Text|Red Meal Network.Buffalo milk manufacturer Guangxi Baifei Dairy Co., Ltd. *** hereinafter referred to as "Baifei Dairy") once again launched an impact on ***.
Recently, Baifei Dairy's application for listing in the national small and medium-sized enterprise share transfer system and public transfer has aroused concern in the industry.
This is not its first exploration in the capital market.
As early as 2018, Guangxi Baifei Investment Co., Ltd., the parent company of Baifei Dairy, was listed in the company and was delisted in 2021.
Before the delisting, Guangxi Baifei had changed its business scope to industrial investment and enterprise management, and the production and sales of dairy products and beverages no longer belonged to its business scope, and the relevant business was transferred to its subsidiary Baifei Dairy.
In 3 years, the net profit jumped from one million to 100 million yuan, Baifei Dairy is mainly engaged in the research and development, production and sales of dairy products, the main products include buffalo milk and Holstein milk as the main raw materials of sterilized milk, prepared milk, milk-containing beverages, fermented milk, pasteurized milk.
In the past three years, Baifei Dairy's net profit has been relatively stable. In the first eight months of 2021, 2022, and 2023, the revenue scale of Baifei Dairy will be 71.4 billion yuan, 78.1 billion yuan, 66.2 billion yuan, and the corresponding net profit was 13.1 billion yuan, 11.5 billion yuan, 15.1 billion yuan.
The net profit in the first eight months of 2023 exceeded the level of the whole year of 2023, which may be related to the improvement of the gross profit margin of its core products sterilized milk and prepared milk.
In the first eight months of 2023, the gross profit margin of Baifei Dairy's sterilized milk increased from 32 in 202200% increased to 4123%, the decline in fresh milk procurement** expanded its profit margins. According to Baifei Dairy, the average purchase unit price of its fresh milk has increased from 753 yuan kg dropped to 6 from January to August 202362 yuan kg, a decrease of 1295%。
During the same period, the average selling unit price of prepared milk increased by 295%, unit cost down 168%, one liter and one drop will also modulate milk gross margin from 18 in 22 years39% to 2207%。
Baifei Dairy Public Transfer Prospectus.
Sterilized milk and prepared milk contributed more than 9% of the revenue to Baifei Dairy. The increase in the gross profit margin of the core business naturally had a positive impact on the overall performance.
Financial data show that Baifei Dairy, which was only registered in 2017, has an annual net profit of more than 100 million yuan. However, in 2018, the annual net profit of its parent company Guangxi Baifei was only maintained at the level of one million, but in the first half of 2020, Guangxi Baifei's net profit has reached 09.1 billion yuan.
In just a few years, the net profit jumped from one million to 100 million yuan, how did this happen?
Hitting the development of buffalo milk may be one of the factors.
Baifei Dairy relied on buffalo milk to achieve performance take-off, but the "first share of buffalo milk" was selling its children to repay debtsGuangxi Baifei previously produced and sold dairy products and milk beverages with buffalo milk as the main raw material. **Before listing, Guangxi Baifei's performance was mediocre.
From 2015 to the first 10 months of 2017, Guangxi Baifei's net profit was 304780,000 yuan, 91670,000 yuan, 115060,000 yuan. At that time, more than 9 percent of Guangxi Baifei's products were sold in the province, especially in Nanning and Qinzhou. Student drinking milk is the bulk of its revenue, accounting for more than 4%.
However, since 2018, Guangxi Baifei has increased the marketing of its buffalo milk products and opened a road of rapid growth. In 2018, its selling expenses were 634690,000 yuan, an increase of nearly 3% over the same period last year. In 2019, the selling expenses further increased to 2824380,000 yuan, an increase of 345 year-on-year00%。
According to the financial report information, Guangxi Baifei claims to have opened the market in Shanghai, Beijing, Guangzhou and other first-tier cities in 2018, of which the total revenue of Baifei buffalo milk products accounts for 6350%。In this year, Guangxi Baifei's revenue also approached 80 million yuan, and the net profit exceeded 4.15 million yuan, which was the same as the same period last year. 78％。
Guangxi Baifei, who tasted the sweetness, continued to promote Baifei buffalo milk products, and in the following years, Baifei buffalo milk products brought more and more increments to Guangxi Baifei.
