The company's 1Q2021 revenue decreased 6.63% year on year, achieving net profit of 456 million yuan, and the company announced its 2021 quarterly report: 1Q2021 achieved operating income of 54.05 billion yuan, a decrease of 6.63% over the previous year; achieved net profit of 456 million yuan, converted to fully diluted EPS of 0.049 yuan; realized net profit of deducted from non-return mother to 938 million yuan, and investment income generated from disposal of subsidiaries in non-recurring profit and loss projects was 1,517 million yuan.
The company's consolidated gross margin for 1Q2021 decreased by 1.38 percentage points, and the cost rate for the period increased by 0.37 percentage points. 1Q2021 The company's consolidated gross margin was 14.31%, down 1.38 percentage points from the previous year.
The 1Q2021 company's expense ratio for the period was 16.71%, up 0.37 percentage points from the previous year. Among them, the sales/management/finance/R&D expenses ratio was 11.64%/2.07%/1.92%/1.07%, respectively, and the year-on-year changes of -0.69/+0.33/+0.99/-0.26 percentage points respectively.
Adjust the direction of logistics business development and continue to develop retail cloud business
During the reporting period, the company adjusted Tiantian Express's high-loss business and began cooperating with SF Express for its own small parcel delivery business in some large-scale uneconomical regions. The overall loss of small items decreased by 39.29% compared to the first quarter of 2020. With regard to the integration of delivery and packaging of large products such as home appliances and household appliances, where the company has advantages, the cloud warehouse business for small products is developing at an accelerated pace.
The retail cloud continued to develop in the first quarter, opening 584 new stores and increasing sales volume by 69% year-on-year. The company took open empowerment as an important growth point for the new stage of development, further integrated supply chain, logistics and retail technology capabilities in the company's advantageous areas, and formed different enabling solutions in rural markets such as home appliance retail, corporate office procurement and welfare procurement, content e-commerce and social e-commerce. At the same time, the company continued to improve the partner system for the terminal system. In the first quarter, the labor efficiency of 3C home lifestyle specialty stores promoted partner stores increased 19.2% year-on-year.
Lower profit forecasts and maintain the “increase in holdings” rating
The company's performance is in line with the performance forecast issued on April 14 (it is expected to achieve net profit of 45—550 million yuan), but since the company lost net profit after deducting non-return to the mother, the investment income generated by the disposal of subsidiaries was not sustainable. We lowered the company's 2021/2022/2023 EPS forecast 75%/73%/77% to 0.01/0.02/0.03 yuan. The company's continuous integration of supply chain, logistics and retail technology capabilities will enhance the company's competitive strength and maintain its “increase in holdings” rating.
Risk warning
The real estate boom in first-tier cities is declining, and operating cash flow is unstable.
