FLYCO(SH:603868) Da Zhong Ri Bao·2025-10-31 10:19Core Insights - Shanghai FLYCO Electric Co., Ltd. reported a decline in both revenue and net profit for the third quarter of 2025, raising concerns about its business model and consumer trust [1][2]. Financial Performance - For the first three quarters of 2025, FLYCO's revenue was CNY 3.04 billion, a year-on-year decrease of 8.46%, while net profit was CNY 457 million, down 1.61% [2]. - In Q3 alone, revenue was CNY 924 million, with a net profit of CNY 136 million, reflecting declines of 7.75% and 8.76% respectively [2]. Cost Structure - The company's sales expenses reached CNY 10.12 billion in the first three quarters, which is 14 times higher than its R&D expenses of CNY 0.71 billion [3]. - The sales expenses have increased significantly from CNY 7.698 billion in 2021 to CNY 14.86 billion in 2024, while R&D expenses decreased from CNY 1.32 billion to CNY 964 million during the same period [3]. Market Position and Brand Strategy - FLYCO operates under a dual-brand strategy with "FLYCO" and "POREE," but the expected benefits of this strategy have not materialized in 2025 [1]. - The sales proportion of mid-to-high-end products dropped from 60.78% in 2024 to 56.37% in the first half of 2025, indicating a reversal in growth [5]. Consumer Complaints and Quality Issues - FLYCO has received over 1,200 consumer complaints, with issues related to product quality and after-sales service, including long repair times and difficulties in obtaining refunds [6][8]. - The sub-brand "POREE" experienced a revenue decline of 18.07%, with its sales proportion decreasing by 2.22 percentage points [5].