Sherin 2018 Revenue Of 4 Billion 210 Million Yuan, Net Profit Fell Off Cliff Style

On the evening of April 25, 2019, the Sherin furniture Limited by Share Ltd (hereinafter referred to as "Xi Ling men") released its 2018 earnings report, which showed that the annual revenue of Xi Ling men was 4 billion 210 million yuan, an increase of 32.11% compared with the same period last year. The net profit attributable to shareholders of listed companies was -0.47 billion yuan, down -283.16% compared with the same period last year.

As early as January this year, Xi Ling men issued a notice of 2018's performance. The forecast said that 2018 may be the first year of performance loss after the listing of Xi Ling men. The main reason is that after the cross-border film and television business in 2014, the profit growth of film and television business is not satisfactory. This is a good hope for the film and television business. Now the real data release, the decline still let the author take a breath.

The "mileage tragedy" of 2018 was the first time since its listing.

In 1993, Chen Ayu founded Xi Ling men, formerly known as Shaoxing sheringmen Furniture Co., Ltd. in 2009, after the overall change, in 2012, the company successfully listed on the main board of the Shanghai Stock Exchange. However, when the net profit in 2012 surpassed 100 million yuan, the increase in revenue did not increase in 2014. In 2015 -2017, the net profit of the revenue was stable, but in 2018, the calm sea seemed to surge.

(revenue from -2018 2012 annual report)

It is not hard to see that 2018 is a bitter tear for Xi Lai men. The sharp fall in net profit also made 2018 a turning point for the development of Xi Lai men's future. What's the reason for this situation? I think there are two reasons.

Film and television sideline industry failed to provide timely help, but "fuel the fire".

Since the decline in 2014, Xi Ling men has thrown 720 million yuan in 2015 to acquire the 100% stake in the Greentown media (later renamed Sheng Xihua), and to add film and television media to the original furniture business.

In May 2015, Xi Lun men announced that it would complete the acquisition of 100% stake in Zhejiang green city culture and Media Co., Ltd. with the cash of 720 million yuan. After the acquisition, the book's goodwill increased from 0 to 634 million yuan.

Behind the rapid growth of goodwill is the huge purchase of Xi Ling men due to the expansion of the film and television business. Such capital operation will make the risk of the future increase sharply, thus bringing about the risk of liabilities and goodwill. At the same time, it will also pose a great challenge to the management of Xi Lai men. This will be the biggest thunder in the future.

Sheng Xi Huashi has made a commitment. In 2015 - 2017, the net profit was no less than 68 million 500 thousand yuan, 92 million yuan, and 120 million yuan respectively. In fact, from 2015 to 2017, Sheng Xi Hua realized net profit of 70 million yuan, 84 million yuan and 120 million yuan respectively. In the three years, the net profit was 270 million yuan, and the overall completion rate was 98.8%. In 2016, the performance commitments were not completed.

(main business revenue)

From the data, we can see that after the financial report is merged into Sheng Xi Hua, the company is moving forward. From 2015 to 2017, Xi Lin men realized business income of 1 billion 687 million yuan, 2 billion 217 million yuan and 3 billion 187 million yuan respectively. Among them, the gross profit margin of the film and television sector was the highest, reaching 54.2% in 2017, but in 2018, it suddenly dropped sharply, and Maori fell to -31.7%.

However, as mentioned above, 2018 may become the turning point of Sherin. For the reasons for the loss, Xi Lin men said in the performance notice that Sheng Sheng Hua was expected to be less than expected due to the influence of the market and policy changes of the film and television industry.

This shows that the subsidiary company's state is not good enough, and its influence on the parent company is far-reaching.

It is noteworthy that in recent years, the profit margins of the furniture products of the main business of Xi Lin men are also narrowing. Affected by this, from 2015 to 2018, the gross profit rates of the furniture in Xi Lin men were 39.19%, 35.8% and 33.01% respectively, and 30.2% decreased by 0.63, 3.39, 2.79 and 2.8 percentage points compared with the same period last year.

Surface scenery can not hide the pressure of capital transfer

In April 2018, Xi Ling men announced that it would change the accounting estimate of Sheng Xi Hua's receivables. In the first half of last year, the company reduced the loss of Sheng Xi Hua's assets impairment in the reporting period by 30 million 567 thousand yuan, resulting in an increase of 25 million 10 thousand yuan in net profit.

Last year, the China Daily reported that Sheng Xi Hua realized a net profit of 50 million 424 thousand and 500 yuan during the reporting period. If this part is affected, the actual net profit of Sheng Xi Hua is about 25 million 410 thousand yuan, down by 5% from 26 million 637 thousand yuan in the same period last year.

(net changes in operating cash flow)

In addition, due to the high prevalence of accounts receivable and inventory in the film and television industry, although Sheng Xi Hua has contributed more than 40% of its performance, the pressure of cash flow on Hsin Lai gate has been increasing. From 2015 to 2018, the net operating cash flow of Xi Ling men was 287 million, 279 million, 222 million, -1.39 billion, an increase of 617%, -2.7%, -20.4% and -154.3% compared with the same period last year. Deviating from the growth rate of net profit in the same period, reflecting the "gold content" deterioration of its profits. 。

epilogue

Transformation has never been a relaxed topic. Uncertainty will be the biggest challenge from its own experience, expertise, established sphere of influence, and the unknown world.

How to make a reasonable, orderly and accurate transformation and minimize the risk of uncertainty is an important consideration. In particular, for the size of enterprises such as Xi Lai men, it takes a lead and moves the whole body. Any blind and impulsive transformation is irrational behavior, and it will even go all the way. This can be seen from a series of sequelae arising from the purchase of Xi Ling men.

Strategy, direction, implementation skills and so on, the different choice of each link may be "two days of life and death". From this point of view, the transformation of the door is still exploring and exploring. Before a few steps are worth considering, the correct sense of rhythm and direction of control can not be found. This is what is most lacking and the biggest uncertainty of its future.

The chance of success is not how fast, fierce and urgent the transformation is, but rather depends on who can find the right path with the shortest trial and error time, the smallest trial error cost and the lowest uncertainty cost. This is a great wave of sand, considering the insight and foresight of Chen Ayu, and the reporters will continue to pay attention to it.