The Qianhe Condiment And Food Co.Ltd(603027) which had attracted much attention due to the resignation of directors recently announced the resignation of an executive. On January 10, Qianhe Condiment And Food Co.Ltd(603027) issued several announcements announcing that vice president Andy Lau resigned as vice president of the company for personal reasons. However, after resigning as vice president, he still served as a director of the Fourth Board of directors of the company.
In addition to personnel changes, Qianhe Condiment And Food Co.Ltd(603027) also held the fourth meeting of the Fourth Board of directors on the same day, deliberated and adopted the proposal on adjusting the company’s organizational structure. In addition, it also announced that some shares in the stock incentive plan implemented in 2017 will also be lifted recently, and the listing and circulation time is January 14, 2022. On the second day of the news release, Qianhe Condiment And Food Co.Ltd(603027) trend was weak. As of the closing on January 11, Qianhe Condiment And Food Co.Ltd(603027) closed at 21.85 yuan / share, down 1.31%, with a total market value of 17.453 billion yuan.
internal structure adjustment
Andy Lau, who has served as Qianhe Condiment And Food Co.Ltd(603027) vice president for 11 years, suddenly announced his resignation as vice president on January 10.
Liu Dehua, who joined Hengtai industry ( Qianhe Condiment And Food Co.Ltd(603027) former name) in September 1997, has successively served as the general manager of Suzhou Hengtai Food Co., Ltd. and the general manager of Liuzhou Hengtai. From 2008 to April 2012, he served as the deputy general manager of Sichuan Hengtai. Since April 2012, he has served as the director and vice president of Qianhe Condiment And Food Co.Ltd(603027) .
It is reported that after resigning as vice president this time, Andy Lau will still serve as a director of the Qianhe Condiment And Food Co.Ltd(603027) Fourth Board of directors. According to Qianhe Condiment And Food Co.Ltd(603027) 2020 financial report disclosure, Andy Lau’s total pre tax remuneration is 706300 yuan.
It is worth noting that one month before announcing the resignation of vice president Andy Lau, Qianhe Condiment And Food Co.Ltd(603027) also announced the resignation of director Cao Hong. Cao Yizhi worked as the marketing director of Haiyi Food Co., Ltd. from March to April, 2012, and worked as the sales manager of Haiyi Food Co., Ltd. It is worth mentioning that in addition to the post of director before leaving, Cao Hong also served as the director of Qianhe Condiment And Food Co.Ltd(603027) retail business department.
In the context of frequent fluctuations of executives, Qianhe Condiment And Food Co.Ltd(603027) also announced the organizational structure adjustment including the cancellation of strategic investment department, e-commerce business department and brand Department on January 10. Among them, the original functions of the e-commerce business department are merged into the retail business department, and the original functions of the brand department are merged into the operation Department.
It is noteworthy that in recent years, Qianhe Condiment And Food Co.Ltd(603027) has continued to make efforts in online channels. The data show that in 2020, Qianhe Condiment And Food Co.Ltd(603027) online channel sales revenue was 260 million yuan, a year-on-year increase of 110.47%; Online sales accounted for 15.35% of the total revenue.
Debon securities disclosed in the research report released recently that for online channels, Qianhe set up an e-commerce department in November 2015 to operate, adopted the strategy of holding high and fighting high, focusing on zero addition, and realized the rapid development of e-commerce channels. However, according to the latest announcement, the e-commerce division was revoked on January 10 this year and its functions were incorporated into the retail division.
From the data of recent years, online channel data has been disclosed in the annual report since Qianhe Condiment And Food Co.Ltd(603027) 2018. In that year, online channel sales revenue accounted for about 6.94%, and by the end of 2020, this data has increased to 15.35%, with rapid online penetration. However, Debon securities also pointed out in the above research report that seasoning is naturally “acclimatized” and sales account for a relatively low proportion. According to Euromonitor data, condiment e-commerce channels accounted for 6.1% in 2020. In the structural adjustment on January 10, Qianhe Condiment And Food Co.Ltd(603027) e-commerce division was cancelled, which raised concerns about whether it means that the online strategy has changed.
