FLYCO(SH:603868) Xin Lang Ke Ji·2025-09-04 02:03Core Viewpoint - The company, Feike Electric, reported a decline in revenue for the first half of 2025, contrasting with the overall growth in the electric shaver market, indicating potential issues with its business strategy and market positioning [1][2][22]. 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% [1][6]. - 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% [4][22]. Market Position and Strategy - The domestic electric shaver market saw a retail revenue increase of 10.5% in the first half of 2025, highlighting Feike's underperformance relative to industry trends [2]. - Feike Electric's sales expenses from 2021 to 2025H1 were significantly higher than its R&D expenses, with sales expenses reaching 704 million yuan in the first half of 2025, 18 times the R&D expenses of 38.88 million yuan [3][15]. Brand and Product Performance - 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 [8]. - The sub-brand Borui's revenue was 411 million yuan, a decline of 18.07%, indicating challenges in brand positioning and market acceptance [8][9]. Distribution and Sales Channels - Feike Electric reduced its number of distributors by 83, a decline of 18.16%, as part of a strategy to adapt its sales model [4][17]. - The company is shifting towards a mixed sales approach, combining distribution and direct sales through various channels, including e-commerce and experience stores [17]. Competitive Landscape - The company faces increasing competition from brands like Xiaomi and Leifeng, which have adopted innovative marketing strategies and high cost-performance products, impacting Feike's market share [16][22]. - The reliance on traditional marketing methods has become less effective, necessitating a reevaluation of the company's marketing strategy [17][22]. Dividend Policy - Since 2016, Feike Electric has distributed a total of 5.5748 billion yuan in cash dividends, with a payout ratio close to 81.03%, raising concerns about the sustainability of its growth and investment potential [19][21].