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tells the old and new stories!
Author: Guo Guo
Editor: Wang Meng
Fashion products: Shenhe
Source: Shoucai - Shout Financial Research Institute
Time-honored brands are golden signs, but where the brand limit and growth limit are depends on the operator's vision and ability.
Recently, Dezhou Braised Chicken , which was once named "Shenzhou Yiqi" by Kangxi , and has been known as "the first chicken in China", has been launched.
I have to say that from rural basics to Laoxiangji , and then to Ziyan Food , the "chicken world" embraces capital market . But it is not easy to really get what you want:
Rural Fund World War II IPO, the application status has turned to "invalid"; at the end of October, Laoxiangji ushered in the first round of feedback from the China Securities Regulatory Commission, involving 45 issues such as food safety, social security and provident fund payment, labor employment, and cash transaction ratio. Even Ziyan Food, which has finally been launched after more than two years of long waiting, saw its net profit decline in its first quarterly report show.
So, what is the value of Dezhou braised chicken and is there any chance of breaking through?
1
products, market reliance on
volume, growth is not advantageous, sales expense rate is high,
prospectus shows that Dezhou Braised Chicken was established in August 2010, and its main business is the research, development, production and sales of braised foods such as Braised Chicken .
From 2019 to 2021, revenue was 687 million yuan, 682 million yuan and 720 million yuan respectively; net profit was 122 million yuan, 95 million yuan and 119 million yuan respectively.
, both in terms of growth and scale, need to be improved. Taking Lao Xiangji as an example, from 2019 to 2021, revenue was 2.859 billion yuan, 3.454 billion yuan and 4.393 billion yuan respectively.
Fortunately, compared with Juewei Food , the overall gross profit margin of Dezhou braised chicken business is higher. From 2019 to 2021, it was 43.66%, 44.33% and 42.70% respectively. During the same period, Juewei Food was 33.95%, 33.48% and 31.68%.
, but the size difference is more visible to the naked eye. Taking 2021 as an example, Dezhou Braised Chicken had revenue of 720 million yuan and net profit of 119 million yuan. During the same period, Juewei Food was RMB 6.549 billion and RMB 981 million. Why is there such a big gap between
?
is largely related to the revenue structure: its main business mainly includes three parts: braised chicken, meat and non-staple food, and supermarket. In 2021, the business contributed revenues of RMB 478 million, RMB 82 million and RMB 126 million, respectively, accounting for 66.80%, 11.41% and 17.57% of the total revenue ratio respectively.
undoubtedly, the braised chicken product is a complete pillar of revenue generation, highlighting the centralized dependence of business. The market level of
channel also lacks expansion. As of the end of 2021, Dezhou Braised Chicken has expanded its stores through franchise. During the same period, there were 4,281 companies in Huangshanghuang, 5,132 companies in Ziyan Food, and 13,714 companies in Juewei Duck Neck .
As a nationally renowned braised ingredient, Dezhou Braised Chicken has not yet achieved a national layout. An important reason is that the shelf life of manufactured braised chicken products is 2 to 7 days, and the radiation coverage radius of product production and sales is also limited. Currently, 80% of sales revenue comes from the East China region, and in addition, the North China region close to Shandong.
and even public opinion lamented that Dezhou braised chicken became a part of East China and was also trapped in East China. How to break regional constraints and regional centralized dependence is a soul test question. What’s more interesting is that although the performance and growth are not superior, and it is still a regional brand, Dezhou braised chicken market promotion funds are not large:
From 2019 to 2021, the sales expenses were RMB 99.6661 million, RMB 95.3448 million and RMB 106.3534 million, respectively, accounting for 14.5%, 13.9% and 14.8% of the revenue ratio.
In comparison, the sales expense ratios of competitive Ziyan Food during the same period were 5.6%, 2.9%, and 3.2% respectively; Juewei Food was 8.2%, 6.1%, and 8.0%.
In this regard, Dezhou Braised Chicken attributes the different business models of store chain franchise and direct sales. The number of direct sales stores is small and does not need to bear the operating and leasing costs of most stores, and the sales expense rate will be relatively low.
You can look at the above performance and store gaps, and you can’t help but wonder: What is the efficiency and benefits of the above-mentioned heavy investment of Dezhou Braised Chicken? Is there more room for improvement in refinement and accuracy?
