FLYCO(SH:603868) Xin Lang Ke Ji·2025-09-04 00:53Core Viewpoint - The company, Feike Electric, reported a decline in revenue for the first half of 2025, contrasting with the overall market trend in the electric shaver industry, which saw a growth in retail sales [3][5][8]. Financial Performance - Feike Electric's revenue for the first half of 2025 was 2.116 billion yuan, a year-on-year decrease of 8.76%, while net profit attributable to shareholders was 321 million yuan, an increase of 1.77% [3][5]. - The company experienced a significant decline in revenue in 2024, with total revenue of 4.147 billion yuan, down 18.03%, and net profit down 55.10% [5][6]. Marketing and R&D Strategy - Feike Electric is characterized as a "heavy marketing, light R&D" company, with sales expenses significantly higher than R&D expenses, reaching 18 times the R&D costs in the first half of 2025 [4][17]. - The company has reduced its dealer network by 83 dealers, a decline of 18.16%, indicating a shift in its distribution strategy [4][18]. Brand Strategy and Market Position - The sales proportion of mid-to-high-end products decreased to 56.37% in the first half of 2025, down 8.51 percentage points from the previous year [10][11]. - The sub-brand Borui's revenue was 411 million yuan, a decline of 18.07%, indicating challenges in the dual-brand strategy [10][11]. Product Performance - The sales volume of electric shavers has declined from 56.558 million units in 2020 to 41.907 million units in 2024, while the sales of hair dryers have also stagnated [13][15]. - The company's core business, personal care appliances, has seen a decrease in revenue contribution, with electric shavers being the largest segment [12][13]. Leadership and Dividend Policy - Chairman Li Gaiteng has overseen a cumulative cash dividend of 5.5748 billion yuan since 2016, with a dividend payout ratio close to 81.03% [4][20][22]. - The high dividend payouts have raised concerns about the company's retained earnings and future investment capabilities [23].