Yangtze River Business Daily News ● Yangtze River Business Daily reporter Pan Ruidong
Dongpeng Holdings, a leading ceramic tile company (003012. SZ) was again reduced.
On May 14, Dongpeng Holdings announced that shareholders SCC HoldcoB and Shanghai Zhede planned to reduce their holdings of the company's shares by a total of no more than 34,709,400 shares, and the reduction ratio did not exceed 3% of the company's total share capital. Based on the closing price of 7.42 yuan per share on May 15, the above two shareholders will cash out 258 million yuan.
A reporter from Changjiang Business Daily noticed that since its listing in 2020, Dongpeng Holdings' performance has been unstable. In the first quarter of 2024, the company achieved revenue of 1.012 billion yuan, a year-on-year decrease of 11.58%; The net profit attributable to the parent company (hereinafter referred to as "net profit") was a loss of 11.5156 million yuan, compared with 1.1777 million yuan in the same period of the previous year, a year-on-year profit turned into a loss.
In the secondary market, on July 31, 2023, the company's share price was 12.98 yuan per share, reaching a high in nearly two years. Based on the closing price on May 15, the company's stock price fell nearly 43% in 10 months.
The two shareholders plan to reduce their holdings by 34,709,400 shares
According to the data, Dongpeng Holdings' main business includes the production and sales of ceramic tiles/boards, sanitary ware (sanitary ceramics and bathroom products), wood flooring, coatings, integrated wall panels, auxiliary materials (waterproofing, tile adhesive, beauty sewing agent), ecological new materials and home furnishing and other products and services, providing users with one-stop decoration multi-category hard decoration products and service solutions, and at the same time, through Dongpeng's "super building" space design and wall and floor "installation to home" delivery one-stop service, to achieve product + delivery + service innovation and upgrading of the whole chain.
On May 14, Dongpeng Holdings once again disclosed the pre-disclosure announcement of the reduction of the two shareholders, and the total number of shareholders SCC HoldcoB and Shanghai Zhede plans to reduce the company's shares does not exceed 3% of the total number of shares of the company, and the number of shares reduced does not exceed 34,709,400 shares, and the reduction period is within 3 months after 15 trading days from the date of the announcement of the shareholding reduction plan.
If the closing price of 7.42 yuan per share on May 15 is calculated, the above two shareholders will cash out 258 million yuan.
The Yangtze River Business Daily reporter noticed that due to the overlap of the investment decision-making committee members of the two shareholders of SCC HoldcoB and Shanghai Zhede, although the two did not sign a concerted action agreement, the shareholding reduction was disclosed in accordance with the rules of concerted actors. From the end of May 2022, this is the fourth time that SCC HoldcoB and Shanghai Zhede have disclosed their shareholding reduction plans.
Back to the announcement, on May 31, 2022, the company announced that the two shareholders of SCC HoldcoB and Shanghai Zhede planned to reduce their holdings of 84.46 million shares, and as of the expiration date of December 22, 2022, when the shareholding reduction plan expired, a total of 10,960,398 shares were reduced, with an average price of 8.5 yuan to 8.92 yuan per share.
On December 23, 2022 and August 2, 2023, the two shareholders continued to issue shareholding reduction announcements, planning to reduce their holdings of 69.42 million shares and 46.28 million shares, and when the shareholding reduction plan expired, the actual number of shares to be reduced was 24.887001 million shares and 10.6675 million shares respectively, with an average price of 8.5 yuan to 9.96 yuan per share and 9 yuan to 11.17 yuan per share.
Roughly calculated, on May 31, 2022, December 23, 2022 and August 2, 2023, the cumulative reduction amount is as high as 401 million yuan. If the amount of the proposed reduction is added, SCC HoldcoB and Shanghai Zhede will cash out more than 650 million yuan within two years.
As for the reasons for the previous reductions, the company said that the two shareholders implemented the shareholding reduction plan according to market conditions and combined with the needs of their own investment decisions.
The Yangtze River Business Daily reporter noticed that at the same time as SCC HoldcoB and Shanghai Zhede reduced their holdings, the company's stock price rose first and then fell. The K-line chart shows that on May 31, 2022, the company's share price closed at 8.08 yuan / share, and on July 31, 2023, the company's share price rose to a high of 12.98 yuan / share in the past two years, and then entered a downward channel.
As of the close of trading on May 15, the company's share price closed at 7.42 yuan per share, and the stock price fell by 42.84% in 10 months.
Profit turned into loss in the first quarter
In recent years, due to real estate adjustments, the performance of Dongpeng Holdings, as the downstream of the industrial chain, has been unstable. In the year of listing, the company's revenue and net profit were 7.158 billion yuan and 852 million yuan respectively, with year-on-year changes of 6.02% and 7.24% respectively.
In 2021, Dongpeng Holdings will increase revenue but not profits, and in 2022, the company's revenue will decline. According to the data, from 2021 to 2022, the company's revenue will be 7.979 billion yuan and 6.93 billion yuan respectively, with a year-on-year change of 11.46% and -13.15%; The net profit was 154 million yuan and 202 million yuan, a year-on-year change of -81.97% and 31.5%.
Regarding the sharp decline in net profit in 2021, Dongpeng Holdings said that the real estate industry is under pressure, and some real estate industry customers have difficulties in capital turnover, overdue payment of commercial acceptance bills, and liquidity problems in some real estate companies, which will have a greater impact on the company's performance in 2021; At the same time, repeated epidemics at home and abroad, the "dual carbon" policy and power and production restrictions, and the rise in energy and raw material prices have also affected the company's profitability.
In 2023, as the company continues to promote retail and superimpose the promotion of real estate "guaranteed delivery", the area of housing completions will increase significantly year-on-year, and Dongpeng Holdings' revenue will regain growth and its profitability will be greatly improved. According to the data, in 2023, the company's revenue and net profit will be 7.773 billion yuan and 720 million yuan respectively, with year-on-year changes of 12.16% and 256.63% respectively.
The Yangtze River Business Daily reporter noted that due to the accounts receivable reaching 1.043 billion yuan, Dongpeng Holdings will make various impairment losses of about 210 million yuan in 2023 in 2023, resulting in a decrease of 210 million yuan in total profits in 2023.
At the same time, due to seasonal factors, the company's profitability was low in the first quarter. It should be noted that unlike in the past, the company's net profit in the first quarter turned into a loss of 11.5156 million yuan, compared with 1.1777 million yuan in the same period last year.