Depth independent penetration
Iron also needs to be hard
Author: Mondo.
Editor: Li Huan.
Style: Ling Yu.
*: Shoucai - Shoutiao Institute of Finance and Economics.
Consolidating the quality of listed companies is not just talking.
On November 28, Bawei shares, which hit the Beijing Stock Exchange, ushered in the third round of inquiries. It is mainly required to explain the authenticity of the large-amount third-party payment, the authenticity of the substantial increase in sales revenue of the two major customers, and the reasonableness of the gross profit margin of important customers.
Will you be able to make it through?
ODM earns hard-earned money, and the R&D expense rate declines
According to public information, Bawei Co., Ltd. is an enterprise engaged in cosmetics ODM business, mainly providing cosmetics brands with product planning, formula research and development, manufacturing, efficacy testing and other full-process services. It has provided products and services for more than 1,000 cosmetics brands, including skin care, washing and care, makeup, etc.
There are many well-known cosmetics brands such as Unilever, Renhe Ingenuity, Marubeni, and Dr. Ling.
On June 30, 2023, Ba Wei shares submitted listing materials to the Beijing Stock Exchange, planning to raise 84 million yuan. Among them, 40 million yuan will be used for the construction of intelligent production workshops, 24 million yuan will be used for the construction of R&D centers, and 20 million yuan will be used to supplement working capital.
From 2020 to 2022, the sales amount of Bawei shares ODM model will be 30.9 billion yuan, 40.5 billion and 4500 million yuan, accounting for the proportion of current revenue. 91% and 9824%。
Guo Xing, an industry analyst, said that although enterprises can operate lightly under the ODM model, the gross profit margin is low, and they earn hard-earned money. It is necessary for Bawei to raise funds to build an intelligent production workshop to improve quality control and core competitiveness.
However, in the same period, R&D expenses were 2206330,000 yuan, 2891940,000 yuan and 2701410,000 yuan, accounting for revenue. 96% and 588%。The average R&D expense ratio of comparable companies in the same industry over the same period was: 74%。
Between the ups and downs, Ba Wei shares have fallen behind, is it conducive to getting rid of ODM identity and enhancing core competitiveness?
Sales of the two major customers soared
From 2020 to 2022, Ba Wei's revenue will be 31.4 billion yuan, 41.6 billion and 45.9 billion yuan, a year-on-year increase. 54%, the continuous rise is commendable, but the slowdown in growth needs to be vigilant. The net profit attributable to the parent company for the same period was 02.8 billion yuan, 02.1 billion yuan, 03.8 billion yuan, the overall stability needs to be improved.
It is worth noting that although the revenue growth rate in 2022 has slowed down, it is still much higher than the average level of its peers, which has led to the external review of the authenticity and sustainability of its revenue growth.
According to the National Bureau of Statistics, the total retail sales of cosmetics in China in 2022 will be 3,935600 million yuan, down 45%, the first negative growth in the total retail sales of cosmetics in the past decade. In the same year, Ba Wei shares comparable to its peers Qingsong shares revenue of 20900 million yuan, down 16 percent year-on-year72%；Jiaheng Jiahua's revenue is 5400 million yuan, down 14 percent year-on-year05%。
Why did Ba Wei shares grow?
In 2020, the sales of the top five customers of Bawei shares will account for a relatively balanced proportion, with a total revenue of 11.3 billion yuan, accounting for 3602%。
And in 2022, Ba Wei's revenue from the top five customers will be 25.8 billion yuan, more than half of the total revenue. Among them, ranked.
The sales revenue of Renhe Group and Guangzhou Yumei, which are the first and second companies, have shown explosive growth.
From 2020 to 2022, Bawei shares achieved sales revenue of 1011 to Renhe Group280,000 yuan, 2547570,000 yuan and 8660170,000 yuan;Guangzhou Yumei achieved sales revenue of 00,000 yuan and 60 yuan respectively820,000 yuan, 6455080,000 yuan.
According to this calculation, in 2021, Renhe Group and Guangzhou Yumei contributed about 26.48 million yuan in revenue, accounting for 6% of the total revenue3%；In 2022, it soared to 15.1 billion yuan, accounting for 33%.
In the first half of 2023, the revenue contributed by the two customers will rise sharply, about 9332840,000 yuan, accounting for 4385%。
In this regard, the Beijing Stock Exchange asked Bawei shares to explain whether they are sustainable.
Ba Wei shares once said in the second round of replies that after visiting Zhejiang West Coast Information Technology *** and interviewing the legal representative of Zhejiang West Bank, the revenue realized by the issuer's products accounted for about 40% of the overall sales revenue of Zhejiang West Bank during the reporting period. He also introduced the cooperation with Guangzhou Yumei, and the influence of the skintific brand in the Southeast Asian market has gradually increased. In addition, with years of experience in the Southeast Asian market, the growth is also sustainable.
Is the family business right or wrong, and is it short of money?
Through the shareholding structure, it can be seen that the founder Leng Qunying holds 19.35 million shares, accounting for 25 of the total number of shares2611%, Leng Qunying's husband Liu Ruixue holds 10.8 million shares, accounting for 14% of the total number of shares0992%, with a total of 393603% of the shares, for the controlling shareholder, the actual controller.
In addition to mom-and-pop holdings, the founding shareholders and management also have their relatives. For example, Leng Qunying's younger brother Leng Zhigang holds 14 of the company02% of the shares, serving as the company's director and deputy general manager;Leng Qunying's daughter Leng Qinyuan served as the sales director of Bawei shares, her son-in-law Shan Nan served as the company's secretary of the board of directors, and Liu Ruixue's younger brother Liu Ruijie served as the director of the delivery center.
According to the calculation of Blue Whale Finance, Leng Qunying, Liu Ruixue and their relatives directly or indirectly hold nearly 60% of the shares of Ba Wei. However, none of the other relatives have been identified as persons acting in concert with the actual controller. In this regard, the inquiry letter of the Beijing Stock Exchange requires the enterprise to explain the accuracy of the determination of the actual controller and the person acting in concert.
In this regard, Ba Wei said that Leng Qunying and Liu Ruixue participated in major decisions on daily operation through the actual control of shares and personnel nomination, which was enough to achieve actual control of the company. Although the relatives of the two work in the company, they cannot exert significant influence on the day-to-day operation and management, so the control of the company is stable.
Industry analyst Yu Shengmei said that in the early stage of enterprise development, family management is conducive to operational stability and efficient decision-making. After growing to a certain scale, modern enterprise management is the top priority. The transparency of family business governance, advanced decision-making, openness, accuracy and foresight, team talent training, and improvement space are all the focuses.
From 2020 to 2022, Bawei shares have made three equity distributions, amounting to 9.18 million yuan, 12.24 million yuan and 15.32 million yuan respectively, with a total dividend of 36.74 million yuan, accounting for 423%。
It's not a harsh question, since there is money to pay dividends, why do you have to go public to raise funds to replenish the flow?Is there a shortage of money?
This article was originally written by Shoucai