Facing the pressure of performance and cost, Haixin Foods Co.Ltd(002702) (002702) executives proposed a voluntary salary reduction.
executive voluntary salary reduction
On December 24, Haixin Foods Co.Ltd(002702) issued an announcement on the voluntary salary reduction of senior managers and the formulation of the salary plan for senior managers in 2022.
according to the company’s salary management plan, the annual salary of senior managers is divided into monthly salary and year-end bonus (including annual performance award and annual profit Award). The assessment indicators are set according to different positions, and the year-end bonus is paid according to the assessment of senior managers in February of the next year.
The annual performance and profit assessment shall be based on the annual operating income of the company and the net profit after deducting the profits and losses from the disposal of non current assets. If the performance reaches more than 90% (inclusive) and the profit reaches more than 80% (inclusive), the achievement bonus can be enjoyed (assessed and calculated separately).
According to the announcement, the salary plan for 2022 will be based on the salary plan for 2021. The salary of Teng Yongyan, general manager, will be reduced by 52%, Zheng Shunhui, chief financial officer, by 19%, and Zhang Yingjuan, deputy general manager and Secretary of the board of directors, by 11%.
that is, general manager Teng Yongyan’s total monthly salary plus annual performance appraisal award is 600000 yuan, and chief financial officer Zheng Shunhui and deputy general manager and Secretary of the board of directors Zhang Yingjuan are 900000 yuan and 500000 yuan.
The announcement said that according to the articles of association and the remuneration management system for directors, supervisors and senior managers, the remuneration of directors who hold senior management or other management positions of the company at the same time shall be determined according to the remuneration system of senior management of the company, and they will no longer receive director allowance. For supervisors who hold other positions in the company at the same time, their salary is post salary, which shall be assessed by the company’s management, and they will not receive supervisor allowance separately. Therefore, the directors and supervisors of the company will adjust the remuneration plan for 2022 with reference to the remuneration plan for senior managers.
the independent directors of the company believe that in order to show their determination to spend the crisis with the company and boost the confidence of all employees of the company, the senior managers proposed a voluntary salary reduction to the board of directors of the company. The assessment standard of the remuneration scheme for senior managers in 2022 is in line with the actual situation of the company’s operation and management. Both restraint and incentive are emphasized, which is conducive to strengthening the diligence of senior executives.
decline in performance in response to rising costs
Haixin Foods Co.Ltd(002702) announced that since 2021, the company has faced multiple pressures such as the adjustment of external consumption environment, fierce industry competition and the rise of upstream costs, and its operating performance has declined sharply in the first three quarters. In line with the continuous attention to the business environment and a high sense of responsibility, the senior management of the company voluntarily proposed to reduce the salary in 2022 in order to show their determination to spend the crisis with the company and boost the confidence of all employees of the company.
As a quick-frozen food industry enterprise in close contact with the end consumer market, Haixin Foods Co.Ltd(002702) has gradually formed an overall business system with quick-frozen surimi products series as the core and taking into account quick-frozen meat products and other quick-frozen foods, and improved the industrial pattern of deep processing and sales of surimi and surimi products.
Under the pressure of soaring costs, leading enterprises including Haixin Foods Co.Ltd(002702) , Fu Jian Anjoy Foods Co.Ltd(603345) , Sanquan Food Co.Ltd(002216) , Zhengzhou Qianweiyangchu Food Co.Ltd(001215) have intensively adjusted their sales prices in the past two months.
Haixin Foods Co.Ltd(002702) in November, it was announced that in view of the continuous rise in the costs of raw materials, labor, energy and transportation, in order to better provide high-quality products and services to dealers and consumers and promote the sustainable development of the market and industry, it was decided to reduce the promotion policies of some quick-frozen surimi products, quick-frozen dishes and quick-frozen rice flour products or increase the distribution price, The price adjustment range is 3% – 10%, and the new price shall be implemented according to the price adjustment notice of each product from the date of announcement. However, the company also said that the adjustment of the product sales price will help to improve the company’s profitability, but the impact of the product price adjustment on sales is still uncertain, and the duration of the new sales price is uncertain, so there is a risk that the product price will continue to fluctuate.
In the first three quarters of 2021, Haixin Foods Co.Ltd(002702) achieved an operating revenue of 1.082 billion yuan, a year-on-year increase of 1.44%; The net profit loss was 30.6578 million yuan, a year-on-year decrease of 146.47%.
In addition to the cost pressure, Haixin Foods Co.Ltd(002702) also mentioned in the previous analysis of the reasons for the performance loss in the first half of 2021 that during the period, the company’s modern channels represented by supermarkets and BC declined significantly due to factors such as passenger flow and community group purchase; The first half of the year was the off-season of the industry, and the company added some capacity due to the epidemic last year, resulting in insufficient capacity utilization and rising costs this year; In addition, last year’s social security tax reduction policy and the cost base of travel and entertainment were low, which returned to the normal level this year. At the same time, the company also increased its sales investment, resulting in a year-on-year increase of 31.22% and 29.72% respectively in sales expenses and management expenses, while the sales revenue did not meet expectations, resulting in an increase in expense rate.
(E company)
