Chairman Of Meng Jie Shares: We Are Not Trying To "Make A Show".

"I would like to emphasize here that our signing of net red is not for" limelight "or" hot spots ". This is just a step in our new retail transformation. In May 22nd, Jiang Tianwu, chairman of Meng Jie shares (002395, SZ), made a solemn statement on two occasions at the 2019 general meeting of shareholders. He hoped to persuade people to join hands with Wei Jie in order to make it happen.

In recent 9 trading days, the company has even pulled 7 words of daily trading, and Meng Jie shares have become the "monster stocks" in the market. Because of the holding of "Queen of goods", the total market value of the company increased by more than 3 billion yuan, but in fact, the 3 live broadcast of this year is only 8 million 120 thousand yuan for Meng Jie share, and 2 million 130 thousand yuan for the cost of Meng Jie share, and the actual income is less than 6 million yuan. In 2019, the actual income of 3 live broadcast was less than 4 million yuan.

The price ratio is so high that Meng Jie shares a good taste, and the Shenzhen Stock Exchange also requires listed companies to explain whether they are hot. At the 2019 annual general meeting, Jiang Tianwu told the daily economic news reporter: "we don't care about this." we care about the way out for the physical retail industry. We are going ahead in the future.

In the past three years, there have been some gaps in the performance scale and profitability of Meng Jie share. Will viya become the reinforcements of Meng Jie share? Is the concept of net flowers red?

Chairman: not for the "limelight".

"I know that there are many friends who are concerned about Meng Jie recently, so I would like to talk about cooperation with Wei Ya first." In May 22nd, when the shareholders' meeting was opened, Jiang Tianwu went straight to the theme. On the same day, Meng Jie shares closed 8.9 yuan / share, down 7.87%, and previously Meng Jie shares even pulled 7 word limit. Starting from the first word board in May 12th, the market value of Meng Jie shares has increased by over 3 billion yuan in the past 9 trading days, which is rarely seen in the home textile industry with low market concern.

Jiang Tianwu does not think that Meng Jie shares are in the hot spot. He said that 2019 was a very unusual year. It was very difficult, physical sales slowed down significantly, and even the company had negative growth. Meng Jie has done a lot of things and lots of layout around the retail transformation, such as the more than 1000 stores in the next kilometre ecological circle, the system data construction and so on.

The concept of "one kilometre below the line" is the same as the C2M (Customer-to-Manufacture mode), which refers to users directly connected to manufacturers, that is, consumers directly to factories, emphasizing the convergence between manufacturing and consumers. Jiang Tianwu believes that it can not be figuratively calculated how much sales and profits can be generated from the live webcast. The company has played an important role in fan volume, drainage and new retail transformation.

In May 11th, Meng Jie shares announced the signing of a strategic cooperation agreement with Taobao's first anchor, Wei Ya's live broadcast agency, Qian search culture. The two sides will cooperate not only in the live delivery area, but also in the design and quality control of the dream home textiles, which is a light "C2M" mode. The next store and online shop will have the right to use the right of portrait.

As soon as the news came out, the market got wind. During the announcement of the stock price change announcement many times, Meng Jie shares said that the direct selling of e-commerce is one of the current Internet marketing modes, and is also the product sales channel of the company. The signing of this contract will not have a significant impact on the production and operation of the company.

In the evening of May 22nd, Meng Jie shares also disclosed details of cooperation with Wei Ya in response to the letter of concern submitted by the Shenzhen Stock Exchange. The company co operated with the host of "Qian Ya" for 7 times. In 2019, the company sold live products 3 times, the total sales amount was 4 million 692 thousand and 500 yuan, and the company paid 1 million 42 thousand and 200 yuan. In 2020, the total number of products sold by the cooperative live broadcast company was 4 times. In May 18th, the total sales amount was 8 million 121 thousand and 200 yuan, and the cost of the company's payment was 2 million 130 thousand yuan.

