In 2021, the pre loss of deducting non net profit was 410 million to 450 million yuan, a year-on-year decrease of more than 5.8 times. Recently, the stock price has soared continuously, and the performance forecast of Better Life Commercial Chain Share Co.Ltd(002251) has put many investors into panic.
It is estimated that the net profit of non disclosure will reach RMB 2.24 billion to RMB 20.21 billion. In the previous ten trading days from April 8 to 21, the Better Life Commercial Chain Share Co.Ltd(002251) share price soared more than doubled.
This is the first time that Better Life Commercial Chain Share Co.Ltd(002251) net profit and deduction of non net profit have suffered huge losses in the 14 years since listing. The profitability of Better Life Commercial Chain Share Co.Ltd(002251) , which is mainly engaged in chain supermarket business, has been declining since 2014. Although there was a short rebound during this period, it has always been difficult to improve. In the first three quarters of last year, the company’s net profit and deduction of non net profit decreased by more than 10 times and 30 times respectively year-on-year.
Nevertheless, Better Life Commercial Chain Share Co.Ltd(002251) had not given any risk warning on employment and changes. Just a few days before the huge loss, Tencent and Jingdong companies successively significantly reduced their holdings, with a total cash out amount of more than 240 million yuan. According to the original plan, Better Life Commercial Chain Share Co.Ltd(002251) will disclose the annual report on April 30, and the reduction time of the two shareholders is within the disclosure window of the annual report.
first loss in 14 years after listing
From April 8 to 21, except for the 8th and 18th, in just ten trading days, Better Life Commercial Chain Share Co.Ltd(002251) bucked the market and pulled out eight price limits. The share price rose from the lowest point of 607 million yuan to the highest of 12.62 yuan, with the maximum increase of nearly 110%. It has become the most eye-catching “demon stock” in the recent A-share market.
However, with Better Life Commercial Chain Share Co.Ltd(002251) an apology announcement, many investors chasing high may be fooled. According to the disclosure on the 22nd, Better Life Commercial Chain Share Co.Ltd(002251) expects a net profit loss of 170 million to 210 million yuan in 2021, a year-on-year decrease of 252.17% – 287.98%, deducting a non net profit loss of 410 million to 450 million yuan, a year-on-year decrease of 581.76% – 628.77%.
This is the first loss of annual net profit since Better Life Commercial Chain Share Co.Ltd(002251) listed for 14 years. According to the annual report, in the year of listing in 2008, the company’s operating revenue and net profit increased by 24.3% and 31.67% respectively year-on-year. In the following two years, the growth rate of the company’s revenue decreased by 10.07% and 18.25% respectively, the growth rate of net profit decreased to 1.45% and 3.45% respectively, and the growth rate of deducting non net profit was only – 1.21% and 0.73% respectively.
After two years of downturn, Better Life Commercial Chain Share Co.Ltd(002251) has experienced rapid growth for three consecutive years. From 2011 to 2013, although the growth rate of the company’s revenue did not exceed 25%, the net profit increased by 52.2%, 31.84% and 21.16% year-on-year respectively, while the net profit deducted increased by 57.17%, 31.67% and 24.88% respectively.
But it didn’t last long. Since 2014, the company’s net profit has decreased for three consecutive years. From 2014 to 2016, the net profit of the company decreased by 16.89%, 38.08% and 37.94% respectively, while the non net profit decreased by 21.46%, 49.92% and 54.45% respectively in the same period.
After three consecutive years of decline, due to the low base of the previous year, the net profit and non net profit deducted in Better Life Commercial Chain Share Co.Ltd(002251) 2017 increased by 10.36% and 68.11% respectively year-on-year. Since then, the company’s profitability has been in a continuous decline and has not improved. In 2020, there has been a simultaneous decline in revenue, net profit and non net profit deduction.
Better Life Commercial Chain Share Co.Ltd(002251) the year with the best performance occurred in 2013. In that year, the net profit of the company was 415 million yuan, deducting 400 million yuan of non net profit. According to the above data, the company’s loss scale of deducting non net profit in 2021 has exceeded its highest profit scale in each year since its listing.
Better Life Commercial Chain Share Co.Ltd(002251) did not explain the reasons for the huge loss in 2021 in the announcement, but only said that with the deepening of the audit work, the company expected to suffer a loss in 2021 after communicating and confirming with the accounting firm due to the partial deviation between the accounting judgment and the original estimate of some business activities of the company.
loss has long been seen
According to the scheduled time, Better Life Commercial Chain Share Co.Ltd(002251) will disclose the annual report of 2021 and the first quarterly report of 2022 on April 30. However, before the sudden huge loss of performance, the company did not release any risk tips for changes in employment performance, or release data related to changes in performance.
Better Life Commercial Chain Share Co.Ltd(002251) said in the announcement on the 22nd that the originally expected performance in 2021 was not within the scope of the forecast, so the performance forecast was not disclosed before the end of January. After the in-depth audit work, it was found that there were some deviations in the original performance judgment.
However, Better Life Commercial Chain Share Co.Ltd(002251) last year’s huge loss of profits did not happen suddenly. After years of continuous decline, the financial data of the first three quarters of last year showed that the company had shown signs of loss in a number of financial indicators. In the third quarter of 2021, the company’s profitability has deteriorated sharply.
