Langzi Co., Ltd. (hereinafter referred to as “Langzi Co., Ltd.”) announced on the evening of June 4 that the company received the ” “Notification Letter Regarding the Plan to Reduce the Shareholding of Langzi Shares”, Shen Bingyun plans to reduce his holdings of the company’s shares by no more than 19.8769 million shares through centralized bidding transactions or block transactions, accounting for 4.49% of the company’s total share capital.
The announcement shows that Shen Bingyun is the father of Shen Dongri, the controlling shareholder and actual controller of Langzi Co., Ltd., and Shen Jinhua, a person acting in concert. Shen Bingyun was born in April 1942. Currently 79 years old.
As of now, Shen Bingyun holds 19.8769 million shares of Langzi shares, with a shareholding ratio of 4.49%. As of the close of trading on the afternoon of June 4, the share price of Langzi shares was It closed at 63.65 yuan per share. If calculated according to this calculation, Shen Bingyun may be able to cash out more than 1.2 billion yuan.
In response to the intention to reduce its holdings, the company also gave an explanation, saying that Shen Bingyun is old and the reduction is related to his personal living arrangements and asset planning. needs. Although Shen Bingyun does not work in the company, he has always been concerned about the company’s long-term development and is firmly optimistic about the company’s future development prospects. He is especially confident in the development of the company’s medical beauty business.
First Textile Network has previously obtained public information and learned that Shen Dongri and Shen Jinhua, the founders of Langzi Co., Ltd., are brother and sister and have always been the actual controllers of the company. , holding 48.63% and 6.87% of the shares respectively. The company’s shareholder Shen Bingyun is the father of Shen Dongri and Shen Jinhua, holding 4.57% of the shares. The three people constitute persons acting in concert, holding a total of 60.07% of the shares. The company’s controlling stake is stable.
Public information shows that Langzi Co., Ltd. was founded in 2000 and listed on the A-share market in 2011, becoming the first domestic high-end women’s clothing listed company. In 2014, the company became the controlling shareholder of Akabang, a well-known Korean baby brand listed company, through purchase and capital increase. The company holds 26.53% of the shares and entered the baby industry. In 2015, the company invested in a 10% stake in L&P COSMETIC CO., LTD (referred to as “L&P”), South Korea’s largest professional facial mask R&D, production and sales enterprise (later diluted to 9.8%). In 2018 and 2020, it sold 0.7% and 9.1% respectively. % equity). In 2016, the company strategically invested 30% of the equity of Korea Dream Group, a famous medical beauty service group in South Korea, and controlled the acquisition of 6 medical beauty institutions under the domestic medical beauty brands “Milan Baiyu” and “Crystal Skin Medical Beauty” to lay out the medical beauty industry. In 2017, the company established a joint venture “Langzi Hana Asset Management Co., Ltd.” with South Korea’s Hana Bank. The company holds 75% of the shares and officially launched the asset management business.
In 2019, Langzi Co., Ltd. began to vigorously promote the industry-focused development strategy , transferred the controlling stake of Langzi Asiana Asset Management, and reduced its shareholding to 30.76%. Since then, it has concentrated on accelerating the coordinated development of the three major advantageous industries of women’s clothing, medical beauty, and infants and children. In December 2020, in order to further concentrate its superior resources and focus on the three main businesses of women’s clothing, medical beauty, and infants and children, the company sold all its equity interests in South Korea’s “L&P”.
Financial reports show that Langzi’s operating income increased from 836 million yuan in 2011 to 3.007 billion yuan in 2019, with a CAGR of 17.35%. After the children’s and medical beauty businesses were consolidated, the company’s operating income increased significantly, and the company’s operating income CAGR reached 30.02% from 2016 to 2019. The net profit attributable to the parent company has fluctuated significantly due to the impact of long-term equity investment and the impairment of goodwill in Akabang, South Korea. In 2019, the company achieved operating income of 3.007 billion yuan, a year-on-year increase of 12.99%; net profit attributable to the parent company was 59 million yuan, a year-on-year decrease of 72.07%, mainly due to the long-term equity investment of South Korean L&P Company, which made a large asset impairment of 118 million yuan. losses and the impact of the transfer-out of deferred income tax assets of RMB 59 million previously recognized by Akabang, South Korea. The company achieved operating income of 2.876 billion yuan in 2020, a year-on-year decrease of 4.35%, mainly affected by the epidemic; it achieved a net profit attributable to the parent company of 142 million yuan, a year-on-year increase of 141.65%.
From the perspective of business revenue ratio: high-end women’s clothing is still the main business of Langzi Co., Ltd., the medical beauty business is growing rapidly, and the revenue ratio continues to increase. , the infant and child business developed relatively slowly. In 2020, women’s clothing, medical beauty, and infant and child businesses achieved revenue of 1.323 billion yuan, 813 million yuan, and 680 million yuan respectively, accounting for 46.0%, 28.3%, and 23.6% of the revenue respectively.
