According to Mr. Tang, the main reason for the loss is the preliminary impairment test on the goodwill formed by the early acquisition of LSG. It is estimated that the provision for impairment of goodwill is about 1 billion to 1.05 billion yuan, and the provision for impairment of intangible assets is about 540 million to 590 million yuan.
The Shenzhen Stock Exchange also sent out a letter of inquiry that night, asking Mr. Tang to explain the specific details and amount of intangible assets, the calculation basis and process of the provision for impairment, whether the provision is sufficient, whether the time point is reasonable, and the corresponding accounting treatment process.
Tangs estimated loss of more than 300 million yuan in 2019 caught 40000 shareholders off guard. After all, the companys net profit in the third quarter of 2019 is still 1.19 billion yuan, up 12.56% year on year. It will also be the first time in a decade that Mr. Thomson has lost money since going public. As of December 31, 2019, the share price of Thomson Beijian was 16.29 yuan, with a total market value of 25.8 billion yuan.
LSG Australias business is less than expected
Since January 2019, influenced by the e-commerce law, overseas shopping and cross-border e-commerce have changed in marketing methods, channels, consumer communication, product delivery and other aspects, and some small and medium-sized shopping has exited the market.
Tang said in the announcement that LSG failed to meet expectations in the Australian market due to the impact of the implementation of the e-commerce law. Based on the principle of prudence, in 2019, Mr. Thompson made provision for impairment of goodwill arising from the merger.
Lin Zhicheng, CEO of Thomson Beijian, said that LSGs Australian market business was greatly affected by the heavy proportion of purchasing on behalf of others in the revenue structure, which was far beyond the companys prediction when acquiring LSG.
According to IriScan sales data and pharmacy data, the performance of several famous food and nutrition supplement brands in Australia, which are sought after by purchasing agents, has declined by 15% - 30% year-on-year. LSGs Australian market business has been affected to a large extent due to the heavy proportion of purchasing agents in its revenue structure.
Although M & A will bring great pressure on the companys short-term performance, on the one hand, it will open up the channel for the company to go to sea in the future, and also allow the company to quickly cut into the probiotics segment. According to the industry data, LSGs cross-border platform business has grown greatly, and probiotics business is a very important business and product layout for the company in the future. At present, the company is starting from two aspects.
According to its introduction, on the one hand, the company will continue to maintain the local brand voice of life space, further strengthen the development of cross-border e-commerce platforms, and implement new channel strategies to adapt to new regulatory changes, accelerate business transformation, and actively promote the pace of integration with all existing resources; on the other hand, for the domestic market, the company will focus on resources And steadily improve the distribution rate of online and offline terminals, and implement lifespace Omni channel sales.
The pressure in 2019 is not completely cleared
It is worth mentioning that Mr. Tang also accrues about 70-90 million yuan of asset impairment reserve for long-term equity investment of some joint-stock enterprises (the final amount of impairment shall be subject to the audit results of the audit institution).
After deducting the aforesaid impact of goodwill and intangible assets impairment, the company expects that the sales revenue in 2019 will increase by a certain margin compared with the same period of 2018, and the performance will increase slightly compared with the same period of last year. This is related to the moderate and radical market strategy of Mr. Thomson Bijian - starting the main brand promotion strategy of protein powder as image products, further enriching and consolidating the strategy of large single products, opening the 3.0 strategy of e-commerce branding, accelerating the construction of business super channel and mother baby channel, etc., laying the foundation for the growth of the companys performance.
This is an era in which danger and opportunity coexist. To deviate from the era is a danger, to conform to the era is an opportunity; to be complacent is a danger, and to actively seek change is an opportunity. According to Lin Zhicheng, these factors that bring huge business pressure to the industry and Mr. Thomson Bijian in 2019 have not been completely cleared out, and the impact on the dietary and nutritional supplement industry will exist for a long time.
As mentioned above, no matter from the national strategic guidance of healthy China 2030, industry penetration rate and per capita consumption amount, the company still believes that there is a huge growth space in Chinas dietary supplements industry. Industry regulation and standardization is the elimination and reform of the whole market, and will play a significant, positive and positive role in promoting the long-term healthy development of Chinas dietary supplement industry.
It will be the first loss in ten years
According to public information, Tomson Bijian was founded in October 1995; in August 2010, international basketball superstar Yao Ming signed a contract to become the image spokesman of Tomson Bijian; on December 15, 2010, Tomson Bijian was listed on the gem of Shenzhen Stock Exchange.
In terms of past performance, in addition to 2016, the net profit attributable to the parent of Mr. Thomson Bijian has maintained a year-on-year growth of more than 19%, and the gross profit margin of the company has also stabilized at more than 60%. According to the announcement of 2019 performance pre loss disclosed by Mr. Tang, this will also be the first loss of the company after listing.
Mr. Tang has always been a high-quality stock in the eyes of institutions. According to the third quarter report of 2019, Huijin Company and social security fund are among the top ten circulating shareholders of the company.
Source: editor in charge of daily economic news: Yang bin_nf4368