The price increase is also difficult to cover the impact of the rise in the price of oil raw materials on the performance, Daodaoquan Grain And Oil Co.Ltd(002852) ( Daodaoquan Grain And Oil Co.Ltd(002852) . SZ) extends upstream to deal with the price fluctuation of raw materials. At the 2021 annual general meeting of shareholders held on the afternoon of May 20, Liu Jianjun, chairman of the company, said that Maoming plant was put into operation in June, Shaanxi Xingping 1 million ton project has been signed, 100000 mu of high oleic acid rape is also advancing steadily, and the company's production capacity and control of resources will be further enhanced. In terms of market, we will promote high-end products on the basis of mass products, comply with new channels and fully seize market share.
Extend upstream to improve raw material control
Affected by the reduction of foreign rapeseed and soybean production, the conflict between Russia and Ukraine, the Indonesian export ban and other factors, the prices of soybean oil and rapeseed oil in China have been rising all the way since the second half of last year, which has a great impact on the edible oil industry.
According to wind statistics, since May last year, the average price of soybean oil in China has increased from 951526 yuan / ton to 1187368 yuan / ton, with a range increase of 24.79%. It reached 1229211 yuan / ton at the beginning of March this year; Over the same period, the average spot price of vegetable oil rose from 1071125 yuan / ton to 1389375 yuan / ton, with a range increase of 29.71%. The highest price reached 1499875 yuan / ton on April 31 this year.
Affected by the sharp fluctuation of raw material prices and the epidemic situation, Q1 and Daodaoquan Grain And Oil Co.Ltd(002852) both suffered losses in 2021 and 2022. In 2021, the company achieved an operating revenue of 5.449 billion yuan, a year-on-year increase of 3.07%, and realized a net profit attributable to the parent company of -192 million yuan, compared with -764991 million yuan in the same period in 2020; In the first quarter of this year, the company achieved a revenue of 1.236 billion yuan, a year-on-year decrease of - 4.85%, and a net profit attributable to the parent company of - 540194 million yuan, compared with 816305 million yuan in the same period last year.
Liu Jianjun said that the price of raw materials rose more, and the price increase of the company's products did not fully cover the rising costs. In the face of rising raw material prices, Daodaoquan Grain And Oil Co.Ltd(002852) annual report said to extend the industrial chain and improve the ability to control raw materials. In 2021, the company has laid out 34000 mu of high oleic acid rape and plans to expand the planting to 100000 Mu from this year to next year. Liu Jianjun told the financial Associated Press, "high oleic acid rape planting enables us to control resources, including seeds, planting and processing."
However, he also explained that there is a cycle for rape from planting, receiving and processing into oil. "Last year, we arranged 30000 mu of rapeseed, and the harvested rapeseed will have to be produced and processed successively until this year's new rapeseed harvest. Similarly, the 100000 Mu arranged this year will continue to next year." Therefore, the contribution of high oil sour rapeseed oil to performance is an ongoing process.
In terms of production capacity, Liu Jianjun revealed that Guangdong Maoming factory will be put into operation in June this year and is currently purchasing rapeseed outside China. It is reported that after the construction of Maoming factory, the company will increase the initial pressing capacity of rapeseed, extend the industrial chain and improve the company's control over raw materials. "Maoming factory can provide about 50% of the company's vegetable oil resources," Liu Jianjun said. "At the same time, the supply channels can be widened, and the cost control will be improved."
In terms of news, China resumed market access for two Canadian rapeseed exporters on May 18, and Indonesia will resume the export of palm oil series products from next Monday.
"The liberalization of Canadian imports is good for the company," Liu Jianjun said at the meeting. "After adding two, the company's purchase channels have been widened and there are more choices."
In addition, Liu Jianjun also mentioned the impact of the epidemic on the company at the shareholders' meeting. On the one hand, the epidemic has affected the logistics. Up to now, Yueyang area is normal, but the logistics outward transportation of Zhenjiang factory is still affected; On the other hand, under the epidemic, the flow of people has decreased and the consumption capacity has decreased.
Seize market share
With the change of the external environment, Liu Jianjun said that the company should not lose its market share and seize the market space.
In terms of products, Daodaoquan Grain And Oil Co.Ltd(002852) while mainly promoting "small packaging", it is also promoting fine differentiation and high-end, and has launched high oil sour rapeseed oil, Oriental camellia oil and other products. The financial Associated Press reporter learned from Daodaoquan Grain And Oil Co.Ltd(002852) that in the "yearning for life 6" broadcast from April 29, the company will continue to be a sponsor, and its high oleic rapeseed oil will be used as the designated oil for yearning for life. As a new product, Oriental camellia oil was launched on May 1 this year.
The financial Associated Press reporter noted that in the Daodaoquan Grain And Oil Co.Ltd(002852) flagship store on tmall platform, the 5L price of high oil and sour rapeseed oil products is 159.9 yuan / bottle, while the 5L price of concentrated coriander seed oil is 95.8 yuan / bottle, which is 66.91% higher than that of ordinary rapeseed oil products. At tmall dongfangshan food flagship store, the price of 3L dongfangshan tea oil is 528 yuan / bottle, the price of 750ml glass bottle and high-end gift box is 298 yuan / bottle, and the price of Yihai Kerry Arawana Holdings Co.Ltd(300999) 5l tea seed edible oil in the same industry is 398 yuan / bottle.
As for the market response of high-end products, Liu Jianjun told the financial Associated Press: "these two products, especially high oleic rapeseed oil, are still very ideal from the current market situation." He admitted that compared with ordinary rapeseed oil, high oil sour rapeseed oil is indeed more expensive, but he still believes that "there will be a market for good things".
In terms of channels, Liu Jianjun told the financial associated press that while the company is laying out traditional dealer channels, it is also adapting to various new channels. He said that on the one hand, the establishment of marketing companies and e-commerce companies is responsible for new channels such as e-commerce and group purchase platforms. On the other hand, it is also strengthening the standardized management among channels to avoid the price war between different channels.
