Yangtze River Business Daily reporter Huang Cong
After the listing, the performance of Jieya shares continued to "change face".
On the evening of April 15, Jieya shares (301108. SZ) released its 2023 annual performance report, showing that the company achieved operating income of 623 million yuan, a year-on-year decrease of 6.6%, and a net profit of 115 million yuan, a year-on-year decrease of 18.28%.
According to the performance forecast for the first quarter of 2024 released on the same day, the company is expected to achieve a net profit of 12 million yuan to 16 million yuan, a year-on-year decrease of 57.07% to 67.80%.
Jieya shares were listed at the end of 2021, and the trend of performance growth was terminated. In 2022, the company's operating income and net profit will decrease by 32.29% and 35.94% year-on-year respectively.
Moreover, since 2023, the revenue of Jieya's wet wipes products has continued to decline, and its capacity utilization rate may further decline.
In 2022, the design capacity of the company's wet wipes products will reach 14.43 billion pieces, the capacity utilization rate will reach 71.13%, and the production capacity under construction will reach 4.5 billion pieces, which will be listed and fundraised, and the project will be used to raise 261 million yuan, which will be lowered to 211 million yuan.
According to the plan, the 4.5 billion wet wipes project will be completed by the end of 2024, and according to the current situation, the project may directly become excess capacity after completion.
Poor performance, R&D expenses declined
Jieya shares were listed in December 2021 and became the "first share of wet wipes" in A-shares.
In recent years, in addition to focusing on wet wipes products, Jieya has simultaneously increased the layout of cosmetics-related businesses, with major customers including Woolworths, Kimberly-Clark Group, Johnson & Johnson, L'Oreal Group, Procter & Gamble, etc.
From 2019 to 2021, the operating income of Jieya Co., Ltd. was 277 million yuan, 743 million yuan and 984 million yuan respectively, an increase of -1.98%, 167.82% and 32.49% year-on-year, respectively, and the net profit was 68.1227 million yuan, 180 million yuan and 220 million yuan, an increase of 18.20%, 163.69% and 22.50% year-on-year respectively.
However, the performance of Jieya shares plummeted after listing.
In 2022, Jieya Co., Ltd. achieved operating income of 667 million yuan, a year-on-year decrease of 32.29%, and a net profit of 141 million yuan, a year-on-year decrease of 35.94%.
Specifically, in 2022, the sales revenue of Jieya's medical and antibacterial disinfection wipes business will be 165 million yuan, a year-on-year decrease of 69.05%, and the sales revenue of Jieya's facial mask business will be 57.5434 million yuan, a year-on-year decrease of 19.73%.
At the same time, in 2022, the foreign operating income of Jieya Co., Ltd. will reach 390 million yuan, a year-on-year decrease of 46.43%.
From 2019 to 2022, the gross profit margin of Jieya shares was 36.55%, 35.79%, 32.84% and 31.47% respectively, declining for three consecutive years.
It is worth mentioning that in September 2022, Hu Nenghua, deputy general manager and secretary of the board of directors of Jieya Co., Ltd., said in an interview that the company will continue to pay close attention to the forefront of the industry's technological development in the future, continue to promote the informatization and intelligence of the company's production and manufacturing, realize the development goal of stepping from "Made in China" to "Intelligent Manufacturing in China", and strive to grow into a technology-based company.
The reality is that in 2020 and 2021, the R&D expenses of Jieya will be 27.362 million yuan and 36.382 million yuan respectively, an increase of 151.30% and 32.97% year-on-year respectively.
However, in 2022, the R&D expenses of Jieya will reach 25.2912 million yuan, a year-on-year decrease of 30.48%. In the first three quarters of 2023, the company's R&D expenses reached 17.8107 million yuan, a year-on-year decrease of 6.72%.
With poor performance and declining R&D expenses, it may not be easy for Jieya to grow into a technology-based company.
In contrast, the company's selling expenses are increasing.
