Weiqian China's financial director guarded the self-theft of Yu Yin, and Gui Faxiang, who sold twist flowers, followed in his footsteps.
A few days ago, Gui Faxiang announced that it would expose the family scandal: its wholly-owned subsidiary cashier will embezzle about 10 million yuan, and the company is currently making every effort to recover it.
After the epidemic, the company's operation has just picked up, and the net profit attributable to the mother in the first three quarters of this year was less than 30 million yuan. Unexpectedly, after selling twist flowers for more than half a year, a cashier easily removed one-third of the profits.
Self-exposed family ugly
After the listing of Gui Faxiang, the first share of twist, the operating performance was mediocre, and a huge amount of money was embezzled a few days ago, which surprised the outside world even more.
On the evening of the 17th, Gui Faxiang exposed his family ugliness, and his wholly-owned subsidiary Tianjin Guifaxiang Logistics cashier was suspected of embezzling huge amounts of funds, with a preliminary estimate of about 10 million yuan.
How the cashiers of a subsidiary specializing in the transportation of the parent company's products have not been further disclosed has yet to be determined by the police investigation.
Gui Faxiang, who has always been cautious, made it clear in the announcement that the above events may adversely affect the financial situation in 2021, and will be accounted for in a timely manner in combination with the conclusions of the police and auditing institutions.
As a long-established enterprise mainly engaged in the production and sales of twist flowers, pastries and other products, Gui Faxiang's income scale is not large, and it was hit hard by the epidemic last year, and the net profit attributable to the mother fell by 70.41% year-on-year, and the operation gradually picked up this year.
In the first three quarters of this year, the company achieved operating income of 329 million yuan and net profit attributable to the mother of 28.7854 million yuan, an increase of 25.34% and 16.76% respectively year-on-year. This huge amount of embezzlement is equivalent to one-third of the company's profit from selling twist flowers in the first three quarters.
In order to recover this huge amount of money, Feng Guodong, the chairman who had just taken office in September, personally led a special working group to take all possible measures to recover the funds, and at the same time checked whether there was a similar situation within the company.
The operating conditions are mediocre, there are thieves inside, the stock bar is full of scolding, and investors point out that the company's internal management is chaotic. One investor complained that if the funds could not be recovered, how many twist flowers would have to be sold to fill the hole?
Twist flowers are hard to sell
Like many long-established enterprises, Gui Faxiang is also facing the dilemma of business transformation. To promote the transformation of a long-established brand, there are few successful cases in China, and Quanjude and Dog Ignore have not been able to explore a successful path.
Quanjude was only 60 million yuan away from the 2 billion yuan in revenue in 2012, and then the income declined year by year, encountering the epidemic and public opinion last year, and the long-established brand completely fell off the altar.
The dog in the same city as Gui Faxiang ignored it, and the performance of the new third board listed on the new third board was flat for 5 years, the operating income was always around 100 million yuan, and the highest net profit was 24.2458 million yuan in 2019, which was terminated last year.
Gui Faxiang started from twist products, and has not yet got rid of the monopoly of twist products, and the income growth of twist products has almost stagnated, which has buried hidden dangers for this long-established food company.
Since its listing in 2016, more than 60% of Gui Faxiang's revenue has come from twist products. According to the data, from 2017 to 2019, the company's twist product revenue was 333 million yuan, 317 million yuan and 321 million yuan respectively, and plummeted to 221 million yuan in 2020.
In 2019 and 2020, the sales volume of twist products was 4987.45 tons and 3064.11 tons, respectively, an amazing decline.
The decline in core product sales is just the tip of the iceberg. After the listing, the company's product sales (including twist, pastries, etc.) showed a downward trend, from 2017 to 2019, the sales volume was 7486.05 tons, 7045.56 tons and 6637.84 tons, an increase of 4.30%, -5.88% and -5.79% respectively. Last year, it fell 35.01% to 4313.91 tons.
Obsessed with financial management
Since its listing, Gui Faxiang's operating income growth rate has always hovered in single digits, and the growth rate of net profit attributable to the mother has shown a positive and negative alternating situation, which has continuously sounded the alarm bell for the company's operation.
The company has not made a breakthrough in the two major problems of high sales in Tianjin and excessive dependence on twist products. Even the construction of production bases in airport economic zones, the construction of marketing networks, the repayment of bank loans and supplementary working capital, which were funded by the listing, have been repeatedly postponed. As of now, the first two items are still unfinished and have been postponed until the end of December 2023.
Lackluster in business, Gui Faxiang is full of motivation in purchasing financial management. On September 7 this year, the company took out 400 million yuan to purchase a capital-protected floating income wealth management product of the bank, with an expected annualized return of 1.5%-3.6%.
Zebra Consumer noted that after the company went public, it began to use idle funds to manage its finances. In December 2016, the Company announced that it agreed that the Company and its holding subsidiaries would use part of the idle own funds of not more than RMB400 million to purchase wealth management products, and at the same time intend to use part of the idle raised funds for cash management.
After one year, the company plans to raise no more than 95 million yuan of idle funds for cash management, and intends to use no more than 350 million yuan of idle own funds to purchase wealth management products. Since then, the company has formulated hundreds of millions of yuan of financial plans almost every year.
Statistics show that from 2017 to 2020, the company's investment income, including wealth management, was 21.4787 million yuan, 22.8372 million yuan, 22.553 million yuan and 29.3843 million yuan, accounting for 17.56%, 20.80%, 20.68% and 82.21% of the total profits in each period, respectively. Among them, in 2020, the company sold its shareholding in Quentin Technology, which contributed 12.567 million yuan to the company's profit.
(Source: Zebra Consumption)
Editor: Han Luying