On the evening of November 7, Kefu Medical, which had just been listed, issued a acquisition announcement, allowing the national brand "Back And Back" to stand in the spotlight again.
According to the announcement, Kefu Medical will acquire 100% of the equity of Acorn Trading (Shanghai) Co., Ltd. (hereinafter referred to as "Acorn Trading") and the intellectual property rights related to "Back And Back" in its affiliates for a total price not exceeding RMB177 million.
It is worth noting that once popular, many of the post-80s and post-90s use of the back has been brilliant no longer, and the acorn trade has long been in debt.
According to reports, in 1998, Du Guoyao, known as the "godfather of Chinese marketing", founded Back Back Jia and created sales of 450 million yuan with crazy advertising and marketing. In 2005, the acorn trade bought it from Du Guoyao, and still supported the company's performance through overwhelming television advertising.
According to people's daily reports, in September 2005, He Jie, who won the third place in the Chengdu Singing District of "Super Girl" and the fourth place in the national finals, officially appeared as the image spokesperson of "Back Back Jia", adding another fire to the already popular "Back Back Jia" at that time.
What is more worth mentioning is that at that time, in order to sign He Jie, "Back And Back" spent no less than one million, and also spent a huge amount of money to create an advertising theme song "Happy Baby". There was also a rumor in the market that a number of stars would endorse "back to the good", and its influence can be imagined.
But today's "back and back" is long gone.
The acquisition announcement declares that the "Back And Back" brand has a history of more than 20 years, the main user groups are young people and teenagers, the Back Back Jia products have ranked first in the posture category of Tmall Mall for many consecutive years, and the hot selling brand of the health category of Jingdong Mall is the largest brand in the field of domestic rehabilitation posture segmentation, with great market potential. According to the summary data of Tmall Backstage and JD.com Background, the sales (including tax) in the last three years were 176 million yuan, 266 million yuan and 215 million yuan respectively, and the sales (including tax) from January to October 2021 were about 141 million yuan.
From the operation situation that Acorn Trade has announced, it can be seen that in 2019, its total profit was only 297,700 yuan, the net profit was -3,788,800 yuan, and the total liabilities reached nearly 270 million yuan. By 2020, the total equity and profit of acorn trading owners turned negative sharply, with a net loss of 61.48 million yuan, an increase of 57.69 million yuan compared with the loss in 2019, and the total liabilities increased to 287 million yuan.
Judging from the above financial data, the financial performance of Acorn Trade, which has a good operating back, is very bad.
Insolvent, the acorn trade and the "back of the good" forced to sell themselves.
According to public information, as a multi-platform integrated marketing company, Acorn Trading's TV shopping business covers more than 30 TV satellite channels, including CCTV, and is famous.
According to the data, in 2005, Acorn Trading became one of the "Top 50 High-tech Growth Companies in China"; in 2006, Acorn Trading was selected as the first place of "21 Future Stars - 2006 Most Growing Emerging Enterprises" by China Entrepreneur Magazine; in May 2007, it was listed on the New York Stock Exchange in the United States (former stock code: atv.us, the listed company referred to as "Acorn International").
However, as TV shopping gradually withdraws from the market, it is difficult for the acorn trade to continue its former glory.
According to public information, Acorn International began liquidating non-core assets from 2017, selling a majority stake in the "Good Memory Star" business to third-party investors and operators, closing the call center in 2019, and also selling assets such as Zhuhai Acorn Electronic Technology Co., Ltd.
On January 29, 2021, Acorn International announced the completion of its merger with First Ostia Port Ltd. After the merger, Acorn International operates as a privately held company wholly owned by first ostia port ltd. and applied for delisting from the NYSE.
However, from the information of the Tmall online store of Back Back, there are indeed a number of products with million + and 100,000 + sales, but as the acquisition information presents, the product has basically disappeared into the offline sales channel, and the parent company Acorn Trade, which operates Back Back, was even included in the list of abnormal operations by the Market Supervision Administration on September 28, 2021 because it could not be contacted through the registered residence or business premises.
So, as a company that has just been listed, why is Kefu Medical in a hurry to buy it?
According to public information, Kefu Medical was founded in 2009 and has now developed into a group enterprise integrating medical device research and development, manufacturing, sales and service. At present, it mainly develops and produces medical consumables and dressings, physical therapy and rehabilitation equipment and other products.
According to the announcement, the acquisition of Kefu Medical is to further improve its rehabilitation product category.
Kefu Medical's existing product categories include neck and waist rehabilitation, leg orthopedics, physiotherapy massage and other medical rehabilitation products, the company plans to use back and back as a sub-brand of rehabilitation assistive devices to create a series of medical technology-based posture, shaping, physiotherapy and wearable medical monitoring products.
According to the Securities Daily Network, Xue Xiaoqiao, secretary of the board of directors of Kefu Medical, said that all the products of "Back and Back" are currently sold online through Tmall, JD.com and other platforms, which is highly overlapping with the company's existing sales channels. Based on the company's rich experience and comprehensive operation ability in the field of Internet sales, as well as the extensive layout of offline pharmacies, supermarkets and other channels, the "Back and Back" series of rehabilitation products is expected to become an important revenue and profit growth point for the company.
Kefu Medical's products cover five major areas: health monitoring, rehabilitation aids, respiratory support, medical care, and traditional Chinese medicine physiotherapy. According to the prospectus, from 2018 to 2020, the operating income of the company's rehabilitation assistive devices products was 248 million yuan, 321 million yuan and 293 million yuan, accounting for 22.88%, 22.06% and 12.63% of its overall operating income. In recent years, with the growth of revenue in other categories, the proportion of the company's rehabilitation assistive devices revenue is gradually declining.
It is worth mentioning that Kefu Medical, which broke on the first day of listing, is still in a state of breakage. At present, the stock price of Kefu Medical is 82.92 yuan per share, and the total market value is 13.27 billion yuan.
(Source: Comprehensive Red Star Capital, Interface News, Securities Times Network, etc.)