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Nanchang Shuanghui apologizes for food safety. What impact did this incident have on the company's share price?
On March 15, official website of Shuanghui Group issued a statement, apologizing for the chaos in the production workshop of Nanchang Shuanghui Food Co., Ltd., saying that the relevant person in charge would be suspended and the related products would be tracked, sealed and controlled. Affected by food safety issues, Shuanghui Development (000895. SZ) opened at 15 in March and closed at 25. 13 yuan/share, down 9.99%. In March 16, Shuanghui continued to fall, with the biggest intraday decline of 6.49%. Later, as the market rebounded, it finally closed at 25.23 yuan/share, up 0.4%. In the past two trading days, the market value of Shuanghui Development has evaporated by more than 9 billion yuan.

According to the notice of the Group on stopping using the air shower room during epidemic prevention, Nanchang Shuanghui did not open the air outlet device during epidemic prevention, which met the relevant production procedures and resumed use after epidemic prevention. This is not the first time that Nanchang Shuanghui has faced food safety problems. 20 19 Nanchang shuanghui failed the sampling inspection due to the detection of ofloxacin; In the same year, the website of Meizhou Municipal Market Supervision Administration also announced that the total number of detected colonies of two products of Nanchang Shuanghui Food Co., Ltd. was unqualified.

Nanchang Shuanghui Food Co., Ltd. is a wholly-owned subsidiary of Shuanghui Development, mainly engaged in the processing of high and low temperature sausages and other meat foods, with a total investment of1200 million yuan. According to the report that the base was put into production in 20 1 1 year, the base will achieve an annual output of132,000 tons of meat products, which was also owned by Shuanghui Group at that time? Model project? . The third quarterly report of 20021quarter shows that Shuanghui's development income reached 50.96 billion yuan, down 8.6% year-on-year, and its net profit was 3.45 billion yuan, down 30 1% year-on-year.

With the continuous and rapid decline in the prices of pigs and meat, the domestic and imported frozen products stocks have fallen rapidly, and the prices of pigs and meat have fallen sharply, resulting in sales and transportation losses. At the same time, at the end of Shuanghui's development period, provision was made for inventory depreciation, resulting in a year-on-year decline in net profit. 20211-September, Shuanghui developed meat products, including poultry products, with a total sales of 2.444 million tons, up 5.8% year-on-year. This will bring immeasurable losses to Shuanghui's goodwill, brand and channel sales.