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28 dairy companies annual report observation: “10 billion club” 5 members won 80% revenue


As of May 18, a total of 28 domestic listed and listed dairy companies disclosed their 2019 financial report data. According to the statistics of the Beijing News reporter, the total revenue of these 28 dairy companies is about 268.246 billion yuan. Among them, members of the “10 billion clubs” represented by Yili, Mengniu Dairy, Bright Dairy, China Feihe, Jianhe Group accounted for more than 80% of revenue; and milk powder companies have become a veritable profit among listed dairy companies. Harvester.

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Among these 28 dairy companies, 5 companies lost money, accounting for about 17.9%. Among them, Beinmei and Western Animal Husbandry realized a loss reduction in 2018 and regained losses in 2019. They became the annual “loss king” and the largest dairy company with the largest decline in net profit; Maiquer ’s annual report data has experienced 5 times. After the change of face, the loss was finally confirmed, and the stock was issued a delisting risk warning; Cody Dairy was under the investigation of the Securities Regulatory Commission due to the tight capital chain and arrears in milk and wages.

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“10 Billion” Dairy Enterprise Wins 80% of Revenue

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In 2019, 28 listed and listed dairy companies had a total revenue of 268.246 billion yuan, of which 5 companies including Yili, Mengniu Dairy, Bright Dairy, China Feihe, and Jianhe Group entered the “10 billion club”, accounting for the total revenue share It reached 80.7%, showing the situation of “strong and constant strong”.

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In terms of revenue volume, Yili (90.223 billion yuan), Mengniu Dairy (79.03 billion yuan), and Bright Dairy (22.563 billion yuan) continued to sit firmly in the top three positions in the dairy industry. China Feihe (13.722 billion yuan), Jianhe The Group (109.25) followed closely.

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However, in terms of net profit rankings, the ranking of 3-5 is slightly changed. Among them, China Feihe gained the third place among 28 dairy companies with a net profit of 3.935 billion yuan, only lagging behind the giants of Yili and Mengniu; Jianhe Group’s net profit was 1.05 billion yuan, ranking fourth; revenue Ausnutria, which ranks seventh, ranks fifth with a net profit of 878 million yuan; Bright Dairy, which ranks third in revenue, has a net profit of 498 million yuan, and ranks down to sixth.

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It is worth noting that strengthening the layout of overseas industrial chains has become a common strategy for head dairy companies. In 2019, Yili acquired Westland, New Zealand ’s second largest dairy company, and its high-end room temperature yogurt An Muxi was officially listed in Southeast Asia; Mengniu completed the acquisition of Australian organic milk powder brand Bellamy, and Australia ’s second largest dairy company Lion Dairy & The acquisition of Drinks is expected to be completed in the first half of this year; in 2019, New Zealand subsidiary New Wright also contributed more revenue to Bright Dairy. In addition, Feihe, Ausnutria, Hopson, Yashili, Sanyuan, Beinmei and other listed dairy companies have also deployed overseas.

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In addition, some characteristic dairy companies such as “the first cheese” are wonderfully blue, and the performance of regional dairy companies such as Xinjiang Tianrun Dairy and Guangxi Top 100 Water and Milk Enterprises is also remarkable. In 2019, the top 100 share revenue was 283 million yuan, an increase of 254.92% year-on-year, and the growth rate was the first among 28 dairy companies, and the net profit increased continuously for three consecutive years; Miao Ke Landuo’s revenue growth rate was 42.32%, ranking Second; Tianrun Dairy has relied on its Xinjiang milk source advantage to open the low-temperature high-end yogurt market in East China and some first-tier cities, and has maintained steady growth in performance for many years.

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Compared with low-temperature pasteurized dairy companies and dairy farming industries, the profitability of milk powder companies cannot be underestimated. On November 13, 2019, China’s first milk powder company with a revenue of over 10 billion, China Flying Crane, was listed on the Hong Kong Stock Exchange. In 2019, affected by the increase in the proportion of high-end milk powder sales, Feihe’s gross profit margin increased from 67.5% in 2018 to 70%. In addition, the gross profit of Jianhe Group and Ausnutria also reached 66.2% and 52.5% respectively.

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Illegal behavior drags down some dairy companies

Among the 28 listed and listed dairy companies, 5 companies lost money, accounting for 17.9%; 8 dairy companies’ net profit decreased, accounting for 28.6%.

