Repeated complaints and penalties and equity dispute lawsuits, how to solve the "long-term worries" of barley hair transplant?
The prospectus was updated twice for Barley Hair Transplant"Second hair transplant action", the effect of 2024 days is not very good.
According to the latest news obtained by Tianyancha, Damei Hair Transplant (full name) that occurred at the end of December 2023"Damei Hair Medical (Shenzhen) Group***"Significant progress has been made in the equity transfer lawsuit with W and Z, which will be heard at the end of this month (March 27, 2024).
In fact, the legal disputes faced by Barley Hair Transplant are only a microcosm of its own problems, and the problems it faces are much more than that.
Dating back to June 2022, Barley Hair Transplant submitted its listing prospectus to the Hong Kong Stock Exchange for the first time, and a month later, the Hong Kong Stock Exchange asked Barley Hair Transplant to provide supplementary explanations on four issues, including whether there is a medical malpractice lawsuit, whether medical institutions and practitioners have relevant qualifications, and the rectification and enforcement of penalties for false advertising.
However, a number of problems have not stopped the ambition of barley vegetation to be more urgently marketed. Half a year later, at the end of December 2022, Damaifa added new financial data from January to July of that year to the prospectus and submitted the prospectus to the Hong Kong Stock Exchange for the second time.
However, more than a year has passed, and the prospectus submitted by Damaifa on the Hong Kong Stock Exchange has been invalid for a long time, and there seems to be no sign of updating at present, and the listing plan has been stopped. Behind this, what is the IPO road faced by Damai's share exchange?"obstacles"？
The first is to actively carry out anti-churn marketing, a series of financial indicators"Drag your feet"
Analysis of barley hair transplant, one has to mention its powerful"Anxiety marketing"Means.
It is undeniable that with the acceleration of the pace of life and the increase of work pressure, people are becoming more and more anxious, especially for the problem of hair loss caused by the decline of physical function, and a lot of money has been invested. So, barley hair transplant took advantage of the public"Appearance"anxiety, heavy marketing, occupy the minds of users.
Interestingly, in addition to a large number of advertisements on buildings, elevators, vehicles, and outdoor advertisements to amplify the volume, the core point of its marketing is to use advertising creativity, ** and other forms of communication to instill hair loss in users and"Appearance anxiety"with"Physical health anxiety"The impact of the central pain point, and repeated deepening stimulation. Constantly instill in the user"Appearance anxiety"with"Physical health anxiety"The central pain point is repeatedly deepened and stimulated.
Their purpose is also very simple and clear, that is, to pass"Bombardment"Marketing, creating anxiety and promoting sales and market share growth. However, this also confirms that sentence"Aggressive anti-disengagement marketing"After a series of operations, barley hair transplantation not only achieved unsatisfactory results, but also did not form a proportional relationship between input and output.
Let's start with the investment, the huge amount of money spent on marketing by Barley Hair Transplant every year is impressive.
According to the prospectus, from 2019 to 2021 and in the first seven months of 2022 (hereinafter referred to as the base period), the total sales expenses and distribution expenses of barley hair transplant were 50.1 billion yuan, 39.9 billion yuan, 52.1 billion yuan and 2$1.2 billion; Selling expense ratios reached % and 45., respectively1%。That is to say, barley hair transplantation, which is difficult to generate income every year, almost takes out more than half of the cost for marketing.
In contrast, its investment in R&D and energy is pitiful. During the same period, the R&D expenses of barley hair transplant were 6.5 million yuan, 4.6 million yuan, 4.8 million yuan and 2.9 million yuan respectively, which is almost negligible, which can also show that the scientific and technological content of barley hair transplant is not as it claims"High"。
You must know that in the first two editions of the updated prospectus, Damei Hair Transplant has always positioned itself as a leading medical group in China's mid-to-high-end hair diagnosis and treatment service industry, with advanced microneedle hair transplant technology, which is its strong competitive advantage in the industry competition.
Since its own packaging technology is particularly perfect in the prospectus, why the R&D investment is so meagre will inevitably make people question its true motives.
So, what is the end result of spending a lot of money on marketing? Let's look at two more sets of data.
On the one hand, profitability is dragged down by pressure on the cost side and is unprofitable.
According to the prospectus data, barley hair transplant revenue maintained a good growth trend, but the net profit was not high, and the company's net profit was -1501 during the reporting period40,000 yuan, 695580,000 yuan, 661160,000 yuan and 11.7 million yuan.
