China Fund News reporter Nan Shen
Following Zhejiang Yongqiang, who has a net profit of 50 million yuan and plans to "speculate in stocks" of up to 1 billion yuan, another listed company has attracted market attention for its large-scale securities investment and financial management.
On the evening of April 25, I Love My Home, which is mainly engaged in real estate brokerage business, released its 2023 annual report and 2024 first quarter report. For the whole year of 2023, I love my family will lose 848 million yuan, and in the first quarter of 2024, it will make a small profit of 25.38 million yuan (a loss of 54.77 million yuan after deducting non-profits). Throughout 2023, the company's operating stores shrank by more than 700, from 3,583 to 2,853.
Under this circumstance, the company passed a resolution of the board of directors to use its own idle funds to invest in securities and wealth management products, with a total investment limit of no more than 3.3 billion yuan. It is worth noting that the company's monetary funds as of the end of the first quarter of 2024 are only 3.309 billion yuan, and the company is not low debt, its latest long-term and short-term bank borrowings totaled 2.23 billion yuan, and the non-current liabilities due within one year are close to 10 billion yuan.
Last year, the number of stores shrank by more than 700
According to the financial report, I Love My Home is one of the earliest national housing brokerage service companies established in China, focusing on the residential service scene, mainly focusing on the transaction and rental operation and management needs of residential, the core residential asset, to provide services.
In 2023, the company will achieve an operating income of 12.09 billion yuan, a year-on-year increase of 3.6%, and a net profit attributable to the parent company of -850 million yuan, an increase of about 540 million yuan over the same period last year. The company said that the widening of the loss was mainly affected by some non-operating and one-time factors, which affected the company's total profit of about 700 million yuan.
Specifically, in 2023, the company will extract about 260 million yuan of impairment losses of goodwill assets related to the commercial real estate marketing business, provide for the goodwill impairment of about 50 million yuan of I love my home cloud data Co., Ltd., and extract about 130 million yuan of credit impairment losses related to some new housing businesses. In addition, the fair value of some of the investment properties held by the company changed, resulting in a loss of about 50 million yuan.
As of the end of 2023, the company has a total of about 2,853 stores in China, including 2,323 directly operated stores, 530 franchised stores, and a total of about 30,000 brokers. As of the end of 2022, the company's total number of domestic stores is 3,583, with about 35,000 employees, that is, the number of stores of the company has shrunk by about two percent in one year, exceeding 700.
In the first quarter of 2024, the company's performance continued to be sluggish.
During the reporting period, the company's main business income was 2.75 billion yuan, down 12.6% year-on-year, the net profit attributable to the parent company was about 25 million yuan, down 51% year-on-year, and the non-net profit was -54.77 million yuan (profit of 44.54 million yuan in the same period last year). As of the end of the first quarter of this year, the company operated a total of about 2,794 domestic stores, a decrease of 59.
It is planned to spend up to 3.3 billion yuan on securities investment and wealth management
However, compared with the annual report and the first quarterly report, the company's announcement on the evening of April 25 on the use of its own funds for investment in securities and wealth management products has attracted more attention from the market.
According to the announcement, the company and its subsidiaries currently have a total investment of 3.3 billion yuan in their own idle funds that can be used for investment in securities and wealth management products, and the investment period is 12 months from the date of approval of the company's 2022 annual general meeting of shareholders.
After the expiration of the above-mentioned investment quota of 3.3 billion yuan in securities and wealth management products, the company and its subsidiaries intend to continue to use their own idle funds to invest in securities and wealth management products, and the total investment quota is still not more than 3.3 billion yuan, and the investment period is 12 months from the date of the company's 2023 annual general meeting of shareholders to approve the investment quota, which can be used on a rolling basis within the scope of the quota and period.
Among them, the company intends to use an investment quota of 2 billion yuan for entrusted wealth management and securities investment (including new share placement or subscription, securities repurchase, stock and depositary receipt investment, bond investment and other investment behaviors identified by the Shenzhen Stock Exchange), and intends to use an investment quota of 1.3 billion yuan for the purchase of low-risk wealth management products with a single investment period of no more than one year and other risk-controllable wealth management products.
It should be noted that as of the end of 2023, the company's book monetary funds are only 3.561 billion yuan, while the monetary funds as of the end of the first quarter of 2024 are 3.309 billion yuan.
The company is not low in debt, and its short-term debt pressure is not small. As of the end of the first quarter of this year, the company had short-term borrowings of 1.154 billion yuan, long-term borrowings of 1.082 billion yuan, and "non-current liabilities due within one year" of up to 9.613 billion yuan.
In this case, does the company really dare to use most of the funds on the account for securities investment and financial management? Judging from the actual implementation in 2023, it is just "the thunder is loud, and the rain is small".
In 2023, the company also has a securities investment and wealth management quota of up to 3.3 billion yuan, but as of December 31, 2023, the book balance of securities and wealth management products held by the company is only 35 million yuan, and the profit and loss in the reporting period is 3.5681 million yuan. Even if you look at the amount, the company only carried out 1.515 billion yuan of entrusted wealth management, and did not make any securities investment.
Editor: Xiao Mo
Review: Xu Wen