To shareholders
The year order is easy, and the chapter is new.
In 2021, the covid-19 (new type of coronal pneumonia) epidemic superimposed on the political and economic disputes between China and the United States, which continued to impact and challenge the economic order and social activities that people are used to. We can only work harder than ever before to overcome difficulties with our customers. We have never realized that Eternal Asia Supply Chain Management Ltd(002183) is a very important existence for our customers. I am proud of the significance of this responsibility, and I am walking on thin ice. Thank the customer
Over the years, we have served thousands of customers, including more than 100 Fortune 500 companies and more than 2600 well-known brands at home and abroad. We are particularly proud to help our customers distribute more than 400000 products day and night. Because we are a truly customer-centric enterprise. In our business model, customers are regarded as core enterprises Eternal Asia Supply Chain Management Ltd(002183) all departments, business divisions and subsidiaries are set up to provide services for every core enterprise customer more efficiently. Our value to customers aims to enable customers to focus on how to design and manufacture the most cost-effective products to please consumers, rather than other cumbersome affairs. We are not satisfied that the operating revenue only comes from the “core enterprise”, so we continue to innovate the types of services for our customers, and constantly look for business opportunities and profits in the upstream and downstream of this customer: raw material suppliers, manufacturing supporting suppliers, development and design manufacturers, market promoters and even sales agents.
This kind of value cognition is so important to us that within the enterprise, we symbolize it with the catchy “1 + n”: “1” is the core enterprise (customer), and “n” contains the infinite possibility of creating services and business opportunities.
We unremittingly build “connections and networks” between our customers’ products and final consumers, and lay a huge network covering more than 600 cities and more than 20000 villages and towns in China for our customers. With the help of this network and more than 18000 distribution nodes behind it, our customers can accurately and timely reach the final consumers layer by layer, making the promise of performance a reality. We are also good at exploring the “blind spots” of business opportunities covered by customers’ products and markets, which is inseparable from their firm support for our continuous innovation services. We have been exceeding our customers’ expectations and gaining their continued trust. The number of our customers is increasing every day. We rack our brains to provide and create service methods around our customers. Innovation happens every day, which makes me marvel at the productivity and business power created by this network, and I am also encouraged.
Thanks to all our customers, we have achieved much more than expected contrarian growth in 2021: the total operating revenue was 70.251 billion yuan, a year-on-year increase of 2.92%; The net profit attributable to the shareholders of listed companies was 506 million yuan, with a year-on-year increase of 310.29%, and the net profit excluding non recurring profits and losses attributable to the shareholders of listed companies increased by 467.03% year-on-year; The basic earnings per share was 0.22 yuan, a year-on-year increase of 266.67%, and the roe increased from 2.07% to 7.12%. Thank employees and partners
I would like to congratulate and thank thousands of Eternal Asia Supply Chain Management Ltd(002183) people who, with unlimited loyalty to customers, practice their commitment to excellent operation with creative work day and night. I am very proud to be one of them.
Since I founded Eternal Asia Supply Chain Management Ltd(002183) until 25 years ago, we have always been committed to cultivating and retaining employees who are visionary, curious and good at thinking. At every major development milestone of the industry and the company, relying on their courage and creativity, we can find the source of change in the old system in the past, so as to make the company stronger and stronger. They are always good at finding new market opportunities that can support us to forge ahead. These opportunities are often creative thinking on business model and service innovation, which can contribute to social change. Thanks to their talent, my management partners and I can easily implement strategic thinking into a real business model. They gave us the greatest trust and showed moving execution, thus achieving today’s Eternal Asia Supply Chain Management Ltd(002183) . They are the most essential and important elements in our quest to explore the supply chain business model and try to promote the rise of Chinese brands.
There are many entrepreneurs among us. They are an important part of “we” – partners. We designed the partner organization system with the original intention of giving ambitious entrepreneurs the opportunity to leave footprints in every piece of land in more than 600 cities and more than 20000 townships across the country, so as to supplement our inability to serve more customers and create demand. Our partners are experienced and have their own strengths. Many of them come from channels or brand manufacturers and even traders in the FMCG industry. They have full confidence in the future and development prospects of the country and agree with Eternal Asia Supply Chain Management Ltd(002183) ‘s values and strategic objectives. They are an indispensable part of us Eternal Asia Supply Chain Management Ltd(002183) people and grow together on this big platform. It is because of the continuous participation of partners that we can become stronger. According to the different business types of customers’ products, we have established business sectors such as wine industry, mother and baby, food, household appliances, daily chemicals and so on. They maintain a keen sense of business, strive to explore the vacuum covered by customers’ products or industries, and search for lucrative business opportunities. I have no doubt that they have the enthusiasm and ability to turn exciting ideas into reality.