Look at the debt ratio that continues to rise, and we have to calculate it carefully: from 2019 to 2021, the debt ratio of Dezhou Braised Chicken was 38.74%, 52.13% and 56.44% respectively. Hao Rui, an industry analyst at
, said that competition in the braised food market has intensified, from the three countries to the four-legged stalemate, under the head effect, from competing for products and innovation, to competing for industrial chain and supply chain, the opportunities left for other mid-middle companies are decreasing. Dezhou Braised Chicken does not have the advantage in terms of performance, store volume and industry influence, and IPOs also have the urgency to fight to become bigger and stronger as soon as possible.
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6 Production capacity Supply chain shortcoming
Quality control internal control and R&D need to be more focused
is not a big deal.
From the perspective of product positioning and target consumers, compared with competitors such as Huangshanghuang, the former's product positioning focuses on the meal-style braised product , which can meet the scenes of consumers' home meal dishes and gift gifts, while the latter focuses on casual braised products, which is more to meet consumers' daily snacks and other consumption scenarios.
According to Frost&Sullivan data, domestic marinated foods accounted for 64% of the total scale of the marinated food market in 2019. Although this share is still significantly higher than casual braised products, the market size has shrunk by 10% compared with the 2010 data. Combined with changes in consumer consumption habits and increased purchasing power, the share gap between the two is still expected to narrow.
In other words, for time-honored brands like Dezhou Braised Chicken, new market trends and new consumer demands also raise challenges for them such as product innovation, brand newness, and industrial chain and supply chain optimization.
As of the end of 2021, Dezhou Braised Chicken had a total of 1,440 employees, of which only 98 were engaged in product research and development. However, there are as many as 629 sales personnel, accounting for 43.68%.
During the reporting period, the R&D expenses of Dezhou Braised Chicken were 2.3058 million, 3.7957 million and 12.4801 million, with the R&D expense ratios of 0.34%, 0.56% and 1.73%. Although the continuous improvement is worthy of recognition, compared with the above-mentioned high sales expenses and proportions, it is difficult to help but wonder, what exactly does the company rely on to drive growth and can it quickly adapt to the market? Break the single over-dependence and complete product upgrade and transformation?
supply chain industry chain constraints must be observed. As mentioned above, the shelf life of Dezhou braised chicken is generally 2 to 7 days, which is a short-term product. Affected by this characteristic, the preservation and storage conditions of Texas braised chicken are more stringent.
At present, Dezhou braised chicken only has two major processing and distribution bases: Dezhou and Qingdao . Due to the dual constraints of the capacity supply chain, the company's product pace of going to the whole country has also been delayed. If it cannot escape regional restrictions and cannot open the store volume, its performance and growth will naturally appear weak. How can it impress investors?
It is reported that Ziyan Food currently has five major production centers: Jinan, Wuhan, Lianyungang, Ningguo and Chongqing, achieving coverage of South China, Central China and Southwest regions.
: Delighted that Texas Braised Chicken has realized the above constraints. The fundraising of 758 million yuan is to expand the company's marketing network for the construction of new food processing projects, quick-frozen chicken production line construction projects, and to expand the company's marketing network.
However, this will also be after it is launched.
is more urgent than expanding production capacity and laying channels, strengthening product quality and maintaining the red line of food safety.
In March and April this year, Shandong Provincial Market Supervision Administration reported that the ready-to-eat jellyfish silk sold at the Sanba Middle Road store of Dezhou Braised Chicken Supermarket Co., Ltd. had the total number of colonies that did not meet the national food safety standards.
Browse the Black Cat Complaints. As of 18:00 on December 16, there were 50 related complaints, and the number was really not large. The problems that can be reflected in eating foreign objects and product spoilage are still sensitive enough.
supplier level, in December 2019, a batch of fresh chickens produced by Ronghua Food, a Dezhou braised chicken supplier, was detected by the Shandong Provincial Market Supervision Administration. According to the regulations of the Ministry of Agriculture, chloramphenicol cannot be detected in all food animals. If the human body consumes chloramphenicol residues for a long time, it will cause digestive dysfunction.
3
Pros and cons of family business. Equity transfer price difference is large.
