Dongpeng Beverage executives collectively reduced their holdings, and the secretary of the board res

Mondo Finance Updated on 2024-01-31

Have you ever heard of Dongpeng Beverage?This is a listed company with functional drinks as its main product, which once created the myth of 16 days and 15 price limits in 2021, the stock price has increased several times, the market value has exceeded 100 billion, and the founder Lin Muqin has also become the richest man in Shanwei.

However, just recently, the company suffered a turmoil, 13 shareholders and executives announced at the same time to cash out, including Liu Lihua, who served as the secretary of the board of directors, and resigned after exceeding 37 million, which caused widespread attention in the market. Why do the executives of Dongpeng Beverage collectively **?

The reason behind Dongpeng Beverage's executives**

Dongpeng Beverage's executive plan was disclosed on the evening of December 19, involving 13 shareholders and executives, who plan to use centralized bidding and block trading in the next 6 months, with a total of no more than 3,574 shares of the company150,000 shares, accounting for 894%。According to the ** price at that time, this is equivalent to cashing out nearly 6 billion yuan. The reasons for these shareholders and executives are "their own capital needs", but the specific use of the funds is not disclosed.

So, why do the executives of Dongpeng Beverage have such a large need for funds?Some analysts believe that this may be related to the stock price trend and performance of Dongpeng Beverage. After Dongpeng Beverage's listing in May 2021, its share price soared all the way to a maximum of 2827 yuan shares, the market value of more than 100 billion, but then the stock price gradually fell, as of December 19, the ** price was 182 yuan shares, a decline of more than 35%, and the market value also shrank to about 70 billion yuan.

At the same time, Dongpeng Beverage's performance also declined, and in 2022, the company achieved an operating income of 850.5 billion yuan, a year-on-year increase of 92%, but net profit fell by 115% for 147.7 billion yuan. In the first quarter of 2023, the company's operating income was 190.7 billion yuan, a year-on-year increase of 68%, net profit 32.8 billion yuan, a year-on-year decrease of 178%。

From these data, it can be seen that Dongpeng Beverage's profitability and growth potential have declined, which may lead shareholders and executives to lose confidence in the company's future development, so they choose to cash out when the stock price is relatively high to avoid risks, or use it for other investments.

The mystery behind Liu Lihua's resignation

In Dongpeng Beverage's executive plan, the most eye-catching is Liu Lihua, who is the company's director, vice president and secretary of the board of directors, which is what we often call the secretary of the board of directors. She's in **19After 910,000 shares, he resigned as secretary of the board of directors on the grounds of personal development. Liu's resignation has sparked speculation in the market, with some believing that she is trying to avoid a conflict of interest, others that she is trying to get a better job, others who believe that she is avoiding risks, and some even wonder if she knows any inside information.

Liu Lihua is a senior investment banker, who worked in the investment banking department of China Merchants ** for 12 years, and then joined Dongpeng Beverage in October 2018 as the head of the financial management center, and has been the vice president, secretary of the board of directors and chief financial officer since April 2019. She was the head of IPO of Dongpeng Beverage, led the company to a successful IPO, and played an important role in fund management, investor relations, public opinion management, information disclosure, corporate governance and capital operation.

Some analysts believe that Liu Lihua's resignation may be related to her personal planning, she may want to find better development opportunities, or want to take a break for a while, or want to start a business. Some analysts believe that Liu Lihua's resignation may be related to the internal management of Dongpeng Beverage, and she may have disagreements with other executives or shareholders of the company, or are not satisfied with the company's strategic direction or performance, or feel that her responsibilities are too heavy, or worry about the company's risk exposure.

However, these analyses are speculative and there is no conclusive evidence. Dongpeng Beverage spoke highly of Liu Lihua in the announcement, saying that she was diligent and conscientious in performing her duties, without mentioning any negative reasons. Liu Lihua herself did not disclose the reason for her resignation, so only she knows the real mystery behind her resignation.

What is the development prospect of Dongpeng Beverage?

The resignation of Dongpeng Beverage's senior executives and the secretary of the board of directors has undoubtedly had a certain impact on the company's image and reputation, and has also made investors worry about the company's development prospects. So, what is the future of Dongpeng Beverage?Can it continue to maintain its leading position in functional beverages, and can it continue to maintain its leading position in functional beverages and achieve high-quality development?We believe that Dongpeng Beverage has the following advantages to support its competitiveness and growth potential in the functional beverage market.

With Dongpeng Special Drink as its core product, Dongpeng Beverage meets the needs and preferences of different consumers through continuous product innovation and packaging improvement. Dongpeng Beverage has enhanced the brand's popularity and reputation through a variety of channels and methods. For example, Dongpeng Beverage invited celebrities such as Nicholas Tse, Yang Mi, and Wang Yibo as brand spokespersons, enhancing the brand's youthful and fashionable image.

Dongpeng Beverage has a nationwide sales network and channels, which can effectively deliver products to consumers. Dongpeng Beverage has adopted a sales model combining direct sales and distributors, established a stable dealer cooperative relationship, and improved the market penetration and coverage of products. Dongpeng Beverage also uses the Internet and big data to realize the online and offline integration of products, expand the channels of new retail, and improve the sales efficiency and user experience of products.

By optimizing the production process and management mechanism, Dongpeng Beverage has effectively controlled costs and improved efficiency. Dongpeng Beverage has multiple production bases, which realizes the reasonable allocation and utilization of production capacity and reduces logistics costs and risks. Dongpeng Beverage has also reduced the cost of raw materials and packaging materials through procurement optimization and negotiation. Dongpeng Beverage has also reduced sales expenses and advertising expenses through refined marketing strategies. Dongpeng Beverage's cost control ability and profitability are at the leading level in the industry, and in 2022, the company's gross sales margin will be 4567% with a net profit margin of 1738%, much higher than the average of its peers.

Conclusion

As a leader in functional beverages, Dongpeng Beverage has strong product differentiation and innovation capabilities, brand influence and loyalty, sales network and channel advantages, cost control and profitability, and has the foundation and conditions for sustainable development and competition in the functional beverage market.

Although the company is currently facing some difficulties and challenges, such as the resignation of senior executives** and board secretaries, we believe that these will not affect the company's long-term development prospects, but only temporary fluctuations and adjustments. We are full of confidence in the future of Dongpeng Beverage, and believe that it can continue to maintain its leading position in functional beverages, achieve high-quality development, provide more and better products and services for consumers, and create more value for shareholders." Dongpeng Beverage encountered a collective of executives**

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