Hong En Q1 performance: Return to the profit track and quickly get the recognition of the capital market

Hong En, a science and technology puzzle product company in the United States, released the first quarter of the 2022 financial report on June 21. The data shows that after the temporary losses in the second half of 2021, they returned to the profit track. The closing up exceeded 6%, showing the capital market's recognition of its financial performance and strategy.

In the first quarter, Hong En's financial report showed that its income reached RMB 240 million, an increase of 7.1%over the same period last year. After adjustment of net profit, it reached 15.1 million yuan, an increase of 6.1%over the same period last year. Therefore, data in the first quarter show that Hong En has more rationalized research and development and promotion expenditures while maintaining a steady growth of income, returning to the profit track, and quickly boosted the confidence of investors.

It is commendable that the company continues to improve operating efficiency. With the significant reduction of markets and sales, its average monthly active user in the first quarter reached a record high, reaching 18.39 million, indicating that Hong En is still constantly polishing products and relying on user reputation marketing to come to market marketing. Realize natural growth.

In terms of products, Hong En continued to optimize the product, and continued to increase the perception and payment rate of product value in the end.

On the other hand, Hong En has a different approach to take smart hardware and overseas markets as a focus of future growth. Hong En history is a company with strong hardware strength. It has launched many hardware products that make parents and children like it. Although there are many smart hardware products on the market, according to internal understanding, Hong En will combine the combination of content and products in the market. The advantage continues to magnify. In addition, there is huge space in overseas markets. Hong En can use its advantages in creativity, art and technology. At the same time, it can build overseas operating teams and bring more good products to overseas users.

In short, Hong En's performance in the first quarter reflects his thinking in future operations. On the one hand, it consolidates the current business and generates healthy and sustainable cash flow. Secondly, the proportion of rationalized research and development and marketing costs, returning to the essence of technology companies. At present, Hong En's flow funds are abundant, about 800 million yuan, which makes it eager to expand new business. Maintaining the current momentum and breakthrough in the new business, Hong En's stock and valuation in 2022 are also likely to obtain a restructuring of the capital market.

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