Beware of environmental protection loopholes. Large dividends question
Industry analyst Guo Xing said that food safety is greater than the sky. Especially for Dezhou Braised Chicken, which has a time-honored brand and is seeking to raise funds on the market, consolidating quality control and risk control is a basic skill and the bottom line of corporate value. In the past, from Naixue to Haitian Flavor Industry, due to the overturn in quality control, the stock price of has been greatly shocked and has become a nightmare for investors.
From the equity structure , Dezhou Braised Chicken is a more typical family business. The actual controllers Cui Guihai, Chen Xiaojing and Cui Chen. Among them, Cui Guihai and Chen Xiaojing are husband and wife, while Cui Chen is the son of their two. The three of them controlled the company's voting rights of shares to 60.06%.
Currently, Cui Guihai serves as the chairman of Shandong Dezhou Braised Chicken Co., Ltd., and Cui Chen serves as the vice chairman and general manager of Shandong Dezhou Braised Chicken Co., Ltd., that is, the actual controller participates in the company's daily operations. Yu Shengmei, an industry analyst at
, said that in the early stages of enterprise development, family management is conducive to operational stability and efficient decision-making. But after growing to a certain scale, modern enterprise management is the top priority. equity concentration and "one share dominance" are often regarded as stumbling blocks to improve the governance structure of listed companies. Transparency in governance, advanced decision-making, openness in team talent training and improvement space are often the focus of public opinion.
focuses on the corporate governance aspects of Dezhou Braised Chicken, and there are also many unconventions.
seems to have a certain degree of "randomness" if equity delivery is made. There were problems with stock prices in multiple shareholder equity transfers in 2012.
When the shares were transferred in June that year, the transfer price per share was only 1 yuan. In October and November of the same year, it became 4.6 yuan. In December, the actual controller Cui Guihai transferred 2 million shares of Dezhou Braised Chicken to external investor Zhong Bing, with a transfer price of 7.25 yuan per share.
It is worth noting that during this period, Texas Braised Chicken did not increase capital and share expansion. There were three different transfer prices in the same year, and the price difference was huge, which inevitably made people question whether there were loopholes in equity management and whether there were any possibility of transferring interests in their equity management?
In May 22021, when Dezhou Braised Chicken received listing guidance from Guotai Junan for nearly a year, investor Zhong Bing chose to withdraw and transferred all the shares he held to four institutional investors, with a transfer price of 17.65 yuan per share, and cashing out 35.30 million yuan.
is like the sudden dividend before the listing. From 2019 to 2021, Dezhou Braised Chicken distributed dividends for three consecutive years, with a cumulative dividend amount of up to 240 million yuan. You should know that Dezhou Braised Chicken's net profit in the past three years was only 336 million yuan, which means that dividends accounted for 71% of the company's net profit during the reporting period.
Naturally, this has benefited the Cui Guihai family a lot, but it is difficult to avoid the outside world’s doubts about its sincerity in listing: is there any lack of money when it is distributed dividends and raised funds with the other hand? Has such a large investment hollowed out the company and damaged its follow-up development potential? Will it be more interesting to leave more for R&D and supply chains?
In 2019, some media exposed that "Dezhou Braised Chicken" had a false propaganda: sometimes it said that its products were jujube forest free-range chickens, sometimes it promoted its products were North China Chai Chicken and Shandong Meng Stupid Chicken, sometimes it promoted its products to grow cycles of more than 120 days.
At the same time, eight large standardized ecological breeding bases were promoted to the outside world. Later, media interviews confirmed that only two ecological breeding chicken farms, Leling 10,000 mu jujube forest and Linyi 70,000 mu saprophylum.
prospectus shows that the chicken raw materials currently processed by Dezhou braised chicken mainly come from both self-raising and commissioned breeding. However, when the above supply channels cannot meet production capacity needs, the company will also choose to purchase some chicken from the outside.
prospectus bluntly stated that in the future, there may still be problems such as inadequate detection of raw material quality due to errors in the testing personnel and damage to the testing instrument.
According to media reports, Dezhou braised chickens generally sign breeding agreements with farmers. The company provides chicken seedlings, feed and epidemic prevention potions. Farmers are responsible for raising them, but the number of such chickens cannot be effectively guaranteed. During the process of "collecting chickens", Dezhou braised chickens do not refuse "foreign chickens".
