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Original title: 2021 net profit fell by more than 70%, and the first quarter turned profit into a loss. Can JD.com fight back?
Every reporter Zhao Wenqi Every editor Liu Xuemei
After a lapse of one year, Debon’s performance returned to a downturn.
On the evening of April 26,Debon shares(603056.SZ) disclosed the results for the first quarter of 2021 and 2022. The financial report shows that in 2021, Debon will achieve an operating income of 31.359 billion yuan, a year-on-year increase of 14.02%; a net profit attributable to the parent of 143 million yuan, a year-on-year decrease of 74.81%. In the first quarter of 2022, the company’s revenue was 7.020 billion yuan, a year-on-year decrease of 4.75%; the net profit attributable to the parent was a loss of 79.6 million yuan.
Since the announcement of the transformation of express delivery in 2018, Debon has been in a state of “left and right attack” in the express delivery and express delivery market. Bang was further under pressure, and the express business was affected by SF Express, ZTO Express and “King of Cargo Volume” Aneng Logistics, and gradually lost its advantages of the year.
The financial report disclosed this time once again magnified Debon’s predicament. On the one hand, its operating performance continued to be sluggish. In the secondary market, Debon’s stock price has also been falling, shrinking by nearly 60% compared to the historical high in 2018.
After seeking transformation in the past two years without achieving obvious results, can Debon usher in the opportunity to counterattack from the Jedi after changing its ownership to JD.com this time?
In 2021, revenue will increase by 14.2%, and net profit will decline by more than 70%
Compared with the 70% increase in net profit in 2020, the 2021 report card handed over by Debon is difficult to satisfy the market.
The financial report shows that in 2021, Debon’s revenue will be 31.359 billion yuan, a year-on-year increase of 14.02%; the net profit attributable to shareholders of listed companies will be 143 million yuan, a year-on-year decrease of 74.69%; basic earnings per share will be 0.13 yuan per share, a year-on-year decrease of 77.97% . In the same period last year, Debon’s net profit attributable to shareholders of listed companies was 564 million yuan, an increase of 74.39% over the previous year.
As early as when the performance forecast was released, Debon mentioned in the announcement that the current performance forecast reduction was mainly affected by the external environment and internal business strategy adjustments. In terms of the external environment, the overall prosperity of the macro environment has declined and the competition in the field of large-scale transportation has intensified, which has slowed down the growth rate of the company’s revenue, and the high oil price throughout the year has an adverse impact on profits.
In terms of internal strategy, the company continues to increase resource investment based on its long-term layout, and costs and expenses are under pressure in stages: in the collection and delivery link, a new heavy cargo division with higher efficiency in large-scale collection and delivery is built to gradually replace the traditional inefficient sales department.
From the perspective of specific business, the revenue of Debon Express was 19.733 billion yuan, an increase of 18.43% year-on-year, the total number of votes was 702 million, a year-on-year increase of 24.4%, the unit price per kilogram decreased by 4.01% year-on-year, and the gross profit margin was 9.95%, a year-on-year decrease of 0.07% The express business revenue was 10.678 billion yuan, a year-on-year increase of 6.28%, the unit price per kilogram increased by 3.06% year-on-year, and the gross profit margin was 12.15%, a year-on-year decrease of 2.57 percentage points; other businesses were mainly warehousing and supply chain business, with operating income of 9.48 100 million yuan, a year-on-year increase of 19.42%.
In the past few years, due to diving into the red sea of express delivery, Debon Express business has become the focus of development, and the proportion of the company’s internal business has gradually increased. However, from the perspective of the market share of express business volume, since 2018, the market share of Debon Express has been in Gradually decline, the market share of Debon Express business in 2021 is only 0.6%, compared with the further decline in the previous three years, the market share is less than 1%.
The express business, which once had an absolute advantage, has gradually shrunk. According to the financial report, Debon express business accounted for only 34.05% of the company’s business, a further decrease from 36.53% in 2020. According to the 2021 annual report released by SF Express, the annual revenue of its express business is 23.3 billion yuan, and the revenue of Debon express business of 10.678 billion yuan has further widened the gap with the former.
However, the financial report also shows that in the second half of 2021, Debon’s gross profit margin has been repaired quarter by quarter. In the fourth quarter, the gross profit margin of the main business was 11.82%, an increase of 1.58 percentage points from the previous month and a year-on-year increase of 0.28 percentage points. Thanks to refined management, the company’s other costs including packaging materials, materials, and claims have been effectively controlled. During the reporting period, the cost of this item decreased by nearly 2.00% year-on-year, and the proportion of revenue decreased by 1.15 percentage points. In addition, the company effectively controlled the increase in administrative expenses through optimization of organization and process, and the ratio of administrative expenses to revenue decreased by 0.36 percentage points from the first half of the year.
Profits fall by more than 800% in the first quarter of 2022. Can JD.com fight back?
Debon’s first quarterly report for 2022 will be published together with the annual report. The data shows that Debon’s revenue in the first quarter was 7.02 billion yuan, down 4.75% year-on-year; the net loss attributable to shareholders of listed companies was 79.6 million yuan, down 838.73% year-on-year; the net cash flow from operating activities was 967 million yuan, a year-on-year increase. 13%.
On March 11, Debon issued an announcement saying that Cui Weixing, chairman of Debon Holdings, would no longer be the actual controller, and Suqian Jingdong Zhuofeng Enterprise Management Co., Ltd. (hereinafter referred to as “Jingdong Zhuofeng”), a subsidiary of Jingdong ) will become the indirect controlling shareholder of the company. This also means that JD.com’s acquisition of Debon has settled, causing a huge shock in the market.
As the industry said, Debon’s infrastructure in large-scale express delivery is a great supplement to JD.com. According to the financial report, as of the end of the reporting period, Debon had 69,127 terminal outlets, including 6,389 directly-operated outlets and 2,738 partner outlets, 153 distribution centers, 2,182 trunk lines, and a total of 20,602 self-operated vehicles. The operating capacity ratio was 55.14%.
However, for JD.com, the acquisition of Debon also faces risks and uncertainties. From the data disclosed in the financial report, Debon’s total liabilities in 2021 will be 9.475 billion yuan, and the asset-liability ratio has also hit a record high of 60.46% since its listing. , and in the first quarter of this year, the asset-liability ratio further climbed to 61.17%.
In addition, Debon also mentioned in the financial report that the transaction with JD.com still needs to report to the Anti-Monopoly Bureau of the State Administration for Market Regulation and obtain approval for the concentration of operators. It can be implemented, but there is still uncertainty about whether the final delivery can be completed and when the delivery is completed.
JD Logistics CEO Yu Rui clearly expressed the principle requirements for the cooperation between the two companies at an internal management meeting after the official announcement of the acquisition of Debon: Debon logistics brand will still be retained, and as an A-share listed company, it will continue to operate independently.
For Debon, joining JD Logistics means a new opportunity for development. In an open letter to Debon, Cui Weixing said that Jingdong Logistics’ advantages in technology, supply chain solutions, business insights, etc. will bring more positive impact to Debon, and will also bring more resources. All are conducive to the long-term development of Debon.
Now, with the approaching of 618, how will Debon and JD.com link up in large-scale logistics? Can JD.com pull Debon out of the predicament? also become the next point of view.
As of today’s close, Debon’s stock price was 13.29 yuan, an increase of 1.37% from the previous day. However, compared with the highest share price after the official announcement of the change of ownership to Debon, Debon’s share price has shrunk by 40% in one month.
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Responsible editor: Zhang Yi