China Business Daily (Reporter He Yang) On December 6, it was reported that Shenzhen Baiguoyuan Industrial (Group) Co., Ltd. *** hereinafter referred to as Baiguoyuan) was included in the list of abnormal operations by the Yantian Bureau of the Shenzhen Municipal Administration for Market Regulation for failing to publicize the 2022 annual report within the prescribed period.
In response to the above problems, on December 7, the relevant person in charge of Baiguoyuan said in an interview with a reporter from China Business Daily: "Baiguoyuan does not have the problem of 'failing to publicize the annual report within the prescribed period', the company has been submitting the annual report in accordance with the specified period, and the company's operation is normal." Previously, there was a delay in updating the information in the annual report due to a system issue, and after clarification to the competent authority, it has been removed from the abnormal list. ”
Hundred Fruit Orchard has been removed from the anomaly list. (*Provided by respondents).
According to public information, Shenzhen Baiguoyuan Industrial (Group) Co., Ltd. was established in December 2001 and listed on the Hong Kong stock market in January 2023. According to its 2022 annual report, Baiguoyuan is the largest fruit retailer in China, and in addition to selling fruits, its stores also sell dried fruits, juices and other fruit products, and provide fresh products including vegetables, fresh meat and seafood products, grains and oils, dairy products and other products.
Financial data show that from 2020 to 2022, Baiguoyuan's operating income will be 885.6 billion yuan, 1028.9 billion and 1131.2 billion yuan, net profit was 490630,000 yuan, 23.5 billion and 32.3 billion yuan. The corresponding gross profit margins are: 2% and 116%, and the net profit margin were. 2% and 27%。
Baiguoyuan's 2023 interim financial report shows that in the first half of 2023, the company recorded revenue of 629.4 billion yuan, a year-on-year increase of 642%；Net profit 26.1 billion yuan, a year-on-year increase of 3412%。
As of June 30, 2023, Baiguoyuan Group had a total of 5,958 franchised stores, an increase of 308 from the end of 2022. Among them, there are 5,945 franchised stores, contributing about 47% of sales3.2 billion yuan, accounting for 99% of store sales5%；There were only 13 self-operated stores, a decrease of 3 from 16 in the same period last year.
Hundred Fruit Garden store data map. (*Sourced from the company's official website).
Although as the largest fruit retailer in China, the gross profit margin of Baiguoyuan is not high, but this is inseparable from the high cost of sales. The data shows that from 2020 to 2022, the proportion of the cost of sales to the total revenue of Baiguoyuan is: 8 and 884％。
At the first half of 2023 results conference, Yu Huiyong, founder and chairman of Baiguoyuan Group, said that the company plans to reach 10,000 stores in Chinese mainland by the end of 2027 and 30,000 stores by 2042.
Where does the confidence come from to further expand the store network?Yu Huiyong believes that this year, especially from the second quarter, the company has received far more applications from new franchisees than the company's shops, and the company's shops in first- and second-tier cities are in short supply, but the company will not relax the location criteria for stores, and will ensure the quality of site selection and introduce franchisees in an orderly manner.
Yu Huiyong stressed that the long-term plan for store expansion is based on the calculation of the population in the city and the density of the company's stores, and "we are confident that we will reach the target of 30,000 stores in China."