After encountering a series of challenges such as performance thunderstorms and Ali's reduction of holdings, Meinian Health is now facing the new problem of the intensive departure of many executives. Daysun Finance noted that since 2021, four senior executives of the company have announced their departures. At the same time, the company's stock price has fallen from the highest 20.15 yuan at the beginning of the year to 8.72 yuan, a decline of more than 50%.
Behind the stock price, performance double kill, executive departure and the "escape" of major shareholders, where is the future of the former "first share of physical examination"?
After a quarterly performance thunderstorm
Executives leave intensively
On June 3, Meinian Health Industry Holdings Co., Ltd. (hereinafter referred to as "Meinian Health") announced that the company's board of directors received a written resignation report submitted by Ms. Jiang Weina, vice president and secretary of the board of directors of the company, on June 2, 2021. Ms. Jiang Weina applied to resign as vice president and secretary of the board of directors of the company for personal reasons. Until the new secretary of the board of directors arrives, Mr. Yu Rong, the chairman of the board of directors of the company, will temporarily act as the secretary of the board of directors.
▲ Screenshot of the announcement
On the same day, another announcement by Meinian Health showed that Ms. Wu Qinwei, a director of the Company, submitted a written resignation report on June 2, 2021, and Wu Qinwei applied for resignation as a director of the seventh board of directors of the company and a member of the strategy committee and audit committee under the board of directors for personal reasons. After her resignation, Ms. Wu Qinwei no longer holds any position in the company.
The resignation of two executives within a day highlights the current embarrassing situation of Meinian Health. As early as two months ago, Ning Yi, vice president and chief scientist of Meinian Health, also announced his resignation due to "personal reasons" and no longer held any position in the company.
On January 4, 2021, Xu Ke, director and president of Meinian Health, took the lead in proposing his resignation and resigned as president of the company. However, despite resigning as president, Xu Ke continued to serve as a director and a member of the company's strategy committee, a member of the nomination committee, and a member of the remuneration and appraisal committee.
At present, behind the intensive resignation of Meinian Health executives, it is not unrelated to the company's poor performance.
According to the annual report data, the non-net profit of The Health Deduction in 2020 was -600 million yuan, which is also the company's second annual loss after the loss of 869 million yuan in 2019. The latest financial report data released on April 29 shows that Meinian Health still suffered a loss of 424 million yuan in the first quarter of 2021, and the short-term performance pressure is extremely high.
▲ Meinian Health financial data
In addition to operating losses, the current financial pressure of Meinian Health should not be underestimated. According to the data of the first quarterly report, as of the end of March 2021, the company's monetary funds were 1.439 billion yuan, a year-on-year decrease of 59.41%, and the company's non-current liabilities due within one year reached 1.487 billion yuan in the same period, and the monetary funds could not cover short-term debts. In addition, as of the end of March, the healthy current ratio of the US year was 0.8, the quick ratio was 0.66, and the short-term debt repayment indicators were below the safe value range, and the short-term debt repayment pressure was highlighted.
In desperation, Meinian Health chose to borrow money from the actual controller to survive. On June 8, Meinian Health issued the "Proposal on the Company's Proposed Loan to the Actual Controller and Related Party Transactions". According to the announcement, the Company intends to borrow no more than RMB200 million from yu Rong, the actual controller, to meet the "daily operational and strategic development needs".
Under the pressure of performance, it may not seem difficult for executives to choose to leave, but this in itself inevitably increases investors' worries about the future development of the company. Since 2021, meinian health stock price has fallen from the highest 20.15 yuan at the beginning of the year to 8.72 yuan, a decline of more than 50%.
▲ Annual healthy stock price trend
As the "first stock of physical examination" that has been noted by the attention, why does health fall to the point where the stock price still falls every year? The "indigestion" caused by overly aggressive M&A expansion should be a major reason, and the "Guangzhou Fuhai Incident" scandal that broke out due to the lack of internal management of the company was a fuse.
Crazy acquisition performance "fat",
The "Fuhai Incident" led to an industry crisis
According to the data, Meinian Health was established in 2004, which is a professional physical examination and medical service group with health examination as the core, integrating health consultation, health assessment and health intervention.
In 2015, Meinian Health successfully landed on the A-share listing through jiangsu Sanyou. After that, Meinian Health began an almost crazy road of mergers and acquisitions.
In 2016, Meinian Health acquired 72.22% of the equity of Ciming Medical Examination for 2.697 billion yuan;
In 2017, Meinian Health acquired the corresponding equity of 7 companies including Xichang Meinian for 153 million yuan;
In 2018, Meinian Health acquired the corresponding equity of 5 companies including Deyang Meinian for 117 million yuan, and the corresponding equity of 14 companies including Wuhan Meinian for 358 million yuan;
In 2019, Meinian Health acquired the corresponding equity of 19 companies including Xining Meinian for 347 million yuan, and acquired 51% of the equity of Anhui Nuoyi for 128 million yuan.
Under the strategy of fast running and staking, the performance of Meinian Health has achieved certain results on the surface. According to the data, from 2015 to 2018, the operating income of Meinian Health increased from 2.101 billion yuan to 8.458 billion yuan, and the net profit increased from 260 million yuan to 821 million yuan.
After the rapid improvement in performance through epitaxial acquisitions, Meinian Health began to be greened by giants. In 2019, Alibaba announced a strategic stake in Meinian Health, which became the highlight moment of Meinian Health.
