributable to
shareholders of listed companies 5,960,135,662.02 6,045,384,387.57 -1.41%
(yuan)
3. Number and shareholding of the company's shareholders
Unit: share
Total number of preferred
Total number of common shareholders shareholders with voting rights
67,606 0
at the end of the reporting period restored at the end of the
reporting period (if any)
Shareholdings of the top 10 shareholders
Number of Pledge or freeze
shares held
Shareholder Shareholding Number of shares
Shareholder's name with limited Status of
nature ratio held Quantity
sales shares
conditions
Domestic
Hangzhou Robam Industrial Group Co.,
non-state 49.68% 471,510,000
Ltd.
legal person
Overseas
Hong Kong Securities Clearing Co. Ltd. 9.00% 85,408,035
legal person
Domestic
Shen Guoying natural 1.29% 12,240,000
person
China Merchants Bank Co. Ltd. －
Everbright PGIM Advantageous Hybrid Other 1.16% 10,980,236
Securities Investment Fund
China Construction Bank Co., Ltd. －
Anxin Value Selected Stock Securities Other 1.01% 9,579,475
Investment Fund
Domestic
Hangzhou Jinchuang Investment Co., non-state 1.00% 9,451,985
Ltd.
legal person
Shenzhen Guoshi Capital Management
Co., Ltd. - Guoshi Capital - Robam
Other 0.88% 8,311,165
Agent Holding Stage 2 Structured
Private Equity Fund
SSF - Six Combinations Other 0.77% 7,306,072
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Hangzhou Robam Appliances Co., Ltd. 2019 Semiannual Report Summary
Domestic
Hangzhou Yinchuang Investment Co., non-state 0.74% 7,020,000
Ltd.
legal person
Overseas
GIC 0.68% 6,449,837
legal person
The actual controller of the Company’s controlling shareholder Hangzhou Robam
Description of the above-mentioned shareholder Industrial Group Co., Ltd. and the shareholder Hangzhou Jinchuang Investment Co.,
association or concerted action Ltd. is Mr. Ren Jianhua, and the natural person shareholder Shen Guo Ying is the wife of
Ren Jianhua. The above shareholders have the possibility of acting in unison.
4. Changes in controlling shareholder or actual controller
Change of controlling shareholders during the reporting period
□ Applicable √ Not applicable
No change in controlling shareholders during the reporting period.
Changes in actual controller during the reporting period
□ Applicable √ Not applicable
No change in actual controller during the reporting period.
5. Total number of preferred shareholders and the top 10 preferred shareholders’
shareholdings of the Company
□ Applicable √ Not applicable
During the reporting period, the Company did not have preferred shareholders holding shares.
6. Corporate Bond
Whether the Company has bonds publicly issued and listed on the stock exchange that have not expired or expired but
not paid in full on the date of approval of the semiannual report
No
III. Discussion and Analysis of Operation
1. Overview of Business Operation during the Reporting Period
Does the Company need to follow the disclosure requirements of special industries
No
In the first half of 2019, the international political and geopolitical situation was complicated, the domestic
real estate industry was affected by the increasingly strict regulatory policy of "one policy for one city",
and the kitchen appliance industry as a whole continued depression. According to the retail monitoring
report published by The Yee, the sales amount of range hoods, gas stoves and disinfection cabinets, as
the main kitchen appliances, was increased by -5.86%, -4.09% and -17.72% respectively.
In the face of the sluggish market, the company, as the leading enterprise in the kitchen appliance
industry, established the working policy of "practicing internal skills to keep out the winter and seeking
improvement in stability to promote growth" for 2019 at the end of last year, and strove to ensure the
company's stable performance and steady increase of market share. During the reporting period, the
company achieved the operating income of 3,527,413,882.96 yuan, an increase of 0.88%, and realized
the net profits attributable to shareholders of listed companies of 670,403,994.20 yuan, an increase of
1.52%.
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Hangzhou Robam Appliances Co., Ltd. 2019 Semiannual Report Summary
According to the retail monitoring report published by The Yee, the market share and market position of
the retail sales of company's major product categories as of the end of June 2019 are shown in the
following table:
Built-in
Built-in Built-in
Built-in steam Built-in Built-in
Range hood Gas stoves microwave disinfection
steam oven oven- oven dishwasher
oven cabinet
oven
Retail sales
25.54% 23.13% 34.95% 26.58% 31.67% 17.39% 25.92% 8.00%
share
Market position 1 1 1 2 2 2 3 3
In the first half of 2019, the marketing sector practiced innovation for customer requirements centered on
the customer, and made concerted efforts with multiple channels to ensure the company's performance
growth in the face of the overall industry downturn. In terms of retail, the company, in the face of overall
KA channel downturn, continued to optimize the franchised store system, strengthened the integration of
multiple channels, realized the coordinated online and offline development and adhered to pr ovide
customers with quality services and actively explore the primary and secondary stock market. In terms of
real estate channels, benefiting from the national real estate refined decoration policy, the company
continued to deepen the cooperation with the real estate developers such as Evergrande, Vanke,
Country Garden and Sunac with differentiated products and high-quality brand services and continued to
boost the development of strategic real estate channel customers through the central purifier system.
The real estate channel sales increased 80% year-on-year. According to the monthly real estate refined
decoration monitoring data published by AVC, the market share of ROBAM range hood was 37.8%,
firmly ranking first in the industry. In terms of innovation, the company actively explored the new retail
mode, developed the innovative channels and regional outlets and stimulated the vitality of the home
decoration market through in-depth cooperation with the cabinet companies such as OPPEIN and
SCHMIDT and the family decorating companies such as ikongjian, Gold Mantis and Dongyirisheng. In
terms of overseas development, the company made its first appearance at the 2019 Decorex SA
exhibition in South Africa, made positive progress in the development of overseas markets in Asia
Pacific, Australia and New Zealand, and steadily promoted brand globalization.
