Songfa shares suffered setbacks in both main industries: in 2021, the gross profit margin of over 300 million yuan will be cut by half depending on Hengli Group blood transfusion

2022-06-12 0 By

China Net Finance and Economics on April 7 (reporter Ye Qian Hu Jing Ling) recently, songfa Shares (603268) released 2021 annual report.The company achieved operating revenue of 403 million yuan last year, down 9.71% year on year;The net profit of the mother was -309 million yuan, down 19,183.64% year on year;Gross margin was 16.39%, down 20.73 percentage points from a year ago.As for Songfa, which has two main businesses: ceramics and education, the company’s performance has been poor since its listing. The cumulative net profit of the company in 7 years is -119 million yuan, and the company’s performance in 2019 is not as good as that in the listing year.Sadly, songfa shares in the early stage of cross-border education acquisition target became a drag, 2021 Songfa shares to Daxi Brothers one-time provision of goodwill impairment loss of 211 million yuan.In addition, the company’s original ceramic business development is not very optimistic, facing the dilemma of upstream and downstream squeeze, difficult to pass on costs, gross margin continues to decline.Songfa shares went public in 2015, and began to cross over in 2016 to embark on the two-wheel drive road of ceramics + education.However, the extension of mergers and acquisitions failed to give Songfa shares to bring sustained performance growth.Data showed that songfa’s revenue and net profit began to decline after 2018.In 2019, its net profit was 28 million yuan, lower than the level of 2015. In 2021, its performance was negative for the first time.The cumulative net profit of the company in 7 years of listing is -119 million yuan.Ifind annual report shows that in 2021, daily porcelain still makes the largest contribution to songfa’s revenue, accounting for 89.95% of revenue.Affected by the “double reduction” policy, songfa’s online education live broadcasting service suffered a heavy blow last year, with its operating revenue falling from 83 million yuan in 2020 to 800 million yuan in 2021, accounting for only 1.89% of the total revenue.At the same time, the profitability of online education business has been greatly reduced, with the gross margin dropping from 88.17% in 2020 to -3.12% in 2021.In 2021, Songfa shares for the previous high premium into the education field “repay”, one-time goodwill impairment provision 211 million yuan.In September 2017, Songfa Acquired 51% equity of Daigo Brothers for 230 million yuan.At the time, the Daigo brothers’ net worth was about 17.9472 million yuan, with an estimated value of 450 million yuan.After the completion of the transaction, Songfa shares of Daigo brothers confirmed goodwill of 211 million yuan.The performance commitment made by Daigo brothers is that the net profit from 2017 to 2020 will be no less than 25 million yuan, 32.5 million yuan, 42.25 million yuan and 52.25 million yuan respectively.China net financial reporters noticed that the performance of Daigo Brothers changed after they fulfilled their performance commitments in 2017-2020. In 2021, daigo brothers’ main business income was 7.639,600 yuan, down 90.76% year on year;Net profit was -26.25 million yuan, down 151.94% year-on-year.In addition to the influence of the “double reduction” policy, Daigo Brothers has always been dependent on big customers. From 2018 to 2020, the transaction amount of Daigo Brothers and big customers rice Technology was 69.533 million yuan, 69.6571 million yuan and 74,717,200 yuan respectively, accounting for 88%, 92% and 90% of its annual revenue respectively.The network service agreement between Daigo brothers and Rice Technology expires at the end of 2020.After the contract expired, daigo brothers’ renewed contract with Rice Technology changed from monthly payment to actual flow calculation, which had a certain impact on daigo brothers’ performance.For the business development of Daigo Brothers, Songfa shares said that it would gradually change the original business model of socialized online education company, and then expand the market space of “remote transformation of public school classrooms”.In 2021, Daigo Brothers strengthened the market expansion of the smart classroom system in public schools, but the implementation of the transformation was complicated.By the end of 2021, the original business of Daigo Brothers has basically stagnated, but operating costs and various expenses are still incurred.Ceramic business difficult to raise prices not only education business frustrated, songfa shares of the ceramic business is also trapped in the upstream and downstream squeeze dilemma.From 2018 to 2021, the gross profit margin of Songfa Ceramics business was 31.27%, 26.56%, 25.64% and 17.02%, respectively;In 2021, the operating revenue of ceramic business increased by 6.61% year-on-year, but the operating cost increased by 18.97% year-on-year.The