() The Record Form of Investor Relations Activities was released on May 5, and the company was investigated by 78 institutions on April 29, 2022. The types of institutions are insurance companies, others, fund companies, overseas institutions, securities companies and sunshine private equity institutions.
The main contents of investor relations activities are introduced:
Main contents of the exchange: Chairman introduced the company’s operating results in 2021 and the first quarter of 2022. I. Operating results in 2021 In 2021, the company achieved operating income of 1.29 billion yuan, an increase of 122 million yuan over the previous year and a year-on-year increase of 10.38%; Realized a net profit of 154 million yuan, a year-on-year decrease of 14.29%; The non-net profit was 128 million yuan, down 14.90% from the previous year. The decline in net profit in 2021 was mainly caused by the increase in sales expenses and the increase in raw material procurement costs: (1) The increase in sales expenses: 16 million ladder media advertisements were put in this period, 15 million market expenses such as one-time bar code fees were increased due to the launch of new products, and 10 million live broadcast fees and commission fees were increased in the e-commerce model; (2) The procurement cost of some raw materials has increased greatly. In 2021, the average purchasing unit price of palm oil increased by 43.25% compared with the previous year (the impact cost increased by 33 million), and the purchasing price of melon seeds increased by 16.26% compared with the previous year (the impact cost increased by 6.3 million); The company has raised the price of its products in the second quarter. Overall, the price increase has covered the adverse effects of the rising cost of raw materials. II. Operating Performance in the First Quarter of 2022 In the first quarter of 2022, the company realized an operating income of 320 million yuan, down 5.19% from the same period of the previous year; Realized a net profit of 22.51 million yuan, a year-on-year decrease of 45.30%; The net profit after deduction was 24.3 million yuan, a decrease of 28.50% over the same period of last year.The main reasons for the decline in sales revenue in the first quarter of 2022 are as follows: (1) Due to the difference in Spring Festival time, the Spring Festival time in 2021 was later, which led to a larger base in the first quarter of 2021. At the same time, the Spring Festival in 2022 was ahead, and the dealers prepared the goods earlier, and some orders were reflected in 2021. (2) The epidemic spread in many places across the country, and the logistics in some areas was affected, which indirectly affected the delivery of some orders. The main reasons for the year-on-year decrease in net profit in the first quarter of 2022 are as follows: (1) the initial investment of Anyang subsidiary: the personnel cost, depreciation cost of plant equipment and trial production cost of new products increased by about 6 million yuan before the new products were officially put into production; (2) Impact of raw material cost: the purchasing cost of some raw materials has increased greatly. The average purchasing unit price of palm oil in the first quarter of 2022 increased by 35% compared with that in 2021 (the influencing cost increased by 6 million), and the purchasing price of melon seeds increased by 10% year-on-year (the influencing cost increased by 800,000); (3) Impact of non-recurring profit and loss: After negotiation between the company and Anyang tangyin county Natural Resources Bureau, 62 mu of land was recovered, and the corresponding government subsidies were recovered in the current period, affecting the profit of 4.55 million. Question and answer of investors
Q: What progress has been made in the cooperation between new product planning and channels this year?
A: In terms of new products, the company delayed the launch of new products in the first quarter due to the epidemic, mainly starting from April this year, and the sales of new products in Anyang also made some progress in April. We are also implementing channels, including some membership channels, and many companies have reached cooperation intentions, but they have not been put on the shelves because of time.
Q: channel positioning of flavored nuts?
A: Considering the difference of the taste nut products, the market is divided into two parts. First, the products such as walnuts, cashews and pecans, which are relatively inexpensive, are popular and have a wider choice of channels. About 6,000 stores are preferred for delivery; Second, products with relatively high prices, such as macadamia nuts and pine nuts, are preferred to be similar to the head channel of membership-based supermarkets. At present, regular nuts have been put on the market one after another to achieve sales, and high-end nut products are also being promoted. At present, the membership supermarket is relatively fragmented, and the early goal is about 200 membership terminal stores.
Q: How does the rising price of palm oil affect the company’s cost pressure?
A: Affected by the epidemic and international comprehensive factors, the price of palm oil continued to rise sharply this year, reaching a historical high, which led to an increase in the company’s costs. The company has an alternative in oil, that is, rice oil, which is rich in nutrients. This rice oil is a domestic high-end edible oil. The price is on the high side, but it is still lower than palm oil, which is currently at a high price. The company started to use rice oil as raw material this month, which can alleviate the pressure brought by the rising price of palm oil, and the price increase can also cover the increase of oil price.
Q: How should we analyze the impact of the new factory in Anyang on the company’s gross profit margin?
A: From the first quarter, the overall gross profit margin of the company is basically the same as that in 2021. In order to prepare for the production of new products in Henan factory, the company reserved more than 500 employees in the first quarter, and the personnel cost, depreciation cost of factory equipment and trial production cost of new products increased by about 6 million yuan before the new products were officially put into production. This part of the expenses was included in the management expenses in the first quarter, which had no impact on the gross profit margin in the first quarter. From the perspective of 2022, the gross profit margin of Anyang’s new products will be slightly lower in the short term due to the influence of personnel’s proficiency, equipment running-in and capacity utilization, but with the increase of our overall capacity utilization and orders, the latter gross profit margin will gradually change for the better, which is a gradual change process.
