On March 25, Yunnan Baiyao Group Co.Ltd(000538) ( Yunnan Baiyao Group Co.Ltd(000538) . SZ, hereinafter referred to as Yunnan Baiyao Group Co.Ltd(000538) ) released the annual report of 2021. In 2021, Yunnan Baiyao Group Co.Ltd(000538) revenue was 36.374 billion yuan, an increase of 11.09% year-on-year, but the net profit was 2.804 billion yuan, a decrease of 49.17% year-on-year. This is the first time that Yunnan Baiyao Group Co.Ltd(000538) has increased its income without increasing its profit since its listing. The reason for the sharp decline in net profit is that the company's "stock speculation" suffered a floating loss of nearly 2 billion.
Yunnan Baiyao Group Co.Ltd(000538) keen to speculate in stocks is the reality of the slowdown in the growth of main business. In March last year, the new CEO Dong Ming took office, Yunnan Baiyao Group Co.Ltd(000538) began to reduce the scale of securities investment and accelerated the layout of the second growth curve other than toothpaste. As far as the current effect is concerned, the effect is not obvious.
However, the reporter of Huaxia times learned from the minutes of the investor research meeting released on March 29 that Yunnan Baiyao Group Co.Ltd(000538) will gradually reduce its holdings of securities portfolios in the secondary market and exit at the right time.
stock floating loss of nearly 2 billion
Yunnan Baiyao Group Co.Ltd(000538) recently disclosed in the annual report that the profit and loss from changes in the fair value of securities and funds held by the company was -1.929 billion yuan, while the net profit attributable to the parent company of Yunnan Baiyao Group Co.Ltd(000538) in 2021 was 2.804 billion yuan, accounting for 68% of the net profit Yunnan Baiyao Group Co.Ltd(000538) held stocks are "big white horse", which is also the sector with the most serious decline last year.
According to the annual report, Yunnan Baiyao Group Co.Ltd(000538) holds 9 stocks, of which Xiaomi group has the largest floating loss, with a floating loss of 1.404 billion yuan. In fact, the negative impact of securities investment on Yunnan Baiyao Group Co.Ltd(000538) performance appeared as early as the beginning of 2021. Last year, the company's first quarterly report showed that the company's net profit was 763 million yuan, a year-on-year decrease of 40.48%. The main reason for the decline in net profit was the floating loss of 800 million in securities investment during the reporting period. In the third quarter, Yunnan Baiyao Group Co.Ltd(000538) stock speculation suffered a floating loss of 1.55 billion, and external doubts were rampant. At that time, Yunnan Baiyao Group Co.Ltd(000538) said that the purpose of securities investment was to improve the use efficiency of funds. Up to now, the position of the company has been reduced. At present, the company is very cautious about the investment target. In the future, it will gradually optimize the investment structure and gradually withdraw from securities investment.
In 2021, Yunnan Baiyao Group Co.Ltd(000538) reduced its position in seven stocks, including Xiaomi group, Tencent holdings, Jiangsu Hengrui Medicine Co.Ltd(600276) , Inner Mongolia Yili Industrial Group Co.Ltd(600887) and so on. The amount of position reduction was about 5.9 billion yuan, and the scale of securities investment of the company decreased by about half. However, the cruelty of the capital market is still deeply reflected in the performance of Yunnan Baiyao Group Co.Ltd(000538) , resulting in a 49.17% decline in the net profit attributable to the parent company in 2021.
Yunnan Baiyao Group Co.Ltd(000538) keen on stock speculation began in 2019. 2020 is the highlight of Yunnan Baiyao Group Co.Ltd(000538) investment in capital market. 2020 Yunnan Baiyao Group Co.Ltd(000538) stock speculation floating profit of RMB 2.618 billion, directly pushing the net profit attributable to the parent company to RMB 5.516 billion. However, the good times are not long. In 2021, the capital market will be covered with clouds, and Yunnan Baiyao Group Co.Ltd(000538) will be difficult to appear in Chang'an.
main business growth slowed down
Behind Yunnan Baiyao Group Co.Ltd(000538) keen to speculate in stocks is the slowdown in the growth of its main business.
Yunnan Baiyao Group Co.Ltd(000538) 20162021: the net profit deducted from non net profit was RMB 2.7 billion, RMB 2.781 billion, RMB 2.218 billion, RMB 2.289 billion and RMB 3.339 billion respectively; The year-on-year growth rates were 3.24%, 3.01%, 4.91%, - 20.80%, 26.63% and 15.17% respectively. In 2021, the net profit attributable to parent company of comparable enterprises such as Beijing Tongrentang Co.Ltd(600085) increased by 19.25% Dong-E-E-Jiao Co.Ltd(000423) is 992% Zhangzhou Pientzehuang Pharmaceutical Co.Ltd(600436) third quarter net profit attributable to parent company increased by 51%.