It can be seen that in the 6 cooperation up to May 18, 2020, Wei Ya brought about 12000000 yuan for Meng Jie shares, bringing real income close to 10 million yuan. Jiang Tianwu also told the media, including the daily economic news, that in the C2M mode, the products are pursuing high performance price ratio and low price and gross margin. This is a reality, but this mode of operation will also force enterprises to make changes in the supply chain, and the core is customer orientation and user thinking.

Jiang Tianwu also said that the net red contract is not a case, but a step of the new retail transformation. Meng Jie will spare no effort to increase the introduction of senior talents and the signing of net red. At the moment, it is hard to say how much net red will be signed.

In this regard, Li Jing, general manager of Meng Jie shares, introduced that the direct strategy of Meng Jie shares can be divided into three parts: the first is to cooperate with the head net red such as Wei Ya; the second is to cooperate with the live broadcasting platform such as jitter, fast hand and so on; the third is to do live broadcast within the company and the store, mining suitable talents to hatch their live webcast, and also consider the executives taking the goods.

The chairman's ex-wife took the opportunity to cash nearly 100 million yuan.

Although the chairman stressed repeatedly that Meng Jie shares are not for the purpose of rubbing hot spots, the second largest shareholder of the company, Wu Jing, has taken the opportunity to cash in the stock price change. And her other identity is Jiang Tianwu's ex-wife.

Reporter statistics found that from May 12th to May 18th, Wu Jing reduced 34 million 450 thousand shares by centralized bidding and bulk trading, and total cash was 96 million 450 thousand yuan.

It is worth mentioning that in the month when Meng Jie shares announced the cooperation with Wei Ya, Wu Jing disclosed the reduction plan. The early disclosure of the reduction plan, followed by high precision and large reduction, is such a coincidence? On the other hand, in May 8th, before signing a cooperation agreement with the company, the shares of Meng Jie share price had been trading.

In this regard, the Shenzhen Stock Exchange issued a letter of concern to Meng Jie, asking the company to check whether it had disclosed insider information to research institutions and individual investors through non information disclosure channels, whether there was insider trading or manipulating the market, whether there was a situation of using other non disclosure channels to cater to the market hot spot of "net red live", and to conduct stock price speculation and cooperate with shareholders to reduce their holdings.

However, Meng Jie shares denied the above situation in reply to the letter of concern from the Shenzhen Stock Exchange, saying that the company started to cooperate with the host of the humble search culture in August 2019. So far, the company has sold 7 live products through the broadcast room of Victoria. The essence of the strategic cooperation agreement is the direct sale of the company's products through live broadcast of "Wei Ya", which is a normal business activity of the company.

Meng Jie shares also said that this cooperation is conducive to the company's accurate development of live products, increasing the frequency of the company's products entering the "Wei Ya" live broadcast room, enhancing the company's product sales and brand awareness, is the company's actual business needs. Therefore, the company does not exist to use other non information disclosure channels to cater to the market hot spot of "net red live" to conduct stock price speculation and cooperate with shareholders.

In reply to the letter of concern, Meng Jie shares also disclosed that among the shareholders who recently reduced their holdings, Wu Wei, director Zhou Yu, deputy director general Cheng Yan and his spouse, Zhang Jun, all held the company's shares except for Wu Jing. They were not in the insider information period, and the company's supervisors were high, controlling shareholders and shareholders holding more than 5%, and there was no insider dealing. There is no market operation.

Will Wei be the reinforcements of Meng Jie's stock?

Meng Jie shares went public in 2010, mainly engaged in the design, manufacture and sale of home textile products. It owns MENDALE, MINE, MJ-BABY, dream mattress, plain aesthetics, MEE and Poeffen.

In the past ten years, the revenue scale of Meng Jie has expanded from 800 million yuan to 2 billion 600 million yuan, but it has been caught in a vicious circle of "increasing profits without increasing profits". The peak of the net profit of the company appeared in 2015, and realized net profit of 155 million yuan. In the past two years, the company has only made about 80 million yuan a year.

