On April 29, "the first share of maternal and infant retail" Shanghai Aiyingshi Co.Ltd(603214) ( Shanghai Aiyingshi Co.Ltd(603214) ) held the 2021 annual performance presentation at the panoramic roadshow. Shi Qiong, chairman of the board of directors, Gao Min, senior vice president and Secretary of the board of directors, and Gong yeting, vice president of finance, attended the meeting and conducted in-depth communication and exchange on a series of issues of concern to investors, such as "new development strategy", "early education, new nursery business", "shareholder reduction", "epidemic protection and supply".
Previously, Shanghai Aiyingshi Co.Ltd(603214) has published the 2021 annual report. The report shows that in 2021, the company achieved an operating revenue of 2.652 billion yuan, a year-on-year increase of 17.55%; The net profit attributable to the shareholders of the listed company was 73.478 million yuan, a year-on-year decrease of 36.97%.
online business growth exceeding expectations becoming a new growth engine of performance
For the maternal and infant industry, the last decade was a golden age for the development of the industry. The birth rate has remained stable as a whole, and the maternal and infant industry has gradually developed from a single channel and scarce commodities to a diversified demand for rich commodity categories and product specialties.
In the past five years, due to the continuous reduction of the number of women of childbearing age, the change of people's fertility concept and the postponement of the age of first marriage and first childbearing, China's birth population has continued to decrease, which has fallen to less than 10 ‰ in 2020, which means that the increment of mother and child users will be less and less in the future. In this context, how to explore the way of survival and development of mother and child enterprises has become a topic of public concern.
After two years of exploration and practice, Shanghai Aiyingshi Co.Ltd(603214) put forward three development strategies of "channel + brand + multi industry". Through the layout of "member marketing + Omni channel", focus on the mother and baby market and build a national leading and international advanced mother and baby brand.
Specifically, in 2021, Shanghai Aiyingshi Co.Ltd(603214) will expand offline channels in parallel with online business development Shanghai Aiyingshi Co.Ltd(603214) from the beginning of the epidemic, we accelerated the layout of online business. In 2021, the online business achieved a revenue of 338 million yuan, a year-on-year increase of 189.88%, including 217 million yuan in the fourth quarter, a year-on-year increase of 480%. Online business has achieved more than expected growth and become a new growth engine of the group's business. The company has successively settled in Jingdong, tmall, pinduoduo and other third-party platform channels, using the traffic of the public domain platform to boost performance growth and provide more consumers with satisfactory goods and services.
As the mother and baby market enters a new consumption period, the role of channels has changed. Vertical mother and baby channels, social channels and e-commerce channels cooperate with each other, and Wuxi Online Offline Communication Information Technology Co.Ltd(300959) mother and baby omni-channel network has been formed. While maintaining the development of offline business, Shanghai Aiyingshi Co.Ltd(603214) also made continuous breakthroughs in online business.
In 2021, Shanghai Aiyingshi Co.Ltd(603214) began to lay out o2o new retail, giving full play to the geographical advantages, brand and supply chain advantages of more than 500 offline stores, and settled in online platforms such as meituan, hungry and Jingdong home, so as to more efficiently meet the different needs of consumers. Since the launch of o2o business in March, the monthly compound growth rate has exceeded 400%, which has effectively improved the operation efficiency of stores and widened the service boundary of stores.
Meanwhile, Shanghai Aiyingshi Co.Ltd(603214) according to its own advantages, it provides agent operation services for some brands Shanghai Aiyingshi Co.Ltd(603214) mainly in the form of distribution, it helped the brand establish a perfect marketing system on tmall, pinduoduo and other mainstream e-commerce platforms.
Shanghai Aiyingshi Co.Ltd(603214) senior vice president and Secretary Gao Min said in the performance presentation that the company's provision of agent operation services for brands can not only improve the online operation ability and team building of the whole company, but also concentrate such businesses and obtain more online resources and brand support.
She believes that for the company, the provision of agent operation services complements the company's online operation capacity, and more importantly, it can further improve the company's supply chain capacity, so as to improve the efficiency of the whole operation.
completed the acquisition of beibeibei bear and achieved regional marketing network coverage in East China, South China, southwest and central China
In terms of offline business, at the end of October 2021, Shanghai Aiyingshi Co.Ltd(603214) completed the acquisition of 100% equity of beibeibeixiong, the first mother and baby chain brand in Central China, quickly entered the central China market, and the market scale increased significantly.