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Due to consecutive losses in 2016 and 2017, the “first milk powder” Beinmei stock was once subject to a delisting risk warning (* ST). In order to reverse the performance, Beinmei implemented a series of measures to turn around the loss and “cap off” in 2018. However, due to factors such as the decrease in the number of newborns born, market stagflation, lactoferrin price increases, and the company’s non-recurring earnings, the company’s net profit in 2019 was -103 million yuan, a year-on-year decrease of 350.73%, and it once again returned to dairy companies. ” Losing King “.

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Similar to Beinmei’s experience, in July 2018, Western Animal Husbandry, which had lost two years in a row, sold the equity of 16 dairy and beef cattle breeding companies to related parties, achieving a turnaround in one fell swoop. Since no similar equity or asset sales business occurred in 2019, Western Animal Husbandry once again suffered a loss of 57.168 million yuan, and its net profit decreased by 390.04% year-on-year, the largest decline among 28 dairy companies.

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Another notable loss-making dairy enterprise is Maiquer, a dairy and baking brand in Xinjiang. From the performance forecast in the 2019 third quarter report to the final annual report release, Maiquer’s performance data has undergone five “face changes”. Due to the impairment of the goodwill of the subsidiary Zhejiang Xinmeixin, Maiquer finally determined a loss of 69.469 million yuan in 2019. Due to the loss for two consecutive years, Maiquer’s stock has been issued a delisting risk warning since May 6 this year, and the stock abbreviation becomes * ST Maiqu.

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From the point of view of losses, violations of laws and regulations are another major factor that drags down the performance of some dairy companies. Cody Dairy, which was investigated by the Securities Regulatory Commission on the evening of April 27, announced that due to the impact of the epidemic, it was unable to cooperate with the audit agency to carry out related work, plus the company’s capital chain problems, etc., resulting in the 2019 audited annual report to be delayed. Unaudited data shows that Cody Dairy’s net profit in 2019 was -49.645 million yuan, a year-on-year decrease of 138.43%.

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According to the reply of Shangqiu Municipal Party Committee Supervision Room 2 on the local message board of People’s Network, since 2019, Cody has been relying on pumping production working capital to repay loans and make up positions, which seriously affects normal production and operation, resulting in the company’s capital chain since July 2019. Problems arise, causing dairy farmers to ask for milk, quick-frozen customers to ask for products, and workers to ask for salary, etc.

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Another company that delayed the disclosure of its annual report due to violations of regulations is the New Third Board listed dairy company Shangling Animal Husbandry. As of February 2018, Shangling Animal Husbandry’s controlling shareholder Shangling Group and its related parties used the Shangling Animal Husbandry Official Seal to violate the guarantee of 329.2 million yuan. The guarantee has not been reviewed by Shangling Animal Husbandry’s Board of Directors and Shareholders’ Meeting, nor has it been disclosed. Currently, Shangling Animal Husbandry has been involved in lawsuits related to illegal guarantees.

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In addition, due to the fierce competition of milk sources in the region, rising milk prices, environmental protection expenditures, market expenses and R & D expenses, etc., the net profit of the new third board listed dairy company Jinhe Technology in 2019 was -56.97 million yuan, a year-on-year decrease of 103.22%. The first loss in the past year; Gui Niu Dairy, a water milk dairy company listed on the New Third Board, suffered a loss of 8.644 million yuan in 2019 and a net profit decrease of 202.13 years due to major banks’ loan drawdowns, increased financing costs, restructuring of projects under construction, and rising depreciation costs. %, And has lost money for 4 years.

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Upstream aquaculture collective recovery

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Against the background of the successive withdrawal of loss-making pastures, the decline in the number of dairy cows, and the apparent rebound in milk prices, China’s dairy farming industry has ushered in a full recovery in 2019. According to the upstream dairy company’s annual report, companies such as Modern Dairy, China Shengmu, Zhongdi Dairy, and the original ecological animal husbandry have all achieved performance growth in 2019, and the upstream and downstream linkage effects of the dairy industry have gradually emerged.

