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According to the semi-annual report released by the company, the operating income of the company in the first half of the year was 178 million yuan, an increase of 40.31% over the same period last year. In the first half of 2017, the net profit attributable to the owner of the parent company was 13.7291 million yuan, an increase of 8.16 percent over the same period last year; basic earnings per share was 0.05 yuan, the same as the same period last year.
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The change in business structure is obvious and the results of corporate transformation are beginning to show.
From the perspective of the company's revenue structure, the overall proportion of revenue from the network service industry and the convention and exhibition service industry is declining, from 41.3% and 5.88% to 34.54% and 3.96% respectively. The proportion of revenue from chemical trade and services continues to rise, from 48.06% and 4.52% to 55.8% and 5.67%, respectively.
While the B2B1.0 business, which is mainly based on information and information, has declined, B2B2.0 and 3.0business, which are mainly based on trade and privatization platforms, have gradually become the mainstay.
From the perspective of the company's gross profit structure, the proportion of network services and chemical trade has increased, due to the decline in e-commerce services, so to some extent offset the growth of some new business.
The revenue of chemical trade grows faster and the short-term profit of chemical trade services contributes obviously. Among them, the revenue of chemical trade is 98.63 million, an increase of 62% over the same period last year, accounting for more than half of the income. This part of the business is mainly to facilitate customers to trade through the platform and enhance customer stickiness. The gross profit margin is low, only 1%, and the contribution of net profit is low.
The revenue of chemical trade services reached 10.03 million, an increase of 75.06% over the same period last year, accounting for 5.67% of the business. This part of the business had a gross profit margin of 51.5% at the end of the year, with a high gross profit margin, which made a great contribution to the company's net profit. This part of the business grows rapidly in the short term, which is mainly driven by policy and has a certain timeliness. EU REACH regulations stipulate that all enterprises with annual production or import of phased chemical substances of 10-1000 tons per year must complete the official registration of REACH on May 31, 2018. Affected by this policy, subsidiary NetSun EU B.V. The volume of chemical trade has increased rapidly in this period.
The gradual run of the "traditional enterprise + Internet" model is expected to drive the company's new round of rapid growth as the largest industry e-commerce operator and the leading integrated B2B operator in China, committed to creating a vertically closed B2B integrated e-commerce trading platform, from information services to dealmaking, payment, financing, logistics and other aspects.
At present, its Wangsheng bulk trading platform provides solutions for traditional sales online and financialization, and its "traditional enterprise + Internet" model has received a good response from the market. Its financing service platform Wangsheng financing guarantee cooperates with banks and third-party guarantee companies to provide online financing service products for small and medium-sized enterprises nationwide. At present, many products have been successfully operated. Net Sheng financing achieved a net profit of 1.1 million in the first half of the year, and the model of privatization platform + supply chain finance gradually became popular.
The number of large-scale enterprises in China is about 200000. There are only more than 10,000 potential customers in the chemical and textile industry, and the number of core members is very considerable. It is expected to drive a new round of rapid growth of the company.
Profit forecast and investment suggestions: we are optimistic about the company's exploration in the B2B field, seize the supply chain pain points, use the online traditional sales platform to first solve the enterprise's information foundation, and then develop supply chain finance and supporting services, which can really improve the efficiency of the enterprise. we predict that the company's 17-19 net profit will be 3795 yuan, 10626 yuan and 172.04 million yuan respectively (excluding other extensions). The corresponding EPS is 0.15 pound 0.42 pound 0.68 yuan per share.
Risk tips: the company develops customers faster than expected, the expansion of capital channels is not smooth, competition intensifies, and so on.