For multiple adjustments of Qianhe Condiment And Food Co.Ltd(603027) , Shen Meng, executive director of Xiangsong capital, analyzed the reporter of Huaxia times and said: “the seasoning industry is affected by the rising cost of raw materials. At the same time, without significant growth in consumer demand, the internal competition in the industry intensifies. Qianhe Condiment And Food Co.Ltd(603027) Although listed, its competitive advantage is not as prominent as that of Haitian and other larger competitors. When there is great resistance to open source, a certain degree of throttling and reducing operating costs can also help to slow down the impact of net profit decline. “
decline in profitability
Among the announcements issued on January 10, Qianhe Condiment And Food Co.Ltd(603027) also issued the announcement on the release of restrictions on sales and listing in the fourth phase of the first grant part and the third phase of the reserved grant part of the 2017 restricted stock incentive plan. The announcement shows that the number of incentive objects who can actually lift the restrictions on sales is 102, and the number of restricted shares that can lift the restrictions on sales is 4.2159 million shares, accounting for 0.53% of the company’s current total share capital.
For the restricted stocks released during the restricted sales period, the assessment standard set at the time of release is based on the operating revenue of Qianhe Condiment And Food Co.Ltd(603027) 2016, and the growth rate of operating revenue in 2020 shall not be less than 100%; Or based on the net profit of Qianhe Condiment And Food Co.Ltd(603027) 2016, the net profit growth rate in 2020 shall not be less than 220%.
According to the data, the revenue of Qianhe Condiment And Food Co.Ltd(603027) in 2020 was RMB 1.693 billion, an increase of 119.66% compared with RMB 771 million in 2016, meeting the performance index assessment requirements set in the incentive plan at that time. However, it is worth noting that the assessment standard Qianhe Condiment And Food Co.Ltd(603027) for the net profit growth rate has not been reached. The reporter learned from the official financial report data that this index has achieved 106% growth in a few years.
It is noteworthy that the problem of Qianhe Condiment And Food Co.Ltd(603027) net profit growth has not been solved in 2021. The third quarter report of Qianhe Condiment And Food Co.Ltd(603027) 2021 shows that in the first three quarters of 2021, Qianhe Condiment And Food Co.Ltd(603027) achieved a revenue of 1.356 billion yuan, a year-on-year increase of 10.91%; The net profit attributable to the parent company was 132 million yuan, a year-on-year decrease of 41.09%.
In addition, in terms of profitability, compared with Foshan Haitian Flavouring And Food Company Ltd(603288) , Jonjee Hi-Tech Industrial And Commercial Holding Co.Ltd(600872) , Jiajia Food Group Co.Ltd(002650) in the industry, the profit margins of the three companies in the first three quarters of 2021 were 26.17%, 11.61%, 0.16% and Qianhe Condiment And Food Co.Ltd(603027) were 9.73% respectively. There is still a distance from the Foshan Haitian Flavouring And Food Company Ltd(603288) of the head.
In the semi annual report of 2021, Qianhe Condiment And Food Co.Ltd(603027) said of the decline in the net profit attributable to the parent company: “the decline in net profit is mainly due to the rise in the price of raw materials, the company’s strengthening of brand building and increasing TV advertising, resulting in a large year-on-year increase in promotion and advertising expenses.”
It is noteworthy that on August 27, 2021, the Shanghai Stock Exchange issued an inquiry letter to Qianhe Condiment And Food Co.Ltd(603027) , requiring supplementary explanations on the year-on-year decline in operating revenue, increase in operating costs and significant increase in advertising related expenses in the second quarter. Qianhe Condiment And Food Co.Ltd(603027) said in the reply that the decline in performance was due to weak social consumption, intensified market tension, increased operating costs, rising prices of raw materials and sharp advertising expenses, which was named the new blind date conference of Jiangsu Satellite TV for two seasons.
Shortly after the announcement of the medium-term report of condiment enterprises in 2021, enterprises successively announced that they would increase the price of some products due to the rise of raw materials, including Qianhe Condiment And Food Co.Ltd(603027) .
Although the impact of price adjustment on performance has not been reflected yet, the impact of price increase has been reflected in the secondary market. Since last October, the price of spice plates has rebounded since Foshan Haitian Flavouring And Food Company Ltd(603288) started the price gun. Since last October, the share price of Qianhe Condiment And Food Co.Ltd(603027) has risen by nearly 14%. As of the closing on January 11, the price earnings ratio (TTM) of Qianhe Condiment And Food Co.Ltd(603027) was 153.38 times, which was much higher than 68 times of Foshan Haitian Flavouring And Food Company Ltd(603288) and 51.06 times of Jonjee Hi-Tech Industrial And Commercial Holding Co.Ltd(600872) .
As to whether there is a method to improve the net profit of Qianhe Condiment And Food Co.Ltd(603027) in the fourth quarter and how to deal with high-level changes, the reporter of Huaxia times contacted Qianhe Condiment And Food Co.Ltd(603027) by email, but did not receive a reply before publishing.
(source: Huaxia times)
