“The recurrence of the epidemic has indeed had a great impact on China’s production and operation,” said Chu Jian, vice chairman and deputy general manager of the company, at the performance briefing of Jiangxi Huangshanghuang Group Food Co.Ltd(002695) ( Jiangxi Huangshanghuang Group Food Co.Ltd(002695) . SZ) held this afternoon, “However, the company believes that the overall trend will gradually improve in the future. In the future, with the normalization of the epidemic, the company will accelerate the implementation of the strategic layout of ‘thousands of cities and thousands of stores’, optimize the adjustment of store structure, accelerate the transformation of store channels and improve the market share.”
The financial report shows that in 2021, the company achieved an operating revenue of 2.339 billion yuan, a year-on-year decrease of 4.01%; The net profit attributable to the parent company was 145 million yuan, a year-on-year decrease of 48.76%. In the first quarter of this year, the company realized an operating revenue of 542 million yuan, a year-on-year decrease of 10.62%; The net profit attributable to the parent company was 365851 million yuan, a year-on-year decrease of 45.57%.
For the decline in performance, Chu Jun, chairman and general manager of the company, said that it was due to the compression of revenue and expenditure due to the decline in revenue and the year-on-year growth of various expenses. In terms of cost, he pointed out that first, the cost of main raw materials increased, “beef, hairy duck and duck neck increased by 10% – 25%”; Second, oil, feed, packaging costs, labor costs and other costs have also increased; At the same time, in order to reduce the adverse impact of the epidemic, store leasing, market promotion and other expenses continued to increase.
At the performance meeting, investors repeatedly asked about the impact of the epidemic on the company. “After the epidemic in 2021, the number of independent stores of the company continued to decline,” said Wang. “At present, the number of independent stores in the airport and other cities continued to decline, especially before the epidemic in 2021.”
Nevertheless, the company has not given up its performance target this year. According to the financial report, this year, the company plans to complete an operating revenue of 2.6 billion yuan and a net profit of 270 million yuan. Fan Xuming, deputy general manager of the company, said that in terms of the market, the plan of thousands of stores in thousands of cities will continue, and 1059 new stores are planned to be opened in 2022; In terms of production capacity, Chongqing production base and Shaanxi production base are expected to be put into operation in June and August respectively, and Zhejiang production base is expected to be put into operation by the end of 2023.
Under the repeated epidemic, the flow of people from supermarkets is declining. How will offline stores be laid out? “In terms of offline channel development, the company will transform from supermarket stores to street stores and commercial street stores,” fan Xuming said at the meeting. “It will fully enter and develop the channel construction of factory stores, campus stores and high-speed service area stores, so as to improve the market share.”
Under the epidemic, the company is also vigorously expanding online sales. “In 2021, the company achieved online transaction volume (Gmv) of 536 million yuan through online flagship stores, word-of-mouth, takeout and other third-party sales platforms, accounting for 21.04%, an increase of 4 percentage points year-on-year.” Fan Xuming added.
Referring to this year’s online sales, Zeng Xihua, Secretary of the board of directors and chief financial officer of the company, said at the meeting: “under the epidemic this year, the proportion of the company’s new retail business has increased, and the plan goal is to achieve 30% of online sales.”
