BIYI(SH:603215) Xin Lang Cai Jing·2025-09-09 11:30Core Viewpoint - The company, Zhejiang Biyi Electric Co., Ltd., is expanding its production capacity through a new fundraising project aimed at enhancing its smart kitchen appliance manufacturing capabilities, with significant market growth potential in the small home appliance sector [2][3]. Fundraising Project and Capacity Analysis - The fundraising project, "Zhongyi Industrial Park Smart Kitchen Appliance Construction Project (Phase II)," aims to establish automated production lines and a vertical warehouse, with a target annual production capacity of 15 million units of air fryers, air ovens, and environmental appliances [2]. - The project plans to raise no more than 624.375 million yuan, with an overall construction period of three years, and is expected to achieve an average annual revenue of 1.618 billion yuan and an average annual net profit of 166.19 million yuan, with a gross profit margin of 17.91% [2]. - The global small appliance market is steadily growing, with a market size of 243.31 billion USD in 2022, projected to reach 323.66 billion USD by 2028. The air fryer/air oven market is expected to grow from 3.71 billion USD in 2024 to 10 billion USD by 2032, with a compound annual growth rate of 13.18% [2]. Competitive Landscape - The small appliance market is highly competitive, with Biyi holding an 8.0% market share in air fryer sales in 2022. The company has competitive advantages due to its quality customer resources and technological innovation capabilities [2][3]. - Competitors like Liren Technology, Xiaoxiong Electric, and Xinbao Co., Ltd. are also expanding their capacities and investing in smart and digital production [3]. Previous Fundraising Project Status - The previous fundraising project faced changes in land use planning, leading to a reallocation of funds towards the current smart kitchen appliance project. The first phase of the project is nearing completion, expected to be operational by October 2025, while the second phase is 75% complete and expected to be operational by October 2026 [4]. Business and Operational Analysis - The company's revenue for the reporting period was 1.499 billion yuan, 1.559 billion yuan, 2.059 billion yuan, and 530 million yuan, with net profits of 178 million yuan, 201 million yuan, 139 million yuan, and 15 million yuan, respectively. The gross profit margins were 19.48%, 20.81%, 15.41%, and 13.07% [5]. - Revenue growth is primarily driven by increased sales of air fryers and air ovens, while net profit fluctuations are influenced by declining gross margins and increased e-commerce promotion costs. The company’s performance trends are consistent with comparable industry peers [5]. - The company’s competitive advantages include customer resources, technological innovation, and supply chain strengths, although its ODM/OEM business model presents certain disadvantages. To mitigate risks associated with declining gross margins, the company is enhancing customer communication, targeting high-margin clients, and advancing new product development [5]. Other Relevant Matters - During the reporting period, the company made joint investments with related parties in several ventures, ensuring fair pricing and compliance with decision-making procedures. The company has adjusted its fundraising total to 482.475 million yuan after accounting for financial investments [7].