Tuyere financial reporter Zhao Chong.
With the DR diamond ring that "a man can only customize one in his life", the market has opened up the Dia shares, and under the "** heat" of the jewelry market, it has also fallen into the quagmire of "not selling".
A few days ago, Dia shares released a performance forecast for 2023, and it is expected that the operating income in 2023 will decrease by 37% year-on-year83%–43.75%, and earnings fell 87% year-on-year60%-91.72%, net profit after deducting non-recurring gains and losses decreased by 116 over the same period last year03% to 12098%。
What are the young people who have abandoned diamonds going to buy now?
The revenue shrank by nearly 4 percent, and the net profit is expected to drop by about 9 percent Yesterday evening, Dia shares released the 2023 annual performance forecast. Dia expects to achieve operating income of 207,094 in 2023$660,000 to $228,894100,000 yuan, down 37 from the same period last year83% to 4375%；Net profit attributable to shareholders of the listed company was 6,036$270,000 to $9,044990,000 yuan, down 87 percent from the same period last year60% to 9172%；Net profit loss after deducting non-recurring gains and losses was 9,830$600,000 to $12,866410,000 yuan, down 116 from the same period last year03% to 12098%。
Dia shares 2023 annual performance forecast.
In the same period last year, Dia achieved operating income of 368,157440,000 yuan; Net profit attributable to shareholders of the listed company was 72,924190,000 yuan; Net profit after deducting non-recurring gains and losses was 61,324690,000 yuan.
For the reasons for the decline in income, Dia shares said that in 2023, the overall domestic economic operation will recover for the better, but the internal structural differentiation of the jewelry industry will intensify, the market competition will be fierce, the demand for diamond inlaid jewelry as an optional consumer goods will be insufficient, and the recovery will be slow.
The performance declined, and the stock price of Dia shares naturally "fell endlessly".
Straight flush.
Flush ifind data shows that on the first day of listing, the share price of Dia shares was as high as 180 yuan in the intraday, and the total market value jumped to 76 billion yuan. Since its listing, the company's share price has been on a downward trend, with a ** price of 24 as of January 3030 yuan shares, the total market value is only 972 billion yuan.
Expanding against the trend, but closing a large number of stores It is worth noting that the company's contrarian expansion due to the inaccurate prediction of the post-epidemic recovery has a greater impact on the company's profitability and operating hematopoietic ability. In particular, in 2022, Dia will accelerate the penetration of key cities, focus on new first-tier and second-tier cities, and actively enter blank cities to further accelerate the layout of key markets in East China, North China and Southwest China. During the period, 254 new stores were opened, of which 51 were opened in blank cities, accounting for 2007%。By the end of 2022, the number of stores of the company was 688, an increase of 49 from 461 stores at the beginning of the period24%。
Visual China.
In the first three quarters of 2023, Dia shares closed a total of 113 stores (9 stores closed in the first quarter, 18 stores closed in the second quarter, and 86 stores closed in the third quarter), with a net decrease of 94 stores. In the first three quarters of 2023, the company's net outflow of cash flow from operating activities was 00.6 billion yuan.
Dia shares also pointed out in the report that during the reporting period, the company carried out a comprehensive inventory of all stores, and took the initiative to close, shift and replace channels for some stores with low potential energy or inconsistent with the brand image. According to the results of impairment calculation, the company has made asset impairment provisions for stores with signs of impairment; At the same time, due to the early closure of stores, the loss of unrecoverable lease deposits in some stores increased, and the company made corresponding bad debt provisions. The above matters have had a significant impact on the net profit performance in 2023.
After the rapid expansion of the store, the operation of some stores is less than expected, which is also related to the decline in consumer demand for diamond jewelry, especially the change of the younger generation's consumption concept of diamond rings, relying solely on 'true love marketing' may not be able to meet the market demand, and consumers' willingness to pay for the high brand premium of DR diamond rings may decline, which has led to the decline in the company's revenue and losses. Jiang Han, a senior researcher at Pangu Think Tank, said in an interview with a financial reporter.
Why are brilliant diamonds not popular now? With the DR brand as the core, Dia continues to convey the DR brand love concept to consumers and continuously expand the brand's influence by adhering to the innovative business philosophy of "men can only customize one piece in their life". In the name of love, Dia shares have also gained a high emotional premium: the company's gross profit margin is stable at about 70%, and from 2020 to 2023Q3, the company's sales gross profit margin is. 79 and 6897%, corresponding to a cost of sales ratio only. 21% and 3103%。In other words, the cost of a DR diamond ring of about 10,000 yuan may only need about 3,000 yuan, which shows that the premium of the diamond ring brand of Dia shares is higher.
At the same time, the financial report shows that in the first half of 2023, the sales expense ratio of Dia shares will be 5586%, an increase of 2388 percentage points; The selling expense ratio for the first three quarters of 2023 was 5556%, an increase of 2014 percentage points, far exceeding the cost of sales and R&D expenses. This is enough to see the company's emphasis on marketing.
Visual China.
The marketing expenses of Dia shares have increased year by year, even exceeding the cost of sales and research and development expenses, and there are certain risks. If the company's revenue is not growing consistently, then high marketing expenses can put pressure on the company's financial health. Companies can consider optimizing marketing strategies and reducing unnecessary marketing expenses while improving the quality and differentiation of products to attract more consumers. Jiang Han, a senior researcher at Pangu Think Tank, said in an interview with a financial reporter.
Why are brilliant diamonds not popular now? The financial reporter noticed that diamonds have gradually "fallen out of favor" since 2022.
According to the "2022 China Jewelry Industry Development Report" released by the China Jewelry and Jade Jewelry Industry Association, the market size of China's diamond products in 2022 will only be about 82 billion yuan, a decrease of about 18 billion yuan from 2021 and a year-on-year increase of nearly 18%. Since the beginning of 2023, diamonds have continued to be in the retail market.
Unlike diamonds that are cold, ** is quietly heating up. According to the latest statistics released by the China ** Association, China's ** consumption will be 1089 in 202369 tons, a year-on-year increase of 878%, of which 706 are jewelry48 tons, a year-on-year increase of 797%。
Jiang Han, a senior researcher at Pangu Think Tank, told the financial reporter that for the hot market and the sluggish demand for diamond jewelry, Dia shares can consider adjusting their business. "On the one hand, the company can increase investment in first-class products to meet market demand; On the other hand, companies can also continue to seek innovation and breakthroughs in the field of diamond jewelry to attract consumers by offering more differentiated and personalized products. ”
On January 30, the financial reporter interviewed Dia shares on issues related to the performance forecast, and the ** provided by the staff has been unconnected.
The views in this article are for reference only and do not constitute investment advice. ）