Unexpectedly, the former “soy sauce king” has become an old Lai, and there are three members of the family
What happened? Let’s see.
former “soy sauce king”
a family of three become “Laolai”
On April 8, Jiajia Food Group Co.Ltd(002650) announced that Yang Zhen, Xiao Saiping (the spouse of Yang Zhen), Yang Zijiang (the son of Yang Zhen), the actual controllers of the company, and Jiang Xiaohong, the chairman of the board of supervisors of the company, were listed as dishonest Executees (commonly known as “Lao Lai”) by the people’s Court of Jinfeng District, Yinchuan city due to contract disputes.
According to the judgment document network, the cases involved by the above personnel are contract disputes between Ningxia state owned Assets Investment Holding Group Co., Ltd. and Ningxia Kemei Bioengineering Co., Ltd. and Ningxia Woye Fertilizer Industry Co., Ltd., the amount of the execution target is nearly 8.3 million yuan, and the specific circumstances of the dishonest executee’s behavior are “having the ability to perform and refusing to perform the obligations determined by the effective legal documents”.
Jiajia Food Group Co.Ltd(002650) said that the actual controller of the company and the chairman of the board of supervisors were included in the list of dishonest Executees to provide guarantee for Ningxia Kemei Bioengineering Co., Ltd. The inclusion of the above personnel in the list of dishonest Executees may have a negative impact on the company’s image, but it has not had a substantive impact on the company’s normal production, operation and management activities for the time being.
Chinese teacher “going to the sea”
billion soy sauce King
Few people may know that the cap used in soy sauce bottles is common now – the method of opening the outer cap of soy sauce bottles and directly opening the inner cap to pour soy sauce is initiated by Yang Zhen, founder of Jiajia.
Yang Zhen, born in Hunan in 1962, although his family was poor, he was admitted to Hunan Yiyang normal school with his own efforts. After graduation, he became a Chinese teacher and took an “iron rice bowl”. But Yang Zhen was not satisfied with taking a “dead salary” and chose to resign after working for two years.
Before doing soy sauce business, Yang Zhen had been struggling in the “business sea” for ten years. From breeding to technology transfer and promotion of invisible screens, he had ups and downs, but he also became a local “10000 yuan household”.
Initially, Yang Zhen wanted to sell the innovative scheme of soy sauce cover to the soy sauce factory in Hunan at the price of 500000, but no manufacturer was willing to buy it. Subsequently, in 1996, he officially established Jiajia soy sauce factory in Ningxiang County, Hunan Province. At that time, the Jiajia soy sauce factory had only 2 mu of land and a few workers.
Looking back on history, none of the major consumer brands that came out in the 1990s is a household name through crazy marketing and brand promotion. Adding soy sauce is no exception.
Advertising was something that soy sauce enterprises had never done at that time. Yang Zhen was the first person to eat crabs. The advertising effect makes Jiajia soy sauce quickly known to Lbx Pharmacy Chain Joint Stock Company(603883) people.
According to previous media reports, in 1997, the annual operating income of Jiajia soy sauce was about 13.68 million yuan. In 2003, Yang Zhen won the two-month “standard King” of the central government with 48 million yuan. At that time, many people said that Yang Zhen was crazy. 48 million yuan was all the profits of Jiajia Food Group Co.Ltd(002650) since its establishment seven years ago.
From May to June of the same year, Jiajia soy sauce was broadcast in the two prime time periods of 7:00 and 7:30 at the end of the news broadcast. Unexpectedly, the effect was surprisingly good. Jiajia soy sauce brand was immediately printed into people’s mind. Dealers all over the country asked to join, and the products were in short supply.
In 2004, Jiajia Food Group Co.Ltd(002650) annual operating income reached 500 million yuan; In 2012, Jiajia Food Group Co.Ltd(002650) operating revenue increased to 1.657 billion yuan, which was the top among Chinese condiment enterprises at that time.
In 2008, Yang Zhen began to prepare for the listing of the enterprise. On January 6, 2012, Jiajia Food Group Co.Ltd(002650) was listed on a shares, becoming the first share of soy sauce in China. At this time, Foshan Haitian Flavouring And Food Company Ltd(603288) has just started listing, and Qianhe Condiment And Food Co.Ltd(603027) is still a local small brand.
I never thought that for Jiajia soy sauce, listing is the peak. So far, Jiajia Food Group Co.Ltd(002650) is about 20 billion lower than the total market value at the beginning of listing.
first loss since listing
According to the performance forecast of Jiajia Food Group Co.Ltd(002650) , the performance forecast for 2021 is expected to have a loss of 59-88 million yuan, while it made a profit of 176 million yuan in the same period of last year Jiajia Food Group Co.Ltd(002650) explained that the main reasons for the loss were the decline in sales revenue, the rise in procurement costs, the increase in sales expenses and the provision for impairment.
This is the first loss since Jiajia Food Group Co.Ltd(002650) listing. However, Jiajia soy sauce has long fallen out of the first echelon of China’s soy sauce industry.
In 2020, Jiajia Food Group Co.Ltd(002650) operating income was 2.073 billion yuan, less than one tenth of the revenue of Haitian, a leading enterprise in the same period. In the prospectus of that year, Qianhe Condiment And Food Co.Ltd(603027) which was not listed as the main competitor by Jiajia Food Group Co.Ltd(002650) also began to catch up with and surpass Jiajia Food Group Co.Ltd(002650) net profit in 2018.
In that year, Jiajia Food Group Co.Ltd(002650) said in its prospectus that in 2010, the company’s soy sauce output was 192436 tons, with a market share of 3.30%. According to the output statistics of the main products of the top 100 famous brand enterprises of condiments in 2010 released by China condiment Association, Jiajia Food Group Co.Ltd(002650) of the products ranked third in the soy sauce industry, fifth in the monosodium glutamate industry, tenth in the chicken essence industry and 19th in the vinegar industry.
