On April 11, one of China's largest manufacturers of electrical and electronic products Bull Group Corporation announced its 2021 financial results, showing a positive trend in its continuous growth.
Bull Group (公牛集团) mainly produces civil electrical products. The Company manufactures and sells wall and crystalline glass switches, sockets, LED lighting and digital accessories, power strips, and other related products while serves customers worldwide.
According to the earning statement, in 2021, Bull Group achieved revenue of CNY 12.385 billion, up 23.22% year-on-year. The company's net profit attributable to shareholders of the listed company reached CNY 2.780 billion, up 20.18% year-on-year, showing growth in revenue and net profit.
Founded in 1995, the company focuses on three business segments. Including electric connection, intelligent electrical lighting and digital accessories, with products ranging from converters, intelligent electrical lighting products to digital accessories.
In 2021, the company's electric product business achieved revenue of CNY 6.413 billion, up 15.58% year-on-year; the intelligent electrician lighting business achieved revenue of CNY 5.551 billion, up 36.90% year-on-year. In these categories, the revenue of LED lighting business increased by 38.53% year-on-year, demonstrating positive growth in the past business performance.
However, despite the overall growth in performance, the gross margin of the company's main business is declining year by year. The financial report shows that the company's main product gross margin of 36.85%, a decrease of 3.21& points year-on-year.
Specifically, in 2021, the company's electric connection business gross margin of 32.95%, a decrease of 6.18 percentage points; intelligent electrician lighting products gross margin of 42.02%, a decrease of 1.13 percentage points; digital accessories gross margin of about 27%, an increase of 4.63 percentage points.
Some of the primary reasons for the decline in gross margin are the increased prices in raw materials and changes in the company's product structure. These raw materials include plastic, copper and other bulk commodities. During the early stage of promotion, new products have relatively low profit margin compared to traditional best-selling categories.