Q: How to launch the company’s new product investment plan under the epidemic environment?
A: The investment promotion is expected to last for 3-5 months. In April, the company held a video conference with the dealers who failed to hold the on-site new product launch conference, and the promotion of new products began to go on sale one after another. At the same time, the company’s relatively high-end products are also exploring the field of membership-based business, and constantly expanding various channels of cooperation. Due to the spread of the epidemic, the growth rate of new products may be slightly slow. The company is rebuilding its bulk counters, driving old products with new products, expanding weak markets, sinking and filling blank markets, so as to increase the company’s product coverage and bring income increment.
Q: Has the epidemic affected the consumption power of snack food?
A: At present, some different changes have taken place in the data of individual channels. Due to the decrease of business crowds and the fact that most of our products were packaged around some products in the past in the first quarter, the proportion declined slightly; At the same time, with the expansion of emerging channels and the shift of consumption scenes, our online growth rate is relatively fast, which has led to an increase in the proportion of sales. So there are some changes between channels, but the overall changes have little impact.
Q: Can the company’s personnel adjustment keep up with the development of the company’s business?
A: In the early days, the single scale of the company’s products was relatively small, and the sales used the "Datong Road" model to carry out business. With the continuous growth of the scale, the company needs some more flexible personnel composition, rationally adjust the sales staff and allocate the sales team, and build a more professional service team, mainly to do market refinement, that is to say, we should have specialties, such as membership-based supermarkets, direct sales channels, etc., in the organizational structure. Last year, we made a change and added a direct sales department. This year, we will continue to strengthen this area.
Q: What is the current expansion of dealers and the target for this year?
A: This year, the company combined product characteristics with the changing trend of channels, and implemented a product stratification marketing strategy. Around the regular counter, through the way of re-optimizing the combination of new and old products, improve the sales of bulk counters and attract more high-quality dealers; The relatively high-end category of flavored nuts will prefer the corresponding channels such as the head channel and high-end customization of membership-based supermarkets for investment promotion; Both the Direct Marketing Department and the Special Channel Department are currently conducting some separate investment promotion for different products. Direct marketing is one of the development priorities of the company this year, and it will actively embrace such channels as "snacks are busy" and have reached cooperation with them. At the same time, we have also strengthened the packaging customization of convenience stores. This year’s change is from the flat and single investment promotion in the past to the establishment of a customer layered marketing plan, determination of the customer direction of the product side, and implementation of the corresponding path play. It is expected that the number of dealers will gradually increase, and the number of customers in professional channels will increase year-on-year.
Q: What is the form of the counter that plans to sink the market this year?
A: In the past, most counters were combined in the form of beans, peanuts and corn, and the product matrix was not rich enough, which led to the sinking of channels. This year, we will regroup the bulk counters and replace some old products with rice products, crispy rice cakes and other series of new products from Henan factory, which is equivalent to expanding the categories of cabinets and is more suitable for medium-sized stores like 800 square meters.
Q: Did the epidemic in the first quarter and April affect the company’s shipment and logistics?
A: In the first quarter, due to the epidemic situation control and blocked logistics, the smooth flow of logistics was affected to some extent in some areas, and the delivery period of products was postponed. In this regard, the company has adopted the way of "one thing, one discussion", that is, the same logistics station designs multiple routes to ensure a higher logistics arrival rate. The flow of personnel has also been affected. The company adopts video conference and decentralized regional conference to understand the daily work progress and investment promotion to make up for the impact of the epidemic.
Q: What is the scale growth target of new products and flavored nuts in Anyang? What are the core competitive advantages of the two categories?
A: Anyang’s new products, such as potato chips, scallops and rice cakes, have a large market volume and sufficient market scale in terms of category scale. What we are talking about is mainly about our bulk cabinets. After these large items launched by the company form a better combination with the old products, the counter efficiency can be optimized. As of last year, we only had 8,100 counters, and there is still a lot of room for the growth of counters. Tasty nuts are actually a big track, and the company’s advantages in taste research and development accumulated over the years have been preliminarily tested by the market and received good feedback. The direction we are making is delicious taste nuts, and at present we have only tapped into a small part of the market. In addition, the market feedback of rice crisp products launched this year is better.
Q: What is the sales expenditure plan this year?
A: Offline: This year, the company mainly focused on expanding the market and increasing channel construction, and vigorously explored the blank market. There are many new products launched this time, so it is difficult to focus on an influential large single product for advertising in the short term, and then further plan according to market conditions later.
Online: Online channel is an important brand communication channel. The company plans to cooperate with the head anchor or talent, plant grass online and other ways to spread, focusing on crowd drainage and promoting products to achieve marketing purposes.
Q: What is the year-on-year change analysis of subdivided products?