In 2021, 2022 and the first three quarters of 2023, the sales expenses of Jieya shares will be 6.9556 million yuan, 7.1638 million yuan and 8.3097 million yuan respectively, an increase of 29.97%, 2.99% and 107.14% year-on-year respectively.
210 million to expand production of 4.5 billion wipes or surplus
Entering 2023, the performance of Jieya shares has not changed the downward trend.
On the evening of April 15, Jieya Co., Ltd. released its 2023 annual performance report, showing that the company achieved operating income of 623 million yuan, a year-on-year decrease of 6.6%, a net profit of 115 million yuan, a year-on-year decrease of 18.28%, and a non-net profit of 88.9065 million yuan, a year-on-year decrease of 31.35%.
In this regard, Jieya shares said that the international economic situation is complex and changeable, and the lack of foreign demand has led to a year-on-year decline in sales of export products with higher gross profit margins;
In the first three quarters of 2023, the gross profit margin of Jieya's sales reached 31.57%, which is still at a historical low.
In fact, Jieya shares believe that "the overall overcapacity of the industry", and its own capacity utilization rate is not high.
In 2021, the designed production capacity of wet wipes products of Jieya Co., Ltd. will reach 14.973 billion pieces, with a capacity utilization rate of 109.15%, and the production capacity under construction will reach 4.5 billion pieces, and the design production capacity of facial mask products will reach 63.1584 million pieces, with a capacity utilization rate of 128.78%, and the production capacity under construction will reach 24.3648 million pieces.
In 2022, the design capacity of wet wipes products will reach 14.43 billion pieces, with a capacity utilization rate of 71.13%, and the production capacity under construction will reach 4.5 billion pieces, the design capacity of facial mask products will reach 87.5232 million pieces, with a capacity utilization rate of 88.73%, and the design capacity of washing and care products will reach 1.4126 million liters, with a capacity utilization rate of 14.09%.
In the 2023 semi-annual report, Jieya did not introduce the company's production capacity, but under the decline in performance, the company's capacity utilization rate will obviously decline.
According to the data, in the first half of 2023, the operating income of wet wipes products of Jieya Co., Ltd. will reach 231 million yuan, a year-on-year decrease of 26.06%, the operating income of facial mask products will reach 29.4831 million yuan, a year-on-year decrease of 8.3%, and the operating income of cleaning and care products will reach 1.0429 million yuan, a year-on-year increase of 100%.
On March 5, Jieya Co., Ltd. said in the survey of the reception organization that the capacity utilization rate of the company's wet wipes products is about 80%, and the main customers of facial mask products are L'Oreal Group, Natural Hall Group, Woolworths and Johnson & Johnson, etc., and the current production capacity of facial mask products can meet the demand for orders.
What is the capacity utilization rate of Jieya shares in 2023 still depends on the company's annual report data.
It should be noted that Jieya shares will have 4.5 billion wet wipes project completed in 2024, which is the company's listed fundraising project, and plans to invest 261 million yuan in raised funds, which was originally planned to reach the scheduled usable state date in December 2023, but then changed to December 2024, and the investment in raising funds was also lowered to 211 million yuan.
Under the fierce competition, the poor performance of Jieya shares will continue into 2024.
On the evening of April 15, Jieya Co., Ltd. released a performance forecast for the first quarter of 2024, showing that the company achieved a net profit of 12 million yuan to 16 million yuan, a year-on-year decrease of 57.07% to 67.80%, and a non-net profit of 6 million yuan to 10 million yuan, a year-on-year decrease of 68.66% to 81.20%.
Jieya shares said that in the first quarter of 2024, the company's net profit fell sharply mainly due to the significant year-on-year decrease in the large compensation income of customers recognized in the current period, as well as the combined impact of the year-on-year decline in the gross profit margin of the company's product sales.
It can be seen that under the decline in capacity utilization, Jieya shares may become "excess capacity" after its 4.5 billion pieces of production capacity under construction are put into operation.
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