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Among the five upstream dairy companies that have disclosed the 2019 annual report, in addition to Secco’s loss-making trend, the remaining four have achieved double revenue and net profit growth. Among them, “China’s largest organic dairy company” China Shengmu and “China’s largest dairy farming company” Modern Dairy have both turned losses, with net profit of 27.742 million yuan and 341 million yuan; Zhongdi Dairy’s net profit was 104 million yuan. A year-on-year increase of 65.11%; the original ecological animal husbandry net profit was 223 million yuan, an increase of 140.01% year-on-year, realizing a turnaround.

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For the performance growth, most upstream dairy companies attributed the demand for raw milk (raw milk) to higher prices. According to the White Paper “China’s Dairy Industry” released by the China Dairy Industry Association, in the past three years, farming losses and environmental protection shutdowns have led to the withdrawal of a large number of lower-capacity pastures. In the second half of 2018, upstream supply decreased, demand was improving, and milk prices rose at an inflection point. In 2019, the supply of raw milk continues to be in short supply, and the profit elasticity of dairy farming companies is showing.

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Reflected in the data, the raw milk production of all listed dairy companies in 2019 showed a trend of rising in volume and price, and the unit price can generally reach more than 4 yuan / kg. Among them, the average selling price of raw milk of raw animal husbandry is 4155 yuan / ton, up 6.65% year-on-year; the average unit price of raw milk of Zhongdi dairy industry is 4010 yuan / ton, gross profit increased by 17%; the sales of raw milk of China Shengmu increased by 22 %, The gross profit margin rose to 36.6%; the average unit price of raw milk of modern animal husbandry was 4.04 yuan / kg, a year-on-year increase of 4.9%, and the gross profit margin increased by 6.6 percentage points.

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Even for the loss-making SECCO, its raw milk income increased by 15.22% year-on-year. For the decline in performance in 2019, SECCO is attributed to the sale of cattle with genetic defects and poor production performance, and at the same time, the reserve value of frozen sperm products with low breeding value and unable to meet market demand is accrued for inventory decline. Has an impact on performance. The financial report shows that in 2019, SECCO ’s non-current asset disposal profit and loss was -268 million yuan, of which 50.9892 million yuan in asset impairment losses, an increase of 538.68% year-on-year.

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Dairy industry upstream and downstream integration speed up

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In 2019, the synergy effect of upstream and downstream dairy companies has gradually emerged, which has become another major reason for the improvement of dairy farming efficiency.

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Affected by the impact of imported bulk powder, low raw milk prices, and loss of downstream liquid milk business, Hyundai Dairy continued to suffer losses from 2016 to 2018. Since Mengniu increased its shareholding in Modern Dairy and became a strategic shareholder in 2017, the synergy between the two parties in raw milk sales, branded milk sales, financial financing, and feed procurement has continued to deepen, and Modern Dairy has been able to focus on upstream breeding. In 2019, the downstream liquid milk brand contributed approximately 35 million yuan in profit to Modern Dairy, a year-on-year increase of nearly 40%.

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China Shengmu, which is also suffering from continuous losses such as the decline in milk prices, the impairment of biological assets, and the decline in sales of its own liquid milk brands, will in December 2018 51% of its equity in Inner Mongolia Shengmu High-tech Dairy, which is mainly engaged in liquid milk processing business Sold to Inner Mongolia Mengniu Dairy (Group) Co., Ltd. and established a new joint venture company. As a prerequisite for the transaction, China Shengmu needs to transfer all its downstream dairy product business chains and related assets to the target company and no longer engage in downstream dairy products business.

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In July 2019, New Hope Dairy spent a total of 709 million yuan to subscribe for 9.28% of Modern Dairy, becoming the second largest shareholder of the latter. When New Hope Dairy was surveyed by investors in January this year, the company’s own milk source (including the supply of modern animal husbandry) will increase from 20% in 2019 to 40% -50% in 2020. Through cooperation with modern animal husbandry, the supply of high-quality and stable milk sources has been increased, and the impact of milk price fluctuations on costs has been reduced.

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During the same period, SECCO signed a share transfer agreement with Youran Dairy held by Yili, and completed the transfer in January this year. At present, Youran Animal Husbandry holds a total of about 58.36% of SECCO’s equity, and SECCO’s founder Yang Wenjun and his original executive team such as Zhang Jian and Sun Guozhi withdrew.

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Beijing News reporter Guo Tie

Editor Zhu Fenglan Proofreading Li Shihui

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