The Paper's reporter Pang Jingtao
On the evening of January 28, Sophia (002572. SZ) released a performance forecast, 2020 to achieve operating income of 8.353 billion yuan, is expected to achieve operating income in 2021 compared with the same period last year, will increase by 1.671 billion yuan to 2.088 billion yuan, an increase of 20% to 25% over the same period last year.
In terms of profit, in 2021, the company expects that the net profit attributable to the mother will be between 100 million yuan and 150 million yuan, down 91.61%-87.42% from the same period last year; the net profit attributable to the mother after deducting non-recurring gains and losses will be between 20 million yuan and 70 million yuan, down 98.09% -93.33% from the same period last year.
For the decline in net profit compared with the same period last year, Sophia summarized three reasons. First, in the second half of 2021, the Company's major customers in the bulk business and its member enterprises (hereinafter referred to as "the Customer") experienced a large-scale default of commercial acceptance bills, and the notes that were prompted to the drawer for redemption were rejected, and the customer could not promise a specific time of payment.
As of December 31, 2021, the Company's balance of receivables and goods issued to the customer totaled RMB1.185 billion, of which the balance of accounts receivable was RMB462 million (including the amount of receivables transferred to commercial acceptance bills that had been overdue and not yet redeemed was RMB218 million), the balance of unmatured commercial acceptance bills was RMB341 million, the prepaid purchase price (purchasing the customer's property with notes receivable) was RMB352 million, and the balance of goods issued was RMB30.1632 million.
Sophia said that for the above receivables, the company will actively adopt communication and coordination, legal proceedings and other ways to collect. The Company's management has conducted an analysis and assessment of the recoverability and issued goods of the customer's receivables as of December 31, 2021, and believes that the signs of impairment are obvious, and intends to record a special credit impairment loss for the customer. The Company's credit impairment loss for the current period is estimated to increase by approximately $900 million over the same period of the previous year.
According to the information previously released by Sophia, the customer is a Evergrande company. At the end of December 2021, Sophia answered investors' questions about "Will Evergrande's matters be handled this year?" in the published investment institution research minutes. When asked, the company still needs to continue to wait for the progress of Evergrande's matters before considering.
The surging news noted that in the third quarter of last year, Sophia announced the situation of some commercial acceptance drafts. As of the third quarter of 2021, the Company acquired 40% of the equity of Henan Evergrande Sophia Home Furnishing Co., Ltd. held by Henan Evergrande Home Furnishing Industrial Park Co., Ltd. for 160 million yuan of commercial acceptance drafts held by Guangzhou Evergrande Material Equipment Co., Ltd. and Shenzhen Evergrande Material Equipment Co., Ltd. Sophia Building Decoration Co., Ltd., a subsidiary of the Company, purchased the assets of Evergrande Group and its member enterprises with a total value of RMB352 million in commercial acceptance drafts of Shenzhen Evergrande Material and Equipment Co., Ltd. and Evergrande Group member enterprises.
The second reason for the decline in the company's net profit is that in the second half of 2021, due to the rise in raw material prices, the company's production costs have risen, and the sales price of products has not been adjusted at the same time; on the other hand, the company has also given greater support to dealers, which has led to a decline in the company's gross profit margin.
Third, the company continues to implement the strategy of "omni-channel, multi-brand, all categories", and continues to increase investment in marketing, resulting in a continuous increase in sales expenses such as labor costs and travel expenses, and the company also increased the investment in marketing expenses such as advertising expenses and publicity expenses in the second half of 2021 to prepare for future business development.
Responsible editor: Liu Xiuhao Photo editor: Zhang Tongze