According to the annual report, from 2017 to 2019, Meng Jie shares achieved 1 billion 934 million yuan, 2 billion 308 million yuan and 2 billion 604 million yuan respectively, achieving 51 million 263 thousand and 700 yuan, 84 million 382 thousand and 700 yuan and 85 million 389 thousand and 600 yuan respectively. The profit level in 2019 is even lower than that in the year of listing.

Jiang Tianwu used "not to be embarrassed" and "not to go up and down" to describe the performance of Meng Jie shares over the years. He said, the management team of Meng Jie shares is relatively stable, in the company's time is more than 10 years, to this cause for life, the company has confidence. That's the bright side. The bad side is that the past management mode is more "sheep oriented", but the market is very cruel, and the competition in the daily necessities industry is fierce.

"I am not reconciled. We have made such a good foundation, and the products and services are very good. It is really very attentive. Why did we not make achievements, or do not do well." Jiang Tianwu said that the team's reflection on the stability and efficiency of the past is not consistent with the current market competition, so the top talent will be introduced. "We will definitely be very different from before."

Reporters also noted that in the home textile industry listed companies, Meng Jie shares are still some distance from the first camp. Judging from the 2019 performance, the home textile listed company's revenue ranking is 4 billion 860 million yuan for Luo Lai life, 3 billion 3 million yuan for mercury home textiles, 2 billion 789 million yuan for fuanna and 2 billion 604 million yuan for Meng Jie shares.

In the first quarter of this year, the performance of Meng Jie shares declined significantly. In 2020, a quarterly report showed that the company achieved operating income of 362 million yuan in the first quarter, a decrease of 34.63% compared with the same period last year, and realized a net profit of 30 million 571 thousand and 800 yuan, a decrease of 46.63% compared to the same period last year. But Jiang Tianwu believes that Meng Jie made a solid retail transformation layout last year. It was stable when the outbreak occurred, and there was no rush.

So, this time we reached a cooperation with Wei Ya and set up C2M mode, is it to boost performance? Cheng Weixiong, the textile industry expert and Shanghai Liang habitat founder, told the daily economic news reporter: "the traditional brand of the textile industry is dominated by offline stores. Under the impact of the epidemic, consumer demand has shrunk dramatically, while online performance has increased, accelerating the connection between brands and users. C2M mode can quickly solve the docking between demand side and supply side, and is particularly suitable for online business. Therefore, under such a background, C2M is sought after.

Founder Securities Research Report cited the background of the rise of the C2M mode of electricity supplier: first, the decline of the electricity supplier dividend, forcing the electricity supplier platform to excavate the stock market; two, the consumption stratification is obvious, manufacturing enterprises need to accurately capture demand; and the three is the ability of manufacturing enterprises to have digital production.

Another market trend that the industry is looking forward to is that the consumption of home textiles is transformed from durable goods to fast moving products, and the frequency of consumption increases. According to the data from the China National Business Information Center, the consumption habits of Chinese textile products in the past are more traditional. With the gradual change of consumption concept, home textiles are changing from durable goods to fast moving products, from low-frequency consumption to high frequency consumption. This change will further promote the transformation of China's home textile market channels.

However, Cheng Weixiong also reminds us that the C2M mode is still in the exploratory stage, and the demand for flexible supply chain is quite high, and the effect needs to be tested. "For the textile industry, the diversity of demand consumers is very high, and consumption in different regions can not be integrated, which will lead to the differentiation of consumption. The customization mode of C2M will increase the R & D and production costs of the supply side of the enterprise. If we want to keep up with the consumer environment, supporting equipment and supply chain, otherwise the C2M mode will be meaningless. He said.

Jiang Tianwu stressed at the annual general meeting that dream is concerned with the way out for the physical retail industry. On the new retail transformation, the company has gone ahead of its peers to make innovative attempts.