Description of the event
Event: The company publishes the 2023 Annual Report and the 2024 First Quarter Report. The company achieved total revenue of 11.3 billion yuan in 2023, up 48.3% year on year; gross profit margin of 26.5%, up 11.2 percentage points year on year; net profit of 23.7%, up 9.25 percentage points year on year; net profit to mother of 2.68 billion yuan, up 142.2% year on year; after deducting non-recurring profit and loss due to rent reduction and other factors, non-net profit was 2.47 billion yuan, an increase of 39.9% year on year.
2024Q1 achieved revenue of 2.68 billion yuan, an increase of 26.4% year on year; net profit to mother was 710 million yuan, a decrease of 41.7% year on year. The company's 2023 results were largely in line with expectations, and net profit due to 2024Q1 declined.
Dividends: In addition, the company distributed 10 shares of 2.00 yuan (tax included) in 2023, accounting for 40.99% of net profit attributable to shareholders of listed companies this year.
Incident reviews
Second Zone East New Energy Products Market opened, and rental income from market operations increased. In terms of business channels, benefiting from the opening of the Second Zone East Market and the impact of rent relief in the previous period, the company's market business scale increased 81.2% year on year to 3.07 billion yuan in 2023, and gross margin increased by 28.5 percentage points to 71.8% year on year. At the same time, the company will implement differentiated pricing based on indicators such as industry sentiment. At the end of the reporting period, rents will be adjusted for due positions in the market. Rents will rise by an average of 5.5%. At the same time, the growth rate is expected to be no less than 5% over the next three years.
The second online curve Chinagoods and Yiwu Pay continue to monetize. In 2023, ChinagoodSAI application exploration and practice achieved initial results. Chinagoods GMV was 65 billion yuan for the full year of 2023, exceeding the GMV target of 50 billion yuan for the full year of 2023. 2024Q1 Chinagoods GMV was 11 billion yuan, up 37.5% year on year; by the end of 2023, Yiwu Pay had added more than 8.5 billion yuan in cross-border RMB payment transactions. The cross-border transaction volume of 2024Q1 exceeds RMB 6.2 billion, and the company will continue to expand investment related to data elements in 2024. As of 2024Q1, the amount of intangible assets-data resources that the company can confirm exceeds 8 million yuan.
The gross margin was further increased, and the period expense ratio was optimized. The company's comprehensive gross profit margin in 2023 was 26.5%, an increase of 11.2 percentage points over the previous period. Among them, the gross margin of market operations and product sales operations increased sharply, benefiting from rising rents and increased revenue from low-cost businesses such as usage fees, to 71.8%/0.50%, respectively, to an increase of 28.5/0.2 percentage points over the previous year. The net operating cash flow was 180 million yuan, which is a year-on-year improvement from -311 million yuan in the previous period.
Risk warning: 1. Changes in global trade policies;
2. The company's online business development falls short of expectations;
3. Foreign trade export boom is not high, and the subsequent performance of the company's main business is poor, etc.