"Medical Beauty Ecology" Of Aoyuan Meigu

One hundred billion real estate enterprise China Aoyuan (03883. HK) has another tentacle in a shares, and Aoyuan Meigu (000615. SZ) is vigorously exploring "beautiful new business".

On the evening of May 21, Aoyuan Meigu announced that Hu ran, President, fan Shijie, Xu Wei, Secretary of the board of directors and Lin bin, chief financial officer, had put forward a plan to increase their shareholding, with a total amount of no less than 72 million yuan in the next six months.

In sharp contrast, the original controlling shareholders planned to reduce their holdings.

On May 19, Jianshui Tairong Enterprise Management Co., Ltd., Beijing Heli Wantong Information Consulting Center (limited partnership) and Duan Yajuan, the former holding shares of Aoyuan Meigu, dongjinghan Holding Group Co., Ltd. (hereinafter referred to as "Jinghan Holdings"), planned to reduce their total holdings by centralized bidding from June 10, 2021 to November 13, 2021 (accounting for 2% of the total share capital of the company).

The corresponding fair value of the shares exceeds 400 million.

Behind the increase and decrease of holdings, the core is the change of actual control right of listed companies.

Since May 2020, Shenzhen Aoyuan Kexing Investment Co., Ltd. (hereinafter referred to as "Aoyuan Kexing"), a wholly-owned subsidiary of Aoyuan group (Guangdong) Co., Ltd., has become the controlling shareholder of the listed company through equity transfer. It has transformed its layout of medical beauty business and focused on beautiful health industry.

Aoyuan Meigu said that it will continue to deepen the strategic positioning of "science and technology providers, material suppliers and service providers of beautiful health industry", and lay out four development directions of "medical beauty service", "medical beauty technology", "medical beauty raw materials" and "beautiful complex".

Ten billion, story?

The A-share market has never lacked stories.

Aoyuan Meigu first ushered in 4 trading limits in 7 trading days since April 22.

Since then, they closed two trading limits on May 10 and May 12 respectively.

On May 10, 454 people from 240 institutions, including Harvest Fund, huitianfu, China Europe Fund, CITIC Securities and Ping An Securities, increased the attention of Aoyuan Meigu.

According to the calculation of 21st century economic reporter, the market value of Aoyuan Meigu has risen rapidly from 8 billion yuan to 22 billion yuan in a short period of more than one month since the end of April. Only from the A-share market, this can not be described as a beautiful "turnaround".

The story just comes from the word "beauty".

According to the asset restructuring design of Aoyuan Meigu, the original real estate business is considered to be separated from the listed company system.

In the past, the most profitable plate seems to be in the transfer of tacit understanding with the new "king of making money".

However, only from the data, the core of this transaction, the trigger point, comes from an asset acquisition of less than 700 million yuan.

On April 29, Aoyuan Meigu issued the "suggestive announcement on planning for the sale of major assets". In order to solve the problem of horizontal competition with the controlling shareholders, Aoyuan Meigu plans to sell all or part of the equity of the real estate business sector.

Earlier, on March 18, Aoyuan Meigu issued a purchase announcement to purchase 55% equity of Zhejiang liantianmei Enterprise Management Co., Ltd. (hereinafter referred to as "liantianmei") held by Guangzhou Shengzhuang medical cosmetology Investment Co., Ltd. (hereinafter referred to as "Shengzhuang Yimei").

The final transaction price of this acquisition is 697 million yuan.

So far, liantianmei has more than 300000 members.

Lian Tianmei said that he has established a team of professional doctors led by 13 experts with senior titles.

The affiliated hospital has 5 chief doctors, 8 deputy chief doctors, 173 professional medical staff and 16 external experts.

From the perspective of performance, liantianmei achieved a net profit of 17.66 million yuan in 2019 and 80.55 million yuan in 2020, with a year-on-year increase of 356%.

On May 28, Yu Jianlin, executive partner of gaotejia investment, told the 21st century economic report that "in the medical and American industrial chain, the competition among medical service institutions in the middle reaches is relatively fierce".

There are about 13000 medical beauty institutions in China. At the same time, the market is also full of many organizations without medical beauty qualifications. From the perspective of institutional structure, the industry concentration is very low. Large medical and American institutions account for less than 10% of the market capacity, and more are small and medium-sized institutions and even micro clinics.

This also means that the market's expectation for this merger and acquisition lies more in the promotion of industry standardization and reshuffle.

Yu Jianlin predicts that if the industry concentration gradually increases, the net interest rate will exceed the current range of 5% - 10%.

The above transaction completed the industrial and commercial change registration on April 13, and liantianmei became the holding subsidiary of Aoyuan Meigu. In this regard, Lian Tianmei made a performance commitment that the accumulated net profit (the amount of non net profit deducted from the consolidated financial statements) in 2021 and 2022 is no less than 157 million yuan.

