Under the pressure of performance, can Beichuan rely on “artificial massage” to break the game?

Beichan (688793.SH), a listed company on the Science and Technology Innovation Board, known as the “first stock of healthy smart hardware”, is about to add artificial massage items to its offline stores to find growth points with a new operating model. In terms of performance, the performance of the offline stores declined this year, and the net profit in the first half of the year fell by 185.72% year-on-year. Under this circumstance, it still takes time to test whether it can achieve the effect of boosting performance through the new operating model.

Ding Yifan, reporter from Shandong Business Daily and Subao News Network

“The first share of healthy intelligent hardware” adds artificial massage

On October 17th, Beichuan issued an announcement saying that in order to expand its business scope and explore revenue growth points, it plans to add artificial massage items in directly-operated stores to guide potential target user groups to enter the store for experience, and realize intelligent portable massager products. The effective combination of artificial and professional massage technology can improve the satisfaction of users entering the store and stimulate consumers’ enthusiasm for purchasing. In view of this, the company plans to increase the business scope of “health care services (non-medical)”.

According to the data, Bexeasy was established in July 2000. It is a high-tech enterprise focusing on the innovation and research and development of health products. It is mainly engaged in the design, research and development, production, sales and service of intelligent portable massagers. It will land in Kechuang in July 2021. plate.

Some analysts believe that, as a high-tech enterprise that focuses on product innovation and research and development, Beiqiong suddenly announced the addition of artificial massage projects. The purpose is obviously to expand the business scope and find new growth points to boost performance.

As we all know, Beichuan started with direct sales stores, and promoted and sold products by setting up stores in airports, high-speed railway stations, and mid-to-high-end shopping malls. According to the prospectus, from 2018 to 2019, the offline sales revenue of Beiqiongyi accounted for more than 50% of the company’s main business revenue.

However, the performance report for the first half of 2022 shows that the company’s offline channel revenue in the first half of this year was 129 million yuan, a year-on-year decrease of 38.94%. Regarding the decline in the performance of offline stores, Beichuan explained that the company’s offline direct-operated stores are concentrated in high-cost transportation hubs and high-end shopping malls, and the passenger flow of transportation hubs has declined significantly in the first half of the year, resulting in a decline in revenue.

Offline store performance continues to be under pressure

According to the semi-annual report, in the first half of this year, BEA easily opened 23 new offline direct-operated stores, and optimized and adjusted 34 stores. As of the end of the reporting period, the company had a total of 202 offline stores, including 174 offline direct-operated stores and 28 offline franchise stores. Among the offline direct stores, there are 107 shopping mall stores, accounting for 61.49%, and 67 transportation hub stores, accounting for 38.51%.

Regarding the decline in the performance of offline stores, Beichuan explained that the company’s offline direct-operated stores are concentrated in high-cost transportation hubs and high-end shopping malls, and the passenger flow of transportation hubs has declined significantly in the first half of the year, resulting in a decline in revenue.

It was also mentioned in the Shanghai Securities Research Report that the poor revenue performance of the company in the second quarter of this year dragged down the overall performance in the first half of this year. The main reason was that the company’s offline revenue contracted sharply. Nearly 40% of its stores were located in transportation hubs, and the epidemic spread in the second quarter. The scope is relatively large, and the poor passenger traffic has had a direct negative impact on the passenger flow of offline stores in the second quarter, superimposed on the high base in the same period last year, resulting in the poor performance of offline store sales revenue year-on-year.

Against the background of the overall poor consumption situation and the overall slowdown in online growth of the industry, Bexeasy maintained a positive online growth in the first half of 2022, but the growth rate declined significantly, and the growth rate in the second quarter was negative. Under the pressure of performance, profitability weakened. Due to the decline in offline channel passenger flow, the company’s high-margin product sales were limited. In the first half of 2022, the gross profit margin was 52.96%, a decrease of 7.98 percentage points, of which the gross profit margin in the second quarter of 2022 was 51.84%, a decrease of 11.88 percentage points.

Provide combined service with different smart massagers

Whether the addition of artificial massage items can boost performance is still unknown. However, as for the purpose of adding this project, Beichuan responded to a reporter from Shandong Business Daily and Subao News Network, saying that the purpose of the service is to promote consumer experience and promote the Beiyiyi smart massager.

As far as the specific service form is concerned, Beichuan replied that the company intends to increase the business scope of “health care services (non-medical)”, and the operation model provides a variety of optional combined massages for customers who use Beiyi’s different smart massager products. While experiencing the service, it helps consumers to formulate personalized smart massager health care plans that meet their own health needs, so that consumers can better enjoy the ultimate health brought by the smart massager in different scenarios such as home and work. Wellness experience.

According to the statistics of the “China’s Big Health Industry Strategic Planning and Corporate Strategic Consulting Report” released by the Prospective Industry Research Institute, it is predicted that the scale of my country’s big health industry will reach 14.09 trillion yuan in 2023. At present, the market penetration rate of domestic massage appliances is about 1.5%, and there is still a lot of room for development. It still takes time to test whether Beiqiong can achieve the effect of boosting performance through the new operating model.