At the same time, its gross profit margin and net profit margin have also declined, and the gross profit margin of Barley Hair Transplant has increased from 759% down to 62 in the first seven months of 20229% and net profit margin from 91% down to 25%。
In other words, Barley Hair Transplant spends a lot of money on marketing every year, but it fails to bring extra points to the most essential terminal of profit, but sells more and more, and profits continue to decline, which is worth pondering.
Second, cash flow continues to be under pressure. According to the prospectus, its net cash flow as of July 31, 2022 increased from 10.6 billion yuan to 324070,000 yuan; Cash and cash equivalents increased from 2,295 in the same period in 202130,000 yuan to 171290,000 yuan, a decrease of 2537%。
It can be seen that the marketing costs, which are highly dependent on large-scale investment, have also eaten up a large amount of the company's actual cash to a large extent, making the already not optimistic cash flow even worse.
We know that the healthcare industry is also the industry that consumes the most cash flow, and only on the books"Lie down"Tens of millions of yuan is only enough for Barley Hair Transplant to maintain the existing scale of business activities, but it does not have itself"Blood"of updates and the ability to update.
ii.Confusion and sanctions in litigation are commonplace.
If the downward pressure from micro data is more the result of the reaction of Damaixiu's internal and external business strategies, and in the macro market, it is more difficult to eliminate a series of situations such as litigation sanctions in a short period of time.
Public information shows that the organization in the name of barley hair transplant has been punished for false publicity and counterfeit patents on several occasions.
For instance, on January 21, 2022, Shanghai Delta Medical Aesthetic Clinic, a subsidiary of Delta Hair Transplant, was confiscated of RMB 18,474 and fined RMB 20,000 by the Shanghai Municipal Administration for Market Regulation for counterfeiting patents.
In April 2021, Nanjing Damai Clinic was also found"Violation of advertising content management regulations", was fined 10380,000 yuan, and ordered to stop the illegal acts and eliminate the impact.
In addition to various penalties, complaints against Dali hair transplant are also increasing on the Black Cat complaint platform, including false advertising of survival rates, inconsistency between the chief surgeon and the agreement, and inducing consumers to purchase nursing services.
Of course, slowly, bigger and stronger enterprises will more or less move closer to the consumer side, and keep saying that there are two levels of differentiation, which is more normal, but it also requires enterprises to pay close attention and focus on improvement, rather than allowing the situation to deteriorate and develop further.
However, after this series of problems gradually erupted, instead of correcting itself, improving its business strategy and giving consumers a proper solution, Barley Hair Transplant Company tried to suppress the relevant information. According to previous reports, Barley Hair Transplant even induced consumers to sign a confidentiality agreement, promising not to provide relevant information to *** in order to maintain its reputation.
What's more, hair transplantation is another one that has plagued the market for a long time"Sword of Damocles", is the founder of medical qualifications.
Previously, the prospectus showed that Li Xingdong, the founder of Damei Hair Transplant, entered the field of hair diagnosis and treatment services in March 2004; From March 2004 to March 2007, he worked in the hair transplantation department of Beijing Changhong Hospital; From April 2007 to January 2010, he served as the executive director of Kefayuan Hair Transplantation Research Technology Center, responsible for daily management.
However, it was not until December 2013 that Li Xingdong obtained the qualification certificate of practicing assistant physician, and in August 2014, he obtained the qualification certificate of practicing assistant physician issued by the Health Bureau of Haidian District, Beijing.
In other words, Li Xingdong entered the hair transplant industry in 2004 and did not obtain the most basic qualifications from medical institutions, so it is considered during this period"Commander of the Light Pole"。It was ten years before Li Xingdong obtained the necessary qualifications and continued to practice as a medical assistant.
Overall, there is still a lot of room for incremental imagination in the current hair transplant industry, according to the report of Sko Consulting, the market size of China's diagnostic and hair ** service industry has increased from 8.3 billion yuan in 2016 to 23.8 billion yuan in 2021, with an average annual compound growth rate of 235%, which is expected to reach 71.2 billion yuan by 2026.
But that doesn't mean everyone on the track can sit back and relax, especially Barley Hair Transplant, which is currently experiencing a lot of problems. Do you want to go further, or do you stand still? Only time will tell.