** Biyu Finance under the New Economy Observation Group.
With the halo of "the first stock of medical cosmetology", Fuerjia, which has been listed on the venture board of the Shenzhen Stock Exchange for three months, is ushering in multiple impacts on performance and word of mouth. On October 22, Fuerjia released its financial report for the third quarter of 2023, with revenue and net profit declining year-on-year, and the operating conditions entered a downward channel.
At the same time, Fuerjia, which relies on the rise of the "micro-business model", is experiencing the pain of transformation. In the process of fully shifting to online channels, Fuerjia's profit margin has been continuously eroded by e-commerce platforms and major anchors. Coupled with the gradual decline of the star product "white film", can Fuerjia continue to write the myth?
The stock price has been cut in half, and the performance has "changed face".
On August 1 this year, Fuerjia officially landed on the GEM of the Shenzhen Stock Exchange, with the halo of "the first share of A-share medical cosmetology", and Fuerjia was 55The issue price of 68 yuan shares opened rapidly higher, and the listing day closed at 707 yuan shares, compared with the issue price** range as high as 2698%, the same in the capital market.
Prior to this, Fuerjia had had a long and smooth day. In 2014, Zhang Liguo, the founder who has been immersed in the pharmaceutical industry for many years, keenly smelled the strong demand of female consumers for professional management products, and began to cooperate in the research and development of professional management products.
In 2017, Zhang Liguo, who is getting bigger and bigger in the medical cosmetology business, officially established Fuerjia Company, and Harbin Sanlian became an "OEM factory" to escort it.
In June 2023, Fuerjia successfully won the official approval for listing on the GEM. Behind this success, it is inseparable from the beautiful financial report data of Fuerjia.
According to the prospectus, from 2019 to 2022, Fuerjia will achieve revenue of 134.2 billion yuan, 158.5 billion yuan, 16500 million yuan, 17700 million yuan, especially in the past two years, the revenue growth rate has increased from 41% to 727%。
In the same period, Fuerjia achieved a net profit of 66.1 billion yuan, 64.8 billion yuan, 80.6 billion yuan, 84.7 billion yuan. It is equivalent to four years, Fuerjia has made a net profit of nearly 3 billion yuan.
As we all know, the regulatory rules of the A** market are very strict, and there are extremely high assessment standards for the profitability of the company to be listed. Especially in recent years, with the continuous development of China's ** market, the profit requirements of the GEM have also been constantly changing. Since 2016, the GEM has stipulated that the total net profit of listed companies in the last two years shall not be less than RMB10 million, of which the net profit in the most recent year shall not be less than RMB5 million.
Judging from the performance of Fuerjia, it is extremely easy to go public on A.
However, after the listing, the profitability of Fuerjia began to decline, and the performance obviously "changed face".
According to the latest financial report, in the third quarter of this year, Fuerjia achieved revenue of 47.1 billion yuan, a year-on-year decrease of 547%, net profit attributable to shareholders of the superior company 18.3 billion yuan,The year-on-year decline was by double digits to 3726%。
And this is not the first time that Fuerjia's performance has declined. In the semi-annual report at the end of August, Fuerjia had a situation of "increasing revenue but not increasing profits", and achieved revenue of 86.9 billion yuan, a year-on-year increase of 633%；Net profit attributable to owners of the parent company was 35.4 billion yuan;A year-on-year decline of 109%。
Not only that, in the three months since Fuerjia was listed, the company's stock price has also been on a "roller coaster", and it broke for the first time on the fifth trading day of listing. As of October 23, the stock price even fell to an all-time low, reaching a low of 398 yuan shares, on December 5, the latest opening price of Fuerjia is 4058 yuan shares, although it has rebounded from the lowest point, but compared with 8004 yuan shares at an all-time high, the stock price has been cut in half.
The micro-business model is difficult to realize the capital story
Looking back on the development history of Fuerjia, "*" has contributed a lot of strength.
According to a reporter from Beijing Business Daily, we only need to meet the business license or in-store environment provided by the beauty salon, and the beauty and skin care micro-business is more than half a year. According to people familiar with the matter, a box of white film starts at 58 yuan per box, and some can be as low as 55 yuan (no free shipping), which supports anti-counterfeiting verification. The retail price of this product on the market is 148 yuan box (5 pieces), which is equivalent to a 37% discount for the goods.
Convert to this,The market price is 29The ex-factory price of 6 yuan white film is lower than 11 yuan, and the gross profit margin exceeds 60%. In fact, the overall gross profit margin of Fuerjia is only high. The previous prospectus data shows that from 2020 to 2022,The company's comprehensive gross profit margin reached respectively. 95% and 8307%, which can be called the "Moutai" of the world.
However, in the latest three quarterly reports, the comprehensive gross profit margin level of Fuerjia has declined slightly to 8158%, although still at a high level, has begun to decline compared to the peak period before the listing.
The decline in profitability may be due to the fact that Fuerjia is experiencing a "painful period" of stripping off the "micro-business model". The micro-business model may be able to earn short-term traffic dividends through social communication, but due to the low entry threshold and regulatory risks, problems such as lack of after-sales service are prone to occur.
