Wanxing Technology Group Co., Ltd. (hereinafter referred to as Wanxing technology, 300624. SZ), the first share of Chinas consumer software, has been in the forefront of the wave of holding reduction recently. In the past year, the company has issued 21 announcements on the reduction of shares, and a major shareholder has received a warning letter from the regulatory authorities due to violation of relevant regulations and the reduction amount is more than 10 million yuan than the pre disclosure.
On July 16, Wanxing technology announced the completion of the implementation of the share reduction plan of the original shareholders holding more than 5%. According to the announcement, from May 29 to July 15, 2020, 2.6 million shares will be reduced through centralized bidding and block trading, accounting for 2% of its current total share capital. The share reduction plan has been implemented.
21 over pre disclosure of reduction in one year
On July 3, Wanxing technology said that Zhang Yu, a shareholder of Wanxing technology, had reduced 1.79 million shares from May 29 to July 3 this year at a price of 56.73 yuan / share to 71.69 yuan / share, accounting for about 1.37% of the companys total shares. Zhang Yu is one of the top 10 shareholders of Wanxing technology.
On July 2, the China Securities Regulatory Commission issued a warning letter to Zhang Yu, that is, Zhang Yu reduced his 2.5744 million shares of Wanxing technology through centralized bidding and block trading, which exceeded the pre disclosed reduction of 131600 shares, involving a total amount of 10.0431 million yuan. As his behavior violated relevant laws and regulations, Tibet securities regulatory bureau decided to issue a warning letter to Zhang Yu and record it in the securities and futures market Letter file.
In recent years, Wanxing technology told investor.com that the companys shareholders reduction of shares due to their own capital needs is an individual behavior, and the reduction arrangement conforms to relevant regulatory regulations. It strictly implements the reduction plan disclosed in advance, and determines the number and method of reduction according to the stock price and market conditions, which does not represent the shareholders right to reduce shares The companys prospects are not good. At present, the companys operation has maintained steady development, and the management is full of confidence in the future development of the company, and will do its best to do a good job in operation and management.
In addition, regarding whether the stock price fluctuation of the company will be caused by the warning of the regulatory authorities due to illegal reduction of shareholders, and how the company will avoid such phenomenon in the future, Wanxing technology told investor.com that the fluctuation of the companys stock price is affected by factors such as macroeconomic environment, market liquidity, industry policy, industry cycle, external trade policy, supply-demand relationship, and enterprise operation. The company will strengthen the training of laws and regulations for relevant personnel, continuously standardize the corporate governance, strengthen the management of information disclosure and internal report of major events, strictly regulate its behavior of buying and selling the companys stocks, and effectively protect the interests of small and medium-sized shareholders.
Domestic competition intensifies due to higher accounts receivable
According to the financial report of Wanxing technology in the first quarter of 2020, the companys accounts receivable reached 197 million yuan, with a year-on-year growth of 14.76%; the net profit was 32.62 million yuan, with a year-on-year growth of 25.17%; the net cash flow generated from operating activities also increased by 600.31% to 14.51 million yuan from - 2.9 million yuan in the same period of 2019. This is due to increased revenue from software sales, the company explained
Photo source: NetEase Finance
It is worth noting that the companys accounts receivable in the first quarter were as high as 9.22 million yuan, a substantial increase compared with 3.41 million yuan in the fourth quarter of last year. As to why accounts receivable have increased dramatically in a short period of time, and whether it will affect the companys debt ratio, Wanxing technology told investor.com that the accounts payable disclosed in the first quarter of this year are the accounts payable for purchasing the right to use software in the current period. The company has been operating steadily, maintaining a low debt ratio, relatively stable cash flow and good repayment ability.
Photo source: company financial report
Looking back on the performance of Wanxing technology in 2019, the company realized a revenue of 703 million yuan, a year-on-year increase of 28.78%, and a net profit of 86.2607 million yuan, a year-on-year increase of 4.35%. It is worth noting that in 2019, Wanxing technology has defined the strategy of returning to China, and has established a relevant team to be responsible for the domestic market and the operation of government and enterprise.
Among them, the most typical return case is Wanxing Shenjian, a video editing product of Wanxing technology. The company has set up a team. Through in-depth analysis of the Chinese user market, it has continued to operate locally, expanded its advertising volume, and explored e-commerce channels. As a result, the sales revenue of Wanxing shenjianshou has increased. According to relevant statistics, the number of registered users in China has reached 1.5 million.
Zhu Yun, an analyst with Southwest Securities Research and development center, said in the research paper that with the increasing popularity of the video market and the promotion of product brand awareness, the domestic market will have better performance.
In addition, on May 18 this year, the company carried out the first brand renewal, and focused on the development of digital creative software, such as the first creative video of Wanxing meow film app. However, some people who pay attention to the software industry disclosed to investor.com that since the establishment of Wanxing technology, the outside world feels that it has taken Adobe as a benchmark. It has not only acquired Yitu software in office software, but also has the opportunity to compete with adobe and clip in the field of short video production.
Although Wanxing used to take the route similar to Adobe, now it is in a state of high not low. He is in a hurry to catch up with the wave of text text to short video, and to establish a base by providing shortcut. Therefore, there is no benchmarking relationship between them. Zhang Shule said.
In the application track of one button editing, there are many applications of horse racing, and the competitive pressure is also great. It is unknown who can become the king among them. Faced with the strong enemy of short video production, such as Meitu and Jianying in the domestic market, Zhang Shule thinks that Wanxing technology tries to build a sharing community on one click editing, and forms a social form under the video editing ecology by means of user upload and massive template sharing (free and paid matching), which is also a strategy to help the company make breakthroughs.
Source: investor.com editor in charge: Yang Qian_ NF4425