After nine years of investment, MARUMI was reduced by major shareholders, and the shareholding ratio fell to less than 5%. On May 22, Guangdong Marubi Biotechnology Co.Ltd(603983) announced that the shareholding ratio of the shareholder l capital Guangzhou beauty Ltd. (hereinafter referred to as “l capital”) was reduced to less than 5%. In the view of the industry, the reduction of the shareholding ratio of major shareholders to less than 5% may have an adverse impact on the stock price and future development of Guangdong Marubi Biotechnology Co.Ltd(603983) and this also reflects that shareholders are not optimistic about the future development of Guangdong Marubi Biotechnology Co.Ltd(603983) after the decline of performance.
shareholding reduction of major shareholders
Guangdong Marubi Biotechnology Co.Ltd(603983) disclosed in the announcement that on May 22, the company received the Guangdong Marubi Biotechnology Co.Ltd(603983) simplified equity change report from L capital, a shareholder holding more than 5%. L capital reduced 6908314 shares through block transactions, with a reduction ratio of 171926%.
The announcement shows that before the equity change, l capital held 26999194 shares of Guangdong Marubi Biotechnology Co.Ltd(603983) company, accounting for about 671923% of the total share capital of Guangdong Marubi Biotechnology Co.Ltd(603983) company. Through this equity change, l capital holds 2009088 million shares of Guangdong Marubi Biotechnology Co.Ltd(603983) company, accounting for about 499998% of the total share capital of Guangdong Marubi Biotechnology Co.Ltd(603983) company. L capital is no longer the shareholder holding more than 5% of Guangdong Marubi Biotechnology Co.Ltd(603983) company.
It is understood that l capital is the main body established by private equity investment institution l Capital Asia, LLC to invest in Guangdong Marubi Biotechnology Co.Ltd(603983) and took shares in Guangdong Marubi Biotechnology Co.Ltd(603983) in May 2013. It has invested for nine years.
In view of the reasons for the reduction of major shareholders, Guangdong Marubi Biotechnology Co.Ltd(603983) said in the announcement that in view of the long holding time of Guangdong Marubi Biotechnology Co.Ltd(603983) by L capital, as an equity investment company, it has the need to withdraw its own funds.
Shen Meng, executive director of Xiangsong capital, said that l capital chose to reduce its holdings through the block trading system, indicating that the proportion of reduction is likely to cause downward pressure on the share price of the secondary market. At the same time, as a non major shareholder, l capital’s share reduction is usually for the purpose of adjusting the investment portfolio and reducing the investment with poor expected performance.
According to Bao Yuezhong, a new retail expert in FMCG industry, from the perspective of the reduction range, the reduction of major shareholders is not small, which shows that major shareholders are not optimistic about the development of Guangdong Marubi Biotechnology Co.Ltd(603983) in the future. This reduction will, to a certain extent, have an adverse impact on the stock price and even the development of Guangdong Marubi Biotechnology Co.Ltd(603983) .
The reporter of Beijing business daily interviewed Guangdong Marubi Biotechnology Co.Ltd(603983) on the impact of the reduction of major shareholders on Guangdong Marubi Biotechnology Co.Ltd(603983) and its future development plan, but no reply has been received as of press time.
performance lags behind peers
Since its listing in 2019, Guangdong Marubi Biotechnology Co.Ltd(603983) ‘s performance has not been outstanding, and its lack of competitiveness in the domestic cosmetics market is considered to be one of the reasons for the reduction of shareholders’ holdings.
According to the financial report data, in 2020, Guangdong Marubi Biotechnology Co.Ltd(603983) revenue was 1.745 billion yuan, a year-on-year decrease of 3.1%, and net profit was 460 million yuan, a year-on-year decrease of 9.81%. In 2021, Guangdong Marubi Biotechnology Co.Ltd(603983) revenue was 1.787 billion yuan, with a year-on-year increase of 2.41%, and net profit was 248 million yuan, with a year-on-year decrease of 46.61%. In the first quarter of 2022, the net profit of Guangdong Marubi Biotechnology Co.Ltd(603983) revenue decreased by 5.31% and 34.61% respectively.
In contrast, competitors Proya Cosmetics Co.Ltd(603605) , Syoung Group Co.Ltd(300740) , both in terms of revenue scale and performance growth, are much higher than Guangdong Marubi Biotechnology Co.Ltd(603983) . According to the data, the revenue of Proya Cosmetics Co.Ltd(603605) 2021 was 4.633 billion yuan, a year-on-year increase of 23.47%, and the net profit was 576 million yuan, a year-on-year increase of 21.03%. In the first quarter of 2022, the revenue and net profit increased by 38.53% and 44.16% respectively In Syoung Group Co.Ltd(300740) 2021, the revenue was 5.01 billion yuan, with a year-on-year increase of 34.86%, and the net profit was 236 million yuan, with a year-on-year increase of 68.54%.
In terms of multi brand layout, Guangdong Marubi Biotechnology Co.Ltd(603983) has no obvious advantage. It is understood that Guangdong Marubi Biotechnology Co.Ltd(603983) brands include “MARUMI”, “Chunji” and “love fire”. In addition to the main brand “MARUMI”, other sub brands have limited contribution to the overall performance. According to the financial report data, in 2021, Guangdong Marubi Biotechnology Co.Ltd(603983) MARUMI brand achieved a revenue of 1.594 billion yuan, accounting for 92.36%, and the total revenue contribution rate of other brands was less than 8%.
Perhaps aware of the risk of relying too much on Wanmei brand for revenue, Guangdong Marubi Biotechnology Co.Ltd(603983) explored brand diversification in 2021, and added professional infant and child skin care brand “daikesi”, high-end beauty instrument brand “jovs”, Meitong brand “Kelala”, etc. At the same time, it launched the law of high-end brand beauty, and promoted its product MARUMI Tokyo to stay in Sephora to layout the high-end route.
In fact, in recent years, all brands have been expanding their categories and realizing diversified development. At present, the brands of “Meilai” and “Xiaotang” have their own skin care effects, such as “” “” ” Meilai and ” “” beauty care “” and Xiaotang have their own skin care brands. Similarly, Shanghai Jahwa United Co.Ltd(600315) has also achieved diversified layout. Its products include baicaoji, Yuze and Shuangmei, which are positioned as medium and high-end skin care brands; Baby products Qichu, family washing and care brand Liushen and men’s skin care Goff, etc.
In addition to product layout, channel transformation is also an important part of enterprise development. Especially under the influence of the epidemic, all brands are transforming to online channels, but at present, Guangdong Marubi Biotechnology Co.Ltd(603983) channel transformation lags behind. According to the financial report data, in 2021, Guangdong Marubi Biotechnology Co.Ltd(603983) online revenue was 1.028 billion yuan, accounting for 59.54% Proya Cosmetics Co.Ltd(603605) online revenue was 3.924 billion yuan, accounting for 84.93% The revenue of Syoung Group Co.Ltd(300740) online channels accounts for more than 90%. Winona’s single brand online e-commerce channel sales revenue was 3.299 billion yuan, accounting for 82.34% of the revenue.
In this regard, Guangdong Marubi Biotechnology Co.Ltd(603983) said in the annual report that it would continue to promote the transformation of retail, promote the joint explosive plan online, improve the efficiency of direct marketing (Live Broadcasting), increase the proportion of self broadcasting, and give full play to the dual strategic role of direct marketing (live broadcasting) channel sales and product publicity.
In Shen Meng’s view, MARUMI’s growth is based on the rapid rise of China’s medium and low-end consumer demand. However, during the period of increasing downward pressure on the economy and the negative impact of the epidemic on income, MARUMI’s consumer group demand has declined significantly. I’m afraid the prospect is not favorable without the fundamental improvement of consumption structure. Jiang Han, senior researcher of Pangu think tank, said that at present, with the rise of Guochao cosmetics trend, there are certain opportunities for domestic brands, Guangdong Marubi Biotechnology Co.Ltd(603983) the same is true, but the key lies in Guangdong Marubi Biotechnology Co.Ltd(603983) whether it can seize the market trend and take advantage of it for development.
