According to the prospectus of Mengjinyuan Gold Jewelry Group Co., Ltd. (hereinafter referred to as "Mengjinyuan"), the company plans to land on the small and medium-sized board of Shenzhen Stock Exchange to raise funds of10910000000 yuan, which is mainly used for the construction of manufacturing center and marketing network.
During the visit, several salesmen of Mengjinyuan told the reporter of China Business News that the technology of 999.9‰ pure gold in Mengjinyuan has become a big selling point. However, in the eyes of the industry, 999.9‰ pure gold has become more common in the industry and cannot be regarded as its core competitiveness.
A salesperson of a franchised store in Beijing told the reporter that the price of its pure yellow jewelry was 468 yuan/gram, while the gold price of other competitors in the same industry exceeded that of 500 yuan/gram that day. Jiang Shu, chief analyst of Beijing Jinyang Mining, said that the homogenization competition in the gold jewelry market is fierce, and some enterprises can only choose low-price competition strategy.
In this regard, Mengjinyuan told the reporter of "China Business News" that franchisees will make timely adjustments according to the retail price and processing fee of gold in their regions, and there is no situation of exchanging market share for low-price strategy.
Gross profit margin is lower than peers.
According to the prospectus of Mengjinyuan, the company is mainly engaged in the gold jewelry business of "Mengjinyuan" brand, and its products are mainly gold jewelry. It is one of the few large-scale gold and jewelry enterprises in the industry covering design, production, processing and retail industries.
In terms of processing volume and sales revenue, Mengjinyuan ranked fifth in the "Top Ten Enterprises" published by China Gold Association in 20 19, second only to Laofengxiang (46.440, 0.37, 0.80%), China Gold, Chow Tai Fook and Yuyuan (10.2/kloc-0).
From 20 17 to the first quarter of 2020, the operating income of Mengjinyuan was13.468 billion yuan,14.067 billion yuan,14.089 billion yuan and16/0.00 billion yuan respectively. In 20 19, the operating income of Mengjinyuan only increased by 0. 16%, and its performance decreased by 1 1.68%.
It is worth noting that the gross profit margin of Mengjinyuan is also at a low level among listed companies in the same industry. During the reporting period, the company's comprehensive gross profit margin was 4.39%, 4.35%, 6.03% and 7.79% respectively. Comparatively speaking, in 20 19 years, Lao Fengxiang (6006 12. Shanghai) 10.28%, Zhou Dasheng (19.950, 0.73, 3.80%)(002867. SZ)35.98% and Lai. 3.06%)(603900.SH)58. 17%, Chaohongji (5. 170, 0. 15, 2.99%)(002345). SZ) 15.55%。
For the reason that the gross profit margin is lower than that of peers, Meng Jinyuan said that in general, the gross profit margin of companies in the gold and jewelry industry is affected by factors such as product structure and marketing channels. Under the same conditions, the higher the proportion of diamond inlaid ornaments and direct sales, the higher the company's gross profit margin. The company's product structure is mainly gold jewelry, and the sales revenue of this category accounted for more than 96% of the main business income during the reporting period. Therefore, there is a certain difference in gross profit margin between the company and comparable listed companies in the same industry. In contrast, the company has a high proportion of gold, such as Admiralty Jewelry, which is close to the main products.
Is the low gross profit margin still related to the low price to seize the market?
In this regard, Mengjinyuan said that retail prices are affected by regional market prices, product materials, product categories, store celebrations and other factors. For the retail price of franchisees, the company gives guidance and suggestions according to law, and franchisees will adjust the retail price of gold and process fees according to their regions. There is no low-price strategy in exchange for market share.
However, during the visit, the reporter found that the price of Mengjinyuan jewelry is relatively low. A salesperson of a franchised store in Beijing told the reporter that the price of pure yellow jewelry it sold was 468 yuan/gram, excluding the technology fee, while the gold price of other competitors in the same industry exceeded 500 yuan/gram that day, and there were additional technology fees. In addition, the jewelry price of the official flagship store in JD.COM of Mengjinyuan is relatively low.
Jiang Shu said that at present, the homogenization competition in the gold jewelry market is fierce, and one of the important reasons leading to homogenization competition is that the R&D and design investment in the gold jewelry industry is generally low.