Nevertheless, the "hot spot" of 697 million yuan and 14 billion yuan seems far fetched.

Of course, there are other stories behind it.

Sunset, solitary duck

In the annual report of 2020, Aoyuan Meigu mentioned that it would continue to deepen the strategic positioning of "technology provider, material supplier and service provider of beautiful health industry".

"We hope to become an integrator of medical and aesthetic ecology. For aoyuanmeigu, we hope to provide consumers with medical and aesthetic ecological integration through the overall layout of upstream, midstream and downstream, no matter through the midstream of the medical and aesthetic industry, or foothold in the upstream of the industrial chain, or through the downstream of the medical and aesthetic industry." In the investor exchange activities on May 10 and 17, Aoyuan Meigu also mentioned.

"Ecology" seems to be the core of a capital story.

From a strategic point of view, "medical materials" and "medical technology" are like sunset and solitary ducks flying together, forming two wings of its ecological story.

However, according to the 21st century economic report reporter's tracking, in addition to the assets merger and acquisition of 697 million yuan of real gold and silver, Aoyuan Meigu has launched a large number of "contracts" and joined hands with a number of partners.

Its cooperation targets involve universities, medical and American products suppliers, etc; The contract includes independent research and development, joint research and development, cooperative production, agency products, etc.

For example, on March 31, Guangzhou Ogilvy Industrial Research Co., Ltd., a wholly owned subsidiary of Aoyuan Meigu, signed a strategic cooperation agreement with Guangzhou Jinan University Medical Biotechnology Research and Development Center Co., Ltd. and Guangzhou Jiyuan Biotechnology Co., Ltd. On April 6, Guangzhou Ogilvy industrial research also joined hands with Dalian Jiyuan Pharmaceutical Technology Co., Ltd. (hereinafter referred to as "Jiyuan technology") as a medical beauty product supplier and service provider. According to the announcement, Jiyuan pharmaceutical owns a series of products related to fullerene brand. The two sides said that the cooperation direction includes: jointly establishing equity fund; Based on the abundant product resources of Jiyuan technology, Ogilvy will use its existing or cooperative online channel resources to promote its product development in the future; Recommend items to each other.

At the end of overseas resources, on April 21, Guangzhou Ogilvy industrial research announced that it had signed a strategic cooperation agreement with KD medical of South Korea.

KD medical was established in Seoul, South Korea in 2016, focusing on the manufacturing and sales of medical and cosmetic medical devices, the development and research of active raw materials for medical cosmetology, and its main products are fat dissolving needles, kinetin, PDRN, sodium hyaluronate for injection, etc.

In response to investors' questions, Aoyuan Meigu further said that "KD medical currently has its own brand of hyaluronic acid, fat dissolving needle and baby needle".

Its capital response, officially originated from the addition of the concept of hyaluronic acid.

April 22 is also the time when its main market starts.

Finance is often an indispensable part of hot spots.

On April 20, Aoyuan Meigu also signed a strategic cooperation agreement with western advantage capital investment Co., Ltd. (hereinafter referred to as "western capital"), and the cooperation contents of the two sides include the target scale of 800 million M & A fund and the target scale of no less than 300 million equity investment fund of beautiful health industry.

In the upstream medical beauty raw material sector, Aoyuan Meigu said that it would accelerate the transformation and upgrading of its green fiber industry into a medical and aesthetic material supplier, aiming at the positioning of new materials for drug loaded facial mask, and fully promote the derivative products of green fiber medical beauty.

According to the annual report of 2020, Aoyuan Meigu's new material business has an annual production capacity of 16000 tons of viscose filament, 7000 tons of cellophane and 35000 tons of chemical fiber pulp, as well as self-contained utilities with daily water supply of 200000 tons, power generation of 24000 kWh and steam supply of 325 tons per hour.

Aoyuan Meigu said that the annual output of 100000 tons of green bio based cellulose fiber (Lyocell) project will become the company's future profit growth point.

The latest progress is that on April 23, 2021, the green fiber production line with a production capacity of 40000 tons of facial mask new material was officially put into operation. It is expected to complete the construction and trial operation of a 100000 ton production line by the end of 2022.

As of the annual report of 2020, aoyuanmeigu's medical beauty business has not yet generated revenue.

Achievements, problems!

In Yu Jianlin's opinion, "medical and aesthetic institutions need to establish refined operation capabilities, and the most critical ones are three capabilities: brand power, formulating brand strategy of enterprises, and building customer brand awareness from marketing scenarios, service refinement, program personalization, and price standardization. Transformation power, establish a full closed-loop process from customer acquisition, customer demand identification, trust building, improving medical and aesthetic solutions to affect the final decision-making of customers. Retention, hierarchical and classified management of old customers, life cycle management, improve customer repurchase rate, improve the rate of old bring new

Ecological stories are not easy. The "ecological" story of Aoyuan Meigu always gives investors a sense of deja vu.

