Bybon Group Company Limited(300736) ( Bybon Group Company Limited(300736) . SZ) turned loss into profit last year, but lost again in the first quarter. Whether it can maintain profit this year has become a topic of great concern to investors. Liu Tiefeng, chairman and general manager of the company, said at the 2021 annual performance briefing that since 2022, the epidemic has occurred repeatedly across the country, and there have been many store closures everywhere. However, “we believe that the epidemic will always pass, and the demand of consumers for mobile phone services is rigid and certain.”
Liu Tiefeng further said, “with the slowdown of customers’ purchase of new machines, consumers’ demand for mobile phone services will increase. This is an external opportunity we see. Bybon Group Company Limited(300736) ‘s strategic path is from authorized mobile phone maintenance to comprehensive mobile phone services, and then to 3C services. At present, the development of Apple business, online business and alliance business has preliminarily verified its feasibility.”
Financial data show that the company achieved revenue of 312 million yuan in 2021, a year-on-year decrease of 36.18%; The net profit attributable to the parent company was 6.584 million yuan, a year-on-year increase of 107.44%. In the first quarter of 2022, the company achieved a revenue of 572832 million yuan, a year-on-year decrease of 40.03%; The net profit attributable to the parent company was -8.6409 million, a year-on-year decrease of 923.33%.
Chen Liya, financial director and board secretary, said, “the decrease in revenue in 2021 is mainly due to the company’s strategic reduction in new machine sales. At the same time, the company took the initiative to terminate the authorized maintenance business of a brand at the end of 2020. Regardless of the influence of the above two factors, Apple’s business and alliance business are growing steadily.” The financial Associated Press reporter noted that after the company terminated the operation of a brand business, the gross profit margin of commodity sales, value-added services and other businesses increased by 73.14% year-on-year in 2021, but it was still only – 17.58%. In response to this, the management department of gem recently issued an annual report inquiry letter to explain the reason why the gross profit margin is still negative.
It is noteworthy that the regulator also asked through the inquiry letter: “is there a risk that the supplementary agreement signed between Shanghai lightning bee, a wholly-owned subsidiary of the company, and Apple cannot be renewed after it expires in July 2022?” Investors raised similar questions at the performance meeting. Chen Liya responded that the company disclosed the renewal of the IRP agreement with apple in the first quarter. This renewal is uniformly renewed at the request of apple until July 2022. The new agreement needs to be negotiated and signed after Apple’s confirmation. At present, the operation is in good condition. The number of merchants engaged in IRP business, monthly procurement and maintenance are developing healthily. It is understood that Bybon Group Company Limited(300736) main business covers Apple business and alliance business. As an authorized after-sales service provider of apple for more than 11 years, it is the largest authorized service provider of apple in China.
From the perspective of the industry, Liu Tiefeng believes that “3C comprehensive service industry is a market with a scale of hundreds of billions. The main employees are 1 million mom and pop stores and tens of millions of freelancers, which is a typical” big cake ” “Little ant” status. Practitioners generally do not have brands, and most of them have poor abilities in capital, management, supply chain and marketing. Due to the small number of cities with original authorized stores and high prices, the original maintenance accounts for a low share of the overall maintenance market, but there is a growing trend. With the growth of the number of mobile phones in stock, mobile phone maintenance orders are also increasing. ” Chen Li Ya believes that the company is the largest mobile phone licensing service provider in China, “but relative to the overall market scale, our market share is still very small.”
