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BESTORE that "can't sell": the profit level fell to the lowest level in 5 years, and the inventory went up and the goods decreased

BESTORE that "can't sell": the profit level fell to the lowest level in 5 years, and the inventory went up and the goods decreased

BESTORE that "can't sell": the profit level fell to the lowest level in 5 years, and the inventory went up and the goods decreased

Source | Caijing No. 9

Author | Fat Tiger

A few days ago, Yang Yinfen, chairman and general manager of BESTORE (SH.603719), said in an open letter to all employees that BESTORE will implement the largest price reduction in 17 years, with an average price reduction of 22% for 300 products and a maximum price reduction of 45%.

In this regard, the reaction of the capital market is to give BESTORE two price limits in a row, and since November 30, it has risen 23%, even in the case of the market crash on December 5, the stock price of BESTORE is still impacting the price limit.

At the same time, BESTORE also issued an announcement saying that the major shareholder terminated the shareholding reduction plan ahead of schedule. According to the announcement information, during the period of this shareholding reduction plan, the cumulative cash amount of major shareholders was about 404 million yuan.

A series of combination punches may also be BESTORE's coping strategy to feel the chill of the current market.

And this is also the "first fire" of Yang Yinfen, the new chairman of BESTORE, who has only been in office for three days.

In fact, the problem of BESTORE may have been thoroughly analyzed by Yang Yinfen in an open letter to all employees.

For example: "Look at yourself: With the development of the company for 17 years, the organization is bloated, people are superfluous, and bureaucracy and self-centeredness have emerged. Externally, it is the sluggish development and the decline in scale and profitability. ”

"Look at the user: consumption has entered the era of rationality, the people's money bags are tighter, the consumption level of different groups of people is more differentiated, more distinct, how to meet the needs of different users, is also a test in front of us. ”

And these problems, reflected in the performance report of BESTORE, may be even more severe.

1

Net profit fell by more than 3%, and the profit level recorded the lowest in 5 years

Since the year,

BESTORE's revenue has declined year-on-year for three consecutive quarters, and it is a double-digit decline, from the first to the third quarter, the operating income fell by 18.94%, 18.55%, and 14.33% respectively;

As of the end of September this year, the net profit attributable to the parent company of BESTORE was only 191 million yuan, a sharp decline of 33.61% year-on-year.

BESTORE that "can't sell": the profit level fell to the lowest level in 5 years, and the inventory went up and the goods decreased

In the long run, this is the first year-on-year decline in revenue in the past three years. Although the growth rate slowed down last year, it also recorded a revenue of 7.003 billion yuan in the third quarter, but in the third quarter of this year, it was only 5.999 billion yuan, and it can't even compare with the performance of the third quarter report in 2021.

The year-on-year decline in net profit may have come earlier. According to the financial report data, the net profit attributable to the parent company in the same period from 2021 to the third quarter of 2023 will be 315 million yuan, 287 million yuan, and 191 million yuan respectively, which has fallen for two consecutive years.

BESTORE that "can't sell": the profit level fell to the lowest level in 5 years, and the inventory went up and the goods decreased

It is worth noting that the current net profit level of BESTORE attributable to the parent company is the lowest in the past 5 years!

In terms of profitability, BESTORE's gross profit margin has basically stabilized between 28% and 29% in the past three years, but the net profit margin has been declining.

BESTORE that "can't sell": the profit level fell to the lowest level in 5 years, and the inventory went up and the goods decreased

According to the data, as of the end of September 2023, the net profit margin of BESTORE is only 3.18%, a decrease of 2.6 percentage points from the same period in 2019!

It is said that BESTORE, a snack product that takes the high-end route, has such a low net profit margin, which I really did not expect.

After this price reduction, it will inevitably affect the already weak net profit margin!

2

Can't sell: Inventory is higher and there are fewer takes

Behind the weakening performance, it seems that BESTORE "can't sell".

At present, the main sales of BESTORE come from four pieces: e-commerce, franchise, self-operation and group buying, and the single-quarter sales from the first to the third quarter of this year were 2.66 billion yuan, 1.766 billion yuan, and 2.243 billion yuan respectively, a year-on-year decline of 18.74%, 18.45%, and 3.88% respectively, and the general decline in three quarters during the year.

Among them, the franchise business has declined year-on-year for three consecutive quarters. In terms of stores, in the business briefings of the first, second and third quarters, it can also be seen that the franchised stores of BESTORE have declined sharply.

Corresponding to the sharp decline in sales, BESTORE's inventory has risen and the number of goods has decreased.

According to the performance report, BESTORE's inventory from the first quarter to the third quarter of this year was 376 million yuan, 377 million yuan, and 452 million yuan respectively, showing a gradual upward trend;

On the other hand, BESTORE's contract liabilities, that is, the enthusiasm of stores to pick up goods, are gradually declining.

From the first to the third quarter, the contract liabilities were 251 million yuan, 226 million yuan and 197 million yuan respectively, all of which declined sharply year-on-year, down 8.22%, 13.97% and 21.66% respectively.

It can be seen that the market's confidence in BESTORE is cold.

3

The return on investment has almost halved in three years

However, some major shareholders cashed out more than 400 million

In recent years, with the continuous weakening of BESTORE's performance, BESTORE's stock price and investment return have also declined.

As of the close of trading on December 1, the share price of BESTORE closed at 21.32 yuan / share, compared with the highest point of 86.52 yuan / share in July 2020, the share price of BESTORE has fallen by more than 70% in just over 3 years, and the market value has evaporated by 26 billion yuan.

On the other hand, BESTORE's return on net assets has also declined year after year, with the third quarterly report as the node, declining for 4 consecutive years, from 25.48% in 2019 to 7.83% in 2023, ROE has fallen by two-thirds in 4 years, and almost halved in 3 years.

BESTORE that "can't sell": the profit level fell to the lowest level in 5 years, and the inventory went up and the goods decreased

Such a listed company may be crying without tears for investors.

However, for the controlling shareholder, it has cashed out more than 400 million yuan this year.

As of the end of November, a total of 17.04 million shares have been reduced, and more than 400 million yuan has been cashed out.

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