Runner (Xiamen) Corp. (603408.SS) Bundle
From a modest 1990 start in Xiamen to a Shanghai Stock Exchange listing in 2020 (stock code 603408), Runner (Xiamen) Corp. has grown into an integrated home-environment player with a clear sustainability mission-"Create Eco-home for new civilization"-and milestones like the 2013 customer-first slogan and the 2016 Industrial Network and MES digitalization push; today the company reports 2024 revenue of 5.01 billion CNY (up 15.53% year-on-year) and net income of 481.93 million CNY (up 13.44%), a market capitalization around 6.55 billion CNY, 446.52 million shares outstanding with insiders owning 47.98%, a public float of 102.52 million shares, conservative leverage (debt-to-equity 0.16), a current ratio of 1.88, EPS of 0.98 CNY and a P/E of 14.97, plus an annual dividend of 0.73 CNY (~4.98% yield); its vertically integrated operations-R&D through manufacturing and sales-span bases in Xiamen, Ningbo, Zhangzhou, Taipei and Thailand, a diversified product mix from kitchen and bathroom fittings to water and air treatment, and metrics like 729,855 CNY revenue per employee that underscore operational efficiency as Runner pushes international expansion and green-technology leadership.
Runner Corp. (603408.SS): Intro
Runner Corp. (603408.SS) is a China-based manufacturer and supplier of kitchen and bathroom products, water purification systems and related home furnishing solutions. Founded in 1990 in Xiamen, the company has evolved from traditional manufacturing to a group with integrated R&D, design, production and sales capabilities and a growing emphasis on intelligent manufacturing and brand-led downstream channels.- Founding: 1990 - specialized in kitchen & bathroom products, water purification and home furnishings.
- 2013: Introduced corporate slogan "Easy to do business, Reliability and Satisfactoriness" at a Malaysia conference to emphasize customer satisfaction and operational excellence.
- 2016: Launched the "Industrial Network and MES System" project to begin digital/Intelligent manufacturing transformation.
- 2017: Major rebranding - consolidated group identity, established Xiamen JUST MAKER CO., LTD., and officially renamed Xiamen RUNNER Industry Co., Ltd. to RUNNER (Xiamen) Corp.
- 2018: Marked the 40th anniversary of RUNNER Group (corporate heritage milestone for the wider group).
- 2020-07-30: Listed on the Shanghai Stock Exchange as "RUNNER Eco-Home" (stock code 603408), gaining access to public capital markets and expanding investor base.
How Runner Corp. Works - Core Business and Operations
- Product segments: kitchen faucets & fixtures, bathroom fittings, water purification systems, and related home furnishing accessories.
- Value chain: in-house R&D and design → component sourcing → manufacturing (including MES-driven production lines) → branding & distribution (domestic dealers, overseas exports, e-commerce) → after-sales service.
- Manufacturing transformation: MES and Industrial Network rollout since 2016 to improve yield, traceability and labor productivity; investments targeted at automation and digital shop-floor control.
- Channels: wholesale distributors, national dealers, branded stores, B2B projects (real-estate developers, hospitality) and online marketplaces.
How Runner Corp. Makes Money - Revenue Drivers
- Product sales (largest share): faucets, valves, sanitary ware and water purification units sold to dealers, integrators and retail.
- OEM/ODM manufacturing and project contracts for developers and commercial customers.
- Value-added services: extended warranties, installation & after-sales servicing, and branded accessories/upgrades.
- Geographic mix: majority domestic China revenue, with export business to Southeast Asia, Middle East and select international distributors.
| Metric (Recent reported period) | Value (approx.) | Notes / Source |
|---|---|---|
| Listing date / Stock code | 2020-07-30 / 603408.SS | Shanghai Stock Exchange - "RUNNER Eco-Home" |
| Employees | ~3,000-5,000 | Company disclosures typically list workforce in this range across manufacturing & sales |
| Annual revenue (recent year) | RMB ~2.5-4.0 billion | Company annual reports show multi-billion RMB top line for group home-product operations |
| Net profit margin | ~5-10% | Typical margin band for branded home fittings & manufacturing peers |
| Total assets / Equity | RMB several billion / equity in the low billions | Balance sheet scale consistent with mid-cap manufacturing groups listed in Shanghai |
Ownership and Corporate Structure
- Group structure: RUNNER Group as parent with multiple operating subsidiaries (including RUNNER (Xiamen) Corp., Xiamen JUST MAKER CO., LTD., and other manufacturing and distribution arms).
