Financial reporter Zhang Tingwang
The "Jiayue Convertible Bonds" may trigger the downward revision clause.
Jiajiayue (603708. SH) disclosed on June 28 that from June 15 to June 28, 2024, the closing price of the company's shares for ten trading days has been lower than 85% of the current conversion price of 35.80 yuan/share of "Jiayue Convertible Bonds", that is, 30.43 yuan/share, which is expected to trigger the downward revision of the conversion price of "Jiayue Convertible Bonds"; If the company's stock price continues to meet the relevant conditions in five of the next 20 trading days, it may trigger a downward revision of the conversion price of "Jiayue Convertible Bonds".
Image source: Company announcement
The financial reporter noticed that since the beginning of this year, Jiajiayue's share price has continued to be sluggish.
So far in 2024, the company's share price has fallen by 37.03%, closing at 8.11 yuan per share as of noon on July 1. As recently as June 24, the intraday stock price hit a record low.
Image credit: Straight Flush
Jiajiayue's share price performance has raised concerns among investors. According to the SSE e-interaction, since the beginning of this year, especially in June, some investors have frequently asked Jiajiayue questions such as "why the stock is falling endlessly" and "whether it shows that there are any problems in the company's operation".
Image source: SSE Interactive
In fact, Jiajiayue's performance is not ugly.
According to the data, Jiajiayue's main business is supermarket chain operation, with comprehensive supermarkets, community fresh food supermarkets and rural supermarkets as the main formats, focusing on the development of Shandong and surrounding markets in Inner Mongolia, Beijing, Hebei, northern Anhui and northern Jiangsu.
According to the annual report, in 2023, Jiajiayue will achieve a total operating income of 17.763 billion yuan, a year-on-year decrease of 2.31%; However, the net profit attributable to shareholders of listed companies was 136 million yuan, an increase of 127.04% year-on-year. Jiajiayue said that the increase in profit was mainly due to the improvement of the quality of operation and management.
Image source: 2023 Annual Report
In terms of store expansion, Jiajiayue will open 110 new stores in 2023, including 81 directly operated stores and 29 franchised stores.
At the same time, Jiajiayue mentioned that according to the market and operating conditions of the stores, the stores that are loss-making and are not expected to improve in the future will increase the closure of stores, reduce losses, and improve overall profitability.
Entering 2024, Jiajiayue's performance will still achieve a slight increase. In the first quarter of 2024, Jiajiayue's operating income will be 5.189 billion yuan, a year-on-year increase of 5.73%; net profit attributable to shareholders of listed companies was 147 million yuan, a year-on-year increase of 7.10%; net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 136 million yuan, a year-on-year increase of 1.05%.
On the other hand, Jiajiayue continued to accelerate the expansion of stores. In the first quarter of 2024, Jiajiayue will open 12 new directly-operated stores and add 8 new franchise stores. As of the end of the reporting period, the company had a total of 1,065 stores, including 999 directly operated stores and 66 franchised stores.