On May 4, Sigelei (871818) released its 2019 annual report. In 2019, the company achieved an operating income of RMB 107,408,097.46, a year-on-year decrease of 52.25%; it realized a net profit attributable to shareholders of listed companies of RMB -23,148,091.24, which was a year-on-year profit turnaround.
At the end of the reporting period, the company’s total assets were 134,159,304.00 yuan, down 31.55% from the beginning of the period; the net assets attributable to shareholders of listed companies were 84,160,444.77 yuan, down 21.57% from the beginning of the period.
It is understood that operating income decreased by 52.25% over the same period of the previous year, mainly due to the impact of increased tariffs in the United States in 2019, and New York State announced a ban on the sale of flavored electronic cigarettes. On November 1 this year, the State Tobacco Monopoly Administration and the State Administration of Market Regulation and Administration issued the “Notice on Further Protecting Minors from Electronic Cigarettes,” requiring all Internet online channels to stop selling e-cigarette products, leading to a decline in sales.
Operating costs decreased by 42.68% over the same period of last year, mainly due to: operating income decreased by 52.25%. Due to fierce market competition and the impact of increased tariffs in the US market, this year’s product revenue decreased, resulting in lower costs.
Administrative expenses decreased by 23.13% compared with the same period of the previous year, mainly due to: the current salary decreased by 1.4 million and other expenses.
R & D expenses increased by 29.22% over the same period of last year, mainly because: the company continued to increase investment in product research and development.
Sales expenses increased by 23.39% over the same period of the previous year, mainly due to: the increase in advertising expenses and business promotion fees.
According to the online data, Sigelei is a professional electronic cigarette manufacturer and brand operator integrating R & D, production, sales and service.