On October 27, 2019, Meinian Health announced that the controlling shareholders and concerted actors such as Tianyi Assets, Tianyi Holdings, and Shanghai Meixin transferred 5.58%, 5.25% and 5.34% of the equity of the listed company to Alibaba Network, Hangzhou Xintou and Shanghai Qijun respectively, with a total transfer of 16.16% of the equity, and the transfer price was 12.01 yuan per share, a total of 7.265 billion yuan.
After the completion of the equity transfer, Alibaba Network became the largest shareholder of the company with 9.39% of the shares, and it and the consistent actor Hangzhou Xintou held a total of 14.39% of the company's shares. In addition, Shanghai Qijun, controlled by Alibaba's Yunfeng Fund, became the company's second largest shareholder with 5.10% of the shares.
(Remarks: Yu Rong, chairman of the board of directors of the company, and his co-actors hold a total of 21.17% of the shares, and are still the actual controllers of the company)
However, just when investors thought that the performance of Meinian Health, which hitched the Alibaba Express, would continue to soar, the accident happened. According to the 2019 annual report data, the non-net profit deducted by Meinian Health was 869 million yuan, while the non-net profit deducted in the previous year was as high as 711 million yuan, and the speed of the performance change was jaw-dropping.
Out of the mix, always have to pay back. In hindsight, the sharp decline in Meinian Health's performance in 2019 stemmed from the company's previous crazy mergers and acquisitions.
After the continuous asset acquisition, the goodwill of Meinian Health has expanded rapidly. The data shows that from 2015 to 2018, the goodwill of Meinian Health was 417 million, 3.587 billion, 4.046 billion and 4.739 billion, respectively, with a year-on-year growth rate of 760.19%, 11.28% and 17.13%. As of the end of 2019, Meinian Health had formed a total of 107 goodwill asset groups due to the acquisition, with goodwill of up to 5.139 billion yuan.
However, the annual health of the rapid expansion soon had the problem of "indigestion", and the performance of many acquisition companies was less than expected, especially the actual performance of Main Gene and Ciming Physical Examination, which was the most different from the forecast data. Among them, the actual profit of Main Gene in 2019 only reached 46.38% of the forecast data, and the actual deduction of non-net profit of Ciming Physical Examination in 2019 was also nearly 31.33 million yuan different from the forecast data.
From the perspective of the competitive landscape, the domestic health examination industry has always been dominated by public institutions, supplemented by private professional physical examination institutions. In recent years, due to the more flexible hardware equipment and configuration and services of private physical examination institutions, and more effective to meet the personalized and diversified needs of users, the development speed has been exceeding the industry average.
However, the "Guangzhou Fuhai Incident", which broke out in mid-2018, became a turning point in the business of private medical examination companies that suffered a sharp brake, and the initiator of it was Meinian Health.
On July 29, 2018, a netizen who claimed to be a former employee of Guangzhou Meinian Fuhai Clinic posted "Meinian Great Health: If someone dies, you can only earn money once!" on social media! ", exposing the behavior of Meinian Health with the departed doctors to issue medical examination reports in violation of the law and using fake doctors to pit customers. Subsequently, Guangzhou Meinian Fuhai Outpatient Department received the "Notice of Order for Rectification" issued by the Guangzhou Tianhe District Health and Family Planning Bureau. This incident is also known as the "fake doctor' door" of Meinian Health or the Guangzhou Fuhai incident.
The occurrence of the Guangzhou Fuhai incident has brought an unprecedented crisis of trust to private medical examination institutions, which has also become a deeper reason for the thunderstorm of the goodwill of Main Gene and Ciming Physical Examination.
4 billion goodwill peaked
Ali reduced his holdings and fled
Affected by the performance of less than expected, in 2019, Meinian Health made a one-time provision for the impairment of goodwill of about 1.035 billion yuan, which became the most important reason for the company's loss of non-net profit. In 2020, the Company again made a goodwill impairment provision of $327 million. However, as of the end of 2020, the net value of health goodwill (after accrual) in the United States is still as high as 3.982 billion yuan.
The misfortune is that after the thunderstorm of The Health Performance of the United States, the "big financier" Ali seems to have begun to lose confidence in it. On November 4, 2020, Meinian Health announced that Alibaba Network has reduced its holdings in the company's shares by a total of 53.99 million shares through the bulk trading system of the Shenzhen Stock Exchange, accounting for 1.3794% of the company's total share capital.
Once due to the benefits of Ali's shareholding, the stock price of Meinian Health fell by more than 29% in the week after Ali reduced its holdings, and the market value shrank by nearly 20 billion yuan.
On November 6, 2020, Meinian Health held a conference call to explain Ali's reduction. In the conference call, Meinian Health did not specifically explain the reasons for Alibaba's reduction, but said that "the reduction plan of Alibaba is a strategy made by Alibaba according to market conditions."
This explanation is obviously not convincing, which has led many investors and institutions to choose to "vote with their feet".
According to the statistics of Flush, as of the end of March this year, the number of institutions holding Meinian Health was 75, compared with 319 by the end of 2020. In just three months, institutional investors have dwindled by 244 and the number of shares held has fallen by 280 million shares.
From 2012 to 2018, the scale of China's health examination industry increased from 46.8 billion yuan to 151.1 billion yuan, with a compound annual growth rate of 21.6%. Many people in the industry believe that under the catalyst of multiple factors such as consumption upgrading and increasing demand for resident prevention, the domestic health examination industry is still expected to maintain rapid growth.
However, as the crown of the "first physical examination" on its head, Meinian Health still seems to have no feasible solution to get rid of the pressure of performance and the turmoil of the executive team. Under the pressure of 4 billion goodwill, the company's long road to the bottom of the stock price may not be over.
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