I. Discussion and analysis of operating conditions
During the reporting period, affected by the COVID-19 epidemic, the world economy suffered heavy losses. Condiment industry, as a livelihood industry, has maintained a steady development trend despite some shocks. As a leading enterprise in the vinegar industry, after experiencing this rebirth, it also faces many development opportunities and challenges: opportunities come from the acceleration of consumption upgrading, the intensification of industry integration, and the gradual emergence of brand advantages; The challenge lies in the slowdown of industry growth, intensified industry competition and increased uncertainty of enterprise development.
The board of directors of the company led all employees to fight the epidemic, and actively adapted to market changes and explored new modes of enterprise development. During the reporting period, the company actively implemented the basic principles of "focusing on main business, giving priority to ecology and developing green". Focusing on the business objectives set at the beginning of the year, we should focus on the prevention and control of epidemic situation and risks on the one hand, market supply and recovery on the other, and promote marketing reform, project construction, operation and management in an orderly manner. The main business of condiments shows a contrarian growth trend.
During the reporting period, the company's consolidated statements realized revenue of 953 million yuan, a year-on-year increase of 7.39%; Among them, condiment income was 898 million yuan, up 8.64% year-on-year. The net profit attributable to shareholders of listed companies was 65.438+0.49 billion yuan, a year-on-year increase of 3.63%; The net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 65.438+0.33 billion yuan, a year-on-year increase of 65.438+0.1.44%.
During the reporting period, the company vigorously promoted the following key tasks:
1. Focus on the main business. Focusing on the three main businesses of "deep vinegar industry, fine wine industry and wide sauce industry", we will strengthen all channels, and comprehensively consolidate and enhance the sales scale and market share of vinegar, "one of the best" cooking wine and sauce products by deepening traditional channels, intensively cultivating supermarkets, storming e-commerce channels, fully cutting into catering channels and developing major customer channels.
2. Dig deep into the culture and highlight the value. First, continue to strengthen cooperation with Xinhua National Brand Project, CCTV Yang Guang and high-speed rail media, and use their strong credentials and communication power to add points to Hengshun brand; Second, intensify the excavation of cultural connotation in the past century, organize the celebration of180th anniversary, and launch the product promotion plan; The third is to promote the renovation project planning of museum sauce garden and Jiuhai new building and the standardization system construction of brand terminal stores, build flagship stores, and realize the vision of "Heng Shun Taste Well-off Life".
3. Strong foundation and project landing. At present, three major projects have started. First, the expansion project of balsamic vinegar, which is expected to be put into use in June 2022; Second, the cooking wine expansion project, which is expected to be put into use in early 2022, will accelerate the realization of the goal of doubling the cooking wine production capacity after completion; The third is the all-digital remodeling project, which signed a contract to introduce the SAP enterprise management platform to fully promote the digital transformation of enterprises to break through the bottleneck of development and achieve agile response, precise management and control, efficient coordination and smooth operation.
4. Deepen reform and seek change through innovation. First, implement the reform of traditional channel marketing system, implement the war zone system, reorganize the existing 36 districts into 8 war zones, integrate overseas channels, and strengthen the operational awareness of overall market planning. The second is to implement smart retail reform and integrate existing e-commerce channels, museum retail channels and Hengshun Mall resources; The third is to implement the reform of operation management mechanism and constantly standardize the standardization, institutionalization, process and transparency of operation management.
5. Integrate resources, lose weight and strengthen the body. The first is to work hard on "slimming". Fully promote the goal of integrating, cleaning up or withdrawing from non-core main business set at the beginning of the year; The second is to make a fuss about "strong body". Do a good job in optimizing the industrial space layout and planning of the existing 1.200 mu of land, strive to improve the output rate per unit area, complete the spatial development plan of Hengshun Park, and make clear the direction for realizing the "three-in-one" (trinity of production, ecology and life) modern industrial park.
In the second half of the year, the company will further deepen the internal changes of the enterprise and fully promote the high-quality development of the enterprise. Insist on focusing on the development of three core main businesses, strive to expand and cultivate growth categories, set the business target at the highest level of the benchmark industry, exceeding the average growth rate of the industry, and continue to consolidate the leading position of China vinegar industry. Further optimize the talent structure, increase efforts to recruit and introduce high-quality and high-potential talents, strengthen career planning and directional training of talents, drive the high-quality development of enterprises with high-quality talents, reserve talent momentum for enterprise development, and fully realize the business objectives set at the beginning of the year.
The main business is divided into industries, products and regions
Unit: Yuan Currency: RMB
Note: According to the new income standard, freight is reclassified as operating cost. According to the same caliber, the gross profit margin of condiments increased by 1.97 percentage points compared with the same period of last year.
