Yangtze River Business Daily News ● Yangtze River Business Daily reporter Huang Cong
With fewer customers, declining performance, and shareholder reductions, Beauty Beauty is experiencing transformation pains.
On May 10th, Beauty Beauty (605136. SH) announced that Liren and Lixiu plan to reduce the total number of shares of the company by no more than 6.4112 million shares, accounting for 1.60% of the company's total share capital. Among them, Liren intends to reduce its shareholding to account for 0.31% of the company's total share capital, and if it "tops" its holdings, the shareholding ratio will be reduced to less than 5%.
According to statistics from the Yangtze River Business Daily reporter, since October 2021, the five major shareholders of Beauty Beauty have taken turns to reduce their holdings, with a total of about 560 million yuan in cash, and four of them have held less than 5% of the shares.
In terms of performance, recently, Beauty Beauty released its 2023 annual report, showing that the company achieved operating income of 2.762 billion yuan, a year-on-year decrease of 14.78%; The net profit was 29.5276 million yuan, a year-on-year increase of 121.19%.
A reporter from the Yangtze River Business Daily found that after the listing of Beauty Beauty, the operating income has declined for three consecutive years, and the operating income in 2023 will decrease by about 40% compared with 2020.
Q1 revenue down 23.11%
Beauty Beauty Cosmetics was listed in September 2020, and its main business is e-commerce retail business and brand marketing operation services.
According to the data, from 2018 to 2020, the operating income of Beauty Beauty was 3.615 billion yuan, 3.874 billion yuan and 4.600 billion yuan respectively, an increase of 5.69%, 7.18% and 18.72% year-on-year respectively; The net profit was 252 million yuan, 286 million yuan and 339 million yuan respectively, an increase of 11.04%, 13.36% and 18.70% year-on-year respectively.
Entering a period of rapid development, Beauty Beauty has reached cooperative relations with more than 60 brands such as Sulwhasoo, Avène, Hou, Schwarzkopf, Florence, Oronnasur, etc.
However, in the first year after listing, the revenue of Beauty Beauty Cosmetics declined, and in 2021, the company achieved operating income of 4.155 billion yuan, a year-on-year decrease of 9.67%; net profit was 411 million yuan, a year-on-year increase of 20.99%.
In 2022, Beauty Beauty Cosmetics will have a "double decline" in performance, and even fall into a loss, with the company achieving operating income of 3.242 billion yuan, a year-on-year decrease of 21.98%; net profit -139 million yuan, down 133.92% year-on-year.
In this regard, Beauty Beauty said that due to the repeated epidemics across the country, consumers' demand for cosmetics has changed to a certain extent, and the company has adopted a variety of ways to promote, resulting in a decline in the overall gross profit margin.
Recently, Beauty Beauty released its 2023 annual report, showing that the company achieved operating income of 2.762 billion yuan, a year-on-year decrease of 14.78%; The net profit was 29.5276 million yuan, a year-on-year increase of 121.19%.
Therefore, after the listing of Beauty Beauty, the operating income has declined for three consecutive years, and the operating income in 2023 will decrease by about 40% compared with 2020.
It is worth noting that in the 2023 annual report, Beauty Beauty introduced that the company has maintained stable cooperative relations with more than 50 brands such as Sulwhasoo, Schwarzkopf, Florence, and Avène for a long time, covering various sub-categories of beauty and serving multiple user groups.
It can be seen that compared with the peak period, the number of cooperative brands of Beauty Beauty is decreasing.
According to Beauty Beauty, in 2023, the company will make some progress in the incubation of its own brands and the expansion of emerging channels. The operating income of the company's incubated private brands increased by more than 40% over the same period last year, and some brands are stepping up research and development of new products and expanding new categories to lay the foundation for future expansion.
However, in the first quarter of 2024, the operating income of Beauty Beauty Cosmetics will reach 472 million yuan, a year-on-year decrease of 23.11%; The net profit loss was 9.5461 million yuan, a year-on-year increase of 60.70%.
Shareholder Liren's shareholding may be reduced to less than 5%.
The performance continued to decline, and after the lifting of the ban on beauty makeup stocks, shareholders began to reduce their holdings.
In October 2021, Beauty Beauty issued an announcement on the reduction of shareholders Milestone and Asia-Pacific, and then the two companies reduced their holdings by a total of 58.0433 million yuan, and the shareholding ratio dropped to less than 5%.
In 2022, Liren and Lixiu, shareholders of Beauty Beauty, will reduce their holdings and cash out by 89.389 million yuan and 134 million yuan respectively, of which Lixiu's shareholding ratio will drop to less than 5%.
In 2023, Crescent Lily, a shareholder of Beauty Beauty, will reduce its holdings and cash out 127 million yuan, and its shareholding ratio will drop to less than 5%.
On April 27, 2024, Beauty Beauty announced that the company's shareholder Liren reduced his holdings by 3.4806 million shares, with a total amount of 30 million yuan.
According to the statistics of the Yangtze River Business Daily reporter, since October 2021, the five major shareholders of Beauty Beauty have taken turns to reduce their holdings, with a total of about 560 million yuan in cash, and the shareholding ratio of four of them has been less than 5%.
On May 10, Beauty Beauty announced that Liren and Lixiu plan to reduce the total number of shares of the company by no more than 6.4112 million shares, accounting for 1.60% of the company's total share capital. Among them, Liren intends to reduce its shareholding to account for 0.31% of the company's total share capital, and if it "tops" its holdings, the shareholding ratio will be reduced to less than 5%.
In the secondary market, the current share price of Beauty Beauty is hovering around 7.5 yuan / share, while the company's stock issue price is 12.23 yuan / share, and the opening price on the first day is 17.61 yuan / share, and the company's stock price has continued to be in a state of breakage since mid-June 2023.
It is worth noting that Huang Tao, the actual controller of Beauty Beauty, is also involved in property disputes after divorce.
On the evening of March 25, Beauty Beauty issued an announcement showing that recently, the company received a notice from Huang Tao, the controlling shareholder and actual controller, that he received a summons, a notice of proof and a notice to respond to the lawsuit from the People's Court of Xuhui District, Shanghai, because Huang Tao was involved in a property dispute after the divorce, his ex-wife Weng Shuhua requested property division, and requested that 1/8 of the company's shares registered in Huang Tao's name be 1/8 of the 134 million shares, that is, 16.7475 million shares.
On the day of the announcement, the share price of Beauty Beauty reached 8.1 yuan per share, and from this calculation, the "breakup fee" for Huang Tao's divorce reached 136 million yuan.
On April 18, Beauty Beauty announced that Huang Tao, the controlling shareholder and actual controller, has made an effective judgment by the relevant court because of his personal divorce dispute with Weng Shuhua, and according to the enforcement ruling of the Shanghai Xuhui District People's Court, it was ruled to freeze the 10 million shares of the company held by Huang Tao, and according to the "Enforcement Ruling" issued by the Shanghai Xuhui District People's Court, the frozen shares will be judicially enforced. The number of shares disposed of in this judicial disposition is 4 million shares, accounting for 1% of the company's total share capital.
Beauty Beauty said that the freezing of shares was mainly caused by the divorce dispute between Huang Tao and Weng Shuhua, which had no significant impact on the company's production and operation and would not lead to a change in the company's control.