The old brand is not fragrant? Gui Faxiang, the "first share of twist flowers", fell by more than 70% year-on-year in net profit last year

On March 25, Gui Faxiang, known as the "first share of twist flowers", disclosed its 2020 annual report.

Since its listing in 2016, Gui Faxiang's performance has been flat, last year affected by the epidemic, Gui Faxiang fell into a loss in the second quarter, and then although with the easing of the epidemic performance has improved, successfully turned around the loss, but from the annual performance, the net profit of revenue fell year-on-year, and the decline was larger.

In the first half of last year, due to the loss of the epidemic, the second half of the year successfully reversed the loss

Gui Faxiang is a chinese time-honored enterprise specializing in the research and development, production and sales of traditional characteristics and other leisure foods; the company's products include traditional characteristic leisure foods represented by the 18th Street twist flower, as well as other leisure foods such as pastries, sweet chestnuts and nuts.

In 2020, Gui Faxiang achieved operating income of about 349 million yuan, down 31.29% year-on-year; net profit attributable to shareholders of listed companies was about 25.0371 million yuan, down 70.41% year-on-year; net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was about 12.6592 million yuan, down 84.12% year-on-year.

In terms of quarters, Gui Faxiang was profitable in the first, third and fourth quarters of 2020, and only lost money in the second quarter. In the first half of 2020, Gui Faxiang achieved operating income of about 149 million yuan, down 43.45% year-on-year; net profit attributable to shareholders of listed companies was about -4.9403 million yuan, down 110.79% year-on-year.

For the reasons for the performance loss in the first half of 2020, Gui Faxiang explained: the epidemic prevention measures and consumption place restrictions implemented by various regions due to the new crown epidemic have brought a great impact on physical operations and the consumption of tourism specialties; the company's main sales channels directly operated stores have dropped significantly since the outbreak of the epidemic, most of the physical operating outlets of distribution channels have been suspended in stages, and operating income has dropped sharply; although the overall epidemic situation in the country has improved in the second quarter, the emergency response level of public health incidents in the Beijing-Tianjin-Hebei region has been downgraded late. The epidemic in the surrounding areas has repeatedly affected the flow of people in the Beijing-Tianjin-Hebei region, resulting in a year-on-year decline in operating income in the half year.

For the second half of 2020 not only achieved profitability, but also successfully made up for the reasons for the loss in the first half of the year, Gui Faxiang said: With the epidemic situation tending to ease since the third quarter, the company turned the crisis into an opportunity, took the initiative to seek changes, while intensively cultivating the main business to consolidate the traditional market, while laying out new products and new businesses to seize the new market, achieved positive results, reversed the unfavorable situation of losses in the first half of the year, and production and operation embarked on a recovery track.

By the end of 2020, Gui Faxiang has 60 direct-operated stores and 1 food-themed comprehensive shopping mall in Tianjin, through a marketing system based on direct-operated stores, distributors, supermarkets and e-commerce, etc., product marketing nationwide; direct stores are an important part of the company's sales channels, mainly operating its own brand products and other traditional leisure foods, and its operating income accounts for nearly 73%.

The old brand is not fragrant? Gui Faxiang's performance has been flat since its listing

Gui Faxiang is a long-established brand of nearly 100 years. In 1927, a new twist shop was opened on the west side of the Weihai River in Tianjin, and the treasurer Liu Laoba, with the name "Gui Fa Xiang", means "Gui Zi wafting incense, angry and strong, auspicious and happy".

Because the shop is located on the 18th Street of the East Building, it is named "Gui Fa Xiang 18th Street Twist". Liu Laoba, who is proficient in the production of dim sum, has been tried for a long time, and has taken the lead in researching the blend of assortment fillings into twists, so that the products are crisp and unremitting, the filling overflows without dispersion, even and full, tight and orderly, the shape is zhouzheng, the golden and transparent form, once the product comes out, it will be crispy and sweet taste, long-lasting characteristics, won the respect of the dignitaries at that time, down to the cloth people, becoming the leader of Jinmen and even northern cuisine. Slowly, Gui Faxiang Eighteenth Street twist flower became the business card of Jinmen cuisine.

On November 18, 2016, Gui Faxiang was listed on the Shenzhen Stock Exchange at an issue price of 16.6 yuan per share. However, since the listing, Gui Faxiang's performance has not been good, and the revenue in the first year of listing has increased slightly year-on-year, and the net profit has declined year-on-year.

According to the statistics of Shell Financial Reporter, from 2016 to 2020, Gui Faxiang achieved operating income of about 458 million yuan, 486 million yuan, 481 million yuan, 507 million yuan and 349 million yuan in turn; in the same period, its operating income growth rate was 0.09%, 6.26%, -1.12%, 5.57%, -31.29%.

From 2016 to 2020, Gui Faxiang's net profit attributable to the shareholders of the listed company was about 91.7668 million yuan, 92.6048 million yuan, 84.1308 million yuan, 84.5996 million yuan and 25.0371 million yuan, respectively; in the same period, the growth rate of its net profit attributable to the shareholders of the listed company was -2.42%, 0.91%, -9.15%, 0.56% and -70.41%.

How will the old brand develop in the future? Gui Faxiang previously introduced the company's planning in product structure: First, the company will continue to deepen cultivation and tap potential. In addition to twist products, Gui Faxiang will vigorously cultivate pastries to become a new pillar: copy the successful experience of Gui Faxiang's brand operation to the pastry category, focus on cultivating pastry products to become a new pillar of revenue growth, increase production capacity through self-production, OEM and other forms, concentrate resources to seize the market, thereby driving the company from a single pillar to a double pillar transformation; continue to uphold the concept of combining traditional technology and modern technology, traditional culture and modern fashion integration, increase pastry R & D investment and strength, Make diversified pastry products suitable for modern people's healthy eating habits and different tastes; on the basis of their own strength, try to introduce high-quality categories, advanced technologies and professional talents through investment, mergers and acquisitions, cooperation, etc., and enhance the strength of the pastry business well and quickly.

Beijing News shell financial reporter Yan Xia Editor Li Weijia Proofreader Li Shihui