Revenue increased 35.55% in 2022, and net profit declined. The company's revenue in 2022 was 1,539 million yuan, +35.55% year on year; net profit of 180 million yuan, -44.90% year on year; net profit after deduction was 149 million yuan, -42.73% year on year; basic earnings per share were 0.76 yuan, compared with 1.45 yuan in the same period last year.
The company's revenue increased over the same period, mainly due to the revenue growth contribution of new customers from brand online marketing services and online distribution, and the revenue growth contribution of new business types. The company's net profit and net profit after deduction declined to a certain extent, mainly due to the company's continued investment in organizational capacity building and management and R&D expenses. On a quarterly basis, the company achieved operating income of 523 million yuan in 2022/Q4, +28.96% year on year, net profit of 33 million yuan, -73.11% year on year; net profit after deduction was 102 million yuan, -85.73% year on year. At the same time, the company announced first-quarter results. 2023Q1 achieved operating income of 279 million yuan, +4.60% year on year, net profit of 43 million yuan, -17.86% year on year; net profit after deduction of 38 million yuan, -25.18% year on year.
The gross profit margin and net interest rate all declined in '22, and the expense ratio increased. The company's gross margin in 2022 was 33.59%, -14.02pct over the previous year. On the cost side, the company's expense ratio during 2022 was 15.67%, +1.26pct compared to +1.26pct. Among them, the sales expense rate/management expense rate/R&D expense rate/financial expense ratio were 10.49%/5.29%/2.10%/-2.20%, respectively, and +2.96pct/-1.91pct/-0.05pct/+0.28pct, respectively. Sales expenses increased by 88.68%, mainly due to the increase in cooperative brands in the current period, the increase in revenue from marketing business and distribution business, and the increase in promotion expenses and employee remuneration. The company's net interest rate in 2022 was 13.79%, -17.90pct year-on-year. On a quarterly basis, the company's net interest rate for 2022/Q4 was 9.90%, -24.03pct; 2023Q1's net interest rate was 15.31%, year-on-year - 5.55pct.
Online marketing and distribution business revenue increased, and cooperative brands increased. By business, the company's online marketing/online management/online distribution services achieved revenue of 554 million yuan/507 million yuan/354 million yuan respectively, +144.77%/-15.80%/+35.67%; gross margin was 31.94%/48.13%/16.22%, year-on-year - 12.92pct/-10.57pct/-11.97pct. Brand online service is the company's main business. In 2022, the company's service brand GMV26.485 billion yuan was 26.485 billion yuan, a decrease of 2.27% over the previous year, and 42 new cooperative brands were added.
In 2022, the company achieved revenue of 601 million yuan on the Tmall platform (which is an online marketing service model), accounting for an increase of 25.49 pct to 39.05% of total revenue; the company achieved operating income of 137 million yuan on Vipshop (which is an online distribution model), accounting for a decrease of 0.63 pct to 8.92% of total revenue.
Committed to providing global e-commerce services and adhering to the “New Consumer Brand Accelerator” strategy. Under the global e-commerce service provider strategy, continuing the 21-year technology line, the company's existing digital tools have completed global adaptation iterations, including global e-commerce ERP, global operation tools, global risk control tools, etc. The global adaptation and iteration of the full system can provide more comprehensive and efficient support for the company's business on different platforms, improving the company's operational efficiency and service quality. At the same time, it also helps expand the company's market share and enhance the company's competitiveness in the e-commerce industry. Under the new consumer brand accelerator strategy, the company has expanded the data dimension and data depth of data projects and improved industry radar and other projects. These projects will provide important technical support and guarantee for the company's new consumer brand research and development, brand marketing and marketing. Through data insight into relevant systems from a brand perspective, IT teams can conduct in-depth analysis and interpretation of new consumer brand data, provide the company with more business insight and decision support, and enhance the company's ability to innovate and market competitiveness. In addition, the IT team also plans to carry out some artificial intelligence-related technology applications in 23, such as AIGC, to further improve the efficiency and accuracy of scenarios related to customer service, copywriting, design, and data, thereby better supporting the company's “global e-commerce service provider, new consumer brand accelerator” strategic goal.
Investment advice: The company provides global e-commerce services for well-known domestic and foreign FMCG brands, and has the core advantage of providing online services for brands through a full link. At present, the company continues to expand new categories, new brands, and new channels, and the results are beginning to show. The gross margin of the brand's online management business is high, and it has achieved rapid growth in line with the asset-light development strategy. The company's 2023-2025 EPS is predicted to be 1.15 yuan, 1.31 yuan, and 1.48 yuan respectively. The corresponding PE is 27X, 24X, and 21X respectively, maintaining an “increase in holdings” investment rating.
Risk warning: risk of increased industry competition, platform risk, information security risk, technology substitution risk, risk of seasonal fluctuations in business performance.