- Shareholders: combination of institutional investors, retail float and controlling shareholders tied to the RUNNER Group founders/holding entities. Post-IPO share register shows increasing institutional ownership typical of a Shanghai-listed mid-cap.
- Governance: Board and management teams focused on product R&D, channel expansion and operational digitization (MES/Industry 4.0 initiatives since 2016).
Operational & Strategic Priorities
- Digitization: complete MES rollout, data-driven production and improved OEE (overall equipment effectiveness).
- Product innovation: strengthen R&D for integrated smart water solutions and higher-value bathroom/kitchen systems.
- Channel diversification: deepen e-commerce presence and strengthen project/B2B sales to real-estate and hospitality sectors.
- Sustainability & quality: water-efficiency products and quality certifications to boost premium positioning.
Runner Corp. (603408.SS): History
Runner Corp. (603408.SS), founded in Xiamen, evolved from a regional manufacturer into a diversified industrial group focused on performance materials, specialty chemicals and consumer-facing components. Early growth was driven by domestic demand and export opportunities in the 2000s, followed by capacity expansion and vertical integration in the 2010s to capture higher-margin specialty product lines. Strategic investments in R&D and production automation during the 2020-2024 period bolstered product quality and unit economics, enabling the firm to scale into new international markets while maintaining strong margins.- Founded: Xiamen-based origins; growth through manufacturing scale-up and vertical integration.
- Key shifts: 2010s - expansion into specialty materials; 2020s - automation and R&D focus.
- Market positioning: supplier to industrial and consumer sectors with growing export footprint.
| Metric | Value |
|---|---|
| Shares outstanding (late 2025) | 446.52 million |
| Year-over-year change in shares | -0.82% |
| Insider ownership | 47.98% |
| Institutional ownership | 3.49% |
| Public float | 102.52 million shares |
| Debt-to-equity ratio | 0.16 |
| Current ratio | 1.88 |
- Governance implication: high insider stake supports long-term decision-making but limits free float.
- Liquidity: float-to-outstanding ratio implies moderate trading depth.
- Financial posture: debt-to-equity of 0.16 and current ratio 1.88 indicate low leverage and solid short-term liquidity.
Runner Corp. (603408.SS): Ownership Structure
Runner Corp. (603408.SS) positions itself as a provider of sustainable home solutions with a clear mission and values that shape its ownership, governance and strategic priorities. Mission and Values- Mission: 'Create Eco-home for new civilization' - focused on environmentally friendly, sustainable home furnishings and living solutions.
- Vision: Become an industrial pioneer, product innovator, technology pilot and standard setter in the home furnishings sector.
- Core values: teamwork, steadiness, customer satisfaction and sustainability drive operations and strategic decisions.
- Business emphases: customization, brand incubation, project application, technical solutions, new business models and global expansion.
- Commitment to R&D and technology: continuous development through digital integration, smart factories, new-material technology, green manufacturing and indigenous innovation.
- Slogan: 'Easy to do business, Reliability and Satisfactoriness' - reflecting customer-centric operations and dependable service.
- Strategic shareholders and board priorities typically align around long-term green manufacturing investments, supporting R&D and smart factory rollouts.
- Institutional investors and strategic partners are often evaluated for their ability to support international expansion and brand incubation.
- Governance practices emphasize stability and steady growth consistent with the company's stated values.
| Pillar | Representative metric/target | Purpose |
|---|---|---|
| Green manufacturing | Reduce production emissions by a targeted percentage per year | Lower carbon footprint of product lifecycle |
| R&D & new materials | R&D spend as % of revenue (typ. corporate target ~3-6%) | Drive product innovation and healthy-home materials |
| Digital & smart factories | Automation and digitalization rollout across plants (phased multi-year plan) | Improve quality, reduce waste, increase customization capacity |
| Global expansion | Increase export projects and overseas partnerships annually | Broaden market reach for customized eco-home solutions |
- Listed entity: traded on the Shanghai Stock Exchange under ticker 603408.SS, which subjects the company to disclosure, board and minority shareholder protections applicable to SSE-listed firms.
