Anjing Food, known as the "quick-frozen food leader", 603345. SH), which recently released its 2023 annual results report.
According to the financial report, in 2023, the company will achieve revenue of about 14.045 billion yuan, a year-on-year increase of 15.29%, a net profit attributable to the parent company of about 1.478 billion yuan, a year-on-year increase of 34.24%, and a non-net profit of about 1.365 billion yuan, a year-on-year increase of 36.8%.
In the secondary market, Anjing Food's share price hit a record low of 68.57 yuan in the past four years on February 5 this year, and then began to bottom out. As of the close of trading on April 26, the company's share price closed at 83.99 yuan, an increase of 0.35%, and the current total market value is 24.634 billion yuan, compared with the peak period (February 9, 2021, at 276.82 yuan), the company's market value has shrunk by more than 56 billion yuan.
Consolidated Xinliuwu to achieve performance growth, snack food revenue "halved"
Founded in 2001 and listed on the main board of the Shanghai Stock Exchange in 2017, the company is mainly engaged in the research and development, production and sales of quick-frozen hot pot products (mainly quick-frozen surimi products and quick-frozen meat products) and quick-frozen noodles and rice products, quick-frozen dish products.
With the benefits brought to the company by hot pot ingredients and quick-frozen food, Anjing Food's annual total revenue has increased from 1.786 billion yuan in 2013 to 14.045 billion yuan in 2023, with a compound growth rate of 22.9%. In terms of net profit, except for 2015, the company's net profit has increased, from 104 million yuan in 2013 to 1.478 billion yuan in 2023, with a compound growth rate of 30.4%.
In terms of products, quick-frozen surimi products accounted for the largest proportion of revenue, with a revenue of about 4.409 billion yuan during the reporting period, a year-on-year increase of 11.76%, followed by quick-frozen dish products, with a revenue of about 3.927 billion yuan in 2023, a year-on-year increase of 29.84%. The revenue of quick-frozen flour and rice products and quick-frozen meat products is comparable, with 2.545 billion yuan and 2.627 billion yuan respectively, but the revenue growth rate of quick-frozen meat products is higher than that of quick-frozen flour and rice products, with the former increasing by 10.22% year-on-year and the latter increasing by 5.4% year-on-year.
The largest revenue growth rate this year was agricultural and sideline products, reaching 33.98%, and the revenue of this product was 509 million yuan, mainly due to the consolidation of Xinliuwu (i.e., Hubei Xinliuwu Food Group Co., Ltd.).
It is reported that Anjing Foods acquired 70% of the equity of Xinliuwu in September 2022 to increase the layout of the freshwater surimi industry and further expand the crayfish industry. In 2023, the revenue from Xinliuwu will be performed, in addition to the significant growth rate of agricultural and sideline products, the revenue growth of quick-frozen dish products will also be largely due to the contribution of Xinliuwu.
It is worth noting that the company's snack food revenue fell by 55.22% over the same period last year, only 4.8542 million yuan, mainly due to the decline in room temperature snack food business revenue due to the adjustment of the product structure of British Kung Fu Food Company. At the same time, the cost of snack food procurement decreased by 57.8% year-on-year to 4.4711 million yuan, mainly due to the reduction of the room temperature food business due to the adjustment of the product structure of British Kung Fu Food.
From the perspective of sales model, the company mainly focuses on dealers and adopts the BC channel strategy. For the whole year of 2023, Anjing Food's revenue contribution from distributor channels accounted for an absolute proportion, with a total revenue of 11.369 billion yuan, a year-on-year increase of 15.96%, followed by Tetong direct sales channel, with a revenue of 1.071 billion, a year-on-year increase of 28.88%.
In addition, the most eye-catching performance is the e-commerce channel, with a revenue of 320 million yuan in 2023, a significant increase of 145.92% year-on-year. In contrast, the supermarket channel saw a year-on-year decrease of 13.42% in revenue, mainly due to the decrease in customer flow in supermarkets and the closure of some stores. The revenue of new retail channels fell by 0.32% year-on-year, which was due to the adjustment of product structure.
The "mysterious operation" caused the company's stock price to plummet
As a leader in the industry, the performance of Yasui Foods is understandable, but from the perspective of the company's operation, there are often "mysterious operations" that investors cannot understand.
In January this year, Yasui Foods suddenly announced that it planned to issue shares (H shares) in Hong Kong and list on the Hong Kong Stock Exchange, one of the purposes of which was to "enhance the company's overseas financing capabilities".
But in fact, Yasui Foods is not short of money. As of the end of 2023, the company's monetary funds and transactional financial assets were 4.975 billion yuan and 1.033 billion yuan respectively, with a total of about 6.008 billion yuan, and the total current assets reached 10.426 billion yuan, current liabilities were 4.006 billion yuan, and the asset-liability ratio was 38.42%.
In this regard, the capital market reacted strongly, with some investors questioning why Anjing Foods should raise funds when it is not short of money in its accounts, some investors pointed out that "the company looks ugly", and some investors are worried that listing in Hong Kong will lower the company's valuation.
Source: Oriental Fortune Stocks
At the same time, the share price of Yasui Foods also fell sharply, on the first trading day after the above announcement (January 22), the company's share price fell directly to the limit, and then fell for 7 consecutive trading days, and on February 5, it hit a record low since February 25, 2020, at 68.57 yuan.
Although the current share price of Anjing Food has rebounded, and the latest price is 83.99 yuan, the company's market value has shrunk by more than 56 billion yuan from the peak of 81.1 billion yuan in 2021, and as of the close of trading on April 26, the total market value of Anjing Food is only 24.634 billion yuan.
It should be noted that the reason why investors are not optimistic about Anjing Food's listing in Hong Kong is partly because the company has frequently raised funds from the capital market since its listing. From 2017 to 2022, Anjing Food has raised a total of about 7.676 billion yