By Hu Jiaqi Zhu Wei
ID: BMR2004
Aoyuan Migu is on its way to divesting itself of real estate and developing a "beauty business".
On June 22, Aoyuan Migu Science and Technology Company Limited (hereinafter referred to as "Aoyuan Migu", 000615.SZ) announced that it intends to sell 100% of the equity of Jinghan Real Estate Group Limited, 100% of the equity of Beijing Nourishing Health Management Co. Management Co., Ltd. and 35% equity in Penglai Huaru Jinghan Pension Service Co. and to be purchased by the counterparty in cash. Aoyuan Meigu proposed 1.02 billion yuan as the listing price of the transfer of the subject of this transaction.
The data show that in 2020, Aoyuan Meigu realized operating income of 1.987 billion yuan, a year-on-year decline of 37%; net loss of 130 million yuan, a year-on-year decline of 1215%. Among them, real estate and related business revenue accounted for about 70%, chemical fiber new materials accounted for about 20%, medical beauty business did not generate revenue. From the above data, it can be seen that the support of Aoyuan Meigu income is still the real estate business.
In the focus of medical beauty divestment of real estate strategy, Aoyuan Migu still need to face the pressure of performance. After completely clearing out the real estate business, Aoyuan Meigu's medical business can quickly generate revenue? And can support the normal operation of the company?
According to Wind Stocks, Aoyuan Meigu is suspected of having two abnormal financial indicators, namely: the company's operating cash flow is negative 383 million yuan in 2020; in the first quarter of 2021, the Z value of measuring the financial crisis of the enterprise, Aoyuan Meigu's Z value is 1.717.
The Z-value analysis method is a method of measuring the risk of bankruptcy of an enterprise, which predicts that an enterprise's Z value is less than 1.20, which is a good indicator of the risk of bankruptcy. It predicts that a company with a Z-value of less than 1.20 will go bankrupt, a Z-value between 1.20 and 2.90 is the "gray area", and a Z-value of more than 2.90 means that the company has no risk of bankruptcy.
Source: Wind Stocks
At the time of Aoyuan Meigu's comprehensive transformation, the former controlling shareholder, Jinghan Holdings Group Co.
Clear real estate, bet on medical beauty
In recent years, with the development of China's medical beauty into the "fast lane", a number of real estate companies have been transformed to do medical beauty, Aoyuan Migu is one of them.
On June 22, Aoyuan Meigu announced that it intends to sell the company's 100% stake in Jinghan Real Estate Group Limited Liability Company, 100% stake in Beijing Nourishing Jia Health Management Co. and 35% stake in Penglai Huaru Jinghan Pension Service Co.
For Aoyuan divestment of real estate behavior, in the co-founder of Xizhong Strategic Management Group Huang Lichong view, if Aoyuan Migu really successful divestment of real estate, the shares held in the sale, can reduce debt, but also reduce the company because of the debt of bankruptcy or the possibility of default, to solve the problem of financial difficulties, but we need to look at the back of the results.
On June 15, Aoyuan Meigu also released a notice that in order to enhance its sustainable development ability, effectively solve the problem of competition with the controlling shareholders, Aoyuan Meigu to maintain the interests of shareholders, and focus on the strategic transformation of the beautiful and healthy industry, the company intends to sell all or part of the equity held in the real estate business segment.
Public information shows that, up to now, Aoyuan Migu main business for real estate, chemical fiber new materials and medical beauty business. After the completion of this transaction, the main business of Aoyuan Meigu will be transformed from real estate business, medical beauty business and chemical fiber new material business to medical beauty business and chemical fiber new material business, and the revenue structure of its main business will undergo significant changes.
Chen Sheng, president of the China Real Estate Data Research Institute, believes that Aoyuan Meigu completely abandon the industrial space and transformation of medical beauty need to be cautious, or need to consider the combination of the medical beauty industry and real estate space, should pay attention to is the development of the industrial space rather than the development of the industry itself, through the industrial space to the industry to bring help to the industry, in order to be more sound and safe.
