Under the frequent acquisitions, the new dairy industry (002946.SZ) has increased in size, but it has been ridiculed by the outside world for being "big but not strong".
Recently, Xi Gang, chairman of the new dairy industry, said at the shareholders' meeting that the company has invested in the new consumer company "Ibanzhi" to deploy plant-based beverages.
A reporter from Changjiang Commercial Daily found that in the three years after the listing of New Dairy, the company spent more than 3.3 billion yuan in acquisitions.
At the same time, in the first quarter of 2022, the gross profit margin of the new dairy industry dropped to 24%, which is in the middle and lower reaches of similar listed companies.Moreover, a reporter from Changjiang Commercial Daily found that this was the lowest in nine years since the company had statistics in 2014.
Xi Gang, chairman of the new dairy industry, once said: "I personally think that there is no problem with a slightly higher debt, and the risk to the enterprise is controllable."
Under Xi Gang's thinking mode of adding leverage, as of the first quarter of 2022, the new dairy industry's liabilities reached 6.374 billion yuan, a net increase of 3.675 billion yuan from the end of 2018, an increase of 1.36 times.
At the same time, the brand power of the new dairy industry is not high, and its subsidiaries have been found to be substandard for many times.In the first quarter of 2022, the company's R&D expenses were only 8.992 million yuan, accounting for less than 0.4% of revenue.
Goodwill reached 1.19 billion, an increase of nearly 10 times in three years
New Dairy was established in 2006 and listed in January 2019. The company is backed by New Hope Group. Its main business includes the research and development, production and sales of dairy products and milk-containing beverages.
Regarding the company's frequent acquisitions in recent years, Xi Gang, chairman of New Dairy, said: "In fact, we are constantly acquiring and acquiring to accelerate development, so we need to continuously increase financing. It is actually to boost the company's rapid development."
In July 2019, New Dairy issued an announcement to acquire 590 million shares of the raw milk company Modern Dairy (01117.HK) with its own funds of 709 million yuan to strengthen cooperation in the raw milk business.After the transaction was completed, New Dairy became the second largest shareholder of Modern Dairy, holding 9.28% of the shares.
Just one month later, in August 2019, New Dairy owned or actually controlled all the assets and business related to the "Fuzhou Auscow" brand at a transaction price of 193 million yuan. 55% of the new company established.
On July 1, 2020, Xin Dairy obtained 100% equity of Huanmei Dairy, 98.8% equity of Comprehensive Animal Husbandry, 55% equity of Xinao Dairy and Xinao Animal Husbandry, spending 1.522 billion yuan, 189 million yuan, 78.1738 million yuan and 22.8703 million yuan, a total of 1.812 billion yuan.
Among them, New Dairy intends to purchase 60% equity of Huanmei Dairy by paying cash, and purchase 40% equity of Huanmei Dairy by paying cash after raising funds through the public issuance of A-share convertible corporate bonds.
At the beginning of 2021, New Dairy announced that it would acquire a 60% stake in "One Yogurt Cow", the pioneer of domestic yogurt tea and sub-category leader, for 231 million yuan.
In December 2021, the new dairy industry announced that the company purchased 5% of the issued shares of AustAsia Investment Holdings Pte. Ltd. (referred to as "AustAsia Investment") from JAPFA LTD. , in order to obtain a stable milk supply, and the delivery of the current transaction has been completed.
A reporter from Changjiang Commercial Daily found that in the three years after the listing of New Dairy, the company spent more than 3.3 billion yuan in acquisitions.
With frequent large-scale acquisitions, the performance of the new dairy industry is also "on the rocket".
The data shows that from 2019 to 2021, the operating income of the new dairy industry was 5.675 billion yuan, 6.749 billion yuan and 8.967 billion yuan respectively, up 14.14%, 18.92% and 32.87% year-on-year respectively; net profit was 244 million yuan and 271 million yuan respectively. And 312 million yuan, an increase of 0.41%, 11.18% and 15.23% year-on-year respectively.
In the first quarter of 2022, the operating income of the new dairy industry reached 2.317 billion yuan, a year-on-year increase of 15.02%; the net profit reached 43.4545 million yuan, a year-on-year increase of 48.70%.