A:
Take the old three as an example. From the 2021 annual report, there will be a slight decline. On the one hand, the company’s supermarkets account for a relatively large proportion, but the flow of people has declined, so sales have been affected. In addition, the company’s products include bean and fruit combinations, including green peas, broad beans and melon seeds. Some consumers tend to buy bean and fruit combination products, which is also reflected in the sales data of comprehensive nuts and bean and fruit products in the annual report. Then this year, we take measures to rebuild the bulk counter, so that new products can drive the sales of old products, expand the weak market, sink and fill the blank market. At the same time, we have also developed other different specifications that are suitable for various channels, and are no longer limited to the all-round expansion of supermarkets, so as to form a positive growth in the future.
Q: What measures does the company take to deal with the uncertainty of the epidemic?
A: First, the supply of raw materials, such as palm oil, is relatively influenced by the international market, and the company has adopted a rice oil substitution scheme; Second, other imported raw materials are widely distributed, and the general company will reserve two or even more suppliers; The third is to increase the raw material reserve strategy, lock in the prices of some raw materials, and the production costs of some raw materials can be effectively controlled. Generally speaking, the establishment of a multi-quality supplier system can provide guarantee for stable supply and good quality in the future.
Q: What is the plan of peanut category this year?
A: At present, our peanut channel is the same as the old three. In terms of planning, on the one hand, we should continue to improve the original peanut products, on the other hand, we should increase innovation and research and development. From the current competitive environment, there is no competitive peanut product yet, and there is no peanut product that can stand out in the market. We need to improve the product strength through innovation to drive the quantity of peanuts.
Q: At present, there may be a delay in the investment promotion plan. Do we have any measures to deal with it?
A: Last year, we originally made a large-scale investment promotion plan for the Spring Sugar and Wine Party and the Shanghai Chinese Food Exhibition, but the current epidemic situation is still very uncertain. If it is held later, we will continue to strengthen this one, but it is not limited to this one.
Now we are in the stage of regional investment promotion, mainly focusing on existing dealers. Just now, I also talked about the change of sales organization structure this year. In fact, the product structure has also changed, and the channels have also changed. For example, flavored nuts and bulk counters sinking into the blank market will be invited separately, and the number of terminals will also increase.
Q: About how many dealers are making new products in Anyang? Is there any restocking and repurchase?
A: At present, there are hundreds of dealers making new products in Anyang. At the end of February, we selected some existing head dealers to participate in the new product launch conference. Now we have only completed part of the investment promotion for new products in Anyang. Just now, we also said that a large number of planned national investment promotion was blocked by the epidemic, and now we are taking regional investment promotion measures. Dealers who have placed orders for Anyang products in April have also started to make up the orders.
Q: In addition to the old three kinds, tasty nuts and Anyang new products, will other categories be expanded in the future?
A: At present, there are still many product matrices involved in the leisure snack track.
The first idea around is counter efficiency. Products with good sales will continue to be made, and products with less expressive force will be replaced. We hope to keep 1-2 large categories in our counters every year, constantly optimize the product structure, combine them into a product matrix with strong market competitiveness, attract more high-quality dealers and enhance market coverage. This strategy has not changed, and we have been studying products. Second, we continue to create more subdivided categories besides the existing subdivided bean products. Tasty nuts and crisp are the other two subdivided tracks we have opened up. At present, there is no head enterprise in these two categories in the subdivided field. I hope we can extract them and build a certain scale to rise to brand. In addition, although the corresponding market of several sub-categories we have developed is relatively fragmented, each section will have its own characteristics, and the development requirements are not low, but it also reduces the difficulty of branding the developed market "Gan Yuan". In the past year, our product matrix has changed, and our product channels have also changed. Although the phased process will indeed be slower, including the cause of the epidemic, we are still very confident in the long run.
Q: At present, the income structure still accounts for the majority. From the perspective of the assessment objectives of the employee stock ownership plan, what is the future trend of the company’s income structure?
A: The old three did not sink the market well enough in the past. Later, I hope that the optimized product matrix this year will drive its growth space and gradually increase positively every year. For peanuts, flavored nuts, and pastries, we hope to create new increments. If the preparatory work is well prepared, this growth rate is still well-founded. At present, we are in the process of developing products and reforming channels, and then we will carry out specific product marketing work, so we set a growth target of not less than 20% in 2022;
The main business of Gan Yuan Food Co., Ltd. is the research, development, production and sales of snack foods. Now it has developed into a snack food production enterprise dominated by roasted seeds, nuts, nuts and cereal cakes. At present, its main products include melon seeds, broad beans, green peas, bean fruits and nuts. The company’s brand has a high popularity and reputation in the market, and has successively won many titles, such as "provincial leading agricultural industrialization enterprise", "vice president unit of nut roasted seeds and nuts committee of China Food Industry Association", "famous brand of Jiangxi Province", "specialized and special new small and medium-sized enterprises in Jiangxi Province", "demonstration enterprise of Jiangxi Industry and Information Technology Commission", "pilot demonstration enterprise of Jiangxi intelligent manufacturing" and "vice president unit of Jiangxi Food Association".
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