Executive "big shuffle"! What happened? Aoyuan Meigu's stock price fell by more than 60% in half a year

On December 29, Aoyuan Meigu announced that the board of directors received the resignation report of director Ma Jun, director Chen Yong, independent director Zhang Shujun, president Hu Ran, and executive president Fan Shijie, and after the resignation, Ma Jun, Chen Yong and Zhang Shujun will no longer hold any position. According to the resolution of the board of directors meeting, Hu Ran served as the chairman of the company and Fan Shijie served as the president of the company.

On December 30, Aoyuan Meigu's stock price opened 2.4% lower and closed down 0.84%, with a market value of 8.304 billion yuan. Since June, the company's stock price has continued to fall, with a cumulative decline of more than 60% during the period.

5 executives collectively resigned, why?

In fact, on December 13, Shen Siyun, director and executive president of Aoyuan Meigu, also applied for resignation and no longer held any position in the company.

At the end of the year, when many listed companies began to disclose the expected financial reports of the fourth quarter, the senior management of Aoyuan Meigu ushered in a "big reshuffle", why?

For this personnel adjustment, a person close to Aoyuan Meigu said that this move is mainly to maintain the independence of Aoyuan Meigu and reduce the excessive operation and management of China Aoyuan, which is essentially "de-real estate".

It is reported that Aoyuan Meigu was originally named Jinghan Shares, and after being acquired by China Aoyuan, it was renamed. Ma Jun was the first chairman of China Aoyuan after it acquired Jinghan shares. After being acquired, Aoyuan Meigu gradually divested its real estate business and focused on medical beauty business.

Among the executives who resigned this time, most of them are the current executives of China Aoyuan. Among them, Ma Jun is the executive director and co-president of China Aoyuan, and Chen Yong is the vice president and general manager of China Aoyuan Real Estate Investment Center.

A market analyst believes that all the real estate background directors on the board of directors of Aoyuan Meigu have withdrawn, which is "decoupled" from China Aoyuan, and to a certain extent, it is also the protection of Aoyuan Meigu.

Since the second half of this year, due to the impact of the liquidity crisis, about 6 billion yuan of wealth management products and a number of domestic and foreign bonds under China Aoyuan have suffered a redemption crisis. It is worth mentioning that on December 30, Hong Kong-listed China Aoyuan plunged 8.72% today, and since June, the company's stock price has fallen by more than 80%.

On the other hand, the executives parachuted in from China Aoyuan itself also lack experience related to the medical aesthetic business, and replaced by more experienced people for management and operation, in the long run, it is conducive to Aoyuan Meigu to focus more on the current main business of medical beauty.

At present, the beauty economy is prevalent. According to the data of international authoritative institutions, the scale of China's medical beauty market in 2015 was 63.8 billion yuan, which expanded to 143.6 billion yuan in 2019, and it is expected that the scale of the medical beauty market will reach 318.5 billion yuan in 2024, that is, the compound annual growth rate is close to 20%, and the industry prosperity is quite high.

Some brokers said that on the whole, the market space is large, the demand for customization is large, coupled with the drive of social culture, the medical beauty track will usher in a decade of golden development, which can be called "long slope and thick snow".

The competition in the downstream of medical beauty is fierce

The main business of Aoyuan Meigu is a downstream medical aesthetic institution. At present, there are four institutions, including Zhejiang Longtou Lian Tianmei Hospital and Hangzhou Victoria Medical Beauty Hospital in East China, and there are two outpatient departments in the Greater Bay Area, Guangzhou Aurora and Guangzhou Aurora Huacheng.

According to the financial report, in the first three quarters of 2021, Aoyuan Meigu achieved revenue of 1.442 billion yuan, a year-on-year decrease of 1.30%; achieved a net profit of 211 million yuan, an increase of 319.27% year-on-year, a year-on-year turnaround, a loss of 96.21 million yuan in the same period last year; the company's net profit attributable to shareholders of listed companies in the third quarter was 161 million yuan, an increase of 66.17% over the same period last year.

