Henan Shuanghui Investment & Development Co.Ltd(000895) performance further decline. On March 28, Henan Shuanghui Investment & Development Co.Ltd(000895) disclosed that the annual report for 2021 showed that the operating revenue and net profit of the company decreased by 9.72% and 22.21% respectively year-on-year, which was the largest annual performance decline since Henan Shuanghui Investment & Development Co.Ltd(000895) 1998 Henan Shuanghui Investment & Development Co.Ltd(000895) the reason is attributed to the deviation of the group’s grasp of the rhythm of frozen products due to the unexpected fluctuation of pig market.
“Deviation in grasping the rhythm of frozen products” is only one of the factors affecting Henan Shuanghui Investment & Development Co.Ltd(000895) performance. On the day of the release of the financial report, “female students ate foreign bodies in online shopping Shuanghui intestines and were attacked by customer service education” boarded the hot search; On March 15, Nanchang Shuanghui was exposed that there were many potential food safety hazards in the production workshop. Insiders believe that Henan Shuanghui Investment & Development Co.Ltd(000895) has attracted attention to food safety issues twice in half a month, which has great harm to food enterprises.
revenue and net profit decreased both
According to the financial report, Henan Shuanghui Investment & Development Co.Ltd(000895) 2021 achieved an operating revenue of 66.682 billion yuan, a year-on-year decrease of 9.72%; The net profit attributable to shareholders of listed companies was 4.866 billion yuan, a year-on-year decrease of 22.21%.
Specifically, in 2021, the revenue of Henan Shuanghui Investment & Development Co.Ltd(000895) packaged meat products was 27.351 billion yuan, a year-on-year decrease of 2.66%, accounting for 41.01%; The revenue of fresh products was 39.073 billion yuan, down 19.05% year-on-year, accounting for 58.6%.
Henan Shuanghui Investment & Development Co.Ltd(000895) attributed the decline in performance to “the lower price of live pigs and the deviation in grasping the rhythm of frozen products”. According to the financial report, in 2021, due to the recovery of production capacity, the supply of pigs increased and the price decreased significantly. The sales price of Henan Shuanghui Investment & Development Co.Ltd(000895) fresh products decreased by more than 30% year-on-year, affecting the group’s operating revenue to decrease by 16.5 billion yuan year-on-year, accounting for 22% of the revenue in the same period. In addition, as the pig market fluctuated more than expected in 2021, Henan Shuanghui Investment & Development Co.Ltd(000895) deviated from the rhythm of frozen products, resulting in losses of domestic frozen products and imported pork, resulting in a sharp decline in the operating profit of fresh frozen products business year-on-year.
“Judging from the situation in 2021, the performance of meat products enterprises is mainly affected by the fluctuation of pork price. Last year, the overall pork price fell sharply, which has an obvious impact on Shuanghui’s revenue and profit.” Bao Yuezhong, a new retail expert of FMCG, said.
It is worth mentioning that this is the biggest decline in Henan Shuanghui Investment & Development Co.Ltd(000895) annual performance since its listing in 1998. According to the data, since its listing, Shuanghui has only experienced a decline in revenue and net profit in 2017, which are 2.45% and 1.95% respectively.
For the later development, Henan Shuanghui Investment & Development Co.Ltd(000895) said in the annual report that in 2021, China’s pig production capacity will recover and the pig price will show a downward trend. It is expected that the pig price will run low in 2022, which is conducive to the expansion of the company’s slaughtering industry and the reduction of costs in the meat industry. At the same time, the company will also accelerate Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) development and realize new increment by focusing on fresh conditioning, Chinese cuisine, sauce and brine cooked food, hot pot ingredients and other categories.
frequent food safety problems
Within half a month, it has been on the hot search twice due to food safety problems, and Henan Shuanghui Investment & Development Co.Ltd(000895) fell into the vortex of food quality and safety.
On March 28, on the day of the release of the annual report, Henan Shuanghui Investment & Development Co.Ltd(000895) was hit by customer service for “girls’ online shopping for spoiled Shuanghui ham sausage for treatment”. In this regard, Shuanghui said that the company has verified that the store involved is not a direct store of Shuanghui, and Shuanghui has asked the store to close down for rectification. As for the deterioration reason, product batch and origin of relevant products, the company is still unclear and is still under investigation.
In addition, on March 15, the sun company Nanchang Shuanghui was exposed to food safety problems. After the incident was exposed, it triggered a heated discussion among netizens, and Henan Shuanghui Investment & Development Co.Ltd(000895) share price also fell, closing at 25.13 yuan / share, down 9.99%. Subsequently, Henan Shuanghui Investment & Development Co.Ltd(000895) issued a statement of apology. Ganjiang New Area Market Supervision Bureau issued a notice ordering Nanchang Shuanghui company to make corrections, requiring the enterprise to rectify immediately, and file a case for suspected violations.
” Henan Shuanghui Investment & Development Co.Ltd(000895) the results of this annual report should be expected.” Zhu danpeng, an analyst of China’s food industry, said that Henan Shuanghui Investment & Development Co.Ltd(000895) recent operation is not smooth and food safety problems occur frequently, indicating that there are major problems in its operation and quality management system. In terms of the integrity of the industrial chain, Henan Shuanghui Investment & Development Co.Ltd(000895) also needs to be improved.
” Henan Shuanghui Investment & Development Co.Ltd(000895) should strengthen the continuous supervision of daily production links and the management education of the front-line production side, improve the public relations ability, promote the brand image to the direction of high quality, and reduce the established stereotypes of consumers about Shuanghui brand, which will also help to eliminate the psychological cognitive conflict of the long-term development of Shuanghui brand.” Shen Meng, director of Xiangsong capital, suggested.
For the reasons for the decline in performance and improvement measures, the reporter of Beijing business daily sent an email to interview Henan Shuanghui Investment & Development Co.Ltd(000895) , but no reply has been received as of press time.