In 2021, Shanghai Aiyingshi Co.Ltd(603214) brand opened 43 new stores, optimized and closed 28 stores, increased 15 stores net, and acquired 221 stores of beibeixiong. By the end of December 2021, the total number of stores of the company was 526, and the overall store area increased from 185600 square meters to 272700 square meters. In order to improve operation efficiency, the company also continues to optimize and adjust stores with large area, and the area of single store is controlled at about 500 square meters.
Shanghai Aiyingshi Co.Ltd(603214) this acquisition of Beibei bear also takes into account its low coincidence rate with Shanghai Aiyingshi Co.Ltd(603214) in store distribution. It is understood that Beibei bear has more than 200 stores across the country and more than 2000 employees, including more than 400 certified nursery teacher teams, with an average single store area of more than 300 square meters. Its main markets are located in Hunan, Hubei and Jiangsu, and has accumulated profound experience in the mother and baby industry. After the acquisition, the total number of Shanghai Aiyingshi Co.Ltd(603214) offline stores jumped from nearly 300 in 2020 to more than 500, realizing the marketing network coverage in East China, South China, southwest and central China.
Gong yeting, vice president of finance, said at the performance presentation that from the perspective of regional business income, the sales in Jiangsu, Zhejiang and Shanghai accounted for more than 60% in 2021, including more than 30% in Shanghai. Due to the decline of population birth rate and other factors, the sales were under pressure. Guangdong has expanded its market in recent two years, and its revenue continues to maintain a large increase. Hunan, Hubei, Sichuan, Jiangxi and other regions are the new markets after the acquisition of Beibei bear in October 2021, becoming the key strategic complementary regions of the company.
For the store opening plan and profit growth target in 2022, Gong yeting said that in 2022, the company will continue to maintain a prudent attitude, constantly optimize the store opening model, actively layout high-quality stores and reasonably control the density. The company is developing at a steady pace. It is expected that the scale of revenue in 2022 will have a high growth and a stable profit level.
With the gradual implementation of the three child policy and the new fertility policy, the downward trend of the number of newborn population will be greatly slowed down in the short term. However, due to living pressure, living space constraints and other factors, the impact of the opening of the three child policy on the first and second tier cities is weaker than that of the third and lower tier cities, and the growth rate of the new population in the sinking market will be slightly higher than that of the first and second tier cities.
The geographical distribution change of mother and baby consumers in the 2021 mother and baby short video and live broadcast marketing report also shows that the growth of mother and baby consumers in the sinking market is obvious, among which the growth of consumers in third tier cities has reached nearly 70%.
With the consumption of mother and baby population escalating, the mother and baby industry has great development potential in the sinking market. Up to now, Shanghai Aiyingshi Co.Ltd(603214) has formed a mother and baby market based on East China, merging southwest and central China, developing South China, accelerating online and diversified layout.
deeply cultivate the mother and baby market and develop the business of early education and nurseries in 2021
From the perspective of the characteristics of the maternal and infant industry, the life cycle of maternal and infant customers is relatively limited, coupled with the continuous decline of the birth rate, the maternal and infant market has gradually shifted to the stock market. All types of products need more refined operation, in-depth analysis of user needs and improvement of product and service quality, so as to effectively retain users.
Shanghai Aiyingshi Co.Ltd(603214) senior vice president and Secretary Gao Min also said that in the current market environment, in addition to meeting the basic product needs of customers, we also need to tap more needs of customers, hoping to obtain more opportunities in the limited customer life cycle. In 2021, aiming at this strategy, the company entered the field of early education and childcare services.
For the early education business, Shanghai Aiyingshi Co.Ltd(603214) currently adopts the "store in store" model. In addition to providing services such as infant swimming and parent-child playground, the company also implanted early education formats in some stores, adopted advanced and scientific education concepts, developed and customized creative early education courses for Chinese infants and children, and the rich and colorful curriculum has been loved by many parents and children.
In terms of childcare business, the company opened the first childcare center in Shanghai Pudong Shanghai Lujiazui Finance & Trade Zone Development Co.Ltd(600663) commercial park and was awarded the "director unit of the special committee for infant care services of Shanghai early Population Development Association". According to the physical and mental development law of preschool children, the center set up an interesting and interactive curriculum system and reasonable work and rest, which effectively alleviated the pressure of childcare in the park and surrounding families.
