Financial electricity dealers are hard to make money

Financial electricity trader hard to make money the third quarter of East Finance quarterly continued to lose more than 20 million

Oriental Wealth (300059.SZ) The Fund's third party sales service, with great expectations, failed to save the company's losses in the first three quarters.

On the evening of October 24, the company disclosed the three quarterly results report, the reporting period, the company's third quarter to achieve operating income of 64.53 million yuan, an increase of 50.03%, but not increase profits, net profit still loss of 6.2282 million yuan, compared with the same period last year a sharp decline of 270.44%.

As of the first three quarters of this year, the company realized operating income of 141.6912 million yuan, down 17.25%, to achieve the ownership of the listed company's shareholders net profit is-22.954 million yuan, compared with a year earlier profit of 46.2546 million yuan, a sharp reduction of 149.63%.

In this regard, the company said the main reason for the loss of the company's performance is due to the financial data services business in the last year received a sharp drop in revenue, 2013 years ago, the three-quarter deferred income confirmed a sharp decline in year-on-year, 2013 years before the three quarter financial data services business revenue fell sharply. At the same time, by the macroeconomic situation and the company's business promotion of the overall arrangement of the impact of 2013 years ago in the three quarter of the company's Internet advertising services revenue Year-on-year also showed a certain extent of decline.

Securities industry researchers are not surprised that Eastern wealth has continued to wane in the first three quarters of this year. "At present, the company pursues the strategy of price war." In this context, the sustainability of its profitability and its relative competitive advantages are difficult to maintain for a long time. "Moreover, because the whole stock market is still relatively depressed, downstream customers have a decline in profitability, industry competition intensified, the company is expected to not have a more significant improvement in the near future." ”

The company insiders also recognized that in the price-oriented market environment, the price problem can not be avoided, the company will only be lower.

Third party sales "make a yell"

It is worth mentioning that the company disclosed in the night of the three seasons, 2013 years ago three quarter, the fund third party sales and service business achieved rapid development, the company's financial e-commerce Platform fund sales scale up sharply, financial e-commerce services business revenue from the same period last year, has become one of the company's core business.

However, up to now, the company's third party sales and service business has not become a veritable core business, its profitability is not really reflected.

2013 years ago, the three quarter, the company's financial e-commerce services business to achieve income of 31.6063 million yuan, accounting for the total operating income ratio of 22.31%. In the third quarter of 2013, the financial e-commerce service realized income of 21.3354 million yuan, accounting for the total operating income ratio reached 33.06%. As of September 2013, a total of 62 fund companies, 1322 fund products. 2013 years ago three quarters, the company's financial E-commerce service platform to achieve the fund to realize the purchase and the regular quota of 962246 purchase transactions, the fund sales of 15.123 billion yuan. Among them, the third quarter of the company's financial E-commerce platform for the total realization of the Fund to realize the purchase and regular subscription transactions 754392, the fund sales of 12.944 billion yuan.

Prior to that, the company wholly-owned subsidiary "Shanghai Daily Fund Sales Co., Ltd." on May 2, 2013 launched "Every Day Cash treasure" business, June 26 Perfect and officially renamed "Demand Treasure" business, as of September 30, 2013, "demand treasure" total implementation of the purchase transaction 449557, The total sales amount is 9.803 billion yuan.

In this respect, some people said, as of now, the fund sales market, the standard commission in 1.5%, and the company is now basically maintained in 40 percent (that is 0.6%) sales commission ratio. Among them, the partial Stock Fund sales commission is relatively high, and in the sale and redemption, respectively, according to 0.3% and 0.5% of the level of extraction. And the monetary Fund is basically according to the proportion of 0.3% of the year by the holding day gradually extracted.

"Therefore, in the current company with the main money fund sales structure, to achieve a substantial increase in profitability is still to be a while." "The people said.

At the same time, the company's investment in the new business is high. During the reporting period, the company's sales cost increased from $23.32 million to $29.0812 million over a year earlier, to 25% per cent, and management fees increased from 15.1017 million to 23.0953 million yuan in the same period last year, up 53% from a year earlier. Mainly because the company has further increased the strategic and business investment, the size of personnel compared to a certain degree of growth in the same period last year, the corresponding staff remuneration, rental fees and other year-on-year growth.

Big Fight price war

It is worth mentioning that, because the market competition white-hot, as the company's Fortune financial data services business companies now have to sacrifice a price war "butcher knife." Up to now, the company a large number of products and services are free, and even the introduction of the Oriental wealth through the terminal is free. In addition, this July, the company spent a huge sum of money to push choice information, adopted a very low price strategy.

"In fact, the company's revenue has not changed much, but the company's profits are significantly lower, a large part of the reason is that the company's investment in research and development is very high." "said the company insiders.

In this regard, Societe Generale, a researcher, although the company's Choice information platform free mode will disrupt the information platform of the institutional market, but the profit model is afraid to find.

"We think the company has invested heavily in creating new products and has not taken a clear view of the profitability model, and expects the direction of development not to be as bright as the company's management expects." The researcher said.

The company insiders admit that in the initial stage of product launch, the company did not consider too many issues of profitability, mainly to expand market share. In the realization of a certain number of institutional users, and then consider the problem of profit model.

The company said in a significant reduction in the price of the agency's Information Service terminal is "1000 damage to the enemy 800 of the strategy". The reason is that the institutional users mainly to the buyer's research team and the seller, the high conversion cost is the main reason for the high price of Terminal Services. In its view, the important thing is that the cost of conversion is mainly based on the continuous maintenance of customers and "implanted into the customer system gene" to achieve, as the price is a secondary factor. It is expected that the company's customers will be mainly the new institutional market, and expand the existing institutional consulting market will be difficult.

Previously, the chairman of the company has in fact said to the outside world, he is an internet company, and examples of micro-letters and other social platforms in the pursuit of user groups in the external effects. The company hopes to attract customers by increasing the risk-return rate of their products, by expanding the user community to achieve multiple market synergy.

However, the securities industry researchers mentioned above do not agree with this. Because of the homogeneity of financial products and the cost of 0 logistics, sellers cannot build their own competitive advantage, which leads to the worse competition. In addition, compared with the external effects of micro-letter and Taobao, the corporate platform model can not produce the micro-letter external effect. Because the micro-credit customers because most of their friends are using it, and investors do not, and should not because most people are here to buy funds, so they also want to buy funds here. For commodities such as the fund's large investment, the threshold of such external effects is not enough to lock down the user base to reduce competitive pressures.

The researcher believes that if it is similar to Alipay's "balance Treasure" type of fund commodity, because its target group is 1 yuan to hundreds of yuan of funds, but also may effectively lock the client of this part of the funds, but, the same customer's large investment funds, will still face a variety of sales channels of competition.