On May 19, Chacha Food Company Limited(002557) ( Chacha Food Company Limited(002557) . SZ) announced to present the company’s Kui Zhen gift box to all shareholders free of charge, and the “Kui Zhen” gift box as a gift is the focus of the company’s recent creation. The company disclosed the “main business objectives and plans for 2022” in its 2021 annual report, one of which is to build the first high-end brand of “kuizhen” sunflower seeds and seize market share.
“It is not convenient to disclose the budget of this gift giving activity to shareholders, because it will involve the cost of disclosing products.” Chacha Food Company Limited(002557) a staff member of the securities affairs department told the reporter of Huaxia times.
It is worth mentioning that the growth rate of Chacha Food Company Limited(002557) has slowed down in recent years, and the net profit growth in 2021 hit a new low in four years. In particular, the revenue growth of the company’s main sunflower seed products has decreased year by year in recent three years, with an increase of only 5.86% in 2021. In the current situation that melon seeds have been unable to sell, can the company’s efforts in “Kui Zhen” break the ceiling of its main business?
give “Kui Zhen” to shareholders, one yuan for every six grams
On May 19, Chacha Food Company Limited(002557) announced that it decided to present “Kui Zhen” gift box to all shareholders free of charge. As of the closing of the market on May 12, all registered shareholders holding shares can apply for them. The company said in the announcement that the gift of “Kui Zhen” is not only to thank shareholders for their concern and support for the company, but also to facilitate shareholders to better understand the company’s high-end sunflower seed brand “Kui Zhen” and improve the awareness and influence of “Kui Zhen”. At the same time, the company will take the opportunity to solicit opinions or suggestions from shareholders on “Kui Zhen” products and the company.
It is understood that as a gift, “Kui Zhen” gift box is the focus of the company’s recent creation. The company disclosed the “main business objectives and plans for 2022” in its 2021 annual report, one of which is to build the first high-end brand of “kuizhen” sunflower seeds and seize market share. The company also disclosed in its annual report that “kuizhen” has won the gold award of the world food quality evaluation conference for two consecutive years.
The reporter of Huaxia times saw in the official small program “qiaqiakuizhen flagship store” that the unit prices of different products of “kuizhen” brand ranged from 36.5 yuan to 189 yuan. Take the “Kui Zhen” black gold can gift box with a price of 189 yuan as an example. There are 6 cans in it, 188 grams per can, with an average of 1 yuan per 6 grams.
The company did not disclose the specifications and other specific information of the gift box to shareholders in the announcement, but when the reporter of Huaxia times asked the staff of Chacha Food Company Limited(002557) securities affairs department to verify whether the gift was this gift box, the reply was “maybe”. The company refused to disclose the budget of the event. “It is not convenient to disclose the budget of this gift giving activity to shareholders, because it will involve the cost of disclosing products.” The above staff told reporters.
During the interview, the staff clearly denied that the activity was a “dividend in kind” and stressed that it was only a free gift to shareholders. A senior person who has been engaged in audit work for many years told the reporter of Huaxia times that if giving products to shareholders is defined as dividends in kind, there will be great controversy and unnecessary trouble in terms of Taxation, audit and other aspects.
In fact, in the A-share market, the practice of giving physical goods to shareholders is becoming more and more common.
On May 7, Changhong Meiling Co.Ltd(000521) announced that during the “Meiling shareholder feedback activity”, the company prepared “shareholder exclusive price” products to gather refrigerators (cabinets), washing machines, air conditioners, kitchen appliances, small household appliances and other products for preferential purchase; On April 9, Vohringer Home Technology Co.Ltd(603226) announced that it would push a shareholder coupon to each registered shareholder, giving shareholders a 95% discount; . Earlier, in February 2021, Xiamen Jihong Technology Co.Ltd(002803) s announced that the company decided to give all shareholders a gift package of Baijiu free of charge. Among them, the Baijiu gift package received by shareholders holding more than 250000 shares of Xiamen Jihong Technology Co.Ltd(002803) s will include: 1 bottle of Feitian Moutai (specification: 53% Vol 500ml), 1 bottle of Zunyi 1935 Maotai flavor Baijiu (specification: 500ml), and 1 piece of Guizhou sauce liquor tasting Version (specification: 500ml, a total of 6 bottles).
