"Investor Network" Huang Yunxin
On June 6, the entry "Superb Duck Neck Stock Price Falls" appeared on Weibo's hot search. According to the hot search introduction, on June 5, the stock price of Amazing Food flashed down at the open, falling by 3.06% as of the close.
It is reported that the decline in the stock price of Delicious Food is related to the "duck and mouse mystery" incident. Recently, some students suspected of eating "rat heads" from a college meal in Jiangxi, and after the official report was "duck neck", this incident continued to ferment, causing controversy on the Internet.
While netizens were arguing endlessly, the stock price of Amazing Food "fell" endlessly. On June 7, Delicious Food replied to relevant questions on the investor relations platform, and in response to the above incident, Delicious Food said that it had nothing to do with the incident reported by Jiangxi Industrial Vocational and Technical College. On June 8, the stock price of Amazing Food could not escape the dilemma, with a one-day decline of 3.86%.
"Investor.com" found that many netizens mentioned on Sina's black cat complaint platform that foreign bodies were found in delicious food food, such as eating flies from takeaway, unknown human hair in kelp, and unknown insect eggs in duck racks.
The stock price fell by more than 40% in half a year
In addition to the recent poor stock price performance due to the "nonsense" of the above events, entering 2023, the share price of Delicious Food will fall by more than 40% in half a year. According to Oriental Fortune Network, on December 30, 2022, the highest share price of Delicious Food was 62.13 yuan / share, and as of the close of trading on June 9, 2023, the stock price of Delicious Food was 36.62 yuan / share, a decrease of 41.06%.
For the decline in the company's share price, investors have different opinions, and the confidence of shareholders is slightly insufficient.
According to SSE Interactive Show, some investors suspect that the company is holding down the stock price and using overseas vests to buy Hong Kong stocks when it is at the bottom. It is reported that in March this year, Delicious Food issued an announcement that the company intends to issue shares (H shares) overseas and list on the Hong Kong Stock Exchange. In this regard, Delicious Food said that the stock price of the secondary market is affected by multiple factors and there is uncertainty, please note the investment risks, the company does not have material matters that should be disclosed and not disclosed, nor does it have the behavior and intention to control or manipulate the secondary market.
Another investor said that the company's share price fell far below the additional offer price, and has now fallen below the employee equity incentive price, but the company has not carried out share repurchases or increased holdings by major shareholders to enhance capital market confidence. In January this year, Delicious Food issued the "Announcement on the Issuance Results and Changes in Share Capital of Non-public Offering of A-shares", which showed that the issue price of the private placement was 52.21 yuan per share; In November 2022, Delicious Food issued the "Announcement on the Completion of the Registration of the First Grant of Stock Options under the 2022 Stock Option Incentive Plan", which showed that the exercise price was 37.61 yuan per share.
In fact, many shareholders on the interactive platform expressed their expectation that the company would buy back shares and major shareholders increase their holdings. In May this year, some investors also asked at the results briefing whether "management has considered buying back shares", and in response to this, Delicious Food only replied that if there are relevant plans, the company will fulfill its information disclosure obligations in a timely manner.
The regulatory letter exposed internal control issues
When it comes to information disclosure, Delicious Food has received a decision on regulatory measures from the Hunan Securities Regulatory Bureau for failing to fulfill its obligations. In April this year, the Hunan Securities Regulatory Bureau said that there were four major problems in the operation of Delicious Food, three of which were irregular information disclosure.
In 2021, Delicious Food signed the "Equity Transfer and Capital Increase Agreement on Jiangsu Hefu Catering Management Co., Ltd.", and when the equity transfer matter had reached the disclosure standards of the interim announcement and the deliberation standards of the board of directors stipulated in the articles of association, the company did not disclose in a timely manner when signing the agreement, nor did it perform the board deliberation procedures in a timely manner.
In 2019, Chen Xuan, son of Chen Geng, director of Amazing Food, invested in Hunan Wantu, a wholly-owned subsidiary of Amazing Food, which should be recognized as a related party transaction, but Amazing Food did not disclose the above transaction as a related party transaction.
The third is the failure to disclose related parties and related party transactions as required, and the decision shows that according to the principle of substance over form, Changsha Caiyun should be recognized as a related party of Delicious Food, and from March 9, 2021 to September 25, 2021, Delicious Food did not identify Changsha Caiyun as a related party, nor did it identify the 85.2053 million yuan transaction between Changsha Caiyun as a related party.
In addition, the Hunan Securities Regulatory Bureau also pointed out that there were cases where employees of Delicious Food occupied the company's funds. From January 2013 to July 2018, the company collected a total of 21.0707 million yuan in store operating fees, franchise fees and management fees through employees' personal accounts, which were not deposited into the company's account, which constituted operational occupation.
If the information disclosure is not standardized, which exposes the insufficient awareness of compliance by the heads of relevant departments of the company, then the operating occupancy expenses indicate that there are certain deficiencies in the company's internal control. In this regard, Delicious Food said that it will strengthen the study of relevant laws and regulations related to information disclosure by relevant responsible personnel, and continuously improve the company's ability and level of standardized operation.
Under pressure from performance, the expansion of offline stores went against the trend
From a fundamental point of view, in 2022, the net profit attributable to the parent of Delicious Food will be 233 million yuan, down 76.29% compared with 2021, and even lower than the company's net profit attributable to the parent of 236 million yuan in 2014.
The main business of Huang Shanghuang and Amazing Food is similar, and the main products sold by both are marinated duck goods. According to the data of the 2022 annual report, Huang Shanghuang is also facing a sharp decline in net profit attributable to the mother, and the net profit attributable to the parent of Huang Shanghuang in 2022 will be 30.8162 million yuan, down 78.69% compared with 2021.
However, the two companies have different strategies, due to the failure of single-store revenue recovery and the sluggish market environment, the number of stores closed by Huang Shanghuang in 2022 has increased, and the number of stores has shown negative growth. Delicious Food, on the other hand, chose to buck the trend and expand its stores, with a net increase of 1,362 stores in 2022.
In fact, in the past, due to mistakes in the study and judgment of the external environment, there were not many catering consumer brands that closed their stores after continuous expansion, and Haidilao is one of them. Can Delicious Food maintain stable single-store revenue under continuous expansion? Investors are clearly concerned about these issues. At the 2022 performance briefing of Amazing Food, some investors asked questions about "the reasons for the company's continuous store opening and the profitability of a single store", while another investor said, "How to ensure the company's positive profitability in the store expansion plan". In response to the above questions, the response of Delicious Food mainly focused on "opening a store strategy according to local conditions" and "brand marketing", and did not list relevant data positively to answer.
According to data from Oriental Wealth Network, the gross profit margin of excellent food has continued to decline in recent years. From 2019 to 2022, the gross profit margins of Amazing Food will be 33.95%, 33.48%, 31.68% and 25.57%, respectively.
Offline horse racing, online sales channel performance tepid. According to the annual report, the operating income of online sales channels in 2022 was 134 million yuan, an increase of 1.51% on the basis of 132 million yuan in 2021. From the perspective of the overall revenue structure, the revenue from online sales channels of Delicious Food accounted for only 2.01% and 2.02% of the operating income in 2021 and 2022, respectively. (Produced by Thinking Finance) ■