After IPO, the profit of yujiahui in the first three quarters fell by over 90%

In the first three quarters of the Beijing News, yujiahui achieved an operating revenue of 1.576 billion yuan, down 1.85% year on year; the net profit attributable to shareholders of listed companies was 7.5777 million yuan, down 93.19% year on year. On October 29, yujiahui, known as "the first stock of China's IPO e-commerce", released its financial report for the third quarter of 2019. Data shows that in the third quarter of 2019, yujiahui achieved an operating revenue of 604 million yuan, a year-on-year decrease of 3.48%; the net profit attributable to shareholders of the listed company was 1.5472 million yuan, a year-on-year decrease of 96.57%; the net profit attributable to shareholders of the listed company after deducting non recurring profit and loss was - 2.4229 million yuan, a year-on-year decrease of 106.09%; and the basic earnings per share was 0.0040 yuan. In the first three quarters, yujiahui achieved an operating revenue of 1.576 billion yuan, a year-on-year decrease of 1.85%; the net profit attributable to shareholders of the listed company was 7.577 million yuan, a year-on-year decrease of 93.19%; the net profit attributable to shareholders of the listed company after deducting non recurring profit and loss was - 6.5071 million yuan, a year-on-year decrease of 106.30%; and the basic earnings per share was 0.0188 yuan.

For the reason of poor performance, yujiahui didn't explain it too much. In the financial report, yujiahui said that in view of the changes in the macroeconomic environment and the company's operation in the third quarter, the company will take effective measures to improve its operation and strive to improve its profitability, and relevant operation improvement measures will be gradually implemented, and it is expected that the accumulated net profit from the beginning of the year to the end of the next reporting period will be significantly reduced year on year. Through combing, the reporter found that the performance of yujiahui has been in the doldrums since its listing in 2018. From the perspective of financial data, before 2019, the company has been trapped in the strange circle of "increasing revenue without increasing profit"; after 2019, yujiahui's performance has continued to show a decline in both revenue and net profit. After the IPO, the performance changed and the market value and profit decreased. According to the company's official website, yujiahui Co., Ltd. is the first IPO e-commerce listed company of China's A-share. It owns multiple independent skin care brands, such as yunifang, xiaofuzi, Weifeng, huayuanhua, etc., and successfully landed in A-share on February 8, 2018, becoming the "first IPO e-commerce share in China". However, in 2018, yujiahui's first financial report showed no increase in revenue or profit. Data shows that in 2018, yujiahui's operating revenue was 2.245 billion, up 36.42% year on year; its net profit was 130 million, down 17.51% year on year. To this end, the company explained that it is due to the increase of market investment in developing its own brand and the rapid growth of its agent business.

The decrease in total profit and net profit is mainly due to the company's increased market investment and channel construction, which affects its short-term profitability, and the sharp drop in government subsidies that affect profit and loss in 2018. The sluggish results continued into the third quarter of 2019. According to the previously disclosed semi annual report of 2019 by yujiahui, in the first half of 2019, yujiahui's revenue and net profit both declined, deducting the loss of non net profit of 4.08 million yuan; in the third quarter of 2019, the revenue and profit continued to decline, realizing the operating revenue of 604 million yuan, a year-on-year decrease of 3.48%; the net profit of 1.5472 million yuan, a year-on-year decrease of 96.57%; the deduction attributable to shareholders of listed companies. The net profit of non recurring profit and loss was - 2422900 yuan, down 106.09% year on year. Through combing, the reporter found that the performance of yujiahui has a large contrast before and after listing. From 2015 to 2017, the company's operating revenue was RMB 769 million, RMB 1171 million and RMB 1646 million respectively, with a year-on-year growth of 77.89%, 52.32% and 40.6%; its net profit was RMB 52999600, 72594800 and 158 million respectively, with a year-on-year growth of 45.36%, 38.3% and 114.85%. On February 8, 2018, yujiahui landed on the growth enterprise market. Its share price once touched the highest point of 37.87 yuan / share since its listing on June 4 of that year, and then the share price showed a downward trend. As of October 29 of this year, yujiahui fell 2.57% to 10.22 yuan / share, with a total market value of 4.202 billion yuan, 73% lower than the highest point.

What does yujiahui take to become the "top ten of global beauty makeup". Both share price and market value have shrunk, and yujiahui began to help itself after listing. At the end of September this year, the company said it would spend 800 million yuan to build the largest base in the world, "Shuiyang intelligent manufacturing base". After the project is completed and put into operation, it will achieve an annual production capacity of 3.5 billion pieces of facial mask and 100 million bottles of water cream. At the same time, Hunan Shuiyang Logistics Co., Ltd., a wholly-owned subsidiary of the company, transferred 100% of its equity to its controlling shareholder, with a transaction price of 5 million yuan. In response, yujiahui said: "in order to focus on the cosmetics sector of the company's main business, considering the company's large investment in warehousing and logistics, the company has been in a loss state in the early stage, and needs to continue to invest funds. The proceeds from the transfer of equity will be used to supplement the working capital. " In the future, yujiahui plans to close down its loss making sub brand shiyijia. Before that, yujiahui had hoped to join hands with Fu essential oil to further seize the market. In September last year, according to the draft of major asset purchase disclosed by yujiahui, yujiahui plans to purchase 60% of the equity of Beijing Maosi, the parent company of Fu essential oil, by paying cash, with a transaction amount of 1.02 billion yuan.

Since then, Shenzhen Stock Exchange has sent two inquiry letters in a row. The outside world has also raised general doubts about the high premium of the acquisition, and the company has chosen to terminate the acquisition on its own initiative. In April, nbsp issued the stock options and restricted stock incentive plan 2019 (Draft) (hereinafter referred to as "incentive plan"). The total equity of 787 incentive objects including directors, deputy general manager, chief financial officer, Secretary of the board of directors, core technical (business) personnel and other personnel to be granted in the incentive plan is 8656724, accounting for about 3.18% of the company's total equity of 272 million shares on the announcement date of the draft incentive plan. According to the announcement, yujiahui's incentive plan includes stock option incentive and restricted stock incentive. Among them, yujiahui plans to grant 4.34 million stock options to some incentive objects with the exercise price of 17.89 yuan / share, and 4.32 million restricted shares with the grant price of 8.95 yuan / share to some incentive objects. What should be noted is the performance appraisal objective of yujiahui's incentive plan. Yujiahui's performance evaluation target is mainly business income, and no corresponding net profit threshold has been set. In the four exercise periods, the goal of performance appraisal is that the operating revenue in 2019-2022 will not be less than 2.7 billion yuan, 3.15 billion yuan, 3.6 billion yuan and 4.05 billion yuan respectively. At the May general meeting of shareholders this year, Dai Yuefeng, the actual controller of yujiahui, said: "I believe that the company will be in the top ten of the world's cosmetics in the future." However, yujiahui, which is full of confidence, has encountered a reduction in shareholder holdings. As of October 29, three shareholders of Changsha Yutou investment management partnership, Shenzhen laterite bio venture capital and Shenzhen innovation investment group reduced their holdings of 9882400 shares 78 times, according to choice data.