On the road to transformation
The professional medical beauty platform more beautiful APP released "2020 medical beauty industry white paper" shows that, despite the impact of the epidemic, China's pure medical beauty market size of 197.5 billion yuan, accounting for 17% of the world, is expected to become the world's first big country of medical beauty.
CVSource data show that in the first five months of 2021, the funds invested in the medical beauty track have exceeded 500 million yuan. 2020 medical beauty track annual financing scale of 800 million yuan.
Although the future of the medical beauty industry is promising, but as the previous main business is real estate, Aoyuan Meigu, the seniority in the field is still shallow, the pressure is heavy.
Hu Ran, president of Aoyuan Meigu, said in a keynote speech at the CICC 2021 second-half investment strategy meeting that the midstream of medical beauty is the strategic starting point of Aoyuan Meigu's entry into the medical beauty and the key to the layout. This field is highly decentralized and has different profitability. In this regard, Aoyuan Migu firmly selects the "big store mode" with strong certainty, realizes scale effect through merging and acquiring high-quality regional leading medical beauty hospitals, and reduces the procurement cost of instruments, consumables and drugs; at the same time, it extends the upstream and downstream industrial chain, forms the advantages of brand and resources, and improves the concentration of the market. In the future, Aoyuan Meigu will also explore the "1+N model" of standardized chain of medical aesthetic institutions, and establish a chain of head instrument and consumables + vertical light medical brand stores.
On June 8, Aoyuan Beauty Valley subsidiary Guangzhou Aomei Industry Investment Co. ") merger and acquisition payments.
According to Aoyuan Meigu announced on March 18, the company intends to invest 697 million yuan to acquire 55% of the equity held by Shengzhuang Medical Beauty in Zhejiang Liantianmei, after the completion of the transaction, Liantianmei will become the company's controlling subsidiary.
Lian Tianmei, headquartered in Hangzhou, is one of the earliest batch of medical beauty enterprises in China, and the founder of the first private medical beauty hospital in Zhejiang Province, with major business departments such as plastic surgery and aesthetics, micropigmentation, dermatology and aesthetics, and oral aesthetics as subordinate hospitals.
At the upstream end of medical beauty, Guangzhou Aomei, a wholly-owned subsidiary of Aoyuan Meigu, signed a "Strategic Cooperation Agreement" with Guangzhou Jinan University Pharmaceutical Biotechnology Research and Development Center and Guangzhou Jiyuan Bio-Technology Co. to enter the collagen market and lay out the upstream product consumables market.
Subsequently, Ogilvy & Mather signed a strategic cooperation agreement with KD Medical of South Korea*** to form a joint venture company to exclusively represent Sanosu laser instruments in China to develop the emerging niche market of medical-grade postpartum restoration; and to synchronize the promotion of the sales license of injectable medical aesthetic products in China owned by KD. Medical.
Minsheng Securities report shows that KD.Medical was established in April 2016, is a focus on medical beauty-related fields of research and product sales as one of the biotechnology-based companies, including a total of medical beauty technology end of the four major categories of all categories (lipolysis products, radio frequency class medical class beauty equipment, hydrafacial needle, injection mono / biphasic cross-linked sodium hyaluronate filler), the seven varieties of niche areas. Seven varieties in the sub-segment, with the main products being AIR FEELING (injectable lipolysis products), AIR UP (facial lipolysis), AIR V UP S (lipolysis injections for body locations other than the face), AIR SONIC (radiofrequency-based medical aesthetic instruments), AIR CELLING (kinetic hydrafacial injections), RHEA LUCLANE (salmon cell extracts for injection, PDRN baby injections), and RHEA LUCLANE (salmon cell extracts for injection, PDRN baby injections, and RHEA LUCLANE). (salmon cell extract for injection, PDRN baby needle), SHINNEUS (monophasic cross-linked sodium hyaluronate filler with lidocaine injection), etc., of which a number of products have been obtained KFDA export procedures.
At the downstream end of medical aesthetics, Aoyuan Meigu realizes downstream carding by cooperating with head MCN organizations, which stimulates more consumer demand for upstream products while attracting traffic for medical aesthetics hospitals.
