On August 26, a delegation led by Mr. Wang Shouwen, Deputy Secretary of the CPC Leadership Group as well as Vice Minister of China's Ministry of Commerce, visited Guangdong Xinbao Electrical Appliances Holdings Co., Ltd.
Mr. Wang, accompanied by Mr. Guo Jiangang and Mr. Zeng Zhanhui, respectively Chairman and President of Xinbao, visited the Xinbao showroom to learn about Xinbao's product R&D, production and operation, and market development. To find out more about the production and operation of foreign trade companies, he also had an extensive conversation with Chairman and President of Xinbao. Moreover, he listened to the company's requests and suggestions, particularly those related to the impacts of COVID-19, with a view to helping the business overcome challenges and promoting the high-quality development of the export industry.
Mr. Wang commended Xinbao's achievements and urged the company to maintain its strategic direction while remaining confident, ramp up research on key and core technologies, accelerate product upgrades, and actively "go global", exploring the global market to become stronger, better and bigger.
In the first quarter of 2022, Xinbao recorded RMB 7.13 billion in revenue, up 7.26% year-on-year, achieving stable business growth.
On the export front, while maintaining its advantages in the European and American markets, Xinbao has been increasing its investments in emerging markets. In addition to a moderate rise in total revenue, Xinbao registered a YoY increase in profit margin. The company's export revenue stood at RMB 5.45 billion in 1H 2022, up 5.81% YoY, accounting for 76.44% of the total revenue.
On the domestic sales front, Xinbao has been placing more emphasis on brand operation and domestic sales. In product planning and expansion, the company has been stepping efforts to develop environmental/cleaning products, increasing investment in technological innovation in various products, and gradually enlarging the share of high-added-value products, in addition to maintaining its attention to existing competitive products. The company's domestic sales stood at RMB 1.68 billion in 1H 2022, representing a 12.27% YoY growth. This shows that the share of domestic sales has been expanding steadily.
Xinbao is constantly enhancing its comprehensive competitiveness through many measures to reduce costs and increase efficiencies, such as technology innovation and production efficiency enhancement.