Securities code: 002650 securities abbreviation: Jiajia Food Group Co.Ltd(002650) Jiajia Food Group Co.Ltd(002650) record of investor relations activities
No.: 2021-17
Investor Guan ☑ Specific object research ☑ Analyst meeting
Activity □ media interview □ performance briefing
Other □ press conference □ Roadshow
□ site visit ☑ Others: teleconference
At 10:00-11:00 on December 23, online:
Zhikai investment LV Feifei
Yinhua Guo Sijie
Xuyuan asset Duan Yifan
Xinhua assets Lei Kai
Xinhua fund Cai Chunhong
Mutual assets Su Wenjing
Xiniu investment Wang Zhenyi
Camel bell assets Liao Yingfei
Wang Li, investment and Research Department
Longyuan investment Yan Kun
Juming investment Jin Xiaoting
Jiufang zhitou Wu Qingchun
Jinyuan assets Huang Jianting
Jinyuan assets Wang Yuqi
Jiang Xin fund Xie Aihong
Participant: Sun Yongtai, construction investment fund
Name and person: Harvest Fund Zhu Zijun
Member name cornerstone capital
Guolian’an Xu Yexiang
Everbright Bao Wang Kai
Honeycomb fund Wang Yingxue
Guangfa Asset Management Summit
CICC fund on behalf of Lin Ling
Hong Kong jinghuashan international QFII Li Xuefeng
Interest time investment Liu Zhichao
Tianhong fund Zhang Jing
13:30-14:30 on December 23 offline:
Fengjing capital Tang Chenchen, Gao Bo
15:30-16:30, December 23 offline:
Founder asset management Chen Yue
Junchuang fund Shang Weiling
Zhikai investment Luo min
Yi Fangda (Beijing) Gao Shenzhi
Zhongke fertile soil Meng Lucheng
Congmand capital Feng Liyang
Qinghequan shuaiye
11:00-12:00 on December 24 offline:
Chinese businessmen Guo Peng, Huang can, Cui Zhipeng, min Wenqiang, fan Yifan
13:30-14:00 on December 24 offline
Panjing investment he Zhixin, Chen Jing
Time: December 23-24, 2021
Venue: Wutong, Xicheng District, Beijing
Yang Yamei, Secretary of the board of directors of listed companies
Receptionist Investment & IR director Xia Yicai
full name
Introduction to Jiajia Food Group Co.Ltd(002650) basic information
Jiajia Food Group Co.Ltd(002650) was founded in 1996 and listed on Shenzhen Stock Exchange in January 2012. It is known as “the first stock of soy sauce in China”. The company’s main business and products involve the R & D, production and sales of soy sauce, vegetable oil, vinegar, chicken essence, oyster sauce, cooking wine and monosodium glutamate. The products are widely used in the cooking, seasoning and food processing industry of people’s diet. “Jiajia” soy sauce and “dish Chinese food” edible vegetable oil are the core products of the company, with extensive brand awareness and reputation.
At present, the company has six wholly-owned subsidiaries, with total assets of 3.13 billion yuan and net assets of 2.56 billion yuan. In 2020, the company achieved an operating revenue of 2.073 billion yuan and a net profit of 176 million yuan, ranking the first in the domestic condiment industry in terms of comprehensive strength.
Since its establishment, the company has experienced five development processes:
1) 1996-2000: innovation. Before 1995, Chinese soy sauce generally used the traditional sealed method to close the soy sauce bottle cap, which needed to be pierced with a sharp tool. In the process of use, soy sauce was often spilled, soiled the bottle body and easy to deteriorate. After the main pain point of the hair department activity, the company’s founder Yang Zhenxian was born in 1977 and invented the pull ring perforated bottle cap. In 1996, he introduced the addition of soy sauce, applied the invention to his own soy sauce products, opened the “bottle cap innovation strategy”, and quickly entered the markets of Hunan, Hubei and Jiangxi with the innovation of soy sauce bottle cap. During the same period, the company also established the marketing model of developing exclusive dealers in prefecture level cities, that is, only one dealer in each city or region. 2) 2001-2004: positioning the high-end market and carrying out national marketing. We began to fully implement the affordable market expansion strategy, establish a national sales network, and put forward the marketing strategy of “adding soy sauce, one bottle as two bottles” by making use of the characteristics that thick soy sauce can also be colored. At this stage, as a pioneer in the industry of “the first share of soy sauce”, Gaga invested 48 million to win a set of golden time advertising spaces in the central government in May and June. With its own background of “Hong Kong funded brands” registered in Hong Kong, Gaga not only attracted a large number of consumers to buy, but also reaped a large number of franchisees all over the country, and quickly became famous in the country with high-end positioning, The thick soy sauce products have been promoted to the whole country.
3) 2005-2014: rapid development and listing, and launch capacity raising and investment projects. The market segmentation strategy was implemented. Since 2009, according to the functional characteristics of soy sauce, the marketing strategy of “adding old soy sauce to stir fry and adding raw soy sauce to cold mix” has been put forward, and buyers have been gradually guided to use two company products at the same time. In January 2012, it was listed and launched the fund-raising and investment project with an annual output of 200000 tons of soy sauce and 10000 tons of tea seed oil.