direct material cost of the ceramic business accounted for more than 65% of the current cost, and the direct material and fuel cost increased 28.92% year on year, resulting in increased production costs due to the increase in raw material prices.However, songfa shares ceramic business to the downstream of the ability to pass on costs is weak.Songfa’s ceramics business includes daily porcelain and fine porcelain, accounting for 89.65% and 5.81% of revenue, respectively.In comparison, the gross margin of fine porcelain is higher, but the business growth is slow. The revenue of fine porcelain is 21 million yuan in 2017, 45 million yuan in 2019, and then shrinks again to 23 million yuan in 2021.From the industry, the domestic ceramic business product structure is not reasonable, high quality products in short supply, low-end products into fierce homogenization competition.In 2019, Songfa said in its financial report that due to fierce market competition, the company took the initiative to lower the price of its products.The financial reporter of sorted out the sales of daily porcelain and fine porcelain of Songfa From 2019 to 2021 and found that the sales volume of daily porcelain of songfa declined and the room for price increase was limited. The sales volume of daily porcelain decreased from 57.93 million in 2019 to 41.06 million in 2021.However, compared with a wave of price increases in 2019, the unit price of daily porcelain in 2021 returned to the level of 2019.The fine porcelain of songfa shares also faces the situation of quantity and price falling together.Compared with 2019, the sales volume of fine porcelain of the company decreased by nearly 50% in 2021, and the unit price soared from 21.67 yuan in 2019 to 43.33 yuan in 2020. However, due to the lack of bargaining power, the unit price fell back to 19.93 yuan in 2021.The company’s bargaining power in product sales is weak, and there is not much room for product price increase.In this case, the upstream raw material prices soared, the impact on the profitability of songfa shares ceramic business is self-evident.Songfa’s ceramic business also sells to foreign countries, accounting for 62.26% of the company’s overseas sales in 2021. The export business of Lianjun Ceramics, a subsidiary of Songfa, has been greatly affected by the changes of the global epidemic, the decline of the US dollar exchange rate and the rise of shipping costs.In 2020, the operating income and net profit of Lianjun Ceramics were 183 million yuan and 11.7942 million yuan respectively, and in 2021, the operating income shrank to 91 million yuan and net profit was -6.7684 million yuan.In 2021, Songfa Stock made a goodwill impairment reserve of 38.3068 million yuan for Lianjun Ceramics.Relying on the profitability of major shareholders blood transfusion downward, 2021 Songfa shares of hematopoietic capacity is weak.The annual report shows that in 2021, the cash flow generated by the company’s business activities is negative for the first time, which is -0.18 million yuan, and the net profit is 5.92%, while in 2020, the company’s index has reached 4041.19%.Data Source:Flush ifind loose hair shares in 2021 NianZhongBao said, caused the changes in business activities generated cash flow net mainly for shipping prices and the global outbreak of the new champions league continued, affect the functioning of ports, customers can’t find a space to delay orders, delivery time, the company can’t deliver the goods on schedule, lead to goods sales slow, extend the capital turnover period,The purchase cost and labor cost of inventory are paid normally.In the 2021 annual report, songfa said that the change in net cash flow from operating activities was caused by the increase in payments to suppliers and employee salaries.Loose hair shares from the monetary capital and liability situation, the company’s account is really strapped for cash.As of the end of 2021, the monetary capital in the account of Songfa Stock is 29 million yuan, but this is far from covering the company’s 233 million yuan of short-term loans, the company’s short-term debt pressure is obvious.With the increase in debt, the company’s financial expenses also swallowed up its net profit. From 2018 to 2021, the company’s interest expenses were 19.729 million yuan, 20.739 million yuan, 18.5803 million yuan and 14.814 million yuan, respectively.In addition to borrowing, Songfa shares also rely on controlling shareholders blood transfusion.Songfa issued a statement on March 29 saying that in order to guarantee and supplement the company’s working capital needs, increase financing channels and reduce financing costs, the company applied to hengli Group, the controlling shareholder, for a total loan of up to 100 million yuan in 2022.In 2020, Hengli Group frequently transfused blood to Songfa Group. As of March 29, the accumulative amount of financial assistance received by Songfa Group in the past 12 months was 141 million yuan.(Responsible Editor: Chu Rinxi)