Text |Zhang Jiaru.
After the "rat head duck neck" turmoil, consumers smelled the rat and changed color. Recently, there has been a "rat tail turmoil" in the food field, which has attracted widespread attention.
A netizen in Shandong posted ** that in the Longda Meat non-starch square meat ham he bought, "there seems to be a rat's tail". The outer packaging of the ham released by netizens shows that the ham manufacturer is Shandong Longda Gourmet Co., Ltd. ***
For the "rat tail turmoil", on March 3, Longda Gourmet WeChat *** released a statement on the situation: saying that the company attaches great importance to it and actively cooperates with the market supervision department to carry out the investigation. According to the test results of authoritative institutions, the "foreign body" of the ham involved was ruled out as a rat's tail.
The "rat tail turmoil" involved in Shandong Longda Gourmet Co., Ltd. *** is the listed company Longda Gourmet. Longda Gourmet is a leading enterprise in the food industry, from its listing in 2014 to 2020, Longda Gourmet has seen a sharp increase in revenue and net profit, and its net profit attributable to the parent company has all been profitable.
In 2021, Longda Food's revenue declined, and the net profit attributable to the parent company suffered a loss for the first time, and after turning around in 2022, it will fall into a huge loss in 2023. According to the company's previous performance forecast, the net profit attributable to the parent company in 2023 is expected to lose 136 billion yuan-176 billion yuan, the largest loss since listing.
In terms of secondary market performance, on March 4, 2024**, the share price of Longda Gourmet was reported at 708 yuan, down 234%, with a total market capitalization of 76400 million yuan. Since 2021, the share price of Longda Gourmet has fallen by more than 40%.
During the downturn in performance and stock price, the chairman and general manager of Longda Gourmet changed one after another.
Longda Food, listed on the Shenzhen Stock Exchange in June 2014, was originally known as Longda Meat, its main business is pig breeding, pig slaughtering and meat product processing, and its main products are chilled fresh meat, frozen meat, and cooked food products (Chinese-style braised meat products, low-temperature meat products).
In 2014, Longda Meat revenue was 354.7 billion yuan, net profit attributable to the parent company of 10.2 billion yuan. By 2020, Longda Meat's revenue increased to 2410.2 billion yuan, and the net profit attributable to the parent company was 90.6 billion yuan. Whether it is revenue or net profit, Longda Meat has increased several times compared with the year it was listed.
2020 is also the peak year of Longda Meat's performance.
After the peak, Longda Meat's performance began to decline. In 2021, Longda Meat's revenue fell by 19%, and the net profit attributable to the parent company lost 65.9 billion yuan, the first loss after listing.
Regarding the change in performance, Longda Meat said that due to the impact of domestic live pigs in 2021, the sales of major pork products have declined greatly, resulting in a year-on-year decline in sales revenue. The company made an impairment provision for inventory51.9 billion yuan, at the same time, the company made a total provision for goodwill impairment of 2 subsidiaries 03.3 billion yuan.
In 2021, when it lost money for the first time, Longda Meat proposed a new development strategy - "one body and two wings", that is, the main body of food with prefabricated dishes as the core, and breeding and slaughtering as the two wings of support. Guided by strategy, Longda Gourmet regards food as an important business segment and focuses on the development of prefabricated food business.
In December 2021, in order to make the company's name more compatible with the strategic direction and business of "one body and two wings", Longda Meat changed the company's name to "Shandong Longda Gourmet Co., Ltd.*** corresponding** abbreviation to "Longda Gourmet".
In 2022, Longda Gourmet revenue will decline by 17%, declining for two consecutive years, and the net profit attributable to the parent company will turn losses into profits, with a value of 75.37 million yuan. Regarding the change in performance, Longda Gourmet said that the company practiced the strategy of "one body and two wings", which promoted the healthy development of the business. At the same time, the company's traditional sector was affected by the sales of woolly pigs, and the operating performance of the traditional sector increased year-on-year.
However, in 2023, Longda Gourmet will fall into the red again.
Not long ago, on January 31, Longda Gourmet disclosed the performance pre-loss announcement, and the net profit attributable to the parent company in 2023 is expected to lose 136 billion yuan-176 billion yuan. Deduct non-net profit loss of 121 billion yuan-157 billion yuan.
It is worth noting that the net profit attributable to Longda Gourmet in 2023 will be 136 billion yuan, in only two years in 2021 and 2023, the loss of Longda Gourmet will be 20$1.9 billion. From 2014 to 2020 and in 2022, the cumulative profit of Longda Gourmet was 203.8 billion yuan.