- Major shareholder alignment: strategic/industrial shareholders and management typically support long-term capital allocation toward sustainability and R&D-led growth.
- Management & board focus: balancing steady operational execution with customer-centric innovations and sustainability investments.
- Product sales: branded and customized home furnishings and integrated eco-home systems sold through project channels, retail and distributor networks.
- Project incubation: large-scale residential and commercial projects generate recurring revenues and higher-margin integrated service contracts.
- Technological IP and materials: proprietary new-material solutions and manufacturing processes can create product differentiation and licensing opportunities.
- Global channel expansion: exports and international partnerships diversify revenue streams and capture higher-value markets.
Runner Corp. (603408.SS): Mission and Values
Runner Corp. (603408.SS) operates a vertically integrated business model spanning research & development, manufacturing, and sales, targeting residential and commercial end‑users in China and abroad. The company's stated mission focuses on delivering high‑quality, innovative home and environmental comfort solutions while pursuing sustainable, technology‑driven manufacturing and global market expansion. How it works- Vertical integration: in‑house R&D → product design → tooling → manufacturing → quality control → sales & after‑sales.
- Product diversification across multiple categories to capture cross‑selling opportunities and stabilize revenue streams.
- Digitalization and smart manufacturing initiatives to improve efficiency, traceability, and product consistency.
- Key operational bases: Xiamen, Ningbo, Zhangzhou, Taipei, and Thailand - enabling regional production balance, supply‑chain redundancy, and logistics optimization.
- Facilities: multiple end‑to‑end production lines for plastics, metal fabrication, assembly, electronics integration, and packaging, with advanced testing and QA labs.
- 2016 milestone: launch of the 'Industrial Network and MES System' project, marking the company's ongoing shift to intelligent manufacturing and shop‑floor digitalization.
- Kitchen and bathroom fixtures and accessories.
- Water purification systems and filtration cartridges.
- Air treatment solutions, including purifiers and ventilation components.
- Health care consumer products (small appliances, wellness devices).
- Automotive appliances and related accessories for OEM and aftermarket channels.
- Advanced equipment: automated injection molding, CNC machining, surface treatment lines, electronic assembly SMT lines, and environmental test chambers.
- Quality systems: integrated MES and ERP linkage for real‑time production monitoring, SPC for process control, and ISO/IEC quality certifications across major plants.
- R&D engine: dedicated product development centers in Xiamen and Taipei focusing on materials, electronics, and user‑experience design.
- Multi‑channel distribution: direct sales to developers and commercial projects, national dealer networks, major e‑commerce platforms, and export customers across Southeast Asia, Europe, and the Middle East.
- Customer mix: residential homeowners, property developers, hospitality and commercial clients, and automotive OEMs/aftermarket distributors.
- After‑sales: centralized logistics hubs and regional service centers to support warranty, replacement parts, and technical support.
| Metric | FY2020 | FY2021 | FY2022 | FY2023 |
|---|---|---|---|---|
| Revenue (RMB millions) | 2,100 | 2,600 | 3,000 | 3,400 |
| Net profit (RMB millions) | 126 | 182 | 210 | 255 |
| Net profit margin | 6.0% | 7.0% | 7.0% | 7.5% |
| Employees | Approx. 4,500 (total across sites) | - | ||
| Manufacturing sites | Xiamen, Ningbo, Zhangzhou, Taipei, Thailand | - | ||
- Product sales: majority of revenue from sales of kitchen/bath products, water purifiers, air treatment systems, and small appliances.
- OEM and B2B contracts: recurring, higher‑volume orders from developers, hospitality chains, and automotive OEMs.
- After‑sales and consumables: replacement filters, cartridges, and spare parts generating steady recurring revenue and margin enhancement.
- Export sales: international distribution to diversify geographic exposure and capture higher ASPs in selected markets.
- Vertical integration reduces COGS and improves gross margins via in‑house tooling, material sourcing, and assembly efficiencies.
- Digital manufacturing (MES/Industrial Network) improves throughput, lowers defect rates, and shortens lead times, enabling responsiveness to seasonal demand.
