Summary: The net amount of dealers in decreased (Welcome to follow girlfriend Finance)
Written by | Mimeier & Editor | Kai
Note: This is the 1177th original article of Best Friend Finance
industry has entered stock competition, Hong Kong stock is miserable, the old electric bicycle brand " Green Source Electric Vehicle " chose to go public in Hong Kong at this time.
Recently, the Hong Kong Stock Exchange website disclosed the prospectus of Greenyuan Electric Vehicle parent company: Greenyuan Group Holdings (Cayman) Co., Ltd., and the exclusive sponsor is CITIC Construction Investment International. Compared with
and electric car , the Matthew effect is more significant. Yadi and Emma occupy nearly half of the market share. How can other brands "stay" and how can they live? Taking green source as an example, let’s take a look.
1
official website shows that the Green Source brand was founded in 1997, earlier than Yadi's 2001 and earlier than Emma's 1999. Green Source Group is headquartered in Jinhua, Zhejiang. Its founder is Ni Jie . She was born in Jinhua, Zhejiang in 1961. She graduated from the Department of Radio, University of Science and Technology of China and later obtained a master's degree in engineering.
1986, Ni Jie went to Ningbo University to teach public relations and economic cybernetics in the Department of Industry and Commerce Economics. In 1989, Ni Jie and his wife Hu Jihong, who also taught at Ningbo University, both resigned and went into business.
At first, Ni Jie worked as the workshop director in a relative's factory, and also studied battery energy storage, etc. The following year 1997 was the founding and development of "Green Source".
Luyuan Group's prospectus equity structure shows that before the IPO, Greenyuan Group held 41% stake by Hu Jihong through Apex Marine, Ni Jie held 41% stake through Drago Investments, and Best Expand, wholly owned by Hu Jihong and Ni Jie, held 4.77% stake. Together, the couple held a total of 86.77% stake. In terms of
market share, according to Frost & Sullivan's data, based on the sales volume of electric two-wheeler in 2021, Green Source's market share is about 3.9%, ranking 6th among Chinese electric two-wheeler manufacturers.
In addition to the Jinhua headquarters, Green Source Group has local production bases in Shandong and Guangxi. As of the end of December 2021, its annual production capacity was about 2.1 million vehicles.
2
Revenue, Green Source Group's growth in the past three years has not been very stable, and there should be Black Swan reasons.
From 2019 to 2021, its revenue was 2.494 billion yuan, 2.378 billion yuan and 3.418 billion yuan respectively. In 2020 and 2021, the year-on-year growth rate was -4.7% and 43.73% respectively. Revenue in the first half of 2022 was 1.998 billion yuan, a year-on-year growth rate of 23.95%. In terms of related indicators of
Profit , Mimei saw that the trend of Green Source Electric Vehicles is not very good because the sales cost is growing rapidly. is shown in the figure above. From 2019 to 2021, the sales costs of Green Source Group were 2.153 billion yuan, 2.092 billion yuan and 3.031 billion yuan respectively, of which the year-on-year growth rate in 2021 was 44.9%, and the year-on-year growth rate in the first half of 2022 was 25.3%, which was also higher than the year-on-year growth rate of revenue.
Based on this, Greenyuan Group's gross profit growth rate in recent years has been poor and its gross profit margin has declined. is still in the past three years from 2019 to 2021, its gross profit was RMB 341 million, RMB 286 million and RMB 387 million respectively; the gross profit margin was 13.7%, 12.0%, and 11.3%, continuing to decline.
In the latest first half of 2022, Green Source Group's gross profit margin even fell below 10%, 9.9%, and 198 million yuan.
prospectus mentioned that in recent years, due to the shortage of lithium supply, strong demand for lithium in the new energy vehicle and the power storage industry, the price of lithium-ion battery has risen sharply. From 2019 to 2021, its raw material and parts costs accounted for 92.1%, 91.8% and 91.5% of the total sales costs in the same period.
Luyuan Co., Ltd.’s main raw materials and components mainly include: metal plastic parts; batteries, including lead-acid battery and lithium-ion batteries; control units and tires.
In addition, Green Source also provides more sales rebates to large dealers to maintain good relationships with them; then the operation of the Guangxi factory is in the climbing stage, incurring relatively high production costs.
Net profit margin Green Source Group is even lower than the dust. During the above time period, its net profit was RMB 69.739 million, RMB 40.281 million and RMB 59.26 million respectively. The net profit margins were 2.8%, 1.7% and 1.7% respectively. The first half of 2022 increased slightly, with a net profit margin of 2.6%, and a net profit of 51.8042 million yuan, but this data is hard to say.
Take Yadi Holdings, the industry leader, as an example. Its net profit margins from 2019 to 2021 were 4.35%, 4.95% and 5.07% respectively; during the same period, the net profit margins of Emma Technology were 4.99%, 4.73% and 4.34% respectively.
In addition to cost reasons, it is also related to the market positioning of Green Source Electric Vehicles.
According to the price, the electric two-wheeler market can be divided into high-end market (more than 3500 yuan), mid-range market (more than 1500 yuan to
3500 yuan) and entry-level market (more than 1500 yuan).
For the six months ended June 30, 2022, Green Source's market was mainly concentrated in the mid-range: accounting for 87.3%; the high-end range accounted for only 10.7%. As we all know, the high-end market is where profits are generated.
3
0 There are also several data that are also very conspicuous.
From 2019 to 2021, the net dealerships of Greenyuan Group have shown a trend of decreasing, with the number in these three years being 1,222, 1,114 and 1,108 respectively. As of June 30, 2022, Greenyuan Group had 1,086 dealers and more than 9,200 terminal stores.
For the decline in the number of dealers, Green Source Group explained that it is a channel integration strategy; performance does not meet standards; some violate distribution agreements or policies and poor management, etc.
At the same time, Green Source Group's dependence on the top five distributors is also increasing: from 2019 to 2021, the revenue contributed by these five offline distributors accounted for about 6.6%, 5.1% and 9.7% of Green Source Group's total revenue in the current period, and further increased to 10.6% in the first half of 2022.
Then there is debt. Mimei saw that since 2021, the total loan amount of Greenyuan Group has increased sharply, with climbing from 156 million yuan in 2020 to 666 million yuan in 2021, and then to 794 million yuan in the first half of 2022.
prospectus mentioned that because in 2020, Green Source expanded its sales to corporate and institutional customers, its collection period was usually longer than other types of customers. In order to maintain a healthy cash level, the loan increased; in addition, it was to borrow money to meet the financial needs of building a factory in Guangxi and expanding the factory in Zhejiang.
2021, the asset-liability ratio of Greenyuan Group rose rapidly, reaching 119.4%, still 32.0% in 2020, and continued to rise to 132.3% in the first half of 2022. This asset and liability is rare among peers... No wonder there are public opinion that Greenyuan Group went public because it was "short of money".
has extremely low profit margins and high debt pressure. Even if Green Source Group successfully sprints to the Hong Kong Stock Exchange, it will be worrying about its subsequent performance in capital market .
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