According to its financial report, in 2019, the production and sales volume of high-end buffalo milk products of Baifei cheese series was more than 3 times that of the same period last year, and Guangxi Baifei's revenue also officially crossed the 100 million yuan level, reaching 28.3 billion yuan, with a net profit of 6887960,000 yuan, a year-on-year increase of 153641%。In the first half of 2020, the total revenue of buffalo milk accounted for 9464%。
The popularity of buffalo milk is also increasing through e-commerce channels and social platforms.
In April 2020, Tmall launched the traceability activity of the top ten pure pastures at home and abroad, and a number of Taobao anchors brought goods for Guangxi buffalo milk, which also made buffalo milk brands such as Befei cheese well-known to more consumers.
According to the "City Boundary" report, at the end of 2022, JD.com's self-operated buffalo milk brand increased from the original Royal Dairy to 6 brands such as Befei Cheese and Lechun, and sales increased from the initial monthly average of 100,000 to millions per month.
Under the promotion of e-commerce platforms, buffalo milk has also gained more consumers' favor.
Public data shows that during 618 in 2022, buffalo milk sales in Tmall Supermarket and JD.com increased by 200% and 74% year-on-year, respectively5%。According to data from Mojing Market Intelligence, in the first half of 2023, the scale of buffalo milk on Tmall will grow by 42% year-on-year, and the growth rate of buffalo milk on JD.com will be 75%.
In addition, with the intensification of the raw material upgrading war in the new tea and coffee markets, many tea and coffee brands have used buffalo milk to blend products, such as Hey Tea, Nai Xue's Tea, Grandma's Handmade, MANNER, Lele Tea, and Tims Tianhao Coffee, all of which have launched buffalo milk-related drinks.
The application scenarios of buffalo milk in B-end catering stores are also gradually expanding. Correspondingly, buffalo milk is becoming more and more recognized on the consumer side.
With the increase in the popularity of buffalo milk, Baifei Dairy has also tasted dividends.
According to the relevant information disclosed by Baifei Dairy, in the first eight months of 2021-2023, Jingdong and Tmall ranked among the top five customers of Baifei Dairy. Today, the sales area of buffalo milk products of Baifei Dairy has also expanded from Guangxi to the whole country, of which the sales in East China, South China and Central China have accounted for more than 6%.
Baifei Dairy Public Transfer Prospectus.
In the past few years, Baifei Dairy has made efforts around buffalo milk, from Guangxi to the whole country, and its brand Baifei cheese is also well-known to many consumers, which also gives it the confidence to hit the market.
In contrast, the "first share of buffalo milk" Royal Group (002329SZ) has gone down the road of "selling its children to pay off its debts".
Royal Group, once known as the "King of Buffalo Milk in China", has dairy and food business as its pillar business, accounting for more than 8% of its revenue. However, in recent years, Royal Group has been obsessed with cross-border, media and photovoltaic have been involved, but the cross-border business has not brought much performance increment to it, and from 2020 to 2022, the net profit of Royal Group will be -13.7 billion yuan, -47.2 billion yuan, 01.2 billion yuan.
In the past year, it has transferred Lysil Dairy, which accounts for more than 4% of its revenue.
Enterprise check.
In 2023, Royal Group will each share about 3290% of the equity is given to Junlebao, and the investment income is 21.1 billion yuan. Previously, Royal Group had borrowed 2600 million yuan, and the equity of the aforementioned two subsidiaries will be used as loan pledge guarantee. After the completion of the transfer, Junlebao owns the two enterprises 5789% of the shares, becoming its controlling shareholder.
Lysil Dairy, which was resold by Royal, contributed a lot to its total revenue. In 2022, Lysil Dairy's revenue will be 130.4 billion yuan, the total revenue accounted for more than 4 percent, and the net profit exceeded 35 million, while the net profit of the Royal Group as a whole was only 1202350,000 yuan.
