"Investor Network" Ding Yingyi
After handing over a report card of "increasing income but not increasing profit" at the end of August, Harbin Pu'erjia Technology Co., Ltd. (hereinafter referred to as "Pu'erjia", 301371.SZ), the first share of medical dressings, has recently attracted attention because of Dong's "flash resignation".
On September 13, Pu Erjia disclosed that Shen Xiaoxi, secretary of the company's board of directors, applied to resign as secretary of the company's board of directors for personal career planning reasons, while no longer holding any position in the company and its subsidiaries. The company will appoint the secretary of the board of directors as soon as possible. Zhang Liguo, chairman and general manager of the company, will act as secretary of the board of directors for the time being when the company has not formally appointed the secretary of the board of directors.
According to its semi-annual report, revenue in the first half of 2023 reached 869 million yuan, an increase of 6.33 percent over the same period last year, while the net profit of returning home was 354 million yuan, down 1.09 percent from the same period last year.
Dong Mi's "flash resignation" stock price was broken.
Founded in 2017, Fu Erjia is a company with extensive market awareness and brand influence, engaged in the research, development, production and sales of professional skin care products, covering medical device dressings and functional skin care products. Focus on dressings, stickers, film products, and launched water, essence and lotion, spray, freeze-dried powder and other products. With the help of the new consumption power of the rise of domestic products and a wide range of professional channels, Pu Erjia gradually precipitates brand power and product strength.
According to public information, it was listed on the growth Enterprise Market of Shenzhen Stock Exchange on August 1, 2023, with 40.08 million shares issued at a price of 55.68 yuan per share. A number of products under the banner of "Medical Mask", which made families rich, are well-known in the cosmetic and plastic surgery market.
However, on September 13, Pu Erjia disclosed the announcement, and the company's board of directors recently received the resignation report of Shen Xiaoxi, the secretary of the company's board of directors. Due to personal career planning, Shen Xiaoxi applied to resign as secretary of the company's board of directors and no longer hold any position in the company and its subsidiaries.
Up to now, Shen Xiaoxi directly holds 250000 shares of Pu Erjia, accounting for 0.06 per cent of the company's total share capital. Shen Xiaoxi's original term of office is from March 26, 2021 to the expiration of the term of office of the first board of directors.
Fu Erjia also said that the company will appoint a secretary to the board of directors as soon as possible, and Zhang Liguo, chairman and general manager of the company, will act on behalf of the secretary temporarily during the period when the company has not formally appointed the secretary.
Shen Xiaoxi, 39, has been Bu Erjia's secretary since October 2020, according to his prospectus. Prior to joining Fu Erjia, Shen Xiaoxi served as sales staff of Harbin Sanlian Pharmaceutical Co., Ltd. (hereinafter referred to as "Harbin Sanlian", 002900.SZ), head of sales integrated business department, head of internal audit department, deputy manager of listing office, manager of listing office, assistant to the chairman (and director of investment securities operations center, securities affairs representative and general manager of Harbin Yushi Investment Co., Ltd.).
It is worth noting that during Shen Xiaoxi's tenure, Fu Erjia formally accepted CITIC's listing counseling in March 2021. Half a year later, Pu Erjia's initial application was accepted by the Shenzhen Stock Exchange. In September 2022, Pu Erjia applied for the first time, and the registration became effective in May 2023. On August 1, 2023, Pu Erjia was officially listed on the gem.
This means that Fu Erjia has only been listed for more than a month, and Shen Xiaoxi, as the secretary of the board, announced his resignation.
In the secondary market, as of September 22, Pu Erjia closed at 48.69 yuan per share, lower than the initial public offering price of 55.68 yuan per share and 31.13% lower than the closing price on the first day of listing (see chart below).
Behind the increase in income without profit in the first half of the year
According to the semi-annual report released by Bu Erjia on Aug. 30, its revenue in the first half of 2023 was 869 million yuan, an increase of 6.33% over the same period last year, while its net profit was 354 million yuan, down 1.09% from the same period last year.
For the decline in net profit in the first half of the year, Fu Erjia explained that the increase in the proportion of online sales led to the increase in related sales costs, the opening of the company's northern Meigu base and the continued increase in R & D investment.
Although offline channels are still the company's main source of revenue, online direct sales continued to grow in the first half of the year, accounting for 6.49% of total revenue compared with last year.
The financial report shows that the company's online channels include direct sales, consignment and distribution, with a total revenue of 392 million yuan in the first half of the year, accounting for 45.13%. Specifically, online direct stores include online stores that the company has set up and operated on online sales platforms such as Tmall, Xiaohongshu and Douyin. The online proprietary income in the first half of this year was 330 million yuan, accounting for 38.02% of the main business revenue.
Fu Erjia believes that while stabilizing Tmall's existing advantages, online channels actively expand the live broadcast with goods sales model to transport customers for direct stores; the offline channel distribution model has developed rapidly and become a new growth point of offline income.
