Shenzhen Dama has suffered losses for four consecutive years, and the actual controller has cashed out 1.6 billion

Shenzhen Silver Zhijie is still making losses in 2024, with losses exceeding 600 million yuan for four consecutive years. However, the actual controller and major shareholder are "well fed and well drunk", with a total cash out of share reduction exceeding 1.6 billion yuan.

Yinzhijie's losses will exceed 100 million in 2024

According to the 2024 performance forecast released by Yinzhijie , the net profit attributable to shareholders of the listed company in 2024 is expected to be a loss of 100 million to 130 million yuan, while the net profit attributable to shareholders of the listed company in the same period last year was a loss of approximately 117 million yuan.

The Shenzhen retail giant suffered losses again in 2024, and has been losing money for four consecutive years since then.

In 2024 , Yinzhijie's overall operating income is expected to decrease by about 13.60% compared with the previous year, among which the financial information technology business will decrease by about 32.70%; the mobile information service business will decrease by about 16.26%; and the e-commerce business will decrease by about 2.52%.

The company 's main business total net profit was a loss of 61.9653 million yuan to 91.9653 million yuan . Among them, the financial information technology business and mobile information service business suffered losses due to the decline in operating income, while the e-commerce business maintained stable profitability.

Other factors leading to losses are that the impact of the company's strategic investment, East Asia Qianhai Securities, on the company's investment income in 2024 will be approximately -38.03 million yuan.

In the third quarter of 2024, the company achieved revenue of 647 million yuan, a year-on-year decrease of 15.03%. Non-net profit was -64.6072 million yuan, an increase in losses compared with the same period last year. Yinzhijie's net profit in the third quarter of 2024 was -62.998 million yuan, and its performance increased compared with the same period last year.

After the release of the third quarter report in 2024 , Yinzhijie's losses were inevitable. In the first three quarters, the company achieved operating income of 647 million yuan, a year-on-year decrease of 15.03%; the net profit attributable to shareholders of the listed company was a loss of 62.998 million yuan. Among them, the third quarter achieved operating income of 222 million yuan, a year-on-year decrease of 6.32%; the net profit loss was 12.9711 million yuan.

In the first half of the year, the company achieved operating income of 425 million yuan, a year-on-year decrease of 18.97%; the net profit attributable to the parent was a loss of 50.0269 million yuan, compared with a loss of 27.3374 million yuan in the same period last year; the non-net profit was a loss of 51.2384 million yuan, compared with a loss of 30.163 million yuan in the same period last year .

In fact, Yinzhijie has been in a loss-making state since 2021. In 2021, Yinzhijie's revenue was 1.188 billion yuan, a year-on-year decrease of 14.55% , and its net profit loss was 283 million yuan ; in 2022, its revenue was 1.116 billion yuan, a year-on-year decrease of 6.05% , and its net profit loss was 122 million yuan ; in 2023, its revenue was 1.015 billion yuan, a year-on-year decrease of 9.06% , and its net profit loss was 117 million yuan .

From 2021 to 2023, Yinzhijie suffered a cumulative loss of 522 million yuan. As for the reasons for the loss, Yinzhijie explained in its financial report that the main reasons involved industry competition, the downward trend of the global economic environment and other factors, and it was not a serious deviation from the industry trend.

An institution asked the company whether it was at risk of being delisted, as its operating income declined significantly from 2021 to 2023 and its net profit was also in a loss-making state. Can it turn losses into profits? Yinzhijie replied that the company's business was normal and there was no situation that might trigger delisting or other risk warnings. The company continued to work hard to improve its operating performance from two aspects: reducing costs and increasing efficiency in traditional businesses and actively exploring innovative businesses .

The four people cashed out a total of more than 1.6 billion

Against the backdrop of a sharp decline in Yinzhijie's performance, the company's actual controller has repeatedly reduced its holdings to cash out.

