The Taoli Bread family reduced their holdings again, and this time they cashed out 203 million yuan.Since the release of the restricted shares, this is the ninth round of the Wu Zhigang family reduction since the beginning of 2019. According to statistics, the accumulated cash has exceeded 4 billion yuan.Frequent reduction operations have also attracted attention from the outside world: Is Taoli Bread a "cash machine"?
The "transcript" of increasing income but not increasing profits also reveals the dilemma of Taoli Bread's current domestic and foreign difficulties: net profit continues to decline, regional development is unbalanced, and industry competition is becoming increasingly fierce.
Is there any new story to tell about this company's successful out of the Northeast and a leading bread brand with a market value of 10 billion?
The actual controllers frequently reduce their holdings, and the company is still family-run
Taoli Bread (603866.SH) released the "Announcement of Taoli Bread Co., Ltd. on the Controlling Shareholder and Actual Controller's Early Termination of Share Reduction Plan and Share Reduction Results" on July 12, stating that "based on confidence in the future development of Taoli Bread, Combining its own capital demand plan, the company's controlling shareholder and actual controller decided to terminate the implementation of this share reduction plan ahead of schedule." The announcement shows that during the implementation period of the sharehold reduction plan, Wu Zhigang, the company's controlling shareholder and actual controller, passed block transactions and centralized bidding transactions. A total of 13.632 million shares were reduced by means of the method, accounting for 1.025% of the company's total shares, and the total amount of reduction was 203 million yuan.
This is also the ninth round of reductions completed by Wu Zhigang's family in more than three years after the restricted shares were lifted, with a cumulative cash-out of over 4 billion yuan.After the announcement, the share price of Taoli Bread continued to fall. It closed at 14.78 yuan per share on July 12. Compared with the previous highest price of 67.88 yuan (after two share conversions during the period, the former reinstatement price was 33.69 yuan), a drop of 78.23%. Evaporated 26.465 billion yuan.
At the management level, peach and plum bread has a strong family color.According to reports, Taoli Bread was founded by Wu Zhigang. In 2019, Wu Zhigang, who was 84 years old, retired and was succeeded by his three sons. Wu Xueliang took over as chairman, Wu Xuedong as director, and Wu Xuequn as general manager.According to the latest announcement, the director and general manager Wu Xuequn currently holds the most shares, holding 324.5017 million shares, with a shareholding ratio of 24.34%; followed by the chairman and executive general manager Wu Xueliang, holding 196.2341 million shares and a shareholding ratio of 14.72 %; Wu Zhigang, who holds the third place, holds 139.9056 million shares, with a shareholding ratio of 10.49%.And all the non-independent directors of the company are relatives of Wu and Sheng.
Judging from the performance of Taoli Bread, it was also the second year after Wu Zhigang’s retirement. The growth rate of Taoli Bread’s operating income plummeted from double digits to single digits, and the growth rate continued to slow down, and the first net profit in 2021. drop.The 2021 annual report shows that Taoli Bread's net profit attributable to shareholders of listed companies was 763 million yuan, a year-on-year decrease of 13.54%.
The reporter of Yinshi Finance also sent an interview letter to Taoli Bread on issues such as the pressure on the company's profits and the continuous reduction of the controlling shareholder. business?Trapped in the vicious circle of "increasing income without increasing profits", what measures does Taoli Bread take this year?When the baking track is hot and crowded, how does Taoli Bread plan to break through?However, as of press time, no relevant reply has been received.
Rising costs, setbacks in expansion
Net profit declines, what is the problem?From the performance report of Peach and Plum Bread, we can also see one or two.
On April 18, Taoli Bread (603866.SH) disclosed the report for the first quarter of 2022. The company achieved a net profit of 158 million yuan attributable to shareholders of listed companies, a year-on-year decrease of 2.8%.The "increase in revenue but not profit" in the 2021 annual report continues.
Taoli Bread believes that one of the main factors affecting the "increase in revenue but not profit" in the first quarter is that the increase in the price of some raw materials and the increase in terminal distribution service costs led to a slight year-on-year decrease in the company's gross profit margin in the current period.In the 2021 annual report, for the first drop in net interest rate, Taoli Bread analyzed that, firstly, due to the impact of the national phased social security reduction and exemption policy in the same period last year, the company's labor costs were lower than this period; secondly, in 2021, the company increased promotion efforts, The discount rate is higher than that of the same period last year; thirdly, the prices of bulk commodities such as flour, sugar and gasoline have risen, resulting in an increase in production costs.
"When the entire cost continues to rise, profits must decline." said Zhu Danpeng, an analyst with China's food industry.
From a regional perspective, the Northeast market is still the main revenue driver, with a revenue of 2.88 billion yuan in 2021, accounting for 45.46% of its total revenue, ranking first; followed by the North China and East China markets, with 1.46 billion yuan respectively And 1.45 billion yuan; the remaining four markets (Southwest Market, South China Market, Northwest Market, Central China Market) did not exceed 1 billion.
In addition, 13 of the 39 subsidiaries of Taoli Bread are in a loss state, and most of them are southern companies. Jiangsu Taoli, Shanghai Taoli, Fuzhou Taoli, Xiamen Taoli, and Hainan Taoli all lost more than 10 million yuan.Since the beginning of this year, Taoli Bread has also issued two announcements on the cancellation of wholly-owned subsidiaries, and plans to cancel Fuzhou Taoli Bread Co., Ltd., Xiamen Taoli Bread Co., Ltd. and Hefei Taoli Bread Co., Ltd.
The unbalanced development of various regions, especially the poor layout of the southern market, has eroded a lot of profits of Taoli Bread.
The "faucet" is getting lost in the new wave of consumption
The fierce competition in the industry is another pressure faced by Taoli Bread.As a leader in the short-term bread industry, Taoli Bread achieves rapid reach coverage from production to terminal with the "central factory + wholesale" model, mainly through direct sales and distribution. Large chain supermarkets and small and medium supermarkets in central cities , Convenience store terminals are the main sales channels.
Gao Jianfeng, the founding partner of Shanghai Bogai Consulting, said bluntly in an interview with the media: "The above operation mode can indeed achieve rapid national expansion and rapid development in the early stage, but it also determines that it cannot achieve flexible production. At present, consumers everywhere. Compared with the freshly baked bread from many local bakeries, the product power of peach and plum bread is obviously insufficient.”
Although Taoli Bread stated in its 2021 annual report that it will strengthen the research and development and promotion of new products and speed up product renewal, it has also launched a series of new products such as rock-fired cakes, cheese bread, meringue bread, and cranberry slices. In the first quarter, the results were minimal.
On offline supermarket channels, Taoli Bread will compete head-to-head with traditional bakery brands such as Bimbo and Manhattan, as well as convenience store own brands; online fresh food e-commerce platforms, such as Dingdong Maicai and Hema Xiansheng, also launch their own Bread brand; and under the general trend of consumption upgrade, freshly baked and sold, new Chinese bakery products also quickly occupy the minds of users, such as Momo Dim Sum Bureau, Luxihe, etc. are favored by consumers and capital.According to a report released by iiMedia Research, from January to September 2021, there were 22 investment events in the bakery food industry, with an investment amount of 5.70 billion yuan.
"On the whole, in terms of the current distribution and operation mode of Taoli Bread, it is difficult for it to compete with the local bakery companies, relying on Shangchao to do it, and most of them are mid-to-long-term guarantee products. The competitiveness, innovation and upgrading and iteration are all insufficient." Zhu Danpeng said.