Financial data show that from 2020 to 2022, Pu Erjia achieved operating income of 1.585 billion yuan, 1.65 billion yuan and 1.769 billion yuan respectively, net profit of 648 million yuan, 806 million yuan and 847 million yuan respectively, and non-net profit of 477 million yuan, 774 million yuan and 766 million yuan respectively.
In terms of growth, Pu'erjia 's net profit and deducted non-net profit in 2021 increased by 24.38% and 62.29% compared with the same period last year, falling to 5.15% and-0.95% respectively in 2022. Among them, Pu Erjia has shown negative growth in deduction of non-net profit in 2022.
After the A-share listing, with regard to the semi-annual report, Bu Erjia said that the increase in operating income in the first half of 2023 was mainly due to the continued growth of the company's online direct sales revenue during the reporting period. The decline in net profit in the first half of the year was mainly due to the increase in related sales expenses driven by the growth in the proportion of online sales, the opening of the company's northern Meigu base and the continued increase in R & D investment.
In fact, the company's publicity expenses have increased in recent years, which is much higher than the R & D investment, and its patents and R & D capabilities have been asked by the Shenzhen Stock Exchange before listing.
With the continuous concentration of online e-commerce platform traffic and the intensification of competition for similar products, Bu Erjia has increased its market share by increasing promotion efforts.
From 2020 to 2022, the unit price of each box of Pu'erjia 's main business products in online direct sales channels dropped from 70.44 yuan to 56.97 yuan. In the first half of 2023, the company's online proprietary business income was 330 million yuan, accounting for 38.02% of the main business income. During the reporting period, the average unit price of medical devices and cosmetics products decreased from 48.34 yuan and 44.63 yuan in the same period last year to 45.15 yuan and 43.14 yuan respectively.
At the same time, the online e-commerce platform sales channel traffic acquisition also needs cost. While reducing the price of products, Fu Erjia opened up the market by increasing advertising and promotion fees, online e-commerce platform promotion service fees and other expenses, while the company's profit margins were compressed. From 2020 to 2022, the sales expenses of Fu Erjia were 265 million yuan, 264 million yuan and 390 million yuan respectively, and the sales expense rates were 16.75%, 16.01% and 22.06%, respectively.
In the first half of 2023, Pu'erjia 's sales expenses were 221 million yuan, an increase of 19.69 percent over the same period last year, and the sales expense rate was 25.4 percent, an increase of 2.83 percent over the same period last year.
From 2020 to 2022, Pu'erjia 's R & D expenses were 1.4797 million yuan, 5.2429 million yuan and 15.4261 million yuan respectively, accounting for 0.09%, 0.32% and 0.87% of operating income respectively.
This obvious contrast raises questions about Bu Erjia's "emphasis on marketing over research and development".
Some people in the industry believe that with the cooperation with Harbin Sanlian, Pu Erjia has transformed from a sales company to an enterprise with independent R & D and production capacity. However, because of the relatively low proportion of R & D costs, it faces many challenges in the environment of increasingly fierce competition and increasingly rational consumers.
Skin care market continues to grow
With the innovation of skin care product manufacturing industry and consumers' demand for high-quality products, the use of professional skin care products has gradually become a new trend in the market. Based on the dual needs of safety and efficacy, it has attracted much attention.
In recent years, the concept of skin repair and skin care has become popular, and the corresponding products are favored by consumers because of their wide applicability, high safety and strong effectiveness. In the future, under the two-way promotion of brand education and consumption upgrading, the market of professional skin care products is expected to continue to grow.
According to Frost Sullivan's analysis, the market size of China's skin care industry is expected to reach 518.5 billion yuan by 2026. It is estimated that by 2026, the market scale of functional skin care products and medical device dressings in professional skin care products will reach 62.3 billion yuan and 25.38 billion yuan.
Public information shows that Fu Erjia has formed a competitive advantage in products, channels, marketing, operation and other aspects, and occupies a leading position in the field of patch professional skin care products. In 2021, the sales volume of the company's patch products is the first in the market, accounting for 15.9%, of which medical device dressing products account for 17.5%, ranking first in the market. Functional skin care products film products account for 13.5%, ranking second in the market.
According to the semi-annual report, in the first half of 2023, the R & D expenditure of Pu'erjia was 11.0316 million yuan, an increase of 33.95% over the same period last year, accounting for 1.27% of the current revenue, and the number of R & D personnel of the company also increased to 22 at the end of the period.
With the release of market demand, through the northern Meigu capacity expansion, to enhance the market supply capacity of the company's products, so as to lay the foundation for sales growth. At the same time, relying on scientific production processes and skilled production processes, we can greatly improve production efficiency, meet the growing needs of the downstream market, and enhance the company's profitability and core competitiveness. (produced by thinking Finance) ■