Hengshun Vinegar Industry!Performance drop, thunderbolt, and where to go?

2022-07-18 0 By

The darkest hour has arrived for Hengshun vinegar industry.Although it seems that the performance of last year only decreased 53.92% to 63.44% year-on-year, is expected to reduce 170 million yuan to 200 million yuan, not yet a loss, but quarterly to see the change in net profit last year, you will be surprised out of a cold sweat.Why?Because net profits are falling so fast, and they actually made a loss in the fourth quarter of last year, which is scary.Let’s look at the change in net profit for the four quarters of last year: in the first quarter of last year, net profit was 78.87 million;48.53 million in q2;7.2 million in q3;Estimates for the fourth quarter range from a $19.6 million loss to a $10.4 million profit.From the first quarter to the fourth quarter, net profit from surplus to loss, straight down, and the speed of decline has accelerated signs.How can the performance of hengshun vinegar industry regress so badly?The company blamed the coronavirus pandemic, higher prices for raw materials and marketing changes.That’s easy enough to swing.You know, on the one hand, it has been three years since the outbreak of COVID-19, and the company’s performance in the first two years was ok.On the other hand, raw materials have increased in price and, crucially, the company’s products have also increased in price.In addition, the marketing revolution is not long, how also became the back pot man?In fact, the company is not ashamed to admit that it is incompetent leadership, and handed over the most important market share in the East China market to the aggressive predators such as Haitian Flavor industry.The real crisis of hengshun vinegar industry is market shrinkage and market share reduction.Last year, Li Guoquan, who had been president of Hengshun Vinegar for 10 years, announced on November 23 that he would resign as a director of the eighth board of directors of the listed company, a member of the special committee of the board, president and marketing director.Instead, the company hired a director of marketing and a director of operations.And the new marketing director Zhang Bing, successive wrigley confectionery (China) co., LTD., city manager, director of the key customers, heinz (China) investment co., LTD., area sales managers, area sales manager, lee kum kee (China) co., LTD., a senior sales manager, easy to remember food brewing co., LTD., general manager of the national sales director.It can be seen that the company hopes to use the “airborne troops”, through marketing reform, pull the waves in the already fall.Will that do?Here lies the suspense.If the company’s marketing changes do succeed, they will show up in the first quarter of this year.If the first quarter continues to be a debacle, it will be a sign not only that the marketing revolution has failed, but that the price-raising strategy has failed.If so, it could be disastrous for the future of hengshun vinegar.The above views are personal and do not constitute investment advice!# Stock Comment # For more exciting content, follow the financial old Shepherd boy