He has been engaged in the dairy beverage industry for more than 20 years, and the large single product strategy has laid a brand advantage. With Zhe Jiang Li Zi Yuan Food Co.Ltd(605337) sweet milk beverage series, it is unique among similar products in the market, and its excellent quality and unique flavor have won the trust of consumers. After more than 20 years of market cultivation and brand building, the popularity of ” Zhe Jiang Li Zi Yuan Food Co.Ltd(605337) ” brand has been continuously improved, which has established the market dominant position of Zhe Jiang Li Zi Yuan Food Co.Ltd(605337) “sweet milk beverage series”.
Expand the multi product matrix based on large single products, and product R & D closely follows the needs of consumers. The classic single product sweet milk beverage series has sold well for more than 20 years, accounting for more than 95% of the revenue, and consumers have built brand barriers. The company pays attention to product R & D and innovation. While ensuring the inheritance of classic taste, it constantly develops new products according to the changes of consumer demand. Core patented technology combined with all-round quality control further highlights the competitive advantage of products.
Focus on distribution, realize national layout, and Wuxi Online Offline Communication Information Technology Co.Ltd(300959) create all channel coverage. The company’s sales model is dominated by the distribution model, supplemented by the direct sales model. The revenue of the distribution model accounts for more than 95%. The unique buyout dealer model realizes the “win-win” of dealers, consumers and enterprises. The “regional distribution mode” focuses on the layout, radiates the surrounding areas, and improves the national sales network. The sales areas are mainly east China, central China and southwest China, accounting for about 95% of the operating revenue. The distribution revenue showed a nationwide and decentralized trend, and the revenue of single dealers continued to increase. The company’s three-dimensional marketing channels not only consolidate the traditional advantageous channels such as large supermarkets, chain systems and wholesale departments, but also vigorously expand special channels such as schools, breakfasts, Internet cafes and troops to accelerate the sinking of the market. Through the continuous construction of e-commerce direct selling platform, Wuxi Online Offline Communication Information Technology Co.Ltd(300959) multi-channel efforts will be made to further increase potential sales opportunities and profit growth points.
The growth toughness of revenue and profit is strong, the long-term performance of cash flow is excellent, and the level of fund management is high. The revenue growth is strong, the contribution of milk beverage exceeds 95%, the gross profit margin over the years is basically stable at more than 37%, the net profit level maintains growth, the perennial cash flow of operating activities continues to be positive, the net cash flow / net profit of operating activities continues to rise, the profit quality is good, and the fund management ability is strong, which provides a guarantee for the sustainable stability of the company’s performance growth.
Risk tips: food quality and safety control risk, risk of high dependence on a single product, risk of operation and management of remote production bases, risk of price fluctuation of main raw materials, risk of relatively concentrated sales areas, risk of adverse impact of covid-19 pneumonia on the company’s operation, etc