Second, possible risks
Raw material procurement and quality control in the production process of condiment industry are related to food safety. The state has promulgated a series of laws and regulations with the Food Safety Law as the core. The rapid integration of condiment industry channels, the adjustment of the pattern and the change of consumer behavior patterns have brought many challenges to condiment production enterprises. The upgrading of products, technology, capital, manpower and other aspects has become a subject that enterprises must face directly, and the company is facing various risks.
1. Risk of raw material price fluctuation
The main raw material of vinegar is glutinous rice, which accounts for more than 30% of the company's production cost. If there is fluctuation under the influence of macro-control, it will inevitably affect the gross profit margin, which is an important risk for the company to face the profit level.
2. Brand infringement risk
The company's Hengshun brand has a strong popularity and reputation in the condiment industry, and is the representative of Zhenjiang balsamic vinegar. Although the state has strengthened the protection of Chinese time-honored brands and well-known trademarks in China in recent years, there are still some small companies trying to imitate Hengshun's trademarks and trade names in recent years. If the company's brand is infringed, it may lead to the decrease of consumer trust, which will make the company face the situation of reduced orders and blocked marketing plans, thus affecting the company's performance level.
3. Food safety control risks
With the country's increasing attention to food safety, the deepening of consumers' awareness of food safety and the enhancement of rights protection, food safety and quality control have become the top priority of food processing enterprises' production and operation. The state and relevant departments have successively promulgated a series of policies and regulations, such as Detailed Rules for the Supervision and Management of Quality and Safety of Food Production and Processing Enterprises, People's Republic of China (PRC) Law on Quality and Safety of Agricultural Products, People's Republic of China (PRC) Law on Food Safety, and Measures for the Administration of National Standards for Food Safety, in order to standardize the production and operation behavior of food processing enterprises and protect the interests of consumers to the maximum extent. Since the establishment of the company, the product quality has met the requirements in all previous national market sampling tests. Nevertheless, if the company's quality management is negligent or there are product quality problems for other reasons, it will not only generate compensation risks, but also affect the company's reputation and the sales of the company's products. Therefore, the company has potential business risks caused by product quality and safety control errors.
The above-mentioned potential risks are highly valued by the company, and the management and relevant departments have carefully studied and implemented the response plan to effectively prevent and control risks.
Three. Analysis of core competitiveness during the reporting period
The company is a "China Time-honored Brand" enterprise, established in 1840. As the representative of Zhenjiang Aromatic Vinegar, the first of the "Four Famous Vinegars", Zhenjiang Aromatic Vinegar is the largest and most modern vinegar producer in China and the only vinegar listed company. It has formed a number of competitions with obvious industry status, high brand awareness, wide channels, technological advantages and excellent quality. The company's vinegar production and sales volume ranks first in the country for a long time, and it is the largest and most modern vinegar production enterprise in China.
(1) The brand value is huge and the consumption upgrading potential is great. The company brand has a high degree of mental capture to consumers, which is the biggest sustainable competitive advantage of the consumer goods industry. In addition, vinegar, especially Hengshun aromatic vinegar and related products (vinegar drinks, vinegar capsules, etc. ), as a healthy food, has a huge consumption space in the future. According to Japanese per capita comparable research, the per capita consumption of vinegar and its products in China has at least three times more room for improvement.
(2) Unique brewing technology to create unique product features. In 2006, the State Council listed Zhenjiang Hengshun balsamic vinegar brewing technology in the first batch of national intangible cultural heritage list, which is also the only traditional handicraft technology selected by Jiangsu food manufacturing industry. Hengshun aromatic vinegar is made from high-quality glutinous rice by traditional solid-state layered fermentation process, and refined through more than 40 processes including brewing, fermented grains and vinegar pouring. It has the unique characteristics of "sour but not astringent, fragrant but slightly sweet, rich in color and fresh in taste, and more mellow with age". The unique brewing technology makes vinegar products have strong profitability, and the gross profit margin of high-end products is above 50%, which has investment value that most condiments do not have.
(3) Product quality and safety always lead the industry, and the quality control system is superior to similar enterprises. Through the traceability management of the food chain, the company has established a set of management system from farmland to table. Strict control makes the company's quality and safety in the leading position in the industry, eliminating the risk of food quality and safety. Vinegar itself has a high acidity and is not easy to deteriorate. The acidity of Hengshun vinegar is higher than that of all vinegar products, which has a very strong food safety barrier.
During the reporting period, the company's core competitiveness continued to improve.