It is not difficult to see that the loss of Longda Gourmet in the past two years may be equivalent to the total profit of the previous years.
As for the reasons for the loss in 2023, during the reporting period, the sales of woolly pigs and the pork market continued to be large, and the impact of the epidemic was superimposed, and the company's traditional business and ** sector business suffered large lossesAt the same time, in accordance with the relevant provisions of the Accounting Standards for Business Enterprises and the principle of prudence, the Company has made provision for impairment of inventory and biological assets.
If you don't take it, the reasons for the loss given by Longda Gourmet are similar to the reasons for the loss in 2021.
In the secondary market, the stock price performance of Longda Gourmet converged with the performance performance.
After going public in 2014, Longda Food's share price hit an all-time high of 15 in September 202022 yuan, a total increase of more than 500%. Among them, in 2020, Longda Food's share price rose by 86% throughout the year against the background of a sharp rise in performance.
In 2021, Longda Gourmet revenue declined, net profit loss attributable to the parent company, and a profit of more than 70 million yuan in 2022, but the value was the lowest value of the profit value since listing, and in 2023, the company fell into a huge loss. In the past three years, the share price of Longda Gourmet has performed weakly, falling three times in a row, and the stock price has fallen by 35%.
Year-to-date 2024, Longda Gourmet shares are down 12%. As of March 4**, Longda Gourmet share price was at 708 yuan, with a total market value of 76400 million yuan.
Performance and stock price are sluggish, how to break the situation of Longda Food?Judging from the company's announcement, the company will continue the strategy of "one body and two wings" and cultivate the prefabricated food business into a performance growth engine.
Longda Gourmet said on January 30 that in 2024, the company will focus more on the main food business and continue to promote the main food strategy with prefabricated dishes as the core. The prefabricated food business is also a key development segment of the company in the next 3-5 years.
According to the relevant announcement, since the establishment of the food main strategy of "one body and two wings", Longda Gourmet has continued to grow its revenue from the prefabricated food business, with an income of 11 in 20218.2 billion yuan, with a revenue of 13 in 20221.4 billion yuan, and the revenue in 2023 will exceed 1.9 billion yuan, an increase of nearly 50% over the same period last year.
Among the prefabricated food business items of Longda Cuisine, fat sausage products will exceed 300 million yuan in 2023, and roasted sausage products will exceed 100 million yuan. In addition, crispy meat and bacon products also have hundreds of millions of volumes, and the company will mainly focus on the development of meat and pig by-products in the future.
However, the proportion of Longda Food's prefabricated food business needs to be improved. In 2022, the prefabricated food business accounted for 816%。In the first half of 2023, the proportion of this business increased to 1430%。
In the process of implementing the strategy of "one body, two wings", there have also been changes in the senior management of Longda Food.
In May 2023, Longda Gourmet announced that Yu Yu applied for resignation as the company's legal representative, chairman of the fifth board of directors, and director for personal reasons, and also resigned as director of the strategy committee of the company's board of directors, member of the audit committee of the board of directors, and member of the remuneration and assessment committee of the board of directors. After resigning from the above positions, Yu Yu no longer holds any position in the company.
It is worth noting that from June 2019 to April 2022, Yu Yu served as the chairman of the fourth board of directors of the company. In April 2022, Yu Yu was elected as the chairman of the fifth board of directors of the company, and the new term of office has only been in office for more than a year. After Yu Yu resigned, Yang Xiaochu became the current chairman.
In February 2024, Longda Gourmet announced that Wang Haojie applied for resignation as the company's general manager due to work changes. After resigning as general manager, Wang Haojie still serves as a director of the company and a member of the special committee of the board of directors. In April 2022, the fifth board of directors of the company agreed to appoint Wang Haojie as the general manager of the company. After Wang Haojie's resignation, at present, the position of general manager of Longda Gourmet is vacant.
On the whole, Longda Gourmet has been affected by the low price of pigs, and has suffered large losses in recent years, and the secondary market has been sluggish. In order to promote the performance breakthrough, Longda Gourmet strategy was upgraded to a "one body, two wings" strategy, betting on the prefabricated food business. Judging from the disclosed data, the company's prefabricated food business has grown rapidly, but it accounts for less than 15%, which is difficult to provoke the performance beam.
In the future, due to the relatively large proportion of fresh and frozen meat business, Longda Food's performance will still be affected by the rise and fall of pig prices. In the long run, the prepared food business will be the key to the company's escape from the sharp fluctuations in performance. We will keep an eye on how Longda Food's next performance and stock price will perform.