Yurun Food, which is listed in Hong Kong, recently announced its annual results for 2020. As of June 65438+February 3 1 of that year, the company had about 1040 employees in China Mainland and Hongkong, an increase of about 1000 compared with about 9400 employees at the end of last year.
The number of employees of Yurun Food reached the highest level in recent years at the end of 20 1 1, about 27,000 (about 2 12 at the end of last year), and then it continued to decline. At the end of 20 12-20 18, the number of employees was about 26,000, 23,000 and 650 respectively.
Yurun Food said in the performance announcement of 20 13 that this is a measure to save costs and streamline manpower.
Since 20 15, it may be related to the company's misfortune-in March of that year, the procuratorate implemented residential surveillance measures against Zhu, the actual controller of Yurun, and the company's subsequent performance loss and debt default.
In 20 15, Yurun Food recorded a loss of HK$ 2.976 billion (last year's profit was about HK$ 57 million), and the losses remained high over the years, reaching HK$ 2.342 billion, HK$19/kloc-0.50 million and HK$ 4,759 respectively in 20 19.
At the beginning of 20 19, Zhu returned home from the residential surveillance. More than two months later, his 32-year-old daughter Zhu Yuan took over the position of chairman and CEO of Yurun Food. Yurun began a long road to self-help.
fail
2020 is the first full fiscal year that Zhu Yuan took charge of since he took over. According to the performance announcement, the turnover of Yurun Food last year was basically the same as that of the previous year, which was HK$ 65,438+052./kloc-0.3 billion, while the loss narrowed by 48.8% to HK$ 2,065.438+0.9 billion.
Yurun Food pointed out that in 2020, the operating rate of the pig industry reached the lowest in history. In this environment, the company's sales and gross profit are inevitably affected.
To this end, it has promoted a brand-new development strategy of "expanding from low temperature to high temperature and building scale on the Internet", and made great efforts to promote the reform and layout of new fresh retail in China. Yurun Select Store, Yurun Select Store and Yurun Select Wholesale and Retail Center, which integrate Internet genes, came into being, and nearly 100 outlets were set up in the Yangtze River Delta consumer market within two months.
Cold meat and low-temperature meat products are still the backbone of Yurun's overall business development. In 2020, its chilled meat sales amounted to HK$116.36 million, up 2 1% year-on-year, accounting for about 76% of the company's total revenue before offsetting internal sales. The sales of low-temperature meat products amounted to HK$ 65,438+0,865,438+0.8 billion, a slight decrease of 0.3% compared with last year, accounting for about 65,438+0.2% of the total income before internal sales.
In contrast, the sales of frozen meat decreased by 32.6% year-on-year to HK$ 654.38+29.5 million, while the sales of high-temperature meat products rose sharply from HK$ 239 million to HK$ 576 million.
In terms of gross profit margin, in the upstream business, the gross profit margins of Yurun chilled meat and frozen meat were 65,438+0.9% and-6.8% respectively (4.8% and 65,438+0.2% in 2065,438+09 respectively). The upstream gross profit margin was 1.0%, down 3.3 percentage points from 4.3% in the previous year.
In the downstream deep processing of meat products, the gross profit margin of low-temperature meat products was 28.5%, which was 6.6 percentage points higher than that of 265,438+0.9% in the previous year. The gross profit margin of high-temperature meat products decreased by 65,438+0.0 percentage points from 30.8% in the previous year to 29.8%. The overall gross profit margin of the downstream was 28.8%, up 5.9 percentage points from 22.9% in the previous year.
Yurun Food pointed out that the impact of the COVID-19 epidemic increased the demand for deep-processed meat products and increased their unit price, thus driving the gross profit to perform well.
On the other hand, affected by the COVID-19 epidemic, its individual production bases need to stop production in the first quarter. In addition, the high price of pigs inhibits pork consumption, and the decline in the number of live pigs makes it difficult to purchase live pigs. In 2020, the slaughter amount of Yurun food was only about 2.87 million heads, a year-on-year decrease of about 53.9%.
By the end of last year, the annual production capacity of Yurun's upstream slaughter and downstream deep processing meat products business was about 52.65 million heads and 310.2 million tons respectively, and the utilization rate of its slaughter capacity was only a fraction of them.
It is worth noting that Zhu Yuan did not further reduce the production capacity after taking office, but during 20 16-20 18, the company reduced the slaughter capacity of 600,000 heads, 600,000 heads and 2.5 million heads respectively. Its current slaughter capacity is still far ahead in China, although its previous goal was to reach 70 million heads in 20 15.
restructure
By the end of 65438+February in 2020, the total assets of Yurun Food were HK$ 965438+56 million, a year-on-year decrease of HK$ 525 million; Total liabilities increased by HK$ 65.438+040.3 million to HK$ 65.438+024.438+000 million, including bank loans of HK$ 5.973 billion that could not be repaid on time.
Yurun Food has repeatedly stressed that the company has been actively communicating closely with banks to discuss the extension of due bank loans. In the process of communication, he learned that banks will not take extreme measures against the company, and all parties hope that the company can maintain normal operations. Therefore, the board of directors believes that the above situation leads to a low probability of real-time repayment, which does not have a significant impact on the company's business operations.
The company also said that although it is in a state of net debt, there are still about HK$ 5.798 billion of illiquid assets to support the company's daily production and operation, and the situation has not seriously damaged the company's ability to continue operations. "The directors believe that with the improvement of the economic environment and the management's efforts to actively improve operating profit and reduce the pressure of borrowing, they are confident that the Group will recover from net liabilities to net assets."
But not all creditors have this patience. From June 5438 to October 2020 10, creditors of Nanjing Yurun Food Co., Ltd. and Anhui Furun Meat Processing Co., Ltd. applied to the court for reorganization of two wholly-owned subsidiaries of Yurun Food. In February, 20021,the court announced that Nanjing Yurun and other 42 wholly-owned subsidiaries of Anhui Furun and Yurun Food had applied for reorganization together.
At the peak of production capacity, there are about 65 slaughterhouses of Yurun Food, which are listed as 8 subsidiaries (including deep processing). In addition to Anhui Yurun and Nanjing Yurun, it also includes Hubei Yurun, Jiangsu Yurun and Lianyungang Furun. Except for Nanjing Yurun Chain Store Co., Ltd., which is engaged in wholesale and retail business, other major subsidiaries have entered the current reorganization list.
Since Yurun Food is an offshore company registered overseas, the nomad who led Shuanghui to create a "golden growth period" is actually the director and president of Jiangsu Yurun Meat Industry Group. According to public reports, since Nomadic joined in August last year, Yurun's subsequent personnel appointment documents involved a number of Shuanghui employees, so that Shuanghui temporarily suspended the resignation procedures.
As for the arrangement of management, Yurun Food also explained in the annual report: The board of directors believes that the positions of chairman and chief executive officer belong to the same person, which will enable the company to formulate business strategies and implement business plans more effectively and efficiently, and will be beneficial to the business prospects and management of the Group. "In the long run, the company will identify and appoint a suitable person as the CEO."