Find everything fresh and new revenue and profit growth last year. Our company’s special reputation is that Moutai, Wuliangye Yibin Co.Ltd(000858) , Jiannanchun, Luzhou Laojiao Co.Ltd(000568) and other famous Baijiu brands have been the core customers of our wine industry since 2013. However, we are not satisfied with the basic service revenue of regional distribution, because we think we can create more value for customers. Our ideas coincide with our customers, yes! We finally won the authorization of some Baijiu brands, independent market operation and customized brand products. We have carried out customized brand operation business, including all operation links except production, such as base liquor blending, packaging design, marketing planning, channel distribution, after-sales management and so on. It has only been more than two years since the trial of ox knife in 2019, with remarkable achievements. I have always been interested in learning about every progress in their performance, so that I can count them as a treasure: the enamel Caizi brand authorized by Diaoyutai to operate independently, the Heijin shinianzi brand authorized by Guotai to operate independently… The strong cooperation full of trust will bring performance surprises that are better than the blue not only for our customers, but also for ourselves. Innovation and unremitting efforts, the feeling of return is really exciting. Thank them for their courage and creativity during the exploration of business model upgrading! Thanks to shareholders and capital markets
We are always glad that Eternal Asia Supply Chain Management Ltd(002183) grew up in this great era and can witness and participate in the magnificent progress of China towards the top of the world.
The twists and turns of the capital market are like the cycle of human history. Together with our shareholders, we have completely experienced a very important historical stage. From 2018 to 2020, the change of macroeconomic / industry / enterprise environment is in a violent vibration. Unfortunately, we are not satisfactory in the tuning balance of business frequency. Especially in 2018, we started a new round of business model reorganization and reconstruction with complacency. Subject to the lack of reference model experience, we were under pressure on our business performance frequently. However, at the time of each transformation pain, we ignored the timely communication with the capital market, which made many shareholders who were firmly optimistic about us at a loss. Finally, the sudden changes in the company’s share price and Industry Valuation in the stock market actually convey the confusion and doubt of the capital market.
We carefully reflect and learn from the pain. We unanimously decided that even a small step in the development of Eternal Asia Supply Chain Management Ltd(002183) in the future will no longer make shareholders absent or alienated! At the end of 2020, we established a capital operation team composed of professionals. They are optimistic and positive, familiar with the company’s business and deeply understand the roles of all participants in the capital market. They have excellently acted as the communication bridge between the company’s management, business operation and capital market, and described the business gains and losses and development ideas of Eternal Asia Supply Chain Management Ltd(002183) in their eyes to every institutional investor, industry analyst and small and medium-sized investors. The expectations and questions of the capital market they fed back to the company also made me and my management partners valuable in business decision-making. In 2021, the team organized or participated in more than 200 roadshows, counter roadshows, immersive capital brand press conferences and other activities to spread our business model and enterprise value to more investors and gain recognition.
Thank those individual shareholders and institutional shareholders who have been with us for a long time. Thank you for your encouragement to our efforts and choices and your suggestions on our business model. Thank you for your wise foresight and tacit understanding. Because believe, so meet. This kind of fate is wonderful and makes us feel like a spring breeze. We firmly believe that the fundamental measure of enterprise success is how much long-term value we can create for shareholders. As Benjamin Graham, a smart investor, said, “in the short run, the stock market is a voting machine; in the long run, it is a weighing machine.” We hope to be weighed for a long time. We will devote ourselves to building a company that is more and more worthy of being put on the weighing machine, and use our achievements to prove this.
