bluebaccarat| Piano sales fell like a cliff, deducting non-net profit for the first time, and Zhujiang Piano plans to increase its investment in the performing arts industry
After a series of sharp falls in performanceBluebaccaratPearl River Piano (002678) plans to invest in the performing arts industry. Recently, Pearl River Piano first signed a strategic cooperation agreement with Guangzhou Ruifeng Audio Technology Co., Ltd. (hereinafter referred to as "Ruifeng Audio") to jointly promote cooperation in the field of cultural industry.
In the follow-up, Pearl River Piano also announced the establishment of Guangzhou Zhujiang Ruifeng Culture and Travel Development Co., Ltd. (hereinafter referred to as "Zhujiang Ruifeng") jointly with Guangzhou Ruifeng Culture Communication Co., Ltd. (hereinafter referred to as "Ruifeng Culture") and Guangzhou Future Performing Arts Engineering Co., Ltd. (hereinafter referred to as "Future Performing Arts Company"). After its establishment, Zhujiang Ruifeng will mainly be engaged in the field of cultural and performing arts.
Behind this, Pearl River Piano performance continues to be under pressure, with both revenue and net profit declining in the past two years. Among them, the deduction of non-net profit fell into a loss in 2023, and the company deducted the loss of non-net profit for the first time since its listing in 2012. In the first quarter of this year, its performance once again suffered a sharp decline, increasing the range of profits and losses.
Piano leader plans to add weight to the performing arts industry
On May 17, Pearl River Piano announced the signing of a strategic cooperation agreement with Ruifeng Audio, giving full play to their respective advantages to jointly promote cooperation in the field of cultural industry and establish a strategic cooperative relationship. The cooperation between the two sides includes cooperation in cultural industry, cooperation in cultural projects, planning and implementation of performing arts activities and promotion of performing arts market.
Pearl River Piano said that this cooperation will help the company's emerging business areas layout, build music and cultural development ecology, and constantly enhance the company's comprehensive competitiveness and sustainable development ability, in line with the company's strategic development plan.
On the basis of the above strategic cooperation, on May 22, Pearl River Piano announced that Ruifeng Culture and Future Performing Arts Company had signed a "Joint Venture Agreement" to jointly establish a joint venture company Zhujiang Ruifeng. The registered capital of the joint venture company is 100 million yuan, of which the Pearl River piano accounts for 48%, Ruifeng Culture accounts for 48%, and the future performing arts company accounts for 4%.
Zhujiang Ruifeng is mainly engaged in culture, sports and entertainment. According to the joint venture agreement, Zhujiang Ruifeng Culture assists in obtaining the performance license. In principle, all the business of concerts, music festivals, arts festivals, drama festivals, Oktoberfest and food festivals obtained by shareholders will be transferred to the joint venture company, and the shareholders promise not to compete for related businesses.
After undertaking the project, Zhujiang Ruifeng can entrust Ruifeng culture or related enterprises to be responsible for the specific implementation. If it cannot be undertaken by Zhujiang Ruifeng due to special reasons, it shall be divided and separated according to the district, and the personnel shall remain independent.
Zhujiang Piano said that the above cooperation companies deepening the key links in the strategic layout of the cultural industry will help the company to focus on the main business, open up the cultural sector, promote the optimization and upgrading of the industrial structure, and bring new economic growth points for the company. continue to enhance comprehensive competitiveness and sustainable development ability.
The author is concerned that the Pearl River piano, as a leading enterprise in the domestic musical instrument industry, has carried out cultural activities on its own. According to the financial report in 2023, the Pearl River Piano held more than 300 music and cultural activities such as the Huacheng Music Festival, the 2023 Pearl River Caesar International Youth Piano Competition and the Baiqin Concert.
Performance has declined for two consecutive years and lost money for the first time.
Pearl River piano plus performing arts industry, behind the company's relatively single source of income, performance has suffered a continuous decline. According to the 2023 financial report, more than 90% of the income of Pearl River Piano comes from the sales and after-sales service of musical instruments, while education, training, media and other businesses account for only 8% of the total income.Bluebaccarat.99%.
In the past two years, as the demand of the musical instrument industry is not as expected, the piano market demand has dropped sharply. At the beginning of this year, the topic of "cliff decline in piano sales" once went viral on Weibo, triggering a heated discussion among netizens.
According to the data of the China Musical instrument Association, the global economic growth is slowing and consumer confidence is insufficient, and the piano consumer market fluctuates periodically.BluebaccaratThe entry of foreign brands of second-hand pianos, the adjustment of college entrance examination policies, the overall complementarity of digital intelligent musical instruments and the diversification of musical instrument consumption and other factors have led to the diversion of piano consumption market.
Take Pearl River Piano, for example, in the past two years, the performance of Pearl River Piano has suffered a series of setbacks. In 2022, the revenue of Pearl River Piano fell by 17% compared with the same period last year.Bluebaccarat.82% to 1.66 billion yuan, and net profit fell 33.74% to 123 million yuan compared with the same period last year.
In 2023, Pearl River Piano's performance declined more sharply, deducting non-net profit into a loss. The company realized revenue of 1.128 billion yuan, down 32.05% from the same period last year; realized net profit of 5.879 million yuan, down 95.23% from the same period last year; deducted non-net profit of-46.2 million yuan, and the company deducted non-net profit loss for the first time since it was listed in 2012.
In the first quarter of this year, Pearl River Piano's performance did not improve, but the loss expanded, with net profit loss of 19.69 million yuan, down 164.07% from the same period last year, and non-net profit loss of 20.97 million yuan, down 181.37% from the same period last year.
Sales of Pearl River pianos have fallen sharply, both traditional and digital pianos. From 2021 to 2023, the sales of pianos were 143401, 110154 and 70927 respectively. Thus it can be seen that sales of pianos in 2023 fell below the 100000 mark, halving compared with 2021. As production outstripped sales, inventories rose 53.42 per cent year-on-year to 51315 units last year. In terms of digital pianos, sales last year were 34841, down 24.01% from the same period last year; inventory was 3443, up 54.12% from the same period last year.
The author notes that the overseas market is also depressed, and the gross profit margin is lower. From 2021 to 2023, the sales revenue of Pearl River Piano in overseas market was 298 million yuan, 297 million yuan and 188 million yuan respectively, and the gross profit margin was 11.01%, 18.08% and 8.65%, respectively. In the last three years, the gross profit margin of sales in the domestic market has all been higher than 20%, and the gross profit margin in 2023 is 22.24%.
With piano sales falling off a cliff, Pearl River Piano lost its non-net profit for the first time since its listing last year. In this context, it remains to be seen whether the Pearl River piano performance industry can improve its profitability.
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