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Interpretation of the more than Q3 financial results: dead agriculture shrink self-employment, transformed into "more farmers"? | the planet of wealth

via:新浪科技     time:2021/11/27 13:07:21     readed:545

Sina Technology Yang Xuemei

On November 26th, Theodore reported its third quarter 2021 results for the year to September 30th. According to the financial report, total revenue for the reporting period was RMB21,505.8 million (US$3,337.6 million), up 51% YoY and down 7% YoY, below market expectations of RMB26,474 million. Net profit attributable to Common Shareholders of Pindo was RMB1,640 million, compared with a net loss of RMB784.7 million a year earlier. Non-U.S. GAAP, net profit attributable to common shareholders was RMB3,150.2 million, compared with RMB466.4 million a year earlier.

Chen Lei, chairman and CEO of Pindo, said that after the second quarter, the profits for the quarter will also be fully invested in the "10 billion agricultural research special project": "We will focus more on research and development, and take advantage of the technical advantages of more than one, to further promote the digitization of agriculture." ”

  Trading services up 161% Merchandise sales fell sharply

In terms of user numbers, the number of active buyers on multiple platforms reached 867.3 million at the end of September, up 19% from a year earlier, and the average number of monthly live users of Synopdor apps reached 741.5 million in the third quarter of this year, up 15% from a year earlier.

According to the China Internet Network Information Center released the "China Internet Development Statistics Report" shows that as of June 2021, China's Internet users reached 1.011 billion. After six years of rapid growth, while the total number of users is considerable, the size of the number of users has inevitably hit the ceiling of user growth. In terms of annual buyers, net increases for the quarter were about 17 million, down sharply from the previous quarter and well below market expectations of more than 20 million.

In terms of business structure, the operating income of the platform is mainly composed of three parts: platform online marketing technical services, transaction services, commodity sales, of which the platform online marketing technical services operating income of 17.946 billion yuan, up 43.7% YoY; Revenue from merchandise sales in the last quarter was RMB1,958.2 million, down sharply from the previous quarter.

The GMV situation has not been disclosed in the quarter. However, from the financial report, merchandise sales revenue fell significantly. It may be due to weak GMV growth, the average annual consumption of users encountered bottlenecks.

Merchandise sales revenue is the new business in 2020, including revenue from proprietary business. Notably, in the first quarter of 2021, the business accounted for 23% of revenue, rising to the second largest source of revenue.

In the current quarter, the change of sales revenue of more than one commodity has attracted more attention. Ma Jing responded on the earnings conference call that when the business was first launched, it was clear that the 1P (proprietary) business was only temporarily providing consumers with products that the merchant had not sold. Therefore, 1P business is not the focus of more than one. "As platform merchants become more diverse, we don't expect the 1P business to generate higher revenue for more."

With the contraction of proprietary business, the future growth potential of The Polydo may also be seen as a three-way platform for the main industry and the operating capacity and financial performance of the multi-buying business. In recent years, agriculture has been the core of the corporate mission and strategy. Among them, buy more vegetables is part of its agricultural layout.

  Can agriculture be the second growth curve?

This is the second consecutive quarter of net profit for the second consecutive quarter. Ma Jing, its vice president of finance, said the main reason for the profits over the past two quarters was the leverage of sales and marketing spending.

In terms of costs, marketing costs fell for three consecutive quarters, and research and development investment reached a new high. Marketing expenses for the quarter were RMB10,050.6 million, down 3% yoY, while research and development expenses were RMB2,422.4 million, up 34% YoY, mainly for investment in technology platforms and recruitment of research and development personnel. It is reported that more than 60% of the staff for research and development personnel.

Mr Chen said The multi-ed would shift more of the focus of the past five years to research and development. This year 618, double 11 big push, more than have taken the "low-key" route, also did not publish turnover and other data.

In agriculture, in August this year, the company set up a "10 billion agricultural research special project", announced that the second quarter and the next few quarters of profit priority into the special. At the end of September, the "Ten Billion Agricultural Research Project" was approved by the shareholders' meeting. After the second quarter profit is fully invested in the special project, the full profit of the second quarter will continue to be invested in the special, further promoting agricultural science and technology inclusive.

The company is now shifting its focus and investment to research and development to lay the foundation for stable long-term growth in the future. It is expected that its future research and development costs will increase. Chen also said the company will provide more opportunities for young talent, and in the next six months to a year, more young managers will come to power and assume important functions.

However, the impact on third-quarter finances has not yet been reflected in the results, as the "10 billion agricultural research project" was approved by the company's shareholders' meeting at the end of September.

At present, the consumer market is weak, more to maintain faster user growth there is still greater pressure. In the case of continuous investment in agriculture, short-term scale growth and profit realization are facing certain challenges, and whether agriculture can become the second growth curve, there is also greater uncertainty.

Chen Lei said in the earnings conference call, "Now the user base has been very large, how to let consumers try new categories, access to new experiences, how to meet their growing expectations, so as to enhance the trust of users, improve the psychological share of our users, this is a new challenge to fight more." ”

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