Flower Finance Original
After completing the listing target, the performance of the child king was somewhat disappointing.
From the market value of more than 25 billion yuan on the first day of listing, to the market value of nearly 8 billion yuan in less than a month, the child king can be said to be difficult to reflect the "king" atmosphere.
As the head player of the mother and baby retail track, although the market value of the child king is still far ahead of the peer competitors such as baby-friendly room and being inmate, the child king is still difficult to say the future.
October 14 this year is a good day for the child Wang to successfully land on the Shenzhen Stock Exchange. On the first day of listing, the company's stock price soared by 303%, which was called "mother and baby giant" by the market, which was unique for a time.
But soon, the plot took a turn for the worse. The day after the listing, the child King stock price went straight to the break, changing the strength of the previous day. To this day, the company's stock price is still in a depressed state.
Along with this, shortly thereafter, The Boy King handed over his first weak financial report after the listing. That is to say, the stock price trend, to some extent, reflects the market's anxiety about the future of the child king in advance.
On October 29, Child King released the third quarter report of 2021, showing that the company achieved operating income of 6.597 billion yuan, an increase of 13.29% year-on-year; net profit attributable to the mother was 237 million yuan, down 8.54% year-on-year.
Compared with the continuous synchronous growth of revenue and profit in previous years, the performance statement of the child king that increased revenue and did not increase profits was obviously slightly faded. However, this performance change face, in fact, there is a premonition.
In the past few years, the performance growth rate of Child King has been declining year by year. From 2018 to 2020, the operating income of Kid King was 6.671 billion yuan, 8.243 billion yuan and 8.355 billion yuan, an increase of 27.42%, 23.56% and 1.37% year-on-year, and the net profit attributable to the mother was 276 million yuan, 377 million yuan and 391 million yuan, an increase of 194.21%, 36.76% and 3.61% year-on-year.
The change in the number of days of inventory turnover is also a warning of the decline of the internal operation of the child king. From 2018 to 2020, the number of inventory turnover days of Child King was 54.45 days, 55.60 days and 60.01 days, respectively, showing an overall upward trend.
It is worth mentioning that before this listing, the child King has a listing experience, and the past performance is also very bleak, after the return to the capital market, the company's performance immediately changed its face, it is not difficult to make people wonder.
On December 9, 2016, it was the time when The Child King was listed for the first time, and at that time, the place where the Child King was listed was the New Third Board, and the market value on the first day of listing exceeded 14 billion.
However, only two years later, by March 2018, the child king was withdrawn from the new third board, and the market value of the child king before the delisting was about 16.7 billion. Compared with the market value of about 17.5 billion yuan after the second listing, it is not difficult to see that although the child king has worked hard for three years, it seems that it is still before liberation.
During this period, the equity of child king also changed very frequently. From 2018 to 2020, the transfer of child king equity was as many as 14 times. Among them, futures king Jiang Jinzhi, Warburg Pincus Capital, hillhouse capital all gave up sharing the listing feast, and reduced their holdings or even withdrew before the IPO.
Capital has always had a keen sense of smell, watching the listing feast to the mouth of the meat does not eat, is the capital has long been on the child king after the listing of the market value performance or the future does not have any confidence?
In fact, before the listing, the operating data of the child king was not optimistic. From 2014 to 2016, the net profit attributable to the mother of the child king was -88.54 million yuan, -138 million yuan and -144 million yuan, respectively, and the cumulative loss was as high as 1.026 billion yuan.
It is reported that since its inception in 2009, the child king who has run for 12 years now has more than 500 stores nationwide and more than 50 million member parent-child families, covering 17 provinces, 3 municipalities directly under the central government, and 180+ cities across the country.
The sales channels of Child King mainly include offline chain stores, online e-commerce, and community sharing, of which stores are the pillars of the company's business. In terms of store operation strategy, the company has always adhered to the "big store model", and the stores are opened in the Shopping Mall of 100,000 square meters and above, with an average area of 3,000 square meters and the largest store area of more than 7,000 square meters.
However, it is worth noting that the offline store model that Child King relies on is difficult to say about the future. At present, with the growing number of parents of the new generation of Internet natives after the 80s and 90s, online channels are gradually becoming the mainstream market for the sale of maternal and infant products.
According to iResearch consulting report data, 100% of the mother and baby consumers surveyed have experience in purchasing maternal and infant products online, and even 40% of the respondents said that they have not purchased maternal and infant products in offline maternal and infant retail stores.
In the face of the gradual climate of online channels replacing offline, it will undoubtedly be a big blow to the child king who made a fortune offline. Regrettably, the expansion of King's online business is very slow. From 2018 to 2020, the company's online sales were 362 million yuan, 549 million yuan and 750 million yuan, accounting for only 4.98%, 5.47%, 6.73% and 9.06% of the revenue, respectively.
In addition, the products sold by The Child King have their own self-operated stores on different e-commerce platforms, etc. These offline companies that are cooperative attributes have become potential competitors online. And from the perspective of shoppers, there is no need to buy products that can be purchased in self-operated stores of various brands through "middlemen", which is also a lot of impact for the child king.
At the same time, the vast offline stores, follow-up may also evolve into a heavy burden of the child king. From 2018 to 2020, the income and ping efficiency of the Child King store have begun to decline. The average revenue of the company's stores was 24.1492 million yuan, 21.5203 million yuan and 17.3281 million yuan, respectively, and the income of pingxiao was 7855.05 yuan / square meter, 7838.82 yuan / square meter and 6878.73 yuan / square meter, respectively.
The child king's troubles are far more than that. The decline of consumer reputation and the sharp decline in newborns are also affecting the future of the child king.
From 2018 to 2020, Child King and its subsidiary companies were fined a total of 50 or above administrative penalties, of which 22 in 2018, 12 in 2019, and 16 in 2020. Among the 50 administrative penalties, most of them are the sale of unqualified goods.
In response to the penalties for selling unqualified products, The Child King said that he would take the initiative to carry out comprehensive self-examination and rectification, stop selling unqualified goods, further strengthen commodity quality management and personnel training, and re-evaluate supplier qualifications.
However, to this day, there are still many voices on the Internet that the child king sells fakes. A consumer pointed out: the powder water bought in the child king mini program, at that time to engage in activities 189, feel very cheap, after all, the child king such a large company can not have fakes, but did not expect to buy back is a fake, "heart" and "recognition of goods" two software identification are fake.
Seeing that the child king has sold unqualified products again and again, the so-called "active comprehensive self-examination and rectification" undoubtedly seems to have become a polite sentence to cope with public opinion. Today, by entering the keyword "Child King Fake" to search Baidu, Baidu has found about 1 million related results.
In the field of maternal and infant products, previously affected by the melamine incident, the Chinese people were full of distrust of domestic milk powder and even the entire maternal and infant industry, so they ran abroad to buy milk powder. However, in recent years, the child king has also been repeatedly accused of selling fake and shoddy products, and the hidden dangers of the child king are obviously not many.
Then there is the full release of the policy dividend, China's newborn birth rate began to decline continuously from 2017, to 10.48% in 2019, and the demographic dividend gradually decreased. In the future, if China's birth rate still maintains a downward trend, it will have a certain impact on the maternal and infant retail industry.
Offline channels are affected by online impact, and at the same time face the problem of a sharp decline in the number of newborns in the industry, and their own reputation is not bad, the performance is gradually stalling, where should the future go?