Stock Code: 603737

3TREES 2019H1 Report 

SKSHU Paint Co., Ltd

Revenue and net profit maintained high growth trend

Operating revenue registered steady high growth

Operating revenue reached RMB2.202 billion in 2019H1, with a year-on-year increase of 66.14%.

RMB1.326 billion in 2018

RMB2.202 billion in 2019

Operating revenue and profitability remained good.

In the first half of 2019, the net profit attributable to shareholders of the listed companies stood at RMB117.9131 million, with a year-on-year increase of 99.66%.

RMB59.0566 million in 2018

RMB117.9131 million in 2019     

Net profit

The net profit attributable to shareholders of the listed company after deducting non-recurring profit and loss was RMB82.4433 million, an increase of 103.79% over the same period of last year.

RMB40.455 million in 2018

RMB82.4433 million in 2019

Net profit after deducting non-recurring profit and loss

The net cash flow from operating activities was - RMB87.7238 million, an increase of RMB20.8853 million over the same period of last year.

- RMB108 million in 2018

- RMB88 million in 2019

Net cash flow

The weighted return on net assets increased by 8.46%, an increase of 3.28 percent points over the same period of last year.

5.18% in 2018

8.46% in 2019

Weighted average return on equity

The basic earnings per share was RMB0.63, up 103.23% over the same period last year.

RMB0.31 in 2018

RMB0.63 in 2019

Engineering Business Grows Steadily

3TREES has established prominent competitive advantages in engineering coating business. Adopting a vision of becoming China’s most valuable and competitive engineering coating system service provider, it has adhered to a brand positioning of "Aesthetics of Green Building". Always “user-centric”, 3TREES has focused on providing premium services for Top10 customers and refined services for TOP100 clients. By building "6-in-1” core competitiveness in green construction materials and services, encompassing interior and exterior wall coatings, waterproofing products, insulation materials, auxiliary materials, floor coatings and construction, the company aspires to establish an ultimate supply chain service system, implement an omni-channel strategic layout, and provide integrated coating and city refresh coating services. It has also created a 361° service system, continuously transformed itself from a coating manufacturer to a comprehensive service provider of "coating + service consulting + construction service". Through providing one-stop service for green building materials, 3TREES can meet the diversified needs of city refresh, green campuses, hospitals, factories, and underground space systems. In the first half of 2019, its engineering wall paint sales revenue reached RMB1,041.0786 million, representing a great achievement.

A new retail system is fast integrated, producing remarkable results

In the first half of 2019, 3TREES saw stable growth of its home decoration wall paint business. The company constantly summarized and refined customer profit experience and business models, accelerated the integration of its new retail system, and basically formed a CRM system. Precision online traffic diversion produced good results. By centering around customers, the company comprehensively integrated its marketing and sales processes, and provided industry-specific sales process management through accurate member management and resources management, so as to help distributors to improve sales capacity and business value. Through precision traffic diversion, the company set up professional teams and continuously contract signing rate. Its industry-leading art paint product series far outperformed industry standards. Efforts to focus on "health+" product promotion and integrate business lines produced remarkable effects. In the future, 3TREES will extend its new retail business from single products to multiple products, provide consumers with one-stop consumption service, establish a new terminal retail mode and offer Immediate Move-in ultimate service. The company has now built up a strong development momentum.

Create ultimate products and pursue intelligent manufacturing, green production

3TREES is committed to developing, upgrading and optimizing products through its product R&D philosophy concept of " Ultimate performance and application for ultimate health", and has continuously upgraded its "health +" product standard. In the first half of 2019, 99 new products were developed, and the third-generation "health +" series of home decoration wall paints were launched. Its engineering exterior wall stone-like coatings mainly composed of "granite paint", "natural stone paint" and "texture paint" have all reached the ten ring environmental standard, representing remarkable R&D achievements. In terms of supply chain services, 3TREES, through the layout of its nationwide production bases and auxiliary material factories and taking a big data management platform as information support, has gradually built a full-category supply chain network with multiple factories and multiple warehouses, which can achieve the rapid supply of all product categories.

Build consensus and implement new culture

3TREES has implemented a new cultural system. Internally, it has systematically carried out cultural training, event organizing, communication and other empowerment work, established a co-build and sharing mechanism, and set up self-driven and efficient multi-functional teams. Externally, it has explored visit-type cultural training, provided corporate culture training for partners, disseminated its corporate culture and brand, and established a cultural marketing model with 3TREES characteristics.

Optimize production capacity and make reasonable layout

In the second half of 2019, 3TREES will continue to push forward production base construction in Mingguang of Anhui Province, Boye of Hebei Province and Putian Xiuyu of Fujian Province, further increase the production capacity of waterproof products and art paint, support producing and construction work at Guangzhou Dayu Leakproof Technology Development Co., Ltd., promote the continuous optimization of production capacity distribution, and raise the level of supply chain services. It will continue to firmly practice its corporate mission of "Making homes healthier and cities more beautiful", center around its core values of " Customer Orientation, Win-win Cooperation with Partner and Sharing with Strivers", stay true to its original aspiration of "developing ultimate healthy products and one-stop products", strengthen brand management and user research, constantly make breakthroughs in management and technology, and make more and better products and services for users.