In the first half of 2019, the technology sector was committed to building an innovation -oriented R&D
mechanism, creating an open innovation platform, building an efficient organization and creating a
first-class technical team in the industry, and made remarkable achievements in new category expansion,
patent development and national standard establishment. In the first half of the year, the company
applied for 274 patents, including 64 invention patents and obtained 237 patents licenses, including 8
invention patents. The range hood 27X6 and steam oven-oven C906 won the "German Red Dot Award"
and "American IDEA Award", while the range hood 700X, gas stove 666B, steam ovens S228 and SZ01
won the “American IDEA Award”. Meanwhile, the company led the establishment of industry standards
such as Environment Friendly Range Hoods, Steam Oven-Oven, Minimum Allowable Values of Energy
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Hangzhou Robam Appliances Co., Ltd. 2019 Semiannual Report Summary
Efficiency and Energy Efficiency Grades for Electric Ovens, Zhejiang Manufacturing Standard for
Dishwashers and Electric Steam Ovens, in which, the Zhejiang Manufacturing Standard for Dishwashers
won the standard innovation award. Moreover, the company actively created the second type of Chinese
style steam ovens, such as SZ01 lower built-in steam oven, ST01 desktop steam oven and C906/905
steam oven-oven, to meet different customer needs with diverse product forms, inherit and carry forward
China's excellent cooking and food culture, and meet the people's demand for health, nutrition and
cooking efficiency of high-quality life.
In the first half of 2019, the production sector strove to build a first -class manufacturing benchmark in
three directions: "comprehensively build the industry-leading supply chain system", "technology-driven
comprehensive innovation", "deepen lean production and build a sustainable and efficient organization",
improved the delivery consistency and timeliness and promoted supply chain collaboration projects;
reduced WIP and sluggish inventory, started pull production projects, formed a systematic and scientific
control system, and promoted the efficient operation capacity of production system informatization.
Moreover, Maoshan Intelligent Manufacturing Park project of the company was constructed smoothly
and, after its completion, it will promote the iteration of the company's intelligent and integrated high-end
kitchen electric appliances and upgrading of the intelligent manufacturing, laying a solid foundation for
the company's long-term development.
In the first half of 2019, the brand sector fully implemented the concept of "creating a new Chinese
kitchen", creating a high-tech, high-end, professional and young brand image. The company participated
in 2019 AWE and created the exhibition theme of “Robam 40 years, creating new Chinese kitchen”.
Robam exclusively sponsors the CCTV column Chinese Flavor and serves as the food creator of
Chinese Restaurant 3 to transmit Chinese cooking culture; held the press conference of "Steamed flavor
of China. Exploring flavor of ten cities" and offline activities such as "Lei Jiayin, a high -power player in
the kitchen, is challenged to cook 100 steamed dishes", invited cooking masters and intangible cultural
heritage inheritors to create a steam culture tour of "one city, one flavor and one inheritor", published
China’s Steamed Flavor Map - 100 Steamed Dishes, Long Volume of China's Steaming Feast, etc and
cooperated with local TV stations, print media and local transportation media (high -speed rail, airport,
subway, etc.) to occupy the commanding heights of brand communication, continuously interact with
consumers, enhance brand exposure, and convey brand value.
In the first half of 2019, Mingqi put forward the new strategic layout of “big business recruitment, Suning
cooperation, engineering layout and home decoration integration" based on the core channel idea of
"strengthening counties, piloting cities and digging towns"; with "focus on the oven, expand Shuangshui
and innovate new retail of integrated stove" as the new category promotion model, the company shipped
up to 14% gas heaters and purifiers in the first half of the year and won TOP10 integrated stove in online
and offline activities of Jingdong 618; promoted and completed more than a thousand light blasting
activities around the "monthly activities and weekly blasting" and created a new high sales volume of
nationwide linkage activities in “Mingqi tenth anniversary celebration, Gratitude to regular customers”.
In the first half of 2019, the company continued to be recognized by the capital market in terms of
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Hangzhou Robam Appliances Co., Ltd. 2019 Semiannual Report Summary
corporate governance, internal management and shareholder returns, and won the "Best Board Award ",
th
"Best New Media Operator Award" and "Best Board Secretary Award" at the “Tianma Award - The 10
Listed Company Investor Relations Selection” of Securities Times, the 13 th China listed company value
selection "Top 50 SMEs Board Value", "Excellent SMEs Board Secretary", "Outstanding Board Secretary
of Information Disclosure" and other awards at the 13 th Chinese Listed Companies Value Appraisal.
2. Matters related to financial statements
(1) Explanation of changes in accounting policy, accounting estimates and accounting
methods when compared to the financial statements of the previous accounting period
√Applicable □ Not applicable
The 12th meeting of the 4th Board of Directors reviewed and adopted the Proposal on Changing Some
Accounting Standards. Relevant accounting policies were implemented according to the Notice on
Revising and Issuing the Format of Financial Statements for Ordinary Enterprises in 2019 (CK [2019]
No.6) released by the Ministry of Finance. This change of accounting policies is conducted according to
the laws, administrative regulations or unified national accounting system requirements, only involves
the presentation and adjustment of financial statements, and has no substantial impact on the
company’s total assets, net assets, operating income and net profit.
(2) Explanation of rectification of major accounting error in the reporting period which needs
to be tracked and restated
□ Applicable √ Not applicable
No rectification of major accounting error in the reporting period which needs to be tracked and restated.
(3) Explanation of changes in the scope of combined financial statements when compared
with financial statements of the previous accounting period
□ Applicable √ Not applicable
No changes in the scope of combined financial s tatements in the reporting period.
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