Blue Moon (6993): Development History

Blue Moon (6993): Development History

Blue Moon (6993) is listed on December 16 for a complete overview of its development history | IPO. The leader of the ground laundry detergent Blue Moon (6993) will be officially registered on Wednesday (16th). The market has responded enthusiastically. It said that the public offering was more than 300 subscription times, and the frozen capital exceeded 290 billion yuan. The list of companies is near, investors can First understand and review the history of development and background of Blue Moon.

As a reference to wanting to invest a stake in Blue moon, this is a bit of the history of the company.

The Blue Moon brand was founded in 1992. The goal is to be a provider of consumer-centered home cleaning solutions with innovation as the driver. She now has 73 sets of clothing cleaning treatments, personal hygiene treatments, and household hygiene treatments. Variety of products.

Since its establishment 28 years ago, the company has launched new products to meet the needs of consumers in cleaning households. In 1992, the company launched the first "Blue Moon" brand products "Blue Moon Powered Oil Killer", and then successively launched the "Weinuo" brand bathroom cleaning products, "Supreme" brand concentrate laundry detergent products, and premium "Jingxiang" brand premium products. "Tianlu" brand hand sanitizer and cutlery products with soft formula and fruit and vegetable cleaning products.

In the last ten years, the company has been actively developing new products, and the main products have been welcomed by the market. In 2008, Blue Moon launched Blue Moon Deep Cleaning Laundry Detergent in China, and its retail sales exceeded 5 million yuan in 2012. In 2015, Blue Moon launched china's first "Concentrated+" detergent washer with pump head meter packaging. In 2018, laundry detergent "Supreme" entered the high-end market of Chinese laundry detergent, using several active enzymes to remove protein and starch stains and prevent yellowing of clothes. In 2019, Blue Moon launched four new products, namely Tianlu Tableware Fruit and Vegetable Cleansing Essence, Oily Staining Foam Type, Wei Nuo Mould Remover and Cleaner Micron Foam Amino Acid Hand Wash, expanding the household cleaning product line.

Blue Moon (6993)/ pic: hk01.com

Focus on online development 

Blue moon's list of corporate funds raised up to 9.83 billion yuan, of which about 52.4% was used to increase brand awareness, further strengthen the sales and distribution network, and about 35.6% of the funds were used for business expansion, including improving products, expanding product categories, and consolidating distribution networks and increasing product penetration.

The company stated that to strengthen its leading position in online channels, it will focus on strengthening cooperation with e-commerce platforms in the short and medium term, and selling more products in cities below the third tier, including deepening cooperation with e-commerce, expanding emerging e-commerce channels, and strengthening the bottom line. Shen's market expansion has reached a partnership with more offline marketers and launched different high-end products to increase market share in sub-categories.

In the past, offline channels have always been the company's source of revenue. Blue Moon sells directly to large customers.
However, from here it appears that the company's revenue channel has shifted to online, while offline channels are slowly shrinking, and proving that the company has adapted to technological changes and successfully expanded online penetration to keep up with trends. Customers continue to use their products online which means high loyalty.
With the popularity of online platforms, the company's revenue from online sales gradually increased. Since July 2012, the company has been selling products through ecommerce platforms and sold to ecommerce platforms, including sales on major Chinese ecommerce platforms such as Tmall, JD.com and Suning, and sales of other emerging ecommerce platforms, including Duoduo and other social e-commerce platforms, fresh food e-commerce platforms, and the company's online purchasing system.

From 2017 to 2019, revenue from online sales channels accounted for 33.1%, 40.2%, and 47.2%. In the first half of this year, revenues accounted for more than 50%, reaching 58.8%. As for offline channels, revenues accounted for 66.9% in 2017, falling to 59.8% in 2018, 52.8% in 2019, and 41.2% in the first half of this year.

According to the company's prospectus, Blue Moon's revenue in the first half of the year was 2.44 billion yuan (RMB- the same below), down 10.5% year-on-year, net profit rose 38.6% year-on-year to 300 million yuan, and overall gross profit margin rose 2.5 percentage points year-on-year to 64%.

The company's core business is cleaning and clothing care products, which account for about 69% of total revenue. In the first half of this year, revenue was 1.68 billion yuan, down 28.9% year-on-year, and gross profit margin was 61.4%. The company explained that the decrease in its revenue was caused by the outbreak of the new coronavirus. This has weakened consumer demand for cleaning and clothing care products, but has led to a substantial increase in demand for disinfection products, resulting in a substantial increase in revenues of personal cleaning care products and household hygiene care products. Revenue from personal cleaning care products and household cleaning care products increased 1.6 times to 470 million yuan and 64.2% to 290 million yuan, respectively, with gross profit margins of 68.2% and 72.4%.

At the end of 2019, in terms of retail sales, Blue Moon's market share in the laundry detergent market, concentrated detergent market and hand sanitizer market all ranked first, with 24.4%, 27.9% and 17.4% respectively.


Source: www.hk01.com

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