4) 2015-2018: diversification strategy. In 2015, the capacity raising investment project was officially put into operation. Since then, it has carried out diversified investment strategy and constantly tried to enter different fields such as e-commerce, catering and high-end consumption;
5) 2019 to now: rally and focus on salt reduction products. The company takes reducing salt and raw pumping as the core, carries out “12345” product strategy and “1 + 1” brand strategy, concentrates advantageous resources and focuses on the development of strategic large single products. Looking back on the past, the company’s early success in marketing led the company to gradually move from a regional brand to the national market, and continuously expand the company’s revenue scale, with a strong gene for marketing innovation and business model innovation. Looking forward to the future, the company will continue to give full play to its innovative advantages around its main business and strive to build the company into a listed enterprise of characteristic condiments within 3-5 years.
Q: what changes have the company made in recent years? What are the recent significant changes?
A: in 2019, we will focus on solving the problems faced by the product structure. By combing the product structure, we will form a pyramid matrix, mainly promote the high-end, develop salt reduction products, drive the second and third tier single products with strategic single products, and then form a product matrix.
In 2020, the work will focus on further deepening the optimization of product structure and the construction of sales team: 1) deletion of SKUs at the product end: sort out the full matrix products and reduce the SKUs with poor dynamic sales, general consumer evaluation and disapproval by dealers; 2) Brand repositioning: adjust the strategy to brand remodeling and return to high-end positioning; 3) Start to layout catering channels; 4) Incentive and assessment adjustment: increase the salary of sales personnel by 20%, and improve the assessment standards, including income assessment, key products, process assessment, etc., and encourage or eliminate them in time according to the sales performance.
The changes in 2021 are reflected in: 1) the focus of the product end is shifted to high margin products: ① clearly focus on resources, build salt reduction into a large single product of strategic level, and strengthen the characteristics of the company; ② Adjust the number and structure of SKUs and strive to increase the proportion of high gross profit products; 2) Organizational structure adjustment: ① the organizational structure is undergoing profound changes, with the addition of sub channels and salt reduction division and the integration of supply chain departments, and the management efficiency is expected to be greatly improved; ② Invest in the construction of digital marketing and management; 3) Deeply cultivate traditional channels and develop new channels: ① dealers adjust the structure, eliminate weak dealers and introduce large merchants; ② Add 500 young business representatives, implement stock options, stimulate the vitality of the sales team, and improve the network coverage and single store output; ③ Add new retail, catering, group purchase welfare and other brand joint channels).
Recent major changes include:
Equity incentive: on October 22, we launched the stock option incentive plan, which is inclined to the backbone of core marketing business. Because the consumer industry is not high-tech and depends on people, the incentive policy plays a great role in promoting the morale of marketing personnel.
Share Repurchase: Based on confidence in future development and high recognition of its own value, in order to promote the healthy, stable and long-term development of the company, we disclosed the announcement on share repurchase scheme of the company on December 18. Marketing Management: set up a large single product division, strengthen the management of the catering division, increase the investment in new media marketing, increase the marketing personnel and optimize the organization in the traditional dealer channels.
Brand strategy: emphasize the strategy of reducing salt and large single product. “Salt reduction + Fresh Preservation” adapts to the trend of consumers’ pursuit of health. We hope to transmit the concept of healthy products to consumers.
Q: what are the main reasons for the obvious decline in revenue and profits in the first three quarters of this year?
A: the main reasons for the decline in performance in the first three quarters are as follows: 1. The impact of new retail on traditional channels is relatively large, resulting in a decline in sales revenue; 2. Raw materials rise, production costs rise and gross profit margin decline; 3. Great changes have been made internally, and the cost investment structure has changed.
Q: in terms of personnel, which departments have introduced who? What problems have you encountered?
A: the introduction of external talents should first consider team integration and corporate culture, the location and closure of the factory
The environment of closed management also increases the difficulty of introducing talents. This year, the company moved to Changsha. At present, about 200 people have moved to Changsha from Ningxiang and arranged shuttle buses. After the relocation, everyone’s adaptability is very good. The changes of key personnel include: Production Director, procurement director, general manager of catering channel and management and business personnel of marketing department.
Q: are there any assessment indicators for 500 salespeople to develop dealers?
A: 1. The market is classified into multi billion market, 50 million-100 million market, less than 50 million market, blank market, etc. 500 salespeople are also assigned to different levels of markets. According to different market conditions, there are different assessment indicators. Generally, they are to assist local dealers and salespeople in sales activities; 2. The company has also set up a “three three three three” (three fixed, three expanded and three increased) execution department to constantly update the background data and give real-time feedback to implement the “three fixed, three expanded and three increased” marketing strategy. We hope that through this series of changes, we can bring a new look to the market.
Q: minus
