CBO reporter Li Siyang
In the first quarter of 2022, the operating income of Beauty Cosmetics declined for the first time, and the net profit also fell by more than 70%. The transformation of sales models of some of the operating brands of Beauty Cosmetics and the impact of the epidemic on the supply chain are the main reasons for the decline in performance.
Beauty Cosmetics recently released the first quarter of 2022 performance report, during the reporting period, the company's operating income of about 715 million yuan, down 5.34% year-on-year, which is the first time in the past five years that Beauty Cosmetics has experienced a decline in operating income.
The financial report also shows that the net profit attributable to the shareholders of the listed company was about 12.6957 million yuan, down 71.47% year-on-year. Net profit attributable to shareholders of listed companies, net of non-recurring gains and losses, was about 11.746 million yuan, down 73.05% year-on-year. Basic earnings per share were RMB0.03, down 71.29% year-on-year.
01
E-commerce retail revenue fell 11.25% year-on-year
The new sales model was impacted by mcn organization
The operating income of Beauty Cosmetics is composed of e-commerce retail business, brand marketing operation services and other businesses, and the revenue in 2021 is 3.872 billion yuan, 217 million yuan and 0.66 billion yuan respectively, of which the revenue of the dominant e-commerce retail business is down 11.25% year-on-year, and the revenue level of Beauty Makeup depends on the development of the retail business in that year, so it will also decline.
For the decline in operating income, Liren Li Cosmetics said that one of the reasons is because the company's operating Pang's and Vaseline brands were distributed in the first quarter of 2021, and the first quarter of this year was a consignment model, and the e-commerce retail business model was also transformed into a brand marketing service model, and the change in the model led to a decline in operating income.
Under the distribution model, there are higher requirements for the cash reserves, warehousing logistics and inventory management capabilities of the agent operators, but the agent operators have greater autonomy, so as to control the channels and prices of commodities and form service barriers.
For the consignment model, although it is usually considered to be a more favorable business model for the generation operator, with the outbreak of e-commerce live broadcasting and the take-off of the Internet celebrity economy, it has also ushered in the invasion of MCN institutions.
MCN institutional business consists of two parts, one is a full-service model, equivalent to self-operated e-commerce, and the other is a platform service model, and its internet celebrities "bring goods" or provide marketing advertising services for the brand side, which is equivalent to the consignment sales model in the agency operation service. The rise of MCN institutions and live streaming has caused a big impact on traditional consignment sales.
02
The pandemic has hit supply chains
Gross profit fell in the first quarter and asset impairment losses rose
Liren Makeup also said that since February and March, Shanghai and some other provinces and cities have been affected by the epidemic, the impact of logistics supply chains and consumer demand have declined, which has also led to a decline in operating income in the first quarter. At the same time, due to the decline in gross profit in the first quarter and the rise in asset impairment losses, it also contributed to a sharp decline in net profit.
According to the financial report, due to the reduction of cash flow generated by the company's operating activities in the first quarter and the recovery of some current payments, the company's monetary funds and accounts receivable fell by nearly 30%. The upfront payment more than doubled, mainly due to the purchase payment paid by the company to prepare the corresponding goods in response to the epidemic.
Since the epidemic was closed in Shanghai, all walks of life have pressed the pause button. Since the beginning of March, express logistics in many places has been delayed or even interrupted in stages, and some parts of the country have been blocked due to the epidemic. Most of the cosmetics industry belongs to the most affected domestic domestic manufacturing enterprises, in addition to the supply chain, foreign trade dependence is also extremely high. Therefore, from raw materials to research and development, manufacturing to logistics, retail, all aspects of the cosmetics industry have suffered a huge impact.
The reporter also found that the non-operating expenses of Beauty Makeup in the first quarter also more than doubled compared with the previous year, and Beauty Makeup explained in the financial report that it was caused by the company's more external donations during the reporting period.
It is reported that since the beginning of the epidemic in Shanghai in March, Beauty Cosmetics has paid attention to the care and management of employees, flashed supplies for employees who are in short supply, and employees participated in supporting the epidemic prevention and control of the street and town communities as volunteers, and carried out a series of material donation activities for schools, hospitals and community towns. As a local enterprise in Shanghai, Beauty Cosmetics has taken the initiative to assume corporate social responsibility while resisting business pressure and maintaining steady operation.
03
Shares down 9.63% today
The market value has shrunk by more than 17 billion yuan from its peak
As of the close of today's market (April 28), the share price of Beauty Cosmetics fell to 12.86 yuan, down 9.63%. The total market value is 5.17 billion yuan, compared with 22.2 billion yuan at its peak, a contraction of more than 17 billion yuan.
In terms of shareholder information, the shares of Huang Tao, chairman of Liren Li Cosmetics, are still frozen in the status of 1.12 million shares, and the total number of shares held by liren is about 134 million, with a shareholding ratio of 33.33%.
It is reported that on July 13, 2021, the company received a notice from Huang Tao, the controlling shareholder and actual controller, that he filed a lawsuit with the Shanghai Xuhui District People's Court due to a divorce dispute between his personal and spouse Weng Shuhua, which currently does not involve property division, and Weng Shuhua therefore filed an application for property preservation, resulting in the judicial freezing of 1.12 million shares of the company's shares held by Huang Tao. Affected by this incident, the market value of Beauty Makeup in 3 days lost more than 1.3 billion yuan.
On September 29, 2021, shortly after the lifting of the ban on the initial listing of restricted shares of Beauty Cosmetics, the shareholders of the company successively announced their shareholding reduction plans. Shortly thereafter, Milestone and Asia-Pacific, the two major shareholders of Beauty Cosmetics, intended to reduce their holdings in Beauty Cosmetics by no more than 1.2 million shares due to their own capital arrangements.