Stock Price Drops 64%+: Over 90% of Raised Funds Invested in Financial Products

Performance turned sour immediately after going public, with the stock price plummeting from 95 yuan to around 14 yuan, and the underperformance has long exceeded 60%; raised over 1 billion yuan for w...

Performance turned sour immediately after going public, with the stock price plummeting from 95 yuan to around 14 yuan, and the underperformance has long exceeded 60%; raised over 1 billion yuan for wealth management, but only used up to 24 million yuan to repurchase its own shares...

On February 26th, Jiemeite (300868) closed at 14.35 yuan, with a gain of 2.57%.

Data shows that at the time of going public, Jiemeite's issue price was 41.26 yuan per share. On the first day of listing, its stock price once reached a peak of over 95 yuan per share (adjusted for rights, the same below), but then the company's stock price began to fall all the way. It once fell to a low of 8.88 yuan. Even now, it is close to 14 yuan per share, and the drop from the peak stock price has approached 85%...

Not only that, after breaking the issue price at the beginning of 2021, its stock price has been in a long-term underperformance state, and now the underperformance is still more than 64%...

At the beginning of February 2024, based on confidence in the company's future development prospects and high recognition of the company's value, in order to maintain the company's value and the rights and interests of investors, Jiemeite launched a repurchase plan.

According to the announcement, the total amount of funds Jiemeite plans to use for repurchase is not less than 12 million yuan and not more than 24 million yuan, and the repurchase price does not exceed 29 yuan per share; then on February 6th, the company repurchased 734,900 shares of the company for the first time through a centralized bidding transaction, with a total payment of about 8.249 million yuan.

In fact, behind the continuous decline of Jiemeite's stock price, its performance is also not optimistic...

It is reported that Jiemeite was established in 2006. It is a comprehensive high-tech development enterprise integrating research and development, design, manufacturing, sales, and service. It is one of the famous domestic mobile intelligent terminal accessory companies. In 2020, Jiemeite was listed on the Growth Enterprise Market of the Shenzhen Stock Exchange, becoming the "first stock of Chinese mobile phone cases".

Before going public, from 2017 to 2019, Jiemeite's revenue increased from 541 million yuan to 829 million yuan, and net profit increased from 39.83 million yuan to 131 million yuan; in 2020, the company's revenue increased to 855 million yuan, net profit slightly decreased to 106 million yuan, and net profit attributable to the company decreased to 89.81 million yuan, a year-on-year decrease of 33.15%.Immediately following, Jie Meite's performance underwent a complete transformation! In 2021, the company's revenue plummeted to 715 million yuan, with a net profit of only 28.22 million yuan, a staggering year-over-year decrease of 73.47%, and the net profit after deducting non-recurring gains turned negative; the situation remained the same in 2022, with the company incurring a net loss of 116 million yuan due to the combination of credit impairment losses and asset impairment losses, and the net loss after deducting non-recurring gains increased to 158 million yuan...

According to the 2023 performance forecast, Jie Meite anticipates a net loss of 69 million yuan to 99.5 million yuan for the year 2023, with a net loss after deducting non-recurring gains ranging from 96 million yuan to 139 million yuan...

In response to this, Jie Meite explained that the primary reason was the change in the company's revenue structure both domestically and internationally, which led to a decrease in the overall gross margin. Additionally, fluctuations in exchange rates resulted in increased financial expenses, and the increase in bad debt provisions for accounts receivable also contributed to the losses.

It is noteworthy that Jie Meite raised 1.32 billion yuan (net amount of 1.19 billion yuan) in its initial public offering, and currently, over 90% of the raised funds have been used to purchase financial products!

According to the announcement on February 8th, as of the date of the announcement, the company's cumulative balance of unused raised funds for cash management that have not yet matured amounts to 1.077 billion yuan.