If we can trace back its bold and resolute efforts in the medical and aesthetic field, it will come from the change of the actual controller of the listed company.

Before the transfer of the actual controller, the market value of Aoyuan Meigu (then Jinghan shares) was only more than 3 billion yuan.

On May 15, 2020, Tian Han, the former controlling shareholder of the listed company and the actual controller, signed the share transfer agreement with Aoyuan Kexing. Jinghan holdings transferred its 229 million shares (accounting for 29.302% of the total share capital of the company) to Aoyuan Kexing, with a transaction price of 1.160 billion yuan.

So far, Aoyuan Kexing shares increased to 29.302%, and Jinghan holdings decreased from 37.04% to 7.734%. The controlling shareholder of the company was changed from Jinghan holding to Aoyuan Kexing, and the actual controller was changed from Tian Han to Guo Ziwen, chairman of China Olympic Park (03883. HK).

On June 24, 2020, the above equity transfer procedures will be completed.

On November 19, 2020, "Jinghan shares" was officially renamed as "Aoyuan Meigu".

In fact, as early as December 23, 2020, Aoyuan Meigu announced that Shanghai Aoyuan Industrial Co., Ltd. (hereinafter referred to as "Shanghai Olympic Park") and Shanghai Aoyuan Industrial Co., Ltd. (hereinafter referred to as "Shanghai Olympic Park") announced that, relying on the strategic layout of the controlling shareholder China Aoyuan group in Shanghai dongfangmeigu (one of the domestic medical, cosmetic and health industrial bases), Shanghai Aoyuan Industrial Co., Ltd. (hereinafter referred to as "Shanghai Olympic Park") and "Shanghai Aoyuan Industrial Co., Ltd Guangzhou AoYing Investment Co., Ltd. (hereinafter referred to as "Guangzhou Aoying") entrusts the company to continuously provide professional medical and aesthetic industry consulting services for dongfangmeigu project in Fengxian District of Shanghai. The cooperation period is 3 years. Shanghai Aoyuan and Guangzhou Aoying respectively pay 9 million yuan of consulting service fee to the company each year, and the total consulting service fee is 18 million yuan / year.

At present, the market is worried about whether its divestiture of real estate business will shake its profit base.

In 2020, its real estate and related business income accounted for 70.58%, chemical fiber new material business accounted for 20.05%, and no income was generated from medical beauty business. If all the real estate business sectors are sold out, the company's main revenue sources in 2021 are chemical fiber new materials business and medical beauty business.

According to the 2020 annual report of Aoyuan Meigu, the annual revenue of the whole year is 1.987 billion yuan, including 1.403 billion yuan of real estate development business, accounting for 70.58%; The chemical fiber business achieved a revenue of 398 million yuan, accounting for 20.05%, while other businesses achieved a revenue of 186 million yuan, accounting for 9.37%.

In addition, from 2019 to 2020, the non net profit deducted by Aoyuan Meigu are all losses, which are - 120.7 million yuan and - 201.0 million yuan respectively.

As of May 17, Aoyuan Meigu said it was still actively promoting the due diligence, audit, evaluation and other work involved in the sale of real estate business.

According to the analysis of people who pay close attention to the medical and beauty industry market, in the secondary market, the cumulative growth of the "medical and beauty" concept stocks, such as langzi shares, Aoyuan Meigu and international medicine, are all more than four times. It believes that whether the rise can be sustained or not requires Aoyuan Meigu to come up with reliable performance growth logic.

According to the data of Frost & Sullivan, a consulting agency, the revenue scale of China's medical beauty service market will reach 1436 billion yuan in 2019, and the compound annual growth rate of China's medical beauty market will reach 22.5% from 2015 to 2019, which is higher than the growth rate of global medical beauty market in the same period. At the same time, from the perspective of penetration rate, the penetration rate of China's medical and American market in 2019 is 3.6%, less than 1 / 3 of that of Japan, 1 / 4 of that of the United States, and 1 / 5 of that of South Korea.

Compared with the international mature medical and aesthetic market, China's medical and aesthetic market has not yet reached the ceiling of penetration.

On May 27, an investor in the secondary market who paid close attention to Meimei pointed out to the reporter of the 21st century economic report that "the upstream raw material suppliers such as aimeko and Huaxi biological Co., Ltd. have risen well, and the medical and American institutions in the middle reaches have also risen sharply. It's only a matter of time before Aoyuan Meigu divests its real estate business. If it doesn't, it will drag down the valuation. The company should divest other projects and concentrate on medical beauty. "

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