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Due to the decline in revenue and net profit in 2023, Daye Co., Ltd. received an inquiry letter for the annual report of the Shenzhen Stock Exchange on May 16.
The annual report shows that in 2023, Daye will achieve operating income of 928 million yuan, a year-on-year decrease of 36.91%; The net profit attributable to shareholders of listed companies was -175 million yuan, a year-on-year decrease of 1654.26%.
As of the close of trading on May 16, Daye's share price was 15.3 yuan per share, with a total market value of about 2.4 billion yuan.
来源：Wind
The exchange asked five questions in a row
Daye Co., Ltd. is mainly engaged in the research and development, design, manufacturing and sales of lawn mowers, lawn mowers/brush cutters, other power machinery and accessories, and its products are mainly sold to European and American countries and regions. In 2023, the company's lawn mower products will achieve revenue of 806 million yuan, accounting for 86.82% of operating income, and the gross profit margin of products will only be 11.10%, a year-on-year decrease of 5.04 percentage points. At the same time, the company incurred sales expenses of 100 million yuan in the current period, a year-on-year increase of 22.61%.
The company said that the decline in performance was mainly due to the fact that major customers in Europe and the United States were in the stage of high inventory and increased destocking efforts, resulting in a decrease in customer demand, an increase in sales deductions and a decline in gross profit margin.
The letter of inquiry requires the company to explain the reasons for the sharp decline in operating income in 2023 in combination with the reasons for the formation of high inventory of customers, changes in sales and revenue recognition policies, and digestion of customer inventory, etc., and whether customer destocking will still affect the company's operation in 2024, and fully indicate the business risks; Explain the reasons for the increase in sales expenses in the case of a sharp decline in operating income, and whether the related expenses are reasonable and necessary.
The letter of inquiry also paid attention to the company's increase in investment in fixed assets and projects under construction under the condition of declining revenue scale, and requested to explain the reasons and necessity, and to supplement the disclosure of information on fixed assets, suppliers of projects under construction and whether they are related parties.
In addition, the inquiry letter also requires the company to explain whether the provision for inventory decline is sufficient and reasonable in the case of a decline in gross profit margin; Explain the reasons and reasonableness of the high balance of borrowing when the balance of monetary funds is high.
As of the end of 2023, the balance of monetary funds of Daye shares was 719 million yuan, an increase of 536.28% year-on-year; The closing balance of short-term borrowings was 385 million yuan, a year-on-year decrease of 54.33%.
The reporter noted that on the evening of April 24, Daye Co., Ltd. announced that in order to meet the needs of the company's fund-raising and investment projects to increase production and sales for working capital preparation and daily production and operation, from January to March this year, the company borrowed about 252 million yuan, accounting for 30.76% of the company's net assets at the end of 2023. As of March 31, 2024, the company's borrowing balance was approximately 1.635 billion yuan.
Net profit fell for four consecutive years
According to the data, in September 2020, Daye shares landed on the GEM, and the company's IPO raised 460 million yuan for the construction of a new 900,000 garden machinery product production project, with a construction period of 2 years. At that time, the company said that insufficient production capacity has become a bottleneck restricting the company's sustained and rapid development, and the implementation of the fundraising project will greatly increase the production capacity of the company's main products, take advantage of the broad market space, expand the business scope and enhance profitability.
After listing, Daye's performance was not optimistic. The company's net profit has declined for four consecutive years and the decline has gradually expanded, and its operating income has also declined for two consecutive years.
From 2020 to 2023, Daye Co., Ltd. achieved revenue of 1.001 billion yuan, 1.607 billion yuan, 1.472 billion yuan, and 928 million yuan, of which 2022 and 2023 decreased by 8.43% and 36.91% year-on-year; The net profit was 77 million yuan, 56 million yuan, 11 million yuan and -175 million yuan, down 5.87%, 27.61%, 79.74% and 1654.26% year-on-year respectively.
Source: China Securities Intelligent Financial News
Review: Xiong Yonghong
Editor: Wang Yin
Proofreading: Zhang Diange
Producer: Li Ruoyu
Issued by: Sun Hong
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