Zhang Cuixia, chief investment adviser of Jufeng investment, told the Huaxia times: “for listed companies of consumer products, giving products as gifts to shareholders can not only make shareholders better understand products and industries, but also make it easier for listed companies to establish a good relationship with shareholders.” But she also said that the most important gift for listed companies to shareholders is that listed companies continue to create value and share the company’s growth with shareholders.
can change the declining growth trend
As the first listed company in the nut speculation industry, Chacha Food Company Limited(002557) has been firmly in the dominant position in the industry for many years. However, in recent years, Chacha Food Company Limited(002557) seems to have encountered a bottleneck, and the growth momentum has slowed down significantly.
According to the annual report of Chacha Food Company Limited(002557) 2021, during the reporting period, the company achieved a revenue of 5.985 billion yuan, a year-on-year increase of 13.15%; The net profit attributable to shareholders of listed companies was 929 million yuan, a year-on-year increase of 15.35%. Although both revenue and net profit increased, the growth rate of net profit decreased significantly compared with that before. From 2018 to 2020, the year-on-year growth of the company’s net profit was 35.58%, 39.44% and 30.73% respectively. Meanwhile, in 2021, Chacha Food Company Limited(002557) annual sales expenses increased by 16.98% year-on-year to 604 million yuan, higher than the increase of revenue.
In addition, there are two data worthy of attention. In 2021, the company’s e-commerce business revenue was 569 million yuan, a year-on-year increase of 11.03%, accounting for only 9.52% of the total revenue, which has decreased for two consecutive years. In 2019 and 2020, the figures were 10.01% and 9.70%. Meanwhile, the revenue of “direct sales (including e-commerce)” accounted for only 15.38% of the total revenue in 2021, lower than the level of 16.35% in 2020. These two data show that the company’s dependence on offline sales has not changed.
Meanwhile, the performance growth of Chacha Food Company Limited(002557) in the first quarterly report of this year also slowed down significantly, significantly lower than the market expectation. According to the first quarter financial report data released by Chacha Food Company Limited(002557) released, in the first quarter of 2022, Chacha Food Company Limited(002557) achieved a revenue of about 1.432 billion yuan, a year-on-year increase of 3.86%; The net profit attributable to the parent company was about 208 million yuan, an increase of 5.15% year-on-year. In the first quarter of last year, Chacha Food Company Limited(002557) achieved a revenue of 1.379 billion yuan, an increase of 20.22% year-on-year; The net profit attributable to the parent company was 198 million yuan, a year-on-year increase of 32.70%.
Compared with the double-digit growth in the same period in 2021, the growth rate has shrunk several times. It is worth mentioning that in the first quarter of 2022, the net cash flow from Chacha Food Company Limited(002557) operating activities was – 78 million yuan, compared with 273 million yuan in the same period of last year.
The worst growth momentum is the company’s main product melon seeds category, that is, the category of “Kui Zhen” as a gift this time. In 2021, sunflower seed products, as the largest contributor to the company’s revenue, had a sales revenue of 3.943 billion yuan, accounting for 65.89%, with a growth rate of only 5.86%. In the past two years, the income growth rate of Chacha Food Company Limited(002557) sunflower seeds was 17.54% in 2019 and 12.8% in 2020. The growth was particularly obvious in the bottleneck. In particular, it should be noted that Chacha Food Company Limited(002557) has adjusted the ex factory prices of sunflower seed series products, pumpkin seeds and small and fragrant watermelon seeds in the fourth quarter of last year, with price increases of 8% – 18% for each category. Even stimulated by the price increase of products, the income of sunflower seed products has not been significantly boosted.
In 2021, Qiaqia’s actual controller Chen Xianbao once called out the goal of earning more than 10 billion yuan in 2023. Among them, the goal of melon seeds is 6 billion yuan, while the income of sunflower seeds will reach 3.943 billion yuan in 2021. To achieve the goal of 6 billion yuan in 2023, which is equivalent to an increase of 52% in two years. The goal of nuts is 3 billion yuan, while the income of nuts will reach 1.366 billion yuan in 2021. To achieve the goal of 3 billion yuan in 2023, which is equivalent to a sharp increase of 119.6% in two years.
Zhang Guangyang, an analyst in the food and beverage industry, believes that price increase is the fastest way to boost performance in the short term, but in the long run, the dividends brought by price increase and “housing economy” are beginning to fade. If no new growth point is found, Chacha Food Company Limited(002557) double growth in performance may not be too long-term.