According to Tianyancha data, there are as many as 11 trademark infringement dispute cases involving Fuerjia, which is the highest proportion of many judicial cases. This may also be a major drawback of the "micro-business model". In the long run, if the company wants to continue to develop, it still needs to focus on improving the capabilities of online retail.
In order to get rid of the dependence on the micro-business model, Fuerjia has started a transformation since 2018, shifting its sales focus to online channels. But after "fighting alone", Fuerjia ushered in the pressure of "two mountains": on the one hand, it had to pay a lot of traffic fees to the e-commerce platform, and on the other hand, it had to bear the "sky-high" pit fees of major anchors.
Under the difficult predicament of being coerced by channels, Fuerjia's business situation was the first to be eroded, and sales expenses continued to be **. In the first three quarters of 2023,The sales expense ratio of Fuerjia reached 2653%, a record high. At the same time, the company's administrative expenses soared by 105 year-on-year82%。In this regard, Fuerjia said that it was mainly due to the increase in the remuneration of management personnel, depreciation of housing and equipment and property expenses in Fuerjia North Beauty Valley during the reporting period.
And in stark contrast to the selling expense ratio,It is the revenue and net profit that have fallen into stagnation or even negative growth。It can be said that Fuerjia jumped from the micro-business model into another fire pit and became a "slave" of the channel. Although Fuerjia did not give a specific reason for the decline in performance in the third quarterly report, it is undeniable that the high marketing promotion is constantly threatening Fuerjia's business situation.
And this trend is still intensifying. From 2018 to 2022, the proportion of Fuerjia's online channel revenue has increased from 1185% to 4062%, and in the same period, the company's sales expense ratio also increased from 572% to 2206%。The continuous expansion of online channels has made the profit performance of Fuerjia deteriorate, and the net profit margin has increased from 53 to 5 in the same period44% slipped to 4789%。
What's the myth behind the white coat?
As we all know, although Fuerjia is well versed in the routine of "insufficient products and marketing", it has products that can be used after all, that is, the star single product brand name ** "white film" and "black film", which are used in medical beauty scenes or postoperative welfare. In 2022 alone, the above two major ** will contribute 62.4 billion yuan, 2200 million yuan, accounting for 47 million yuan in total revenue7%, almost half of the country.
However, with the intensification of competition in the medical aesthetic track, the industry supervision is becoming more and more stringent. "Machinery brand" is ushering in an unprecedented winter.
In 2020, the State Food and Drug Administration officially issued a document, saying that there is no so-called "machine number", and the naming of medical dressings shall not contain claims such as "beauty" and "health care", and medical device products cannot be named with "**".
For consumers, the purchase of the so-called "machine name" is often due to its identity as a "medical dressing", which is safer and more functional than the ordinary**. However, the actual medical dressings are mainly used for direct or indirect contact with the wound, and have the medical effects of absorbing wound exudate, supporting organs, preventing adhesion or providing a suitable environment for wound healing, and it can be said that it has nothing to do with the "machine name".
Therefore, when the public found that there was no concept of "machine name" and that medical device products could not be named "**", the mystery of "machine name" was also lifted layer by layer. Medical cosmetology giants such as Fuerjia and Kefumei bore the brunt of the crisis, encountering a large crisis of trust, and their sales performance has deteriorated.
What's more, since cosmetics products have surpassed medical device products to become the largest revenue of Fuerjia**, Fuerjia has updated its prospectusThe company's industry has changed from "C35 special equipment manufacturing" to "C26 chemical raw materials and chemical products manufacturing". As of the end of the reporting period, 46 of the 51 products of Fuerjia were cosmetics, far exceeding the number of medical device products.
Screenshot**: The app of the National Medical Products Administration
Today, the official information of the State Drug Administration also shows that a large number of products under Fuerjia are currently registered as "makeup brand" domestic ordinary cosmetics.
With the gradual withdrawal of the machine name, the advantages that Fuerjia was once proud of are gradually gone. After entering the makeup brand track, Fuerjia will find that it does not seem to have differentiated advantages from other peer products that also focus on functional skin care in online channels, such as Winona, which is also aimed at people with sensitive skin, or Kefumei, which is also aimed at post-medical art repair.
How to enhance the core competitiveness and launch differentiated product points, there seems to be no good plan for Fuerjia. This is evident in the company's meager R&D expenditures. As of the end of 2022, there are only 8 R&D personnel in Fuerjia, and the R&D expense rate is as low as 087%。For comparison, the giant creature is 19%, Bloomage Biotech is 61% and 5 for Bethany08%。
Now,"Medical dressings"The rise of Fuerjia has transformed into a complete cosmetics company. After turning into the cosmetics track and losing the halo of the "machine brand" that started from it, the competitive pressure faced by Fuerjia, which is insufficient in research and development and relies on outsourcing production, can be imagined. After the stock price was cut in half, how to continue to write the myth has to be carefully considered.
Disclaimer: The publication of this article is for the purpose of conveying more information and does not constitute any advice.