03/11/2022
The strategic fit of a business partnership really comes down to two key aspects: the potential value creation (i.e., the attractiveness of the partnership) and operations (i.e., the ease of the partnership) [1].
HHC/ MOTO 2022 Q3 Revenue & Net Profit
HHC/ MOTO’s 2022 Q3 report was recently published [2]. Our operating income from January to September 2022 is 1.109 Billion RMB, which is 25.55% lesser than that of 2021. Still, comparing the first year of the Covid19 pandemic, the growth is actually 26.85%.
Our January to September 2022’s net profit rose by 2.45%, reaching 257 million RMB. Compared with the same period in 2021, it has increased by 8.67%, and it has increased by 66.33% compared with the same period in 2020, (i.e.) the first year of the Covid19 pandemic.
The above is possible because some of the new customers that we have cultivated are not only high-quality, but they also buy relatively unique, cutting-edge and technologically advanced products from us. All these contributed to the improvement of HHC/ MOTO’s gross profit margin and net profit.
Concurrently, we will continue to pay attention to operational efficiencies, through automation, informatization, digitization and 6S lean management. These greatly reduced front-line and management personnel, hence effectively controlling costs. Undoubtedly, the favourable exchange rate change of USD/ RMB starting at the end of April 2022 has a positive effect on our net profit increment.
Consolidating Quality Customers
On May 23 2022, the US industry-renowned magazine Furniture Today published a ‘Top 100 Furniture Retailers in America 2021’ list. 28 of the "Top 100 Furniture Retailers in America in 2021" are corporate customers of HHC/ MOTO.
Presently, HHC/ MOTO is cultivating 13 potential new customers, including COSTCO (USA) and COSTCO (Canada) where 5 of the 13 new customers are in Canada. This is in line with HHC/ MOTO efforts to grow ourselves beyond the U.S. market.
Comparing to 2021, HHC/ MOTO’s sales in Canada and Italy increased by 5.73% and 27.56% respectively. Even within the US market, 50% of HHC/ MOTO’s top 30 customers’ sales volume have grown, with the highest growth rate being 231.82%.
Between January to September 2022, our motorized adjustable bases achieved double digital growth in sales and sales ratio, with the growth ratios of 5.93% and 5.75%, respectively.
Cultivating Strategic Fit Partnerships
HHC/ MOTO is actively seeking strategic fit partnerships with furniture retailers in Europe Middle East & Africa (EMEA), The Indo-Pacific Economic Framework (IPEF) & Regional Comprehensive Economic Partnership (RCEP).
We have developed prudent manufacturing, space and freight strategies in the delivery. Money saved on production, delivery and fuel will negate the added costs of local labor, making the entire supply chain process more sustainable.
Naturally too, it is imperative for furniture retailers to innovate constantly, by focusing on improving product quality, upping manufacturing standards and lowering cost and strengthening value propositions to stay competitive in their respective local and international markets.
With HHC/ MOTO's 8 facilities in Vietnam (>1,700 employees), 3 facilities in China (>1600 employees) and a production capacity of 3000 containers monthly, we are very well positioned to support your team in the above. Do email us ([email protected]) today and start discussing possibilities.
References:
[1] Forbes.com, How to Evaluate & Execute Strategic Partnerships & Alliances. URL: https://www.forbes.com/sites/forbesbusinesscouncil/2021/11/08/how-to-evaluate-and-execute-strategic-partnerships-and-alliances/ [Accessed: 3rd Nov 2022]
[2] HHC/ Moto (301061.SZ), 2022 Q3 Report, Shenzhen Stock Exchange China. URL: http://www.szse.cn/disclosure/listed/bulletinDetail/index.html?4fade8d7-8f66-486c-8e10-31e757532137 [Accessed: 3rd Nov 2022]