Financial reports show that from 2017 to 2020, Langzi’s women’s clothing business achieved operating income of 1.110 billion yuan, 1.380 billion yuan, 1.512 billion yuan, and 1.323 billion yuan respectively. yuan, with gross profit margins of 60.61%, 57.72%, 59.90%, and 53.65% respectively; the medical aesthetics business achieved operating income of 255 million yuan, 479 million yuan, 628 million yuan, and 812 million yuan respectively, with gross profit margins of 60.61% and 57.72% respectively. , 59.90%, 53.65%; the infant and child business achieved revenue of 818 million yuan, 661 million yuan, 755 million yuan, and 680 million yuan respectively, with gross profit margins of 46.00%, 50.32%, 52.18%, and 54.74% respectively.
As a leading high-end women’s clothing brand, Langzi Co., Ltd. has been among the top ten in market share for many consecutive years, and among the top five high-end women’s clothing brands among key large-scale retail companies in the country. Langzi Co., Ltd. mainly carries out brand layout through three methods: independent establishment (LANCY FROM25, LIME FLARE, Liaalancy), agency operation (MOJO S.PHINE, JIGOTT) and acquisition (m.tsubomi), and currently has formed a complete brand structure. The main brand Langzi has achieved solid performance, achieving revenue of 1.087 billion yuan in 2019, a year-on-year increase of 12.78%. The main brand Langzi has extended the small Langzi “THE LANCY”, which has gradually developed into the mainstay of stores in third- and fourth-tier cities and has become a brand IndustryVarious online operation methods such as brand KOC cultivation and KOL cooperation have increased online investment. The number of online stores has increased from 6 in 2018 to 17 in the first half of 2020; secondly, the main brand stores have continued to expand and remain There is a larger space; the main brand Langzi stores continue to expand, from 224 in 2016 to 317 in 2020, but the number of stores is compared to 627 stores of DAZZLE and 573 stores of Anzheng Fashion (Jiuzi). There is still a lot of room for expansion; third, the average store efficiency of the main brand is expected to increase: the average store efficiency of the main brand Langzi has grown steadily, from 2.63 million yuan in 2016 to 3.67 million yuan in 2019, with a compound annual growth rate of 11.74%. In 2020, the average store effectiveness of the main brand was 2.75 million yuan. Compared with the average store effectiveness of VGRASS, the main brand of Jinhong Group, which was 5.69 million yuan, there is still room for improvement.
With the accelerated expansion of the medical beauty business, Langzi The shares are expected to create a second growth curve. Mi Hanjie introduced that Langzi Medical Beauty adopts the method of external mergers and acquisitions and endogenous self-construction to expand. It has expanded rapidly in the past two years, from 10 stores in 2018 to 19 stores in 2020, and the expansion speed has accelerated significantly. While the number of institutions is rapidly expanding, Langzi Medical Beauty continues to improve its operation quality and internal management, its medical beauty resource integration capabilities are getting stronger and stronger, and the operating quality of mature stores continues to improve. The net profit margins of plastic surgery hospitals in the mature stage are around 13-15%. The net profit margins of Sichuan Milan Baiyu in 2019 and 2020 were 11.33% and 15.36% respectively. The net profit margins of light medical beauty institutions in the mature stage are around 15-20%. The net profit margins of Sichuan Jingfu in 2019/2020 are 14.78% and 18.55%. From this, Mi Hanjie judged that as Langzi Medical Aesthetics’ new institutions and newly acquired hospitals gradually enter a mature and profitable period, performance will gradually be released, effectively creating the company’s second growth curve. The brand awareness and business scale of Langzi Medical Beauty are constantly increasing, and the three major brands have also entered a period of rapid development.
Financial report shows that in the first quarter of 2021. Langzi Co., Ltd. achieved operating income of 892 million yuan, a year-on-year increase of 52.06%, and net profit attributable to the parent company was approximately 35.21 million yuan, a year-on-year increase of 1209.16%. The medical beauty business achieved operating income of 259 million yuan this period, a year-on-year increase of 92.03%. The company expects to achieve operating income of 80 million yuan-100 million yuan in the first half of this year, and basic earnings per share of 0.1808 yuan/share-0.2260 yuan/share. For the above The reason for the change in expected performance for the first half of the year, Langzi Co., Ltd. explained that since the beginning of this year, the company’s women’s clothing business product structure and channel layout adjustments have been accelerated, and the business has developed steadily; the medical beauty business has maintained rapid growth, and its profit contribution to the company has continued to increase; infants and children The pace of accelerating the domestic implementation of the business is constantly advancing.
As of the last trading day before publication, Langzi shares closed at 63.65 yuan per share, a decrease of 3.79%, with a market value of 28.162 billion yuan.
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