Dong'a-jiao lost money for the first time. What happened to dong'a-jiao in 2019? On January 19, dong'a-jiao released a notice on the annual performance forecast in 2019. The company estimates that the net profit attributable to the shareholders of the listed company ranges from a loss of 333.6 million yuan to a loss of 458.6 million yuan, a decrease of 116% to 122% compared with the same period last year, and a profit of 2.085 billion yuan in the same period last year. According to wind data, this is the company's first loss since 1993, the first loss in 27 years.
According to the latest data, the number of shareholders of dong'a-jiao is close to 90000, which is really "a little panic" for the investment of holding on to Baima shares. The loss that hasn't happened in 27 years has suddenly come.
At the same time, dong'ejiao also released another announcement: the board of directors of the company recently received the written resignation report submitted by Mr. Qin Yufeng. Due to the retirement of the company, Mr. Qin Yufeng applied to resign from the position of director, President and legal representative of the ninth board of directors, and at the same time resigned from the position of member of the strategy committee and Nomination Committee of the ninth board of directors 。 After resigning, Mr. Qin Yufeng no longer holds any post in the company.
As of January 17, 2020, the share price of dong'a-jiao was 36.95 yuan, with a total market value of 24.166 billion yuan. The highest share price of dong'a Ejiao is 70.9 yuan, with a market value of more than 46 billion yuan.
So, in the history, the achievements are steadily rising. Why did the big white horse with the title of "Maotai in medicine" fall here in a year?
The first loss of "Maotai in medicine" in 27 years
On the evening of January 19, dong'a-jiao, who has the title of "Maotai in medicine", disclosed the performance forecast.
Dong'ejiao estimated that the net profit attributable to shareholders of listed companies was 333.6 million yuan to 458.6 million yuan, a decrease of 116% to 122% over the same period of last year, and a profit of 2.085 billion yuan in the same period of last year.
Dong'a Ejiao lost money for the first time. According to wind data, this is the first loss of the company since 1993, that is, the first loss in 27 years. This is also the first white horse stock to expose losses in 2019.
Dong'ejiao said that the main reason for the loss is that in recent years, the company's channel inventory has been continuously overstocked due to factors such as the overall macro environment and the gradual reduction of market expectation for value return.
In order to avoid adverse effects on the long-term good health of the enterprise, this year, the company mainly focuses on cleaning up the channel inventory, actively and strictly control the delivery, comprehensively reduce the channel inventory quantity, especially in the second half of the year, further increase the cleaning up of channel inventory, thus increasing the impact on business performance. Therefore, the above forecast is made for the performance of 2019.
At present, the company closely focuses on brand accumulation and consumer creation and allocation of resources, and realizes consumer operation through digital marketing transformation.
Focusing on the long-term sound and healthy development after the consolidation period, the company will actively optimize and adjust its development strategy, strengthen clinical and academic promotion, sort out and enrich its product system, continuously launch "donkey hide gelatin +" and "+ donkey hide gelatin" series products, promote ready to eat donkey hide gelatin, connect new consumption, transform new marketing, expand new customer base, and incubate multiple categories.
Efforts should be made to promote the transformation of marketing mode from focusing on donkey hide gelatin industry to nourishing industry.
Through the transformation of business model, accelerate the transformation of organizational capacity to adapt to the digital environment, and promote the sound and healthy development of the company.
"Soul character" is gone
At the same time that dong'a Ejiao disclosed the pre loss announcement, it also released another announcement.
According to the announcement, the board of directors of the company recently received the written resignation report submitted by Qin Yufeng. Due to the reason of retirement, Qin Yufeng applied to resign as the director, President and legal representative of the ninth board of directors of the company, and at the same time resigned as a member of the Strategy Committee and Nomination Committee of the ninth board of directors.
After resigning, Qin Yufeng no longer holds any position in the company.
According to Baidu, Qin Yufeng, born in 1958, native place of shan'a County, entered dong'a-jiao work in 1974. He has successively served as section chief, director, assistant to the factory director, deputy general manager and executive deputy general manager, responsible for quality, research and development, technical innovation, procurement and supply, production and manufacturing, marketing and other works.
In 2006, Qin Yufeng took over as the general manager of dong'ejiao Co., Ltd. and became the "Ejiao Shaoshuai" of the famous Chinese medicine industry. He immediately carried out the Ejiao value return project aimed at returning to the public recognition and historical status of Ejiao's "blood tonic medicine" and "tonic top grade". In terms of protecting the intangible cultural heritage of Ejiao, he successively established 13 raw material bases and interrupted the restoration More than one hundred years of traditional and precious donkey hide gelatin, jiuchaogong gum, has produced, collected and sorted out more than 3200 ancient, famous and folk prescriptions of donkey hide gelatin. It has established donkey hide gelatin beauty and health preservation centers in major cities across the country, held touring exhibitions of donkey hide gelatin museums, carried out extensive cooperation with Beijing University of traditional Chinese medicine, Zhangyu, Baiyunshan and other groups to promote national excellent culture, and carried out protection and development of traditional Chinese medicine such as donkey hide gelatin with colleges and universities of traditional Chinese medicine The company has developed such measures as taohuaji Ajiao cake, a beauty food with Ejiao cultural elements and modern consumption fashion, so that the production technology of Ejiao, which represents the culture of Ejiao, has become the first batch of intangible cultural protection heritage of the country, and the company has become the only national traditional Chinese medicine cultural publicity and education base in Ejiao industry, so it is known as the "cultural master of Chinese medicine industry".
In the 14 years since Qin Yufeng took over dong'a-jiao, dong'a-jiao has developed from a diversified enterprise spanning more than 20 industries into a company with clear main business, specialized operation and outstanding competitive advantages. It has built its core competitiveness around the main business of donkey hide gelatin, continuously expanded, upgraded and prospered the market of donkey hide gelatin, and served the consumers' yearning and pursuit for a better life.
During Qin's nearly 14 years in office, the company's performance continued to grow, making more than 13 billion yuan of profits, of which the net profits in 2017 and 2018 exceeded 2 billion yuan for two consecutive years.
Therefore, the industry also called Qin Yufeng the "soul figure" of dong'a-jiao.
According to dong'a Ejiao, it was Gao Dengfeng who succeeded Qin Yufeng.
It is reported that shares of orient China Resources medicine have high hopes for it.
According to the data, Gao Dengfeng was born in January 1973 and worked in dongajiao in September 1995. He has successively served as the Sales Representative / Director, office manager, Marketing Manager / Director, southwest northwest region director, high-end product business department director, general manager of Jiangsu sales branch, general manager of Jiangsu Anhui sales branch, director of human resources department, general manager of health products company and electronic products company General manager, assistant president and other positions of the business company. Since August 2018, he has been a member of the Party committee and vice president of dong'a-jiao.
Dong'a-jiao lost money for the first time. What happened to the century old shop of "Maotai in medicine"? Gao Dengfeng is also the representative and leader of the young generation of management who has Internet marketing practice in dong'a-jiao.
In his previous posts, he led a series of digital marketing transformation and opened up a new marketing and development path.
What's wrong with the century old shop?
According to the company's website, Dong Ajiao won the gold medal of Panama Expo in 1915. It can be said to be a century old store worthy of the name. At one time, the company's performance has gone up, and its market value has reached a peak of 46 billion. So, why do you suddenly lose money?
In fact, the semiannual report of dong'a-jiao has revealed its clue. In the middle of July 2019, dong'a Ejiao released the semi annual performance forecast for 2019, which is expected to achieve a 75% - 79% decrease in net profit attributable to shareholders of listed companies over the same period of last year, with a profit of 181-216 million yuan. The next day, the shares of dong'a-jiao fell and stopped.
Subsequently, CICC urgently organized the management of dong'a-jiao to hold a conference call for strategic interpretation, and on July 16, 2019, it issued the Research Report on the pressure of dong'a-jiao's annual promotion of channel combing short-term performance.
In view of the short-term performance pressure, CICC lowered the rating of dong'a-jiao to "neutral", adjusted the profit forecast of dong'a-jiao in 2019 and 2020 to 1.5 yuan and 1.69 yuan per share respectively, and lowered the target price by 32.4 yuan to 33.8 yuan, the report said. Compared with the same period last year, it decreased by 53% and increased by 12.9%.
On July 18, 2019, Morgan Stanley lowered the rating of dong'a-jiao to low matching, with the target price reduced from 60 yuan to 30 yuan.
However, the above-mentioned institutions did not expect the annual loss of dong'a-jiao. Until recently, there was no discussion in the market about whether the company would make an annual loss.
Some analysts pointed out that the failure of dong'a-jiao may be caused by its frequent price increase.
After Qin Yufeng became the general manager of dong'a-jiao, the company began to implement the long-term strategy of "value recovery". In April 2019, Zheshang Securities said in the research report that the price of donkey hide gelatin block of dong'a-jiao had been increased 18 times since 2005, with a price increase of 20 times.
However, the price increase of donkey hide gelatin did not make a great contribution to its performance growth, but from the performance of 2015-2018, the company's net profit growth was 19.00%, 14.00%, 10.36% and 1.98% respectively, showing a trend of narrowing year by year.
Due to the high price and the unfriendly macro environment, the company's channel inventory has continued to overstock, which may be the main reason for the loss of dong'a-jiao.
Next, where will dong'a Ejiao go? It may also face some embarrassments.
If the price is reduced, it may be difficult to overcome the decline; if the price is kept high, it is obviously difficult to solve the problem.
Perhaps we can adopt some compromise sales methods, first solve the inventory problem, and then figure out the product, channel and price reform.
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