Yesterday evening, Meijim (002621., a listed company on the early education trackSZ) issued a change announcement, and the company** has deviated from the decline by more than 20% for three consecutive trading days on January 31, February 1 and February 2, 2024. Today's Meijim stock as of ** reported 169 yuan, has been down for 4 consecutive days.
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The company noted that the decline in the stock price of Meijim began the day after it released its pre-loss results, and the decline has reached 34 in just 4 days50%。In 2023, the company expects a loss of 6700 million to 9300 million yuan, the performance will hit a new low, and this is mainly due to the company's continuous closure of stores due to operating difficulties last year, large credit impairment and asset impairment. At the same time, because the operating income may be less than 100 million yuan and the net assets at the end of 2023 may be negative, Meijim may face the risk of "wearing stars and hats".
After the market on January 30, the company disclosed the "2023 Annual Performance Forecast", which is expected to achieve operating income of 90 million yuan to 1200 million yuan, compared with 1$5.4 billion; The projected loss is 6700 million to 9300 million yuan, up from 4 in 2022Compared with 400 million yuan, the loss further expanded.
This is mainly related to the mass closure of the company. In the past year, the news of the closure of the company's Meijim early education centers in Guangzhou, Shanghai, Nanjing and other places has often appeared in the public eye, and in December last year, there was news of the closure of Meijim in Hohhot in Inner Mongolia and Tongzhou District in Beijing.
At the same time, a number of parents reported to ** that they are facing the problem of difficulty in refunding. On the Black Cat complaint platform, as of press time, there have been 1,209 complaints related to Meijim, mainly focusing on refunds, inability to contact customer service and other issues.
As of December 31, 2023, the number of early education centers signed by Meijim and Little Jim decreased by 198 compared with the end of the previous year, resulting in a year-on-year decline in the company's operating income and operating profit.
MGM explained that during the reporting period, the domestic macroeconomic situation was still gradually recovering, and the operating pressure accumulated in the early stage of the MGM Center was released in a concentrated manner. On the one hand, in the face of operational difficulties such as changes in the operation of commercial complexes, financial pressure on franchisees, and personnel loss, the operating costs of some Meijim centers are high; On the other hand, the decline in the birth rate of China's population and the decrease in the number of newborns have also affected the expansion of the early education center market.
In fact, Meijim has been in a state of loss for three consecutive years, with a loss of more than 1 billion yuan in three years. In 2019, Meijim was still profitable, while in 2020 it had a direct loss of 4$7.8 billion; In 2021, the company's net profit loss showed signs of narrowing, but it still lost 1$9.8 billion; In 2022, the loss widened again, reaching 44 billion yuan. In 2023, the amount of the company's loss will again hit a record high.
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What worries the market even more is that at the same time as the performance forecast was released, the company also disclosed the "Reminder Announcement on the Risk Warning of the Company's ** Transactions May Be Delisted".
According to MGM's estimates, its net profit before and after deducting non-recurring gains and losses in 2023 will be negative, and its operating income after deducting business income unrelated to its main business and income without commercial substance may be less than 100 million yuan, and its net assets at the end of 2023 may be negative. According to the relevant rules, if the company's audited financial data in 2023 touches the above relevant circumstances, after the disclosure of the company's 2023 annual report, the Shenzhen Stock Exchange will implement a delisting risk warning for its ** transactions (** abbreviation is preceded by the word "*st").
In addition to store closures, there were also large-scale credit impairments and asset impairments.
According to the performance forecast, due to the tightening of preferential policies for reduction and exemption in various parts of the country, and the huge pressure on rent and salary payment, the cash flow has become tighter than in previous years, resulting in the delay in the payment of royalties and franchise authorization fees, the company's payment situation has further deteriorated, and the expected loss of accounts receivable has increased. In accordance with the principle of consistency and prudence, the company has made a provision for bad debts of accounts receivable of about 1$800 million to $200 million.
Not only that, after the preliminary impairment test, the company expects to make a total impairment provision of about 7200 million to 10800 million yuan.
Earlier in 2018, the predecessor of Meijim, Third Base Co., Ltd., acquired Tianjin Meijim for 3.3 billion yuan, and held the franchise rights of the American early education brand "mygym" owned by Meijiem in Chinese mainland, transforming the early education business into the company's main business, and then the company changed its name to Meijim.
However, Tianjin Meijiem, which was acquired with a huge amount of money, not only failed to fulfill its performance commitments, but also continued to decline in profitability. According to the previous announcement, the performance commitments made by Huo Xiaoxin, Liu Junjun, Liu Yi, Wang Yan and Wang Shenbei, the original shareholders of Tianjin Meijiem, stipulate that the promised net profit of Tianjin Meijiem from 2018 to 2020 is 18 billion yuan, 23.8 billion yuan, 29 billion yuan.
Although Tianjin Meijiem has completed the performance commitments in 2018 and 2019, the net profit in 2020 is only 9694330,000 yuan. MGM said that in consideration of the epidemic situation, the years of the VAM agreement were changed from 2018, 2019 and 2020 to 2018, 2019 and 2021, and the promised net profit in 2021 was 30.1 billion yuan.
In 2021, Tianjin Meijem will achieve a net profit of 12.6 billion yuan, but still not met the performance commitment. In 2022, it will turn from profit to loss, achieving a net profit of -120820,000 yuan, Meijim said that it is expected that the operating performance of the target will be difficult to fully recover in the short term. In the first half of last year, its performance was even more "miserable", with only an operating income of 6665240,000 yuan, a loss of 1066 in half a year650,000 yuan.
According to the previous announcement, when the above acquisition was completed, the goodwill generated was as high as 179.7 billion yuan, as of the end of 2022, a provision for goodwill impairment has been provided140.5 billion yuan, the book value of goodwill is 3$9.2 billion; Recognition of intangible assets with indefinite useful life - original value of the franchise 122.8 billion yuan, and as of the end of 2022, an impairment provision has been made28.5 billion yuan, book value 94.3 billion yuan.
This time, MGM expects that the total impairment of the underlying goodwill and intangible assets will be as high as about 1 billion, which is tantamount to a financial "big bath". The company said that the final amount of impairment of goodwill and intangible assets for the whole year will be determined by the final audit and evaluation results of the auditor and the appraisal agency. (This article was first published in Titanium**app, author|.)Zhai Biyue).