Recently, condiment companies Zhongju High-tech and Qianhe Flavor both officially announced that the company's attributable net profit is expected to increase in 2023.
On January 30, Zhongju High-tech released the 2023 annual results pre-profit announcement. It was disclosed that according to the preliminary calculation of the company's financial department, it is expected that the company will achieve an attributable net profit of about 15 in 20233.4 billion to 184.1 billion yuan, an increase of 21$2.6 billion to $243.3 billion yuan, will turn losses into profits.
The performance forecast boom hit, and another condiment company, Qianhe Flavor, also released an announcement on January 25 that its 2023 annual results were expected to increase. The announcement pointed out that after the preliminary calculation of the financial department, the company is expected to achieve an attributable net profit of 5 in 20230.9 billion to 5$7.8 billion, an increase of 48% to 68% compared with the same period last year (statutory disclosure data).
As for the main reason for the pre-profit in 2023, Zhongju High-tech believes that it is related to litigation settlement. According to the announcement, during the reporting period, China Torch High-tech and Zhongshan Torch Industry jointly reached an intention to settle the litigation settlement of three disputes over the transfer of construction land use rights. In view of the fact that the parties have basically reached an agreement on the content of the intended settlement, in accordance with the relevant provisions of the accounting standards, the current evidence shows that the settlement of the above-mentioned litigation cases already exists in 2023, and there is no substantial obstacle to the withdrawal procedure, and the estimated liabilities accrued can be reversed. The reversal of the expected liability will increase the profit or loss for the current period, i.e., the estimated liability accrued in 20221.11$7.8 billion will be included in non-operating income, compared to the estimated liability of 174.7 billion yuan will be reversed, and the company will be profitable.
For the analysis of the overall development of Zhongju High-tech, Huafu ** said in a recent research report that since the layout of the condiment business in 1999, the company has become bigger and stronger by expanding categories, expanding channels, and crossing regions. During the period, the company fully benefited from the industry's rising volume and price bonus period by virtue of its brand, channel and other advantages. With the improvement of raw materials, the change of major shareholders and the change of the board of directors to drive the internal business potential upward, the company is expected to enter a new stage of development.
Subdivided into products, channels, and chains, China Merchants said that the company will focus on large single products, clarify different product echelons such as main products, main products, and auxiliary products, establish national product portfolio standards for sub-sites, and improve the capacity utilization rate of core categories by focusing on it; At the channel level, the company will accelerate the coverage of blank areas, plan to complete the coverage of weak markets in 2024, and have certain requirements for new investment channels and place coverage capabilities, condiments, beer, and other non-staple food distributors are under consideration. In terms of chain, the company has lean management of logistics, production and procurement, reduced unit price in logistics, improved the three-code associated control system, supported market management and management, reduced costs and improved efficiency at the production end, gradually promoted technological transformation, sorted out the procurement process and mode at the procurement end, publicly inquired to expand the best business resources, and achieved cost reduction under the premise of ensuring quality and supply, and it is expected that the company will operate in accordance with the new first-class chain system in March next year.
In addition to Zhongju High-tech, as another condiment enterprise with a pre-increase in net profit, the expansion of sales scale and the reduction of costs have become the main reasons for the pre-increase in the performance of Qianhe Flavor Industry. In the announcement, it pointed out that the company strengthened product quality, actively explored the market, optimized marketing channels, improved market competitiveness, and expanded sales scale; The procurement of packaging materials decreased year-on-year, and the freight rate of products decreased, resulting in an increase in gross profit margin; The increase in sales scale and the increase in the input-output ratio of selling expenses led to an increase in net profit margin.
Combined with the development trend of the condiment market, a number of brokerages have analyzed the zero-added product labels of Qianhe Flavor. Among them, Huaxin ** believes that under the release of demand for healthy condiments and the catalyst of additive events, the zero-added category has entered the harvest period, and the company's brand awareness in the circulation channel has been continuously improved.
Huaxi ** also pointed out that since the second half of 2022, the company has continued to strengthen its marketing network, accelerate channel development, actively explore circulation channels and blank markets, and increase the coverage of channel terminals in the new round of growth cycle; On the product side, we should pay close attention to the zero-added dividend, broaden the first-class belt of zero-added soy sauce, add other categories of zero-added products, and optimize the company's product structure and system.
Under the performance of net profit increase in 2023, Zhongju High-tech and Qianhe Flavor Industry have also recently announced new developments in 2024.
On January 19, Zhongju High-tech Group held the 2023 annual work summary and commendation and 2024 work deployment conference. The meeting released the new mission, new vision, new values and new strategic goals of Zhongju High-tech. Among them, the new strategic goal refers to "creating a 'new kitchen state' and achieving high-quality development".
In terms of product plates, Zhongju High-tech and Qianhe Flavor Industry both chose to release new salt reduction products. On January 2, Zhongju High-tech announced the launch of Chubang 30% Salt Reduction Special Light Soy Sauce, and emphasized that the product is suitable for entry-level people with salt reduction, fitness groups, elderly groups and infants; On the 23rd of the same month, Qianhe Flavor Industry launched a new member of "salt control" - 0 addition and 35% salt reduction light soy sauce. According to Qianhe Flavor, the salt content of the product is less than or equal to 12g 100ml.
Net profit is expected to increase in 2023, new products will be frequently launched in 2024, and the traditional condiment industry will usher in a new pace of development.
Edited by Wang Can.
Comprehensively from the Shanghai Stock Exchange, "Food and Beverage Bald Yang Line", **China Merchants Food & Beverage, **Huaxi Food & Beverage, Kouxing, **Mountain Food & Beverage Collection, **Zhongju High-tech, **Qianhe**