For the progress of the cooperation, Aoyuan Migu said, whether it is the deep strategic integration and merger and acquisition of the upstream Jiyuan Biologicals, Myogen Pharmaceuticals, KDM, and Guangna Hospital, or the acquisition of midstream medical aesthetic service organizations, as well as the downstream medical aesthetic segmentation of the head of the MCN and other theater-style scenario layout, Aoyuan Migu is in accordance with the strategic layout and gradually promote the landing.
For the external environment, Aoyuan Meigu needs to face the mature competitors in the medical aesthetic industry that have been developing for many years, as well as the challenges of new entrants.
Since May 2021, Suning Global, whose main business is real estate, and Maddie Technology, whose main business is medical IT, as well as Zhendong Pharmaceuticals and Teyi Pharmaceuticals, have all indicated that they want to enter the field of medical beauty.
In the opinion of independent economist Wang Chikun, medical beauty is a market demand spawned by a segment of the emerging industry, the track is booming, belonging to the growth stage, the industry consumption is growing rapidly, the industry market is in the incremental market, the industry threshold is initially established, the industry competition is not very fierce, the market is in the seller's market, has the right to pricing, the industry is also very high gross profit. Medical beauty industry in the competitive landscape is not yet fierce situation, the overall in the blue ocean market, has repeatedly become the darling of the capital.
Share price rose 472.17%
Original controlling shareholders to reduce their holdings
Wind stock data shows that as of June 23, 2021, nearly 250 days, the Aoyuan Meigu share price rose 472.17%, and on the occasion of the rise in the share price. The company's original controlling shareholder, Jinghan Holdings, but there is a reduction of cash.
Wang Chikun believes that the capital touting and support, medical beauty industry, there is the problem of overheating, its valuation is also overestimated, in accordance with past experience, all the capital hot pursuit of the plate there is a callback process, this callback process is the process of squeezing the bubble.
On May 19, Aoyuan Meigu's original controlling shareholder, Jinghan Holdings Group Co. 13, 2021, by means of centralized bidding to reduce the aggregate not more than about 15.62 million shares (accounting for 2% of the total share capital of the company).
For the original controlling shareholders to transfer the shares of the reasons and impact, Zhuge looking for room data research center analyst Liang Nan believes that, on the one hand, due to the Aoyuan Meigu gradually began to the direction of the layout of the medical beauty, but to support the development of its development has always been the real estate business, to adjust the layout of the process of the enterprise will be faced with a certain degree of transition risk, at the same time, the competitive pressures of the medical industry can not be ignored, the future development of the certain challenges; On the other hand, the shareholders' reduction may also be related to their own operational needs, and need to obtain certain cash flow by reducing the shares of Aoyuan Meigu. Because of the debt pressure faced by Aoyuan Meigu, the need to reduce the operating pressure through financing, this time the shareholders to reduce the pressure will make Aoyuan Meigu further increase.
In fact, before October 2020, Aoyuan Meigu can not be regarded as a medical beauty company, according to the announcement, October 26, 2020, Jinghan shares announced that it is intended to change the name of the company to Aoyuan Meigu Technology Co.
The controlling shareholder behind Aoyuan Meigu is China Aoyuan Group Limited (hereinafter referred to as "Aoyuan Group").
In May 2020, the original controlling shareholder, Jinghan Stocks, signed an equity transfer agreement with Aoyuan Techstar, in which Jinghan Stocks transferred its 229 million shares to Shenzhen Aoyuan Techstar Investment Company Limited (hereinafter referred to as "Aoyuan Techstar"), which accounted for 29.3% of the total share capital of Jinghan Stocks. After the transfer of the above shares, Aoyuan Star has become the largest shareholder of Jinghan shares, the actual controller from the Jinghan shares chairman Tian Han changed to Aoyuan Group Chairman Guo Ziwen.
Jinghan was founded in 1996, is the main board of the Shenzhen Stock Exchange listed companies, chemical fiber, real estate as the main business, focusing on the development of new materials and green fibers and other related industries, research and development and manufacturing.