It is understood that Yinzhijie was established in 1998. The three actual controllers are Zhang Xuejun, Chen Xiangjun and Li Junyu. The company was listed on the Shenzhen Stock Exchange in May 2010.

In 2013, three years after its successful listing , the company's operating income was only 110 million yuan, less than 18 million yuan more than at the time of IPO. It can be seen that Yinzhijie's operating performance has not been optimistic for many years.

Losses don’t matter. After the company goes public, the actual controllers and major shareholders can make profits by reducing their holdings and cashing out.

In 2016, when Yinzhijie's stock price was hyped up, the three actual controllers and the second largest shareholder cashed out in a big way. Zhang Xuejun cashed out 330 million, Chen Xiangjun cashed out 150 million, Li Jun cashed out 130 million, and the second largest shareholder He Ye also cashed out 260 million.

In 2021, Yinzhijie's subsidiary Yimei Soft "exploded", with a large provision for goodwill reaching 132 million yuan, and Yinzhijie started years of large losses.

Since March of this year , several founders have started to cash out in turn, and they cashed out through secondary market reduction, block trading and other methods, selling slowly one by one. Chen Xiangjun cashed out 105 million, Li Jun cashed out 138 million, and the second largest shareholder He Ye cashed out another 190 million.

In September 2024, the three actual controllers once again put forward a new share reduction plan, transferring 7% of their shares in the company to Zhuo Haihang through an agreement transfer, and the total transaction price was approximately 348 million yuan.

The transfer price is 7.05 yuan per share, which is 80% of the previous closing price. The condition for giving such a preferential price is that the transferee Zhuo Haihang promises not to reduce the shares transferred in this agreement within 6 months after the equity registration transfer.

Since then, the three actual controllers plus the second largest shareholder have cashed out more than 1.6 billion yuan from Yinzhijie by reducing their holdings .

Judging from the actions of the actual controller, Yinzhijie will inevitably suffer losses in 2024, and the subsequent situation is not optimistic.

Revenue increased 7 times but still in the red

It is understood that Yinzhijie was established in 1998, with two main businesses, namely financial information technology business and e-commerce. At first, the company mainly engaged in software development, serving banks and other financial institutions, and providing software and hardware related services such as payment settlement, risk prevention and control, business process reengineering, digital transformation, and self-service. Since 2014, Yinzhijie has embarked on a year of frequent mergers and acquisitions and diversified development, laying out three major businesses: financial informatization, mobile information services, and e-commerce.

Yinzhijie spent 300 million yuan to acquire 100% of the equity of Yimei Soft. By acquiring this SMS service agent, the company realized its layout in the field of mobile Internet data services. After that, it also acquired Anke Youxuan and laid out cross-border e-commerce services.

In the field of e-commerce services, the company's business mainly comes from Anke Youxuan's cross-border e-commerce business with home security and smart home as its main products. As of the first half of 2024, Anke Youxuan has focused on increasing the market publicity and promotion of its own brands, and its service areas have covered more than 110 countries and regions around the world, including the United States, the United Kingdom, Germany, Russia, Australia, etc. The company's e-commerce service business achieved operating income of 174.1605 million yuan.

After going public, the company's revenue increased but profits did not for three consecutive years. In 2014, it acquired two subsidiaries, Yimei Soft and Ke'an Innovation, and then launched two products in the information service and e-commerce sectors. The company's revenue increased tenfold.

From 2014 to 2023, Yinzhijie's revenue soared from 192 million yuan to 1.015 billion yuan, an increase of 428%; however, the company's net profit turned negative, from 28 million yuan in 2014 to -117 million yuan in 2023; the market value was 10.8 billion in 2014, but only 10.1 billion in 2023.

Revenue increased 7 times, but profit was in the red, and the market value remained basically the same. From the overall development of Yinzhijie, this company did not win by developing its own products, but expanded revenue and profit through acquisitions and mergers. Once the actual controller and shareholders cashed out, thousands of shareholders were left in a mess.

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