The rapid progress of society and the rapid development of economy make the younger generation of parents have stronger Consumption Willingness and consumption ability, which drives the diversified development of consumption content in the mother and child market. At present, the consumption content of the mother and baby market continues to extend from goods to services. For Shanghai Aiyingshi Co.Ltd(603214) , the fields and service scope that can be expanded are far more than this, which also makes investors have more expectations for the development of Shanghai Aiyingshi Co.Ltd(603214) in the future.
response to the reduction of holdings: the second largest stock of united investment is the US dollar private equity fund, which has reached the withdrawal period
In this performance presentation meeting, Shanghai Aiyingshi Co.Ltd(603214) also responded to the recent reduction of the second largest shareholder of the company concerned by investors.
It is reported that Shanghai Aiyingshi Co.Ltd(603214) announced on the evening of April 18 that the second largest shareholder of the company plans to reduce its holdings of no more than 24012400 shares, that is, no more than 16.97% of the total share capital.
Shanghai Aiyingshi Co.Ltd(603214) senior vice president and Secretary Gao Min said that the main reason for the reduction of the holdings of united investment is that it is a US dollar private equity fund, and its investment cycle is only five years. Up to now, it has been more than five years and has reached the withdrawal period of the fund.
Gao Min said that historically, united investment has always supported and valued the development direction of Shanghai Aiyingshi Co.Ltd(603214) in the future. The company believes that united investment will use a better method to maintain the development and stability of the company.
fully guarantee supply during epidemic and promote resumption of work and production
An investor asked: will the recent epidemic in Shanghai have an impact on the company's business? If so, what businesses or subsidiaries of the company are affected, and whether they have resumed work and production? What are the positive effects of returning to work? What problems have been solved during the epidemic?
Shanghai Aiyingshi Co.Ltd(603214) chairman Shi Qiong said that the company's headquarters and more than 90 stores are located in Shanghai, which has had a certain impact on the company's business since the outbreak of the epidemic in Shanghai in March 22. The mother and baby businesses of stores are hindered by different levels of epidemic control policies Shanghai Aiyingshi Co.Ltd(603214) as one of the first batch of domestic material supply guarantee enterprises for epidemic prevention and control in Shanghai, the company has nearly 40 people who have successfully obtained the vehicle pass of the guarantee and supply unit and entered the logistics work, and more than 100 people have successfully passed the application for resumption of work and invested in promoting the resumption of work and production.
At present, the company is gradually returning to work and production in the following aspects:
1. Resumption of work and production in stores: Shanghai Aiyingshi Co.Ltd(603214) Shanghai stores have resumed work and production in more than 40 stores. In order to do a good job in the closed-loop management of store employees, the company issued resumption certificates for employees. The employees ate and lived in the stores for 24 hours, overcome many living difficulties, and adhere to the combination of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) business to solve the urgent needs of surrounding mother and child families. Consumers can place orders through wechat of store enterprises and deliver goods without contact through errands, which can be delivered to consumers on the same day.
2. Online resumption of work and production: in order to meet the personalized needs of mother and baby families, when the logistics is blocked in the last kilometer, the company quickly optimizes the small program micro mall through Shanghai Aiyingshi Co.Ltd(603214) app. Customers can place orders through app and small program to meet a certain amount, and then directly distribute products to the customer's community through our logistics center. In addition to the process of purchasing milk powder, diapers and other necessities, the urgent needs of consumers can be solved through the app, diaper and other procedures.
3. Resumption of warehousing and logistics: Shanghai Aiyingshi Co.Ltd(603214) Zhejiang Jiashan warehousing and logistics center was officially put into operation in 2016, covering an area of 60 mu and a total construction area of 64000 square meters. As the "rear area" for material supply, under the condition that many logistics companies have stopped transportation, it has achieved extremely strict epidemic prevention standards according to the requirements of the government to ensure the normal logistics work. It ensures the supply needs of Shanghai and surrounding areas, and ensures that stores have goods to sell and consumers receive goods.
Shi Qiong said that after returning to work and production, Shanghai Aiyingshi Co.Ltd(603214) employees guarded every family who trusted Shanghai Aiyingshi Co.Ltd(603214) by staying in stores, organizing group purchases, and going to the front-line self built logistics fleet. Customer orders are sent from self built storage centers, directly connected to stores or community group purchases, so that some families in urgent need of baby materials can get goods with quality and quantity and stable price in the shortest time, so as to meet the personalized needs of mother and child families.
