Dia shares (301177. SZ) released its 2023 annual report, during the reporting period, the company achieved revenue of 2.18 billion yuan, a year-on-year decrease of 40.78%, and the net profit attributable to the parent company was 68.9576 million yuan, a year-on-year decrease of 90.54%, and the company has experienced a double decline in profit for two consecutive years.
According to public information, Dia shares landed on the A-share market in December 2021, the company is mainly engaged in brand operation, customized sales and R&D and design of jewelry.
In the second year of listing, the performance of Dia shares declined. In 2022, the company's revenue and net profit will be 3.682 billion yuan and 729 million yuan respectively, a year-on-year decrease of 20.36% and 43.98% respectively. In 2023, the company's declining performance has not been reversed.
It should be noted that in 2023, the company will rely on financial income to maintain profitability. During the reporting period, the company's investment income and fair value change profit and loss due to the purchase of wealth management products were 233 million yuan, an increase of 81.31% over the same period of last year, of which the investment income was as high as 201 million yuan, and the fair value change profit and loss was 31.1516 million yuan. Aside from this part of the income, the company's non-net profit in 2023 will be -120 million yuan, turning profit into loss year-on-year.
When the performance declined, the company wanted to pay a large amount of dividends, and the actual controller became the biggest beneficiary
Entering 2023, the internal structural differentiation of the jewelry industry in which Dia shares are located has intensified, the market competition is fierce, the demand for diamond inlaid jewelry as an optional consumer product is insufficient, and the recovery is slow, coupled with the hedging attribute of gold has been valued by more and more consumers in recent years, the demand for gold has increased significantly, which has also caused a certain impact on the diamond inlay industry, and the company's operating income has declined greatly.
In terms of quarters, from Q1 to Q4 of 2023, the company's revenue will be 705 million yuan, 537 million yuan, 500 million yuan, and 438 million yuan respectively, with year-on-year declines of 42.27%, 37.88%, 47.77%, and 31.37%, respectively, and the net profit attributable to the parent company will be 101 million yuan, -47.5208 million yuan, 20.732 million yuan, and -5.1855 million yuan respectively, with year-on-year changes of -73.15%, -123.45%, -89.31%, and 88.02%。 It can be seen that the company's revenue has declined since the first quarter and continued into the fourth quarter. In terms of net profit, the company suffered losses in both Q2 and Q4.
In terms of products, the company's proposal diamond rings, wedding rings, and other jewelry achieved revenue of 1.699 billion yuan, 449 million yuan, and 25.2368 million yuan respectively, down 41.46%, 37.03%, and 26% year-on-year respectively. Among them, the proposal diamond ring, as the main force of the company's revenue, has declined to a large extent.
From the perspective of business model classification, online self-operation, offline direct operation and offline joint operation achieved operating income of 227 million yuan, 1.769 billion yuan and 177 million yuan respectively, down 42.45%, 40.63% and 35.59% respectively from the same period last year.
In addition to being affected by industry factors, the decline in the net profit of Dia shares is also related to the company's provision for asset impairment. In 2023, the company will make a total of 112 million yuan of impairment provisions for various assets. Among them, the amount of asset impairment loss was 105 million yuan, an increase of 270.65% year-on-year, mainly due to the provision for inventory decline and long-term asset impairment.
Specifically, in 2023, the company's provision for long-term asset impairment will be 92.4626 million yuan, an increase of 282.34% over the same period of the previous year. The significant increase in this indicator is due to the company's adjustment of channel strategy in 2023, closing 184 stores, and accruing corresponding asset impairment losses for stores with signs of impairment.
In addition, Dia shares released a dividend plan for 2023, planning to distribute cash of 5 yuan (tax included) to all shareholders for every 10 shares, with a dividend amount of about 200 million yuan, accounting for 290% of the company's current net profit.
In fact, in 2023, the amount of dividends paid by the company has decreased compared to the previous two years. From 2021 to 2022, the dividends of Dia shares will be 800 million yuan and 400 million yuan respectively, accounting for more than 50% of the net profit in each period.
Focusing on the shareholding structure of Dia shares, as of the end of December 2023, Zhang Guotao and Lu Yiwen, the actual controllers of Dia shares, held a total of 88.68% of the company's shares. In other words, from 2021 to 2023, the company's cumulative dividend amount of more than 1.2 billion yuan will flow into the hands of the actual controller.
At the same time as the release of the 2023 annual report, Dia shares also released the first quarter report of 2024. During the reporting period, the company's revenue and net profit attributable to the parent company were 426 million yuan and 29.4598 million yuan respectively, down 39.52% and 70.81% year-on-year respectively, and the performance continued to decline.
Take idle raised funds to manage money, and the company's fund-raising and investment projects leave "chicken feathers" in vain
Titanium Media APP noticed that since 2022, Dia shares have used a large amount of funds for financial management every year, and its financial management funds mainly come from the company's own funds and raised funds.
It is reported that a total of 4.676 billion yuan was raised during the IPO of Dia shares, and the net amount of funds raised after deducting the issuance fee was 4.438 billion yuan, of which the company over-raised 3.16 billion yuan.
Less than one month after its listing (that is, in January 2022), Dia shares announced that it planned to use no more than 7.5 billion yuan of funds for financial management, of which idle raised funds (including over-raised funds) did not exceed 3.5 billion yuan, and its own funds did not exceed 4 billion yuan.
In addition, according to the company's latest financial plan disclosed in December 2023, the company intends to use no more than 7.8 billion yuan of funds for financial management, of which no more than 1.8 billion yuan of idle raised funds (including over-raised funds) and no more than 6 billion yuan of its own funds.
From the perspective of financial data, in 2023, the trading financial assets of Dia shares will be 4.842 billion yuan, accounting for 64% of the total assets, mainly composed of 445 million yuan of structured deposits and 4.396 billion yuan of wealth management products. In 2022, the company's trading financial assets reached 5.61 billion yuan, a year-on-year increase of 207.54% compared with 1.824 billion yuan in 2021. Among them, the amount invested in wealth management products was 5.28 billion yuan.
Judging from the results, in 2023, the investment income of Dia shares will be 201 million yuan, mainly through the purchase of bank wealth management due redemption income, an increase of 126% compared with 89.003 million yuan in 2022, accounting for 178.55% of the total profit in the current period, and the company relies on investment income to maintain profitability.
Dia shares, which use idle raised funds for financial management, have not been smooth in the progress of their fund-raising projects.
It is reported that the initial fundraising projects of Dia shares are channel network construction project (hereinafter referred to as project 1), information system construction project (hereinafter referred to as project 2), diamond and jewelry R&D creative design center construction project (hereinafter referred to as project 3) and supplementary working capital projects.
Some of the above four fundraising projects have been postponed, and some have not achieved the expected benefits.
Specifically, as of June 30, 2023, Project 1 has been implemented and reached the intended usable state. The benefit of the project in 2023 will be -140 million yuan, which will not reach the expected benefit, mainly due to the impact of market demand and the sales of major project stores are lower than expected.
Projects 2 and 3 were postponed, with Project 2 being extended from December 31, 2023 to December 31, 2026 after two extensions. Project 3 has been extended from 31 December 2023 to 31 December 2025 after an extension.
As of December 31, 2023, the cumulative investment amount of projects 2 and 3 is 6,506. 340,000 yuan, 2476. 950,000 yuan, and the investment progress was 58.89% and 45.96% respectively. (This article was first published in Titanium Media APP, author|Li Ruohan)