Jinghan shares in the new chemical fiber materials, the existing annual output of 16,000 tons of viscose filament, 7,000 tons of cellophane, 35,000 tons of chemical fiber pulp production capacity.
Based on the chemical fiber technology of Jinghan shares, in April 2021, Aoyuan Meigu officially put into production 40,000 tons of green fiber project per year. It is understood that green fiber is the main raw material for mask paper in the upstream industry chain of medical beauty.
Opportunities and risks co-exist
Under the trillion dollar "face value economy", medical beauty as a new wind mouth industry, opportunities and risks co-exist.
Although Aoyuan Migu is determined to transform, but in the face of the innate real estate genes and the competition of pioneers and latecomers in the medical aesthetic track, in front of the opportunity, there is still a huge challenge. Can Aoyuan Meigu's transformation of medical beauty be successful, and what opportunities and risks exist?
In the view of Lou Jun, partner of Musson Enterprise Management Consulting and visiting scholar at New York University's Stern School of Business, there is a possibility of success if you run into a good investment target. Of course, this depends on luck, but also depends on the general trend of the industry.
What is a good target? Lou Jun believes that a good team, good industrial resources, good strategic thinking belongs to the category of good targets.
Lou Jun suggested that in an industry can be successful, or by virtue of the core competitiveness, core competitiveness is from the deep plowing of the industry, the law is never out of date. And for real estate companies can hold up performance after the transition, Lou Jun believes that if there is a good investment target, it is possible to quickly form the performance, but this performance is not the fundamentals of the enterprise, valuing the long-term value of investors do not have to pay too much attention.
The transformation of real estate enterprises medical beauty, also means that the company's overall organizational structure has changed, for the transformation of real estate enterprises after the medical beauty of how to carry out organizational management, in the industry in front of the wind mouth, Aoyuan Valley will be how to seize the opportunity for development?
In this regard, Lou Jun believes that this is a big problem, first look at the industry, and then set the strategy, and then build the organizational structure, and then look for high-quality talent in the industry, but every step in this is a filter, will filter out the speculators who do not have the sincerity to develop in the industry.
It is understood that the upstream of the medical beauty industry chain is mainly for medical equipment manufacturers and consumables; the middle reaches are mainly plastic surgery clinics, plastic surgery hospitals, beauty parlors; the downstream is mainly a medical beauty guide platform. The terminal is mainly consumers.
Data from AiMedia Consulting shows that in China, medical beauty institutions are mainly divided into two categories: public hospitals and private institutions, of which private institutions include three subcategories: large hospital chains, small and medium-sized private plastic surgery hospitals and small private clinics. Data show that in 2019, the number of medical beauty stores in China is more than 1.4 million, with about 13,000 qualified medical beauty institutions, medical beauty industry "black institutions" is still a serious problem, it is estimated that there are more than 80,000 illegal operation of medical beauty stores.
It is evident that the track that Aoyuan Migu cuts into from the midstream of medical beauty is also the most competitive area, and Aoyuan Migu should pay attention to improving its core competitiveness while merging and acquiring.
She suggested that Aoyuan Meigu can feel a whole set of paradigm, will be more scattered before the standardized operation of the industry, pricing and publicity to determine, and then drive the surrounding and even the country's other stores to comprehensively improve. In addition, you can also use a unified clinic operations management system, which can refer to the oral cavity, from the speed of development, medical beauty faster than the oral cavity, but the development of standardization and normalization, oral cavity than the medical good.
Chinese enterprise capital alliance deputy director Bo Wenxi suggested that the profitability of the medical beauty business on the one hand in the medical beauty service itself, on the other hand, also in the medical beauty rehabilitation and services in the medical beauty of the financial business, etc.. The company's transformation needs to fully study the development of the proposed industry, the competitive landscape and future trends, to choose the right focus and entry strategy, and to combine its own resources and capabilities to quickly form a business scale and industry competitiveness, and to build up an industrial moat to develop its own core competitiveness.