*ST Doushen (300010) stock price has hit a new low recently, and the ** price on May 29 is only 183 yuan, a decrease of 1606%。This once A-share star company has fallen from 52 yuan shares in 2015 (before the right to reset) to today's 1 yuan shares, a decline of more than 90%. Behind this is the five consecutive years of performance losses, as well as the crisis of broken capital chains.
The predecessor of Doushen Education was Lisichen, which was listed in 2009 and was mainly engaged in office system services. In 2012, the transformation began, acquiring a number of information security and education companies, forming two major business segments. In 2016 and 2017, the company achieved the highest net profit and revenue, respectively, reaching the peak of performance.
However, the good times were short-lived. In 2018, the company's information security business declined sharply, and at the same time, an impairment loss of 3.6 billion yuan of goodwill formed by mergers and acquisitions was provided, resulting in a loss of nearly 1.4 billion yuan that year. Although it turned a profit in 2019, it lost 25 in 2020 due to the epidemic and goodwill impairment6.7 billion yuan. In the same year, the company changed its name to Doushen Education.
In 2021, the company suffered another blow from the "double reduction" policy, and the revenue of its subsidiary Chinese Future fell by 4064%, while providing for impairment losses on a number of assets related to K12 education and training, as well as provision for impairment of goodwill. That year, the company's revenue and net profit fell by another 465% and 763%。
In 2022, the company's asset impairment provision and credit impairment loss will exceed 400 million yuan, and the net profit loss will be 6800 million yuan. So far, the company's non-net profit has been negative for five consecutive years, with a cumulative loss of more than 5.4 billion yuan.
While the performance continued to deteriorate, the company's financial position was also precarious. At the end of 2017, the company's total assets were still 8.2 billion yuan, but by the end of 2022, only 238.3 billion yuan, while the total debt is as high as 309.1 billion yuan, with an asset-liability ratio of 12971%。The company's main interest-bearing liabilities are also overdue.
In March 2023, creditors applied to the court for the reorganization of the company and applied for the initiation of pre-reorganization proceedings, and the company faced the risk of bankruptcy.
In such a predicament, the company has started a new round of transformation, on the one hand, it is deeply engaged in the fields of smart education, public welfare classrooms, art learning, etc., and on the other hand, it has laid out the live streaming business, hoping to improve the company's knowledge output and delivery ability with the help of the traffic of the Douyin platform, so as to improve the company's performance.
However, the success of such a transformation remains to be tested by the market. It is still unknown whether Doushen Education can get out of the predicament and regain its life.