By product, the revenue of Yunnan Baiyao Group Co.Ltd(000538) industrial products in 2021 was 12.7 billion yuan, accounting for 34.92% of the revenue, with a year-on-year increase of 8.42%; The wholesale and retail operating revenue was 23.6 billion yuan, accounting for 64.83% of the revenue, with a year-on-year increase of 12.43%. The gross profit margin of the pharmaceutical industry was 63.98%, up 2.80% year-on-year; The gross profit margin of pharmaceutical business was only 7.31%, down 1.78%.
The main business of this traditional Chinese medicine giant is facing challenges Yunnan Baiyao Group Co.Ltd(000538) once said that " Yunnan Baiyao Group Co.Ltd(000538) toothpaste, Yunnan Baiyao Group Co.Ltd(000538) aerosol, Yunnan Baiyao Group Co.Ltd(000538) ointment is still the main contributor to the income and profit of the company's industrial products, but the rapidly changing policies, technologies and demands, the participation of more and more competitors, continue to pose new challenges to the company's inherent market position, and the creation of Yunnan Baiyao Group Co.Ltd(000538) the 'second growth curve' has become the consensus of Baiyao people".
The 2021 annual report proposed that the company actively explore the incremental business of Panax notoginseng oral liquid, household medical devices, personalized skin care product group, scalp health management product group, health care food, new resource food and other products on the basis of stabilizing the traditional advantageous stock business such as Yunnan Baiyao Group Co.Ltd(000538) central products ( Yunnan Baiyao Group Co.Ltd(000538) series core products), general medicine, toothpaste and so on. In terms of the annual report, these businesses have not had a bright performance, but the company's accounts receivable increased significantly to 7.184 billion yuan, a year-on-year increase of 7.33%. The reporter contacted the Yunnan Baiyao Group Co.Ltd(000538) board secretary's office on the decline of employment performance growth and other issues, but no reply was received as of the press time.
Whether Yunnan Baiyao Group Co.Ltd(000538) this "elephant" can make a breakthrough in new business remains to be seen by the market.
choose the machine to exit
Yunnan Baiyao Group Co.Ltd(000538) in the annual report, it is also mentioned that the price of shares held by the company changes after the balance sheet date, which may affect the net profit attributable to the shareholders of the listed company in the consolidated financial statements at the end of the first quarter due to the change in the fair value of trading financial assets. At present, the company is gradually reducing its positions and will no longer continue to increase its holdings.
This is consistent with the statement made by Yunnan Baiyao Group Co.Ltd(000538) in the investigation of several institutions on March 27. The minutes of its subsequent investor research meeting showed that "the company will treat all kinds of investment behaviors very carefully, especially in the securities investment in the secondary market, which we are more concerned about. The clear plan is to gradually reduce its holdings and exit at the right time.
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According to the minutes of the investor research meeting, regarding the follow-up planning of stock investment and other issues, Yunnan Baiyao Group Co.Ltd(000538) responded that in order to deal with the stock trading risk in the secondary market and strictly control the investment scale in the secondary market, the company will invest in the proportion of stocks, stock funds and equity funds in 2022, which was deliberated and approved by the 10th meeting of the ninth board of directors in 2021, The total amount shall not be higher than 15% (inclusive) of the audited net assets in the latest fiscal year, and shall be reduced to 8% (inclusive). Within the limit approved by the board of directors, the position shall be gradually reduced, and the shareholding shall not be increased. While improving the use efficiency of idle funds, the support of capital resources for the development of main business shall be strengthened. The company will strengthen market analysis and research, timely analyze and track the investment progress, and earnestly implement relevant internal management systems to ensure the safety of the company's funds.
"The purpose of the company's securities investment with its own idle funds is always to improve the use efficiency of idle funds. Under the strict restriction of investment scale and on the premise of measurable, controllable and affordable risk, engaging in securities investment will not affect the company's daily business and main business." Yunnan Baiyao Group Co.Ltd(000538) scale.
In fact, Yunnan Baiyao Group Co.Ltd(000538) as early as the second half of 2021 to the end of the year, it has begun to dispose of some securities investment objects. The position at the end of the year has been disclosed in detail in the 2021 annual report. Both the number of shares held and the market value of shares have been significantly reduced compared with the previous period. In the events after the balance sheet date in the notes to the 2021 annual report, the company also clearly suggests that the price of shares held by the company changes after the balance sheet date, which may affect the net profit attributable to the shareholders of the listed company in the consolidated financial statements at the end of the first quarter of 2022 due to the change of the fair value of trading financial assets. Please pay attention to investment risks.
Yunnan Baiyao Group Co.Ltd(000538) said that in 2022, the company will continue to reasonably allocate idle funds to improve the company's revenue and capital use efficiency. In the field of securities investment, the general principle is to gradually reduce positions and no longer increase holdings. At the same time, some investment targets with long-term planning will be managed in strict accordance with the corresponding securities investment quota and risk management system. At the same time, on the premise of fully evaluating the industrial investment demand and investment risk, guided by the company's 1 + 4 + 1 strategy, the company will actively carry out industrial investment M & A and primary market investment, promote the strategic cooperation and resource integration upstream and downstream of the industrial chain, realize business empowerment and strategic layout through investment, and help the implementation of the company's overall strategy.
