freespinmaster| Why don't the stragglers make money?

This is Shangpin's second buyback this year.

In the previous three months,FreespinmasterWith a value of about 6407Freespinmaster5.0725 million shares of the company were bought back at a price of .30,000 yuan.

Behind the buyback is the company's unsatisfactory stock price performance. Since the beginning of this year, the share price of Shang Pin House allocation has fluctuated downward, falling nearly 24%, and the market value has lost nearly 480 million yuan.

The performance level is also not ideal. In 2023, Shangpin House allocation achieved revenue of nearly 4.9 billion yuan, but the corresponding net profit was only 65 million yuan, which is the existence of "crane tail" in the industry. This also does not prohibit outsiders from wondering why such a large scale of revenue has only turned into a profit of less than 100 million yuan in the end.

The net interest rate is much lower than that of its peers.

In 2023, there was a decline in revenue from multiple product lines in Shangpin House.

In terms of custom furniture, this product is the core of Shangpin home matching, and its performance contribution is maintained at more than 70% all the year round. In 2023, custom furniture products brought the company more than 3.5 billion yuan in revenue, down 8.55% from the same period last year, while revenue from software and technical services fell 4.07% year-on-year. The year-on-year drop of 46.4% is 46.4%, and the whole assembly business is down 26.28%.

The decline in these businesses has also led to a decline in total revenue. In 2023, Shangpin's revenue was 4.992 billion yuan, down 7.8% from the previous year, while the corresponding net profit increased by 40.06% to 65 million yuan.

Although the year-on-year growth rate of net profit outpaced revenue, Shangpin's overall net interest rate was only 1.32%, much lower than that of its peers. Last year, net interest rates for Zhibang homes were 9.73%, Sophia 11.34%, and European homes around 13.3%, according to Dongcai Choice.

Cost control is the main reason for the gap.

In 2023, the operating cost of Shangpin House is about 3.19 billion yuan, and the operating cost ratio (operating cost / operating income) is 65.02%, which is higher than that of Zhibang Home (62.93%) and Sophia, which is 63.85%, slightly lower than 65.84% of European Home.

If these differences are still within a reasonable range, then after taking into account the various expenses such as sales expenses and financial expenses, the total operating cost of Shangpin House has risen to 4.848 billion yuan, and the operating cost ratio (total operating cost / total operating income) under this index has reached 98.95%. By the same calculation, both European Home and Sofia are 85%, and Zhibang Home is 88.27%.

It can be seen that among the similar competitive products, the operating cost of Shangpin House allocation is the highest, and the higher cost of this part is more at the level of sales and operation.

According to the annual report, last year, due to falling sales and other reasons, the overall sales cost of Shangpin Home matching fell 14% year-on-year to 1.081 billion yuan, of which advertising expenses also dropped to about 200 million yuan. However, the company's sales expense ratio (sales expenses / total operating income) is still not low, at 22.06%, while Zhibang Home is only 14.55%, Sofia is 9.66%, and European Home is 8.7%.

Management infighting

Shangpin Homestead, which can not control the cost well, is also left farther and farther away by its peers in the fierce market competition.

Choice data show that in 2020, the revenue scale of Shangpin home is more than 6.5 billion yuan, which is about 1.7 times that of Zhibang home, with a difference of less than 2 billion yuan with Sophia; by 2022, the revenue of Shangpin home match has dropped from 7.3 billion yuan last year to 5.3 billion yuan, which has been surpassed by Zhibang household. Sophia has gone further on the basis of 10 billion yuan, while European household has a firm foothold in 20 billion echelons.

In 2023, the income of Shangpin House distribution camp fell instead of increasing, falling below 5 billion yuan, further widening the gap with Zhibang home, becoming the lowest income of the four custom homes and the least profitable one.

Shangpin House also wants to change the status quo of being left behind.

Public information shows that in February this year, Shang Pin Zhai Pai said bluntly that the number of stores in the company lagged behind that of competitive products, and that this was related to shopping mall's store opening strategy and the layout of more high-level cities in the past, attracting investment was slower, and 2024 would put investment promotion in a more important position. "the speed of attracting investment will be accelerated, and the sinking layout will also accelerate, which is expected to lead to the rapid improvement of joining business."

By the end of 2023, Shangpinzhaiping has 46 directly operated stores, 285 self-operated city franchise stores and 2005 company franchise stores (including self-operated franchise stores, including 463 new franchise stores).

But the outside must be settled inside first.

In March this year, an open letter signed "Group Vice President Ouyangxi" was circulated on the Internet. In the letter, Ouyang Xi bluntly exposed the malicious deduction of employees' wages and the dismissal of key veteran employees by executives of the Weiyi customization brand owned by Shangpin House, and directly targeted the current general manager Zhang and senior executives surnamed Han, director of Shangpin House HR.

He said that under the leadership of Zhang, in just two years, the annual revenue of Weiyi customization plummeted from more than 2 billion yuan to less than 1 billion yuan, becoming a third-rate brand.

In addition to performance problems, he also said that Zhang was addicted to similar brainwashing courses and resold unlicensed "Changshengshui", "camel milk" and "A watches" in the company system, "causing the entire Weiyi company to be miasma and distracted. This is a drag on the group's business and a heavy blow to the market capitalization."

In the view of the market, this open letter may to some extent answer the reason why Shangpin House has lagged behind in recent years, and the future development depends on the actions of the company.