According to the prospectus, the R&D expenses from 20 17 to 20 19 were 51310000, 49 18300 and 5764500 respectively, accounting for only 0% of the operating income.
However, Mengjinyuan said in the prospectus that the company has industry-leading production technology of high-purity gold jewelry. In 2008, the company initiated "a welding method of gold jewelry", and no auxiliary welding agent was added during the processing, so that the gold content of gold jewelry reached 99.99%.
In the eyes of the industry, 99.99% purity gold has become more common, and the production process of 99.999% purity gold is more difficult at present.
In addition, Mengjinyuan has been involved in infringement disputes many times.
Mengjinyuan has been sued by Cartier International Co., Ltd. for unfair competition for many times. According to the survey data of Tianyan, from February 20 19 to February 2020, the relevant court announcements between Mengjinyuan and Cartier International Co., Ltd. reached as many as seven times, and both parties initiated lawsuits around trademark infringement and unfair competition.
Meng Jinyuan said that the company will not infringe on the legitimate rights and interests of third parties, and has clear requirements and detailed management regulations for customers who join. If the customer causes losses to the company, the infringer will compensate the company in full. In addition, the amount of the subject matter of the case is not large, which will not constitute a substantial obstacle to the company's operation and IPO process.
Strange "free"
From the perspective of sales model, the sales channels of Mengjinyuan include franchise model, e-commerce model, self-operated model and other models. By the end of the first quarter of 2020, the company had 2446 franchised stores and 22 self-operated stores nationwide, mainly distributed in third-and fourth-tier cities, covering nearly 300 prefecture-level cities and more than 400 county-level areas.
From 20 17 to the first quarter of 2020, the company's franchise channel sales revenue was1317100,000 yuan,133.36 million yuan,136.29 million yuan and/kloc-respectively.
The prospectus shows that with the expansion of the company's business scale, it is more difficult for the company to manage franchisees and provincial agency service center customers. In addition, the company has a large number of franchisees and a wide geographical distribution. The personnel, capital, finance and management of franchisees and provincial agency service center customers are independent of the company, and their business behaviors are greatly influenced by their respective business capabilities and risk preferences. If the business activities of franchisees and provincial agency service center customers deviate from the company's brand management purpose, the company fails to control them in time, which will adversely affect the company's brand image and future development.
Meng Jinyuan told reporters that in order to continuously improve core competitiveness and sustainable profitability, the company incorporated marketing network construction into fundraising projects, and further enhanced brand influence and market share of main products by increasing marketing network construction, moderately expanding the proportion of self-operation, and enhancing market development ability and quick response ability.
However, the reporter noticed that many customers complained about the false sales of Mengjinyuan, and the gold bracelet faded seriously. One of the complainants said that he bought a gold bracelet in Taobao Mengjinyuan flagship store. After wearing it for 2~3 times, he found that the color of the brave ingot was seriously faded. It's no use rubbing it with alcohol according to the seller's instructions. He doubts the authenticity of the product.
In addition, the sales staff of Mengjinyuan told reporters that there is no depreciation charge for trade-in products. Except for the products made by the ancient method, other products do not charge fees such as process fees, but only make up the difference.
However, the official of Mengjinyuan said otherwise. Under the daily trade-in sales model, when franchisees or provincial agency service centers replace the old products of the "Mengjinyuan" brand with new products, the processing fees charged by the company for new products are consistent with the normal sales fees; When holding "one yuan exchange" and "preferential exchange" activities, the company will charge a lower preferential service fee within the weight range of the qualified second-hand goods, and the excess part is consistent with the normal sales service fee standard.
The official statement obviously contradicts what the salesman said. What is the secret of "free" for sales staff in Mengjinyuan? Our reporter will investigate further.
In addition, a complainant claimed that Mengjinyuan replaced the tiger balm with the same brand and weight within a time limit of 1 yuan every year, and the processing fee from 30 yuan was charged when buying it. When he made a customer service complaint, the reply he got was an employee's personal problem, which had nothing to do with the company.
Jiang Shu told reporters that the biggest weakness of franchise stores lies in quality control and personnel management. Franchise stores need to complete performance indicators, and under the stimulation of interests, they are likely to take bad measures to complete their performance.