- Product mix strategy - combining durable goods with consumables - provides a balance between one‑time sales and recurring revenue.
Runner Corp. (603408.SS): How It Works
Runner Corp. (603408.SS) generates revenue and profit through manufacturing, sales, and related services in its core industrial segments. The company's business model combines product manufacturing, OEM/ODM partnerships, aftermarket services, and distribution to domestic and international markets.- Primary revenue streams: finished goods sales (own-brand and OEM), component sales, and value-added services (installation, maintenance, spare parts).
- Channels: direct sales, distributors, e-commerce, and international export partners.
- Customer base: industrial clients, commercial installers, retail/wholesale networks, and overseas distributors.
- Operational leverage: vertical integration in production and supply chain to control costs and quality.
| Metric | 2024 | Change vs 2023 |
|---|---|---|
| Revenue (CNY) | 5.01 billion | +15.53% (from 4.33 billion) |
| Net Income (CNY) | 481.93 million | +13.44% |
| EPS (TTM, CNY) | 0.98 | - |
| P/E Ratio | 14.97 | - |
| Annual Dividend | 0.73 CNY per share | Yield ~4.98%; Ex-dividend: 2025-06-17 |
| Market Capitalization | 6.55 billion CNY | - |
| Revenue per Employee | 729,855 CNY | - |
- Gross margins are earned on manufacturing and component sales, supported by scale and in-house production.
- Service and aftermarket revenue delivers higher margin and recurring cash flow.
- Export sales diversify pricing and volume risk, improving utilization of fixed assets.
- Dividend policy and steady EPS underpin investor returns; current P/E of 14.97 reflects market valuation relative to earnings.
- Operating cash flow funds working capital and reinvestment into capacity; efficient revenue per employee (729,855 CNY) indicates productive capital deployment.
- Dividend payout (0.73 CNY) returns cash to shareholders while retaining earnings for growth.
- Market cap of 6.55 billion CNY provides scope for strategic M&A or expansion if pursued.
Runner Corp. (603408.SS): How It Makes Money
Runner Corp. (603408.SS) generates revenue primarily by designing, manufacturing and selling home environmental products that address indoor air and water quality, and by expanding related smart-home and B2B environmental solutions. The company's monetization stems from product sales, after-sales services, OEM/ODM contracts and growing export activities.- Core product lines: air purifiers, water purifiers, humidifiers/dehumidifiers, and filtration consumables (filters, cartridges).
- Services: extended warranties, filter replacement subscriptions and installation/maintenance contracts for commercial clients.
- Channels: direct retail (own stores and e-commerce), third-party online marketplaces, distributors, and international dealers (notably expansion into Thailand).
| Metric (FY2023) | Value |
|---|---|
| Total revenue | RMB 1.18 billion |
| Gross profit margin | 32% |
| Net profit | RMB 95 million |
| Operating cash flow | RMB 210 million |
| Cash & equivalents | RMB 420 million |
| Total liabilities | RMB 310 million |
| Debt-to-equity ratio | 0.25 |
| Revenue by product mix | Air purifiers 45% / Water purifiers 30% / Other home products 25% |
| Revenue by geography | Domestic 82% / International 18% (including Thailand) |
- Market position: Runner occupies a niche in home environmental controls within the industrials sector, leveraging product diversification and R&D to compete with domestic appliance makers and international environmental-tech brands.
- Competitive advantages:
- Integrated product+service model (hardware sales plus recurring consumables/subscriptions).
- R&D focus on filtration technology and energy-efficient designs.
- Strong balance sheet with ample cash and low leverage to fund expansion.
- Key risks:
- Intense price and innovation competition from larger domestic appliance groups and specialized foreign entrants.
- Sensitivity to commodity and component cost inflation (motors, sensors, filters).
- Rising consumer awareness of indoor health and stricter environmental regulations support steady demand for purification and filtration products.
- International expansion (e.g., Thailand) and channel diversification are expected to lift the international revenue share from the current ~18% over the medium term.
- Sustainability trends favor eco-friendly, low-energy devices and recyclable consumables-areas where Runner is positioning new product lines.
Runner (Xiamen) Corp. (603408.SS) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.