According to the disclosed data, in the first three quarters of last year, Better Life Commercial Chain Share Co.Ltd(002251) operating revenue was 10.47 billion yuan, a year-on-year decrease of 13.87%; The net profit was 172 million yuan, a year-on-year increase of only 1.77%, and the deduction of non net profit was 166 million yuan, a year-on-year decrease of 221.56%.
According to the third quarterly report of 2021, the company’s revenue in the quarter was 3.16 billion yuan, a year-on-year decrease of 13.23%. In the same period, the three indicators of total profit, net profit and deduction of non net profit all decreased by more than 10 times year-on-year. Among them, the total profit loss was 49.73 million yuan, a year-on-year decrease of 105238%, while the net profit and deduction of non net profit were 35.687 million yuan and 34.769 million yuan respectively, with a year-on-year decrease of 1262.8% and 310455% respectively.
Better Life Commercial Chain Share Co.Ltd(002251) explained that in the first three quarters of last year, the expenses confirmed by the implementation of the new leasing standards, the promotion expenses of new stores and other expenses were invested heavily, and the start-up expenses during the preparation of new stores were directly included in the current profits and losses, which affected the current profits and profits. In addition, the impact of the epidemic, the pressure on the physical retail industry, the rise of rigid costs, fierce channel competition and the impact of community group buying all had an impact on the performance.
In the first half of last year, Better Life Commercial Chain Share Co.Ltd(002251) faced the situation of relying on non recurring profits and losses to maintain profitability.
According to the semi annual report, in the first half of 2021, the company deducted 131 million yuan of non net profit loss, obtained 478 million yuan of investment income and 53.53 million yuan of government subsidy through the real estate asset securitization of a commercial plaza under its name, realized 340 million yuan of non recurring profit and loss and 208 million yuan of net profit.
before the thunder explosion, jd.com and Tencent continued to reduce their holdings
After soaring continuously, Better Life Commercial Chain Share Co.Ltd(002251) ‘s share price experienced a sharp correction on April 22. In the morning trading of the same day, the stock once rose by more than 6% to 13.38 yuan, a new high since July 2020, but then began to fall rapidly and fell to the limit at about 10 a.m. after that, although the limit was opened, it fell again to the closing close near the end of the trading after the fierce game of main funds.
As of the closing on April 22, Better Life Commercial Chain Share Co.Ltd(002251) share price was reported at 11.36 yuan, with a total market value of 98.14 yuan, still at a high level in recent years.
the decline of Better Life Commercial Chain Share Co.Ltd(002251) 22 is related to an announcement after trading the day before Better Life Commercial Chain Share Co.Ltd(002251) it was disclosed on April 21 that on April 20, Jiangsu Jingdong bangneng Investment Management Co., Ltd. (hereinafter referred to as “Jingdong bangneng”) reduced its 16.1 million shares in the company, with an average reduction price of 11.28 yuan / yuan and cash out of about 180million yuan. After the reduction, the number of shares held by Jingdong bangneng decreased from 43195000 shares to 27095000 shares, and the shareholding ratio decreased from 5% to 3.1364%.
Jingdong bangneng is a Jingdong company. According to the disclosure, Liu qiangdong holds 45% of the shares of Jingdong bangneng, while Li Yayun and Zhang Kai hold the remaining 30% and 25% of the shares of the company respectively.
Tencent has significantly reduced its holdings a little earlier. On April 19, Nyingchi Tencent Technology Co., Ltd. (hereinafter referred to as “Nyingchi Tencent”) reduced Better Life Commercial Chain Share Co.Ltd(002251) 8639000 shares through block trading, with a reduction ratio of 1 Shenzhen Quanxinhao Co.Ltd(000007) %, an average reduction price of 9.75 yuan / share, and a reduction amount of about 95 million yuan.
After the reduction, the shareholding ratio of Nyingchi Tencent has decreased from 6% to less than 5%. The disclosure shows that Nyingchi Tencent is 100% owned by Shenzhen Tencent industrial investment fund Co., Ltd.
Although it was a high-level reduction, Jingdong bangneng and Linzhi Tencent still left the market. In 2018, Zhang Haixia, the Better Life Commercial Chain Share Co.Ltd(002251) shareholder, and Xinwo fund transferred their Better Life Commercial Chain Share Co.Ltd(002251) 4% equity and 2% equity to Nyingchi Tencent respectively; Zhong Yongli and Better Life Commercial Chain Share Co.Ltd(002251) group, the shareholders of the company, respectively transferred 3% and 2% equity of the listed company to JD bonneng. According to the announcement, the transfer price was 17.11 yuan / share. Nyingchi Tencent obtained Better Life Commercial Chain Share Co.Ltd(002251) 6% equity at the price of 887 million yuan, while JD bonneng won Better Life Commercial Chain Share Co.Ltd(002251) 5% equity at the price of 739 million yuan.
Compared with the original transfer price, the reduction price of Jingdong bangneng and Linzhi Tencent has a loss of more than 90 million yuan and 60 million yuan respectively, and the loss proportion has reached about 34% and 42% respectively. Together with the shares that have not been reduced, the current floating losses of the two countries have reached about 240 million yuan and 300 million yuan respectively.
