According to the news on the official website of China Resources medicine on March 2, Dong-E-E-Jiao Co.Ltd(000423) former party secretary and President Qin Yufeng is suspected of serious violation of discipline and law. At present, he is subject to discipline review and supervision investigation by the Discipline Inspection Commission of China Resources medicine Holding Co., Ltd. and the Supervision Commission of Liaocheng City, Shandong Province.
Source: Official Website of China Resources medicine
The website announced on the same day that Dong-E-E-Jiao Co.Ltd(000423) former member of the Party committee and senior vice president Wu huaifeng was also suspected of serious violation of discipline and law. At present, he is under discipline review and supervision investigation by the Discipline Inspection Commission of China Resources Pharmaceutical Holdings Co., Ltd. and the supervision commission of Liaocheng City, Shandong Province.
in charge of the company for 14 years
Dong-E-E-Jiao Co.Ltd(000423) landed in A-Shares in 1996. Since listing for 10 years, the company’s share price has hovered around 5 yuan. Since 2006, Dong-E-E-Jiao Co.Ltd(000423) share price has risen explosively and reached a record high of 68.04 yuan / share in 2017.
In 2006, Liu Weizhi, who has been in charge of Dong-E-E-Jiao Co.Ltd(000423) for many years, resigned as chairman and director of the company, and Qin Yufeng, a director of the company, was appointed as the general manager of the company. According to public information, Qin Yufeng became a temporary worker through the recruitment of Dong-E-E-Jiao Co.Ltd(000423) factory in 1974. Since then, he has successively held the posts of section chief, director, assistant to factory director, deputy general manager and executive deputy general manager.
Since Qin Yufeng took charge of Dong-E-E-Jiao Co.Ltd(000423) , the company’s net profit has started a high-speed growth mode, increasing from 154 million yuan in 2006 to 2.085 billion yuan in 2018, maintaining profitability for many consecutive years.
It is worth noting that the growth of Dong-E-E-Jiao Co.Ltd(000423) performance is inseparable from “price increase”. According to incomplete statistics of China Securities Journal and China Securities Taurus reporter, since 2006, the company’s key products Dong-E-E-Jiao Co.Ltd(000423) have raised prices 17 times.
According to public information, the ex factory price of Dong-E-E-Jiao Co.Ltd(000423) main product donkey hide gelatin block rose from 200 yuan / kg in 2006 to more than 5000 yuan / kg in early 2020, with a price increase of about 25 times.
inventory clearing “labor pains”
In March 2020, the 2019 annual report issued by Dong-E-E-Jiao Co.Ltd(000423) triggered a heated discussion in the market. According to the announcement, the company’s net profit attributable to the parent company in 2019 lost 444 million yuan, a year-on-year decrease of 121.29%, which means that it has ushered in an inflection point after years of continuous growth in performance.
Dong-E-E-Jiao Co.Ltd(000423) this is explained as: “in 2019, the company mainly focused on clearing the channel inventory, strictly controlling the delivery and comprehensively reducing the quantity of channel inventory, especially in the second half of the year, further strengthening the clearing of channel inventory, which will have a certain impact on the performance in the short term.”
In January 2020, Qin Yufeng submitted a written resignation report saying that due to his retirement, he resigned from the positions of director, President and legal representative of the ninth board of directors, and resigned from the positions of member of the strategy committee and Nomination Committee of the ninth board of directors. After resignation, he will no longer hold any position in the company. Subsequently, Gao Dengfeng took over as the new president and led the company to focus on the main business of donkey hide gelatin, optimize and expand terminals around the three major products of donkey hide gelatin, compound donkey hide gelatin slurry and donkey hide gelatin cake, and take a series of measures to promote channel inventory digestion.
According to the 2020 annual report, Dong-E-E-Jiao Co.Ltd(000423) the inventory at the end of the year was 2.478 billion yuan, a year-on-year decrease of 7.53%; By the middle of 2021, the inventory will decrease by 4.6% year-on-year to RMB 2.029 billion; In the third quarter of 2021, accounts receivable also decreased from 469 million yuan at the end of 2020 to 267 million yuan.
Dong-E-E-Jiao Co.Ltd(000423) said in the semi annual report of 2021 that the growth of performance in the first half of 2021 was mainly due to the restorative growth of donkey hide gelatin and series products, driving the year-on-year increase of revenue.
A record of investor relations activities disclosed by the company in September 2021 shows that its current channel inventory has basically recovered. The company will actively respond to the national call to promote the inheritance, innovation and development of traditional Chinese medicine, extend existing brand categories, cultivate new products on the market, accelerate digital transformation and business model innovation, and cultivate the second growth curve; Through the extension of the parent brand, and at the same time, improve the ability of extensive investment and M & A, so as to achieve sustained and healthy growth.
However, the China Securities Journal China Securities Taurus reporter noted that on the evening of January 10, 2022, Dong-E-E-Jiao Co.Ltd(000423) repeatedly issued a number of personnel change announcements, and the company’s President Gao Dengfeng and Chairman Han Yuewei applied for resignation due to changes in work content. Cheng Jie was appointed president of Dong-E-E-Jiao Co.Ltd(000423) company.