At the same time, although the chicken breeding and chicken processing and production process do not belong to the heavy pollution industry, the environmental impacts such as wastewater, waste gas, waste generated during the breeding and production process cannot be ignored, and it is also a sensitive issue for food processing enterprises. In the feather chicken breeding business, Dezhou braised chicken mainly produces solid pollutants, sewage and other pollutants, and the slaughtering and processing process also produces a large amount of wastewater, waste gas and waste.
On August 12, 2014, Qingdao Dezhou Braised Chicken Co., Ltd., a wholly-owned subsidiary of Dezhou Braised Chicken, was ordered to suspend construction by the environmental protection department and fined 150,000 yuan for construction without approval of environmental impact assessment.
"Summary Table of Implementation of New Air Pollutants Standards in Dezhou City in March 2015" shows that Shandong Dezhou Braised Chicken Group Co., Ltd. has a 10t facility with a scale of 10t, and there are violations of smoke and dust emissions that do not meet the standards.
, and the "Summary Table of Implementation of New Air Pollutants Standards in Dezhou City in March 2017" shows that facilities with a scale of 10t of Dezhou braised chicken still have smoke and dust emissions that do not meet the standards, and only the words "natural gas" are marked in the "Remarks" column.
4
Seeking new and change. The old-fashioned new and old stories of old brands
After sorting out, there are troubles inside and outside. Check for omissions and fill in the gaps, and consolidate the fundamentals of , and Dezhou braised chicken needs to work harder.
Of course, if you can go public and leverage your strength to transform, there is no chance.
On the one hand, the braised food products market is large and is still in development, leaving practitioners with sufficient room for transformation. Data shows that the scale of the food and leisure braised products industry in 2021 was 179.2 billion yuan and 150.4 billion yuan respectively. It is estimated that by 2025, the market size of the food and leisure braised products will reach 279.932 billion yuan and 227.5 billion yuan respectively.
On the one hand, despite the fierce competition, the industry concentration is not high. According to iMedia Consulting data, although the number of registered domestic braised products-related companies increased from more than 4,000 in 2011 to more than 17,000 in 2020, the market share of CR5 in the domestic braised products industry is only 20%. For Dezhou Braised Chicken, which adheres to standardized development, its growth prospects are still broad.
On the other hand, Dezhou Braised Chicken is also continuing to improve. In order to get rid of the current situation of excessive reliance on braised chicken products for revenue, the casual braised brand "Lu Xiaoji" was launched in 2019. The brand has launched a variety of braised snacks including tiger skin chicken feet , honey chicken legs, honey chicken gizzards, etc.
At present, the revenue of the meat and non-food business to which Lu Xiaoji belongs has exceeded 10% of the total revenue. There is already a new growth pole. In the future, if you can use braised and casual braised foods to drive together and walk on two legs, it will be beneficial to the company's risk resistance, performance growth, and comprehensive brand influence.
's main products are also explored. In view of the pain points of short shelf life of the product, Dezhou Braised Chicken is trying to break the deadlock in combination with the new business model of instant retail. Compared with the previous express logistics, instant retail, which focuses on "online ordering and 30-minute delivery", not only helps to improve the company's offline store efficiency, but also helps to open up dual online and offline channels and build a stronger sales network.
Since this year, Dezhou braised chicken stores have gradually launched the Meituan platform. With the help of a strong operation and distribution system, the company has not only expanded the consumption scenarios in Beijing, Tianjin, Hebei, Shandong and other places, but also adapted to the consumption habits of young consumer groups. According to Meituan data, Dezhou braised chicken instant retail orders increased by 16% year-on-year from January to October this year.
need no further comment, Dezhou braised chicken has more interesting points. This time-honored brand is actively seeking new and change, checking for omissions and filling in the gaps. Try to tell old basic stories, new additions and new stories. From this point of view, all parties should also give them more patience and confidence.
However, competitors are not idle, and the market is going thousands of miles a day. Whether the increasingly picky consumers can pay for the orders and the increasingly rational investors can vote with their feet, and truly live up to the reputation of "China's No. 1 Chicken", Dezhou Braised Chicken needs to tell new and old stories more thoroughly, accurately and professionally.
This article is original
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