Rainbow Group was listed on the market for the first time to be reduced by major shareholders' holdings of marketing and "counterfeiting" dual power but no major breakthroughs.

Rainbow Group's online marketing investment is large, but it has failed to achieve large performance breakthroughs. Its products have been greatly affected by seasonality. In recent years, they have frequently lawsuits due to "counterfeiting".

On July 22, Chengdu Rainbow Electric (Group) Co., Ltd. (hereinafter referred to as: Rainbow Group, 003023.SZ) Shareholders Silicon Valley Paradise, the two funds of the two funds of the two funds expired. %. Since its listing in 2020, Rainbow Group has been reduced by major shareholders for the first time.

In terms of performance, Rainbow Group has a peak of performance in 2018. Since then, it has increased marketing investment in online channels, but failed to achieve a large breakthrough. Specifically, the proportion of the Rainbow Group's product revenue is large, and it is greatly affected by seasonality. In addition, the Rainbow Group has frequently fought a lawsuit for "counterfeiting" in recent years.

In response to the above situation, it was found that the network sent an interview letter to the Rainbow Group to send an interview letter to request doubts. As of press time, Rainbow Group did not give a reasonable explanation.

Marketing is hard but failed to achieve a breakthrough in performance

Public information shows that Rainbow Group was listed in 2020. The main business is currently the main business is home flexible heating appliances and home health insecticidal products. The main products include electric blankets (cushions), warm -up stickers and other indoor and outdoor heating supplies and electric mosquito coils. Mosquito coil slices, insecticidal qi fog agents and other houses and outside of interior and outside the house.

On July 22, the Rainbow Group issued the "Announcement on the Flow of the Specific shareholders' first reduction plan and the results of reduction of holdings". Investment partnership (limited partnership) (hereinafter referred to as: Ruizhen Investment), Tibet Shannan Silicon Valley Paradise Changji Investment Management Co., Ltd. -Chengdu Silicon Valley Paradise Tongwei Yinke Equity Investment Management Co., Ltd. (hereinafter referred to as: Tongwei Yinke) reduction shares Pre -disclosure announcement.

The reason for the reduction of the two funds of Silicon Valley Paradise is the demand for corporate funds. As of the disclosure date of this announcement, Ruiyi Investment and Tongwei Yinke had reduced their holdings of 778,600 shares and 778,600 shares through major transactions, centralized bidding transactions, and other methods, respectively. According to the data, Ruiyi Investment and Tongwei Yinke are the second and third major shareholders of the company. Since its listing in 2020, the Rainbow Group has been minus holdings by major shareholders.

(Picture source: wind, company announcement)

From the perspective of performance, 2018 is the turning point of the Rainbow Group. In 2018, the total operating revenue of Rainbow Group increased from 837 million yuan to 1.071 billion yuan, exceeding 1 billion levels; net profit at home was 139 million yuan, an increase of 77.32%year -on -year.

In order to make their own performance go to the next level, like many home appliance companies, the Rainbow Group has increased its investment in online platforms. At present, Rainbow Group has shown a trend of gradually moving from offline to online. In addition to traditional e -commerce Taobao, Tmall and other platforms, community platforms, short videos, live broadcasts, and broadcast platforms have gradually become a new channel for the sales of Rainbow Group's products. "Internet celebrities" expand brand popularity from all aspects.

However, in the next few years, the total operating income and net profit of Rainbow Group have not achieved a large breakthrough, but fortunately, the performance is relatively stable. In the first quarter of 2022, Rainbow Group achieved total operating income of 242 million yuan, a year -on -year decrease of 15.98%; net profit of home mother was 225 million yuan, a year -on -year decrease of 32.69%, and the net profit of revenue declined.

(Picture source: Wind)

At the same time, as of the first quarter of 2022, the sales rate of Rainbow Group reached 24.92%, while the R & D cost rate was 3%at the same time.

In recent years, the "counterfeiting" operation has been launched one after another

Checking Wind data found that the Rainbow Group has shown a "double drop" of net revenue since the fourth quarter of 2021. In the fourth quarter of 2021, the total operating revenue of Rainbow Group was 385 million yuan, a year -on -year decrease of 8.56%; net profit of home mother was 22 million yuan, a year -on -year decrease of 33.47%.

(Picture source: Wind)

The Rainbow Group explained that except for a brief cooling in mid -November in the fourth quarter of 2021, the overall climate conditions were extremely unfavorable to sales. In this regard, the company seized the short -term cooling window period, with Double Eleven and Double Twelve as an important breakthrough to maximize sales.

In fact, because the main business of the Rainbow Group is mosquito -prevention products and home flexible heating appliances, summer and winter are the peak sales season of Rainbow Group. In this regard, in order to fill the vacancy of sales and avoid affecting the efficiency of corporate benefits due to weather factors, the company is currently developing some perennial products that do not rely on climate, such as masks, disinfectant, medical heating stickers, etc. The revenue is relatively limited.

At the same time, in 2021, among the main products of Rainbow Group, the revenue of home flexible heating products was 696 million yuan, revenue accounted for 60.80%, and the revenue of household health pesticides was 413 million yuan, and revenue accounted for 36.13 36.13 %, The proportion of revenue between the two is large; the corresponding gross profit margin is 46.31%and 41.75%, and the gross profit margin level is not much different.

(Picture source: annual report of 2021)

In addition, perhaps in recent years, it has promoted its products through various Internet channels. The brand effect of the Rainbow Group has increased, and it follows the frequent "counterfeiting".

For fake manufacturers, production fakes are just a simple imitation behavior. The appearance similarity is the most important, and the quality of fake goods is not high. If consumers buy fake goods, they will spend money in vain, and they will not achieve their desired results, and the imitated brands will be implicated. The Rainbow Group's "counterfeiting" battle began as much as 7 years ago. According to the company's official website news, in 2015, after receiving a report from the masses, Zhou Bicun, the Minister of the after -sales service department, went to the Luoyu Bay Wholesale Market in Kunming, Yunnan. With the strong cooperation of the local industrial and commercial organs, it was faked by the fake cargo yard and confiscated more than 8,000 boxes. " Rainbow "mosquito coils.

In 2016, there were also more than 30 "Dream Enjoying Rainbow" electric blanket fakes that also found more than 30 beds and decoration infringement in Sichuan Longchang wholesale market.

(Source: news of Rainbow Group's official website)

In recent years, the Rainbow Group has been working on "counterfeiting" and "infringement". The "referee documents" part of the company's investigation showed that starting from 2017, in the lawsuit cases involved in the Rainbow Group, most cases are disputes between infringing trademark rights and trademark power. The Rainbow Group is the plaintiff.

(Photo source: Enterprise check)

It is understood that the current sales model of Rainbow Group is mainly distributed. As of 2021, Rainbow Group's regional dealer model accounts for 44.08%of revenue, chain retail supermarket model accounts for 19.43%, Internet dealer model accounts for 13.72%. Online and offline direct sales sales models account for 21.09%and 0.84%, respectively. The advantage of the distribution model is that the cost is low and the market coverage is faster. However, in order to earn more profits, some dealers need to be vigilant.

(Picture source: annual report of 2021)

(Reporter Luo Xuefeng, financial researcher Gao Ran)

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