For the reasons for the performance turnaround, Aoyuan Meigu said in the third quarter performance forecast that on the one hand, the company's acquisition of Zhejiang Lian Tianmei Enterprise Management Co., Ltd. (hereinafter referred to as: Lian Tianmei) in the second quarter brought positive contributions, lian Tianmei's net profit from April to September was about 46.18 million yuan, and the net profit attributable to the mother was about 25.4 million yuan, on the other hand, the company's major asset restructuring has completed the equity change of the main real estate projects and the collection of the main equity payment in the third quarter, and the sale proceeds were confirmed in September.

In general, the company is in the performance consolidation period of medical beauty, and with the divestiture of the real estate business, the company's asset quality should be significantly improved in 2022. According to the company's announcement, the company will speed up the pace in the future, and will continue to promote the merger and acquisition of medical beauty targets in the follow-up.

However, there are hidden concerns about the business model of Aoyuan Meigu. The medical beauty industry is indeed prosperous, but the most profitable is not the downstream medical beauty institutions, but the upstream hyaluronic acid, botulinum toxin and other manufacturers.

As we all know, the upstream of medical beauty has a high entry threshold, not only the technical threshold, but also the threshold for obtaining a certificate, so the profit margin of the upstream of medical beauty is higher, and even the gross profit margin of Aimeike can reach more than 90%, which is ridiculed as "a woman's Moutai".

The downstream institutions of medical beauty are relatively inward-volume and fiercely competitive. Its business model is considered to be insufficient barriers, high customer acquisition costs, difficult to produce scale effects and so on.

The data shows that the gross profit margin of upstream pharmaceutical consumables is in the range of 50%-90% on average, and the net profit margin is between 20-50%; the gross profit margin of downstream beauty institutions is between 40% and 70%, and the net profit margin is only about 10%.

A medical aesthetic practitioner said that medical aesthetic institutions can be described as "the most soil-eating" in the entire medical aesthetic industry chain. On the surface, medical beauty institutions have extremely high profit margins, but one-third of them should be distributed to the upstream raw materials, one-third should be distributed to the downstream channels, and their own profits should be distributed to well-known doctors to prevent each other from "flying alone".

According to iResearch statistics, there are about 80,000 medical beauty institutions in China, and about 13,000 legal medical beauty institutions with medical beauty qualifications. China's medical beauty institutions are mainly private, the plastic surgery department of public hospitals accounts for 10%, large chain medical beauty institutions account for 10%, including My Lai, Yixing, Langzi, etc., small and medium-sized private medical beauty institutions account for 55%, and the remaining 25% are smaller single medical beauty clinics.

Conclusion ——

Aoyuan Meigu is currently in the accelerated period of transformation, the resignation of executives, the acceleration of real estate divestiture, the proportion of medical aesthetic business will continue to increase, the future with the continuous improvement of medical aesthetic penetration rate, the growth space is still worth paying attention to.

It is worth noting that on May 22 this year, Aoyuan Meigu disclosed the "Announcement on the Increase Plan of Some Directors and Senior Management of the Company", in which Hu Ran plans to increase the amount of shares in the company in the next 6 months from the date of the disclosure of the announcement to be no less than 50 million yuan. However, until the expiration of the implementation period of the shareholding increase plan on November 23, Hu Ran's actual increase in shareholding was 1.18 million yuan.

Aoyuan Meigu has not completed the shareholding increase plan not only Hu Ran alone, but also the company's director and executive president Fan Shijie, and executive president Xu Wei. It is reported that the two plan to increase their holdings in the six months from May 22, 2021, not less than 10 million yuan and 10 million yuan respectively, but the actual increase in the amount is only 1.0075 million yuan and 1.1958 million yuan, respectively, which is also quite different from the above-mentioned planned amount.

After the collective resignation of executives, the original executive increase plan may face "failure".

This article originated from Caihua Network