On the evening of April 17, Yinzhijie (300085.SZ) released its 2023 performance report. The company's operating income was 1.015 billion yuan, down 9.06% year-on-year, net profit attributable to the parent company was -117 million yuan, loss decreased by 3.54% year-on-year, and non-net profit was -124 million yuan, down 6.82% year-on-year.
It is understood that the company was founded in 1998 and is a national high-tech enterprise serving the field of China's financial informatization and focusing on the development of bank image application software. The company's main business is financial informatization, mobile information services and e-commerce.
Titanium Media APP noticed that from 2021, the company's net profit suddenly declined and fell into the quagmire of losses. As for the specific reasons for the performance loss, on the one hand, it was affected by the decline of the company's three major businesses, and on the other hand, the previous strategic investment in East Asia Qianhai Securities caused the company's investment income loss of 46.4204 million yuan. In addition, in the context of performance losses, the company not only has the problem of tight capital chain, but also related party transactions may also have risks.
The main business declined, and investment collapsed
In March 2010, the company began to officially land in the capital market. Since then, although the company's revenue has increased through mergers and acquisitions, its net profit has been fluctuating below 50 million yuan.
Since 2021, the company's net profit has suddenly declined, and it has fallen into a loss quagmire. Financial data show that from 2020 to 2023, the company's net profit will be 36 million yuan, -276 million yuan, -124 million yuan, and -117 million yuan respectively.
As for the specific reasons for the performance loss in 2023, on the one hand, it is affected by the decline of the company's three major businesses across the board. According to the financial report, in 2023, the company's operating income will generally decrease by 9.06% compared with the previous year, of which the financial information technology business will decrease by 5.12%, the mobile information service business will decrease by 17.23%, and the e-commerce business will increase by 2.42%;
In fact, the company's sales gross margin had already declined sharply before its performance declined. Financial data shows that the company's gross sales margin was 50.39% in 2014, but its gross sales margin will only be 22.73% in 2023.
On the other hand, the company's investment income loss also has a greater impact on net profit. According to the financial report, the impact of the company's previous strategic investment in East Asia Qianhai Securities on the company's investment income in 2023 will be -46.4204 million yuan.
It is understood that in August 2017, the company and other investors jointly initiated the establishment of East Asia Qianhai Securities, the major shareholder is the Bank of East Asia, holding 49% of the shares, Yinzhijie holds 26.1% of the shares, ranking the second largest shareholder, Chenguang Holdings (Group) Co., Ltd. and Qianhai Financial Holdings Co., Ltd. hold 20% and 4.9% of the shares respectively.
At that time, the company said that the investment in BEA Qianhai Securities is of great significance to promote the company's business development with financial technology as the core, and the company will make full use of the existing technology and business resources to help BEA Qianhai Securities develop into a new type of technology-driven brokerage.
However, the reality seems to be at odds with the original intention. Relevant data show that from 2018 to 2022, the impact of East Asia Qianhai Securities on the company's investment income was -14.64 million yuan, 614,100 yuan, 11.2666 million yuan, -15.0189 million yuan, and -42.7361 million yuan respectively.
Or in order to improve profitability, on December 26, 2023, the company intends to transfer the 26.10% equity of BEA Qianhai Securities held by the company through public listing, agreement transfer, etc. However, the matter is still in progress and has not yet come to fruition.
Related-party transactions have hidden risks
In the context of continuous performance losses, the company also has the problem of tight capital chain. As of the end of 2023, the company's short-term borrowings were 417 million yuan, the bills payable were 170 million yuan, and the monetary funds were 496 million yuan. It is worth mentioning that not all of the company's monetary funds can be called at any time, of which the restricted monetary funds are about 204 million yuan.
From the perspective of historical data, from 2020 to 2023, the net cash flow generated by the company's operating activities will be 145 million yuan, 18 million yuan, 26 million yuan, and 128 million yuan respectively.
In addition, there may also be risks in the company's related party transactions.
According to the data of the annual reports of previous years, Beijing Huadao Credit Information Co., Ltd. (hereinafter referred to as "Huadao Credit") is a shareholding company of Yinzhijie. In 2015, Yinzhijie provided relevant technical services to it for the first time. As of the end of 2023, the company has provided more than 100 million yuan of technology development services to Huadao Credit.
According to the financial report, in 2023, the company's closing book balance of Huadao credit receivables will be 70.48 million yuan, and the provision for bad debts will be 28.19 million yuan, with a provision ratio of up to 40%, and the reason for the provision is continuous losses. It is understood that Huadao Credit will achieve an operating income of 99.024 million yuan and a net profit of -5.2772 million yuan in 2023.
According to the data, in December 2013, the company invested in the establishment of Huadao Credit. In 2017, Huadao Credit and other sponsors jointly initiated the establishment of Baihang Credit Information Co., Ltd. (hereinafter referred to as "Baihang Credit"). In 2023, 101 million new information subjects will be included in the Baihang Credit Personal Credit Information System, an increase of 18% from the end of the previous year. By the end of 2023, Baihang Credit has signed more than 1,600 financial institutions and achieved more than 1,000 online calls.
So from the perspective of time, Huadao Credit has been established for about ten years, and the operating data of its credit information companies is also performing well, why is it difficult for Huadao Credit to achieve profitability?
For the above transactions, some industry insiders told Titanium Media APP that related party transactions can indeed bring a certain amount of income to listed companies in the short term, but this income is only a book number, once the fundamentals of Huadao credit further deteriorate, then the company will inevitably increase the proportion of bad debts accrued to its accounts receivable, which will undoubtedly make Yinzhijie's already weak performance worse.
It is worth noting that in recent years, the number of Huadao credit insurance participants has gradually decreased, which may show that its business situation is not optimistic. According to Tianyancha, from 2018 to 2023, the number of Huadao credit insurance participants will be 70, 52, 41, 35, 32, and 32 respectively. (This article was first published on the Titanium Media App, by Zhai Zhichao)