In 2021, relying on your support and investment, we raised more than 2.22 billion yuan in private, which strengthened our motivation and confidence in new business innovation. Thank you for your trust, so that we can pack light. Although we face many challenges and obstacles, including the competition for talents, resources and capital. But we will remain optimistic and cautious and maintain a sense of urgency to seize every minute. As you can see, we have achieved considerable returns in marketing execution and customized brand sales. We will unswervingly accompany our customers to move forward, display our intelligence and innovative spirit, and finally benefit consumers. The sharp increase in the proportion of those high profit and high value-added businesses in our revenue scale will help to improve our return on assets and free cash flow per share. We are already ready for the opportunities brought to the industry by the post epidemic era and the change of consumption habits. We expect to make achievements not only in wine and beverage, but also in other fields of FMCG. Although there are many difficulties in achieving this goal, we are full of fighting spirit.
We are full of awe for the capital market and have benefited a lot. We know that the best “gratitude” is expressed in terms of performance. Creating long-term value for shareholders is our consistent commitment, just like our commitment to customer-centered.
Thank our controlling shareholder – Shenzhen Investment Holding Co., Ltd. for its trust in us. We have benefited a lot from your steady concept in corporate governance. You have spared no effort to cheer for us and give tolerance and trust to our business innovation. With such strong backing and sea god needle, we have no doubt about the direction of business innovation exploration, and we dare not slack off at all! Our Starry Sea
Mr. Bezos, CEO of Amazon, once said that great companies are great because they create great and valuable services. Just like the Kindle e-book and AWS Amazon cloud service in many business lines of Amazon, the former subverts human reading habits, while the latter transforms complex IT resources into convenient public resources such as water and electricity. Promoting the progress of social civilization and creating value and wealth for more people is the most important mission of enterprises and entrepreneurs.
We also have the dream of becoming a great enterprise in our hearts. In particular, I and my management partners are proud that we have always adhered to the business expectations and objectives at the initial stage of the establishment, and approached them step by step and in an orderly manner. Because we boldly predicted for a long time that after the per capita GDP of China with rapid development exceeds 10000 US dollars, the consumption field, especially FMCG, will generate huge market demand, and with the upgrading of consumption habits, it will bring unprecedented business opportunities. We have persisted in serving the world-class giants of FMCG for several years, newly interpreted the commercial connotation of the word “supply chain”, and obtained the “key” to enter the vertical segmentation industry based on the “connection” of our huge network. We have industry understanding, credit brand, customer relationship, digital technology, infrastructure, financial strength and talent reserve. We are convinced of our understanding of the needs of b-end customers and even C-end consumers. In this promising new era of consumption, we will make no secret of our ambition to continue to expand our leading position. We are determined to establish a company with a long-standing foundation. On the way to achieve this goal, we will turn the possible doubts into a stick at the time of major decisions, so that we can always maintain awe and vigilance. We want to assure you that my colleagues and I will not give up any valuable business opportunity and become a reality faster than others. We will create more employment opportunities and motivation for progress for the society, and make more young people with dreams and enthusiasm have a place to play.
In the next few years, we will continue to consolidate our core advantages and explore the possibility of providing unlimited services around customers, just as we have always insisted in the past. Technological progress has been promoting the transformation of human civilization and commerce. We have developed a package of terminal app applications focusing on “connection” and “mutual generation”, such as yitongtianxia, drug purchase, home appliance customers, etc. These digital tools verified by massive business and data not only make us comfortable in undertaking the huge and complex business of our customers, but also help our customers, our private brands and our partners or potential customers and partners improve efficiency, greatly optimize their resource allocation, provide them with accurate decision-making, improve market strategies, and continuously design and sell products that are more cost-effective and widely loved. Cheers! Jing Weida Era
In the letter to shareholders in 2020, we thought we were Eternal Asia Supply Chain Management Ltd(002183) , who “broke the cocoon into a butterfly and reborn from Nirvana”. At that time, the market was curiously interpreting the appearance of new business of our brand operation. Today, we want to use “accumulate potential and store energy, flowers bloom” to depict 2021 of Eternal Asia Supply Chain Management Ltd(002183) . Writing history is more meaningful than witnessing history. The grand narrative chapter of Eternal Asia Supply Chain Management Ltd(002183) has been launched. We adhere to our strategic goal and strive for it constantly because we think it is right to do so.
Between the lines, I drank the wine of the Great China Baijiu, which is the most popular honor and respect of all the Chinese spirits.
Thank you for reading! Cheers! Thanksgiving!
Chairman: Zhou Guohui
Eternal Asia Supply Chain Management Ltd(002183) 2021 Annual Report
