① Yunnan Baiyao released the latest research minutes and revealed that the company withdrew from all secondary market securities investments in the third quarter of 2023 and plans not to carry out secondary market securities investment business in 2024. ② The balance of the company's transactional financial assets as of the end of September last year was 287 million yuan, a decrease of nearly 11 billion yuan compared to the “peak” of 12.192 billion yuan at the end of 2020.
Finance Association, January 17 (Reporter Huang Lu) The former “stock god” Yunnan Baiyao (000538.SZ) wants to wash its hands and leave the turbulent situation of investment in the secondary market for a while.
“Under the principle of further focusing on the main business and prudent investment, the company withdrew from all secondary market securities investments in the third quarter of 2023, and plans not to carry out secondary market securities investment business in 2024.” On the evening of January 17, it was revealed in the minutes of an investor research meeting released by Yunnan Baiyao.
Secondary market securities investment has been the company's “side business” for many years. Yunnan Baiyao, which implemented mixed reforms in 2019, was introduced to Xinhuadu, and also welcomed Chen Fashu, known as “China's Buffett.” Coincidentally, since then, Yunnan Baiyao's transactional financial assets have increased, reaching 11.2 billion yuan at its peak. Among them, in 2020, the profit and loss from changes in fair value was 2,240 billion yuan, accounting for 32.94% of the total profit for the year. In that year, Yunnan Baiyao was quite a “stock god”.
However, there were no 100 days' worth of flowers, and Yunnan Baiyao, which had a taste of sweetness in the secondary market, soon fell into a “vortex” of investment losses. Due to losses of 1,929 billion yuan due to fair value changes, Yunnan Baiyao's net profit in 2021 fell 49.17% year-on-year to 2,804 billion yuan. This is the first time in nearly 20 years that the company's net profit to mother has declined.
After entering 2022, Yunnan Baiyao got lost and gradually focused on the main pharmaceutical business while reducing the scale of investment in secondary market stocks. As of the end of September 2023, the balance of the company's transactional financial assets was 287 million yuan, down 88.13% from the beginning of the year. The main reason was the disposal of all Xiaomi Group shares held by the company (stock code: HK.01810) and some fund investments in the third quarter.
Looking at the details of the securities investment situation disclosed in the company's 2023 interim report, after “emptying” Xiaomi Group shares and part of the fund's investment, the company only held a small amount of fund investments, etc. The balance of transactional financial assets of 287 million yuan as of the end of September last year decreased by nearly 11 billion yuan compared to the “peak” of 12.192 billion yuan at the end of 2020.
(Chart data source: the company's 2023 interim report)
A Financial Services News reporter noticed that during the “subtraction” period of the company's investment in the secondary market in the past two years, the company also ushered in a change of head in 2023. In March of last year, Wang ****, the former chairman of Yunnan Baiyao, resigned from all positions in the company and its holding subsidiaries, and CEO Dong Ming took over the duties of chairman.
Dong Ming publicly stated that it is necessary to transform Yunnan Baiyao from a traditional manufacturer to a comprehensive solution provider, and from a regional enterprise to an international enterprise. In the first three quarters of 2023, the company achieved operating income of 29.689 billion yuan, an increase of 10.30% over the previous year, and realized net profit of 4.123 billion yuan, an increase of 78.90% over the previous year.