As the first share of buffalo milk, after the transfer of Lysil Dairy, the future development of Royal Group's dairy business may face more challenges.
The production is limited, the milk source is scarce, and the spring of the buffalo milk business has not yet come? Although the performance of Baifei Dairy in the past few years is not bad, from the perspective of the entire market, Baifei Dairy still has many competitors in the buffalo milk track.
As the main production area of buffalo milk, Guangxi is also the main gathering place of buffalo milk producers, and a number of buffalo milk producers have been cultivated in the local area, including Royal Group, Shibu Dairy, Zhuangniu Dairy, Guiniu Dairy, etc.
Guiniu Dairy's official website.
Many of these companies have established cooperative relations with domestic chain tea, coffee and dessert brands. For example, the Royal Group is the first merchant of chain brands such as Zhao Ji Inheritance, Manner Coffee, Bawang Tea Ji, Grandma Liu next door, Tea Extractor, Lele Tea, etc., and Zhuangniu Dairy was once a buffalo milk merchant handmade by Grandma.
In addition to the industry competition pattern surrounded by strong competitors, problems such as low buffalo milk production and scarcity of milk sources also restrict the long-term development of aquatic milk companies such as Baifei Dairy.
Previously, it was estimated that the national buffalo raw milk production in 2022 would be less than 100,000 tons. According to the National Bureau of Statistics, China's raw milk production reached 39.32 million tons that year, and buffalo milk accounted for less than 1%, which is related to the low yield of buffalo milk and the small number of buffalo breeding.
It is understood that the annual milk production of a buffalo is about 2000kg, which is less than half of the annual milk production of Holstein cows, black and white dairy cows. Due to the high requirements of the breeding environment of dairy buffalo, the area of breeding buffalo in China is also relatively limited, concentrated in the two regions. Therefore, the purchase price and selling price of buffalo milk with low yield are higher than that of ordinary milk.
Royal Group once said in an investor record sheet that the low yield of domestic dairy buffalo and the shortage of buffalo milk are the main problems restricting the development of the buffalo milk industry.
It claims that after China introduced Indian and Pakistani dairy buffalo breeds in 1957 and 1974, the population population has not been continuously renewed. However, if the native buffalo wants to improve its milk production through traditional crossbreeding, it will take 12 years, and the annual production of the improved buffalo can only reach 2-25 tons, the huge time cost limits the large-scale industrialization of dairy buffalo.
At present, many buffalo milk chain enterprises are strengthening their own buffalo milk industry chain layout, or building buffalo breeding bases, or promoting buffalo breeding, but these actions have a long investment cycle and it is difficult to see profit returns in a short time.
Royal Group has jointly researched buffalo breeding technology with the Buffalo Research Institute of the Chinese Academy of Agricultural Sciences, Guangxi University and other research institutions, and has also built a buffalo embryo research and production center in Pakistan.
Baifei Dairy, which mainly relies on breeding cooperatives for raw material procurement, is also trying to lay out the construction of breeding bases.
According to the enterprise investigation, in April 2023, Baifei Dairy set up a subsidiary, Zhejiang Baifei Cheese Qijia Dairy Farming***, whose business scope is mainly livestock breeding and fresh milk purchase. In September 2023, Baifei Dairy established a subsidiary called "Zhejiang Baifei Animal Husbandry Technology Co., Ltd.", which plans to carry out livestock and poultry breeding in the future and supply fresh milk to Zhejiang Baifei.
However, these two subsidiaries have not been established for a long time, and it may take time to provide assistance to the raw materials of Baifei Dairy in the future.
In addition, although buffalo milk is known to more consumers, it is difficult to get rid of the characteristics of local small breed milk, and if it wants to really open up a larger market, it must also be supported by sufficient production capacity. This also means that a stable and sufficient supply of buffalo milk raw materials** will directly affect the future performance of producers.
In this context, whether Baifei Dairy can continue the performance myth of rapid growth in the future remains to be verified by time.