On August 25, Cool Group (02369.HK) issued its interim performance announcement for the six months ending June 30, 2019. According to the results, the companys revenue in the first half of this year was HK$658 million, down 18.1% from the same period last year. Among them, revenue from sales of mobile phones and related accessories amounted to HK$656 million.
As of Oct. 8, the share price of Cooper Group was HK$0.26, down 63.89% from HK$0.72 on the day of resumption of trading on July 19, with a continuing breakdown trend.
In terms of expenditure, during the reporting period, the companys sales expenditure increased from HK$105 million to HK$126.7 million in the same period in 2018. The net increase was mainly attributable to increased expenditure on marketing, advertising and promotion in the US market during the reporting period. At the same time, the company has increased investment in research and development in 5G, which is reflected in the reduction of employee expenditure in the first half of the year, but the percentage of administrative expenditure in total revenue remained at 16.8%, only 5.5% less than the same period last year.
In view of the companys serious losses in the first half of the year and the future direction of mobile phone business adjustment, the Enterprise Transparency Report has written to the companys executive director Chen Jiajun in the form of e-mail, but has not yet received a response from the company.
Chen Jiajun, the second son of Jingji, takes over as CEO of Kupai
During the Cool Groups suspension period, the companys top team has undergone a big change of blood. Whether the new chairman takes the baton to inject new strength into the company and lead the Cool Group to explore a clear development path has become one of the focus of attention.
On January 18 this year, Cool Group announced that Chen Jiajun, 27 years old, was appointed as executive director, CEO and nominating committee member of the company with an annual salary of up to 3 million yuan. It is worth mentioning that Chen Jiajuns other status is more noticeable, he is the real estate developer Jingji Group founder Chen Huas two princes. This is closely related to the equity transfer in 2018. In January 2018, Lexin transferred its Cool Group stake to Weiri Venture Capital, which is controlled by Chen Jiarong, the principal son of Jingji Group, so that Jingji Group could become the Cool Group.
Then half a year later, on August 30, Cool Group issued an evening announcement. Chen Jiajun, the executive director, was appointed Chairman and Liang Rui, the executive director, was appointed Chief Executive Officer. The frequent personnel changes since the beginning of the year have obviously promoted Kupai to adjust its development strategy in the future. Now 5g is the general trend of the development of smart phone manufacturers, which naturally becomes the technical direction of Kupai.
The trend of 5G bet is still unclear.
Since its inception, Cool Group has been a mobile phone manufacturer closely tied up with operators. At this stage, the mobile phone business of the company is naturally carried out mainly around operators. It is distributed in the United States, Southeast Asia and India markets. From the current companys R&D strength and personnel structure, the companys business mainly focuses on the customized services of operators.
Sun Yanbiao, president of the First Mobile Phone Industry Research Institute, told Enterprise Transparency Report that the development intention behind Cool Groups 5G efforts is undoubtedly an important way to continue its mobile phone business after its restructuring. It is worth mentioning that Cool Group has introduced 5G mobile phones to the Indian market, which only meets the needs of individual operators. Due to the large number of operators in the mobile phone market in India and their distribution in different regions, 45% of the current users are still using 2G and 2.5G function machines.
Todays 4G is still in the rapid development. Although the development prospects of 5G are full of opportunities, due to its insufficient capacity and high price, network construction is still in the construction stage. The 5G mobile phone market still appears to be thunderous and raindrops are small, and the direction of the industry is not clear yet. Sun Yanchao explained to Enterprise Transparency Report.
For the second son of Jingji Group, Chen Jiajun, the CEO, there are also industry speculations that Jingji Group may be looking at the land resources in the hands of the Cool Group.
Looking back on the Cool Groups survival in the past two years, it can be said that there are many crises. It relies on land sales to survive and alleviate the financial pressure. After sorting out the relevant information in the Enterprise Transparency Report, we found that in July 2018, the company sold 80% of its investment property in Shenzhen and 80% of its shares in a wholly owned subsidiary company of Kupai at the price of HK$118 million and HK$120 million respectively. ?
In addition to the land resources previously owned, the companys future development trend seems to be more concerned by the capital market. In other words, Chen Jiajuns succession as CEO and his ability to lead the Cool Party upside down to revival have become the focus.
In this regard, Sun Yanfei said that as the golden period of domestic real estate has passed, it is a good way for real estate developers to enter the industrial real estate industry. But in fact, it is difficult to transform the industrial park into commercial real estate in a short time. Therefore, the future development direction of the company is not clear. In order to alleviate the pressure of Kupai groups cash flow, support the companys daily operation and long-term healthy development after the resumption of trading, on the one hand, continue the customized services of operators, and keep continuous optimization and upgrading, on the other hand, grasp the 5g opportunity and increase R & D investment, which may be an important strategy to support the companys current survival and development. (enterprise transparency report)
Source: Responsible Editor of Investor Network: Wang Xiaowu_NF