Wulun Technology's 2024 interim report: total operating income fell 24% to 120 million yuan, and OEM business revenue fell sharply by 29.55%

Wulun Technology's 2024 interim report: total operating income fell 24% to 120 million yuan, and OEM business revenue fell sharply by 29.55%

Wulun Technology's revenue in the first half of 2024 fell 24% to 120 million yuan, and the net loss attributable to shareholders of the listed company was about 19.35 million yuan, a decrease of 184.42% from the same period last year. Due to the fierce homogeneous competition in the e-cigarette market, both domestic and foreign sales revenue and gross profit margin declined, and OEM/ODM business revenue fell sharply by 29.55% to 82 million yuan from the same period last year.

 

Recently, Shenzhen Wulun Technology Co., Ltd. (833767) released its 2024 semi-annual report.

 

The report shows that the total operating income in the first half of 2024 was about 120 million yuan, a decrease of 24% from 160 million yuan in the same period last year; the gross profit margin was 27.46%, a decrease of 7.73% from the same period last year; the net loss attributable to shareholders of the listed company was about 19.35 million yuan, a decrease of 184.42% from the same period last year.

 

The report stated that the company continued to focus on overseas markets such as Europe and the United States in the first half of the year. In the first half of 2024, competition among homogeneous e-cigarette products was fierce, the company's product differentiation advantages were not obvious, and sales volume declined.

Wulun Technology 2024 Semi-annual Report

 

Among them, the operating income of the independent brand was about 39.22 million yuan, a decrease of 9.02% from the same period last year, and the gross profit margin was 25.91%, a decrease of 3.48% from the same period last year; the operating income of OEM/ODM was about 82 million yuan, a sharp decrease of 29.55% from the same period last year, and the gross profit margin was 28.21%, a decrease of 9.13% from the same period last year.

Operating income of self-owned brands and OEM/ODM

Domestic sales revenue and export revenue

 

In addition, due to the decrease in OEM orders, the company's domestic sales revenue in the reporting period decreased by 76.50% compared with the same period last year, and the domestic sales gross profit margin decreased by 2.58% compared with the same period last year. This was mainly due to the fierce competition of homogeneous products in the overseas e-cigarette market, so the price sold by the company to companies holding e-cigarette tobacco monopoly licenses (brand holding companies) decreased compared with the same period last year.

 

Due to the fierce competition of homogeneous products in the overseas market in the first half of the year, export revenue decreased by 23.39%

 

compared with the same period last year, and export costs decreased by 13.92% compared with the same period last year.

 

The company stated that the research and development focus in the first half of 2024 will be multi-cartridge e-cigarettes and cartridge-changing e-cigarettes, and the promotion of its own brands VAPESOUL, VOOM, etc., positioning in the high-end e-cigarette market.