However, the new dairy industry cannot get rid of the doubts such as being too big but not strong, and the topping of goodwill.
Before 2020, the gross profit margin of the new dairy industry exceeded 30%, but it has since dropped to less than 25%.Specifically, the company's gross profit margins from 2019 to 2021 are 33.11%, 24.49% and 24.56%, respectively.
In the first quarter of 2022, the gross profit margin of the new dairy industry will drop to 24%, which is in the middle and lower reaches of similar listed companies.Moreover, a reporter from Changjiang Commercial Daily found that this was the lowest in nine years since the company had statistics in 2014.
In comparison, the gross profit margins of Beingmate, Sunshine Dairy, Yili and Sanyuan were 38.37%, 34.9%, 34.44% and 26.51% respectively.
Moreover, as of the first quarter of 2022, the goodwill of the new dairy industry was still 1.190 billion yuan, an increase of nearly 10 times compared with 113 million yuan in 2019.
R&D expenses account for less than 0.4%, much lower than sales expenses
Under the frequent acquisitions, the debt ratio of the new dairy industry has gradually increased.
From 2019 to 2021, the asset-liability ratio of the new dairy industry will be 61.66%, 66.65% and 69.81%, respectively, and continue to rise.
In the first quarter of 2022, the asset-liability ratio of the new dairy industry dropped slightly to 68.70%.
Regarding the high debt of the new dairy industry, Xi Gang previously said: "The problem of debt is very simple. First of all, what is the debt based on? Is this debt to accelerate its development, or is it because of its own poor management. If you start from the two From an end point of view, we are actually doing mergers and acquisitions in order to accelerate development. This requires us to continuously increase financing. Therefore, the increase in debt is itself an increase in leverage. It is actually boosting our rapid development. Personally I think that if the debt is a little higher, there is actually no problem, and the risk to the enterprise is controllable.”
Under Xi Gang's thinking mode of adding leverage, at the end of 2018, the total liabilities of the new dairy industry were 2.699 billion yuan, and in the first quarter of 2022, it reached 6.374 billion yuan, a net increase of 3.675 billion yuan, an increase of 1.36 times.
As of the end of 2021, New Dairy has 59 holding subsidiaries, 15 major dairy brands, 16 dairy processing plants, and 13 self-owned farms.
However, the brand power of the new dairy industry is not high. Compared with leading dairy companies such as Yili, Mengniu and Guangming, the company lacks well-known brands such as Telunsu and Jindian.
In June 2021, China Chengxin International stated that during the tracking period, New Dairy continued to acquire and acquire a number of companies, and its goodwill increased significantly. Although the company has good integration methods and experience, due to differences in integration projects, post-investment The management situation and goodwill impairment risk still deserve attention.
As expected by China Chengxin International.At the end of April 2022, the State Administration of Municipal Supervision notified 11 batches of unqualified products for random inspection.Among them, the "Auscow" strawberry-flavored yogurt milk drink produced by Fujian New Hope Auscow Dairy Co., Ltd. entrusted by Fujian Auscow Dairy Co., Ltd. was on the notification list because the protein content was lower than the standard value.
In May, information on the official website of the Changsha Municipal Supervision Bureau showed that in the recent daily supervision and inspection of food production enterprises, Hunan New Hope Nanshan Liquid Dairy Co., Ltd.'s inspection result was ordered to rectify.Although the announcement of the regulatory authorities did not disclose more information, judging from the nature of the inspection, it may be because the company has violated regulations in food production activities.
It is worth noting that in 2021, the sales expenses of the new dairy industry will reach a new high of 1.248 billion yuan, a year-on-year increase of 35.42%.The company's research and development expenses are only 40 million yuan, although it has increased by 16.24% year-on-year, but only 3.21% of the sales expenses.
In the first quarter of 2022, the research and development expenses of the new dairy industry were only 8.992 million yuan, a year-on-year decrease of 15.23%, accounting for less than 0.4% of operating income; while the company's sales expenses were as high as 338 million yuan, a year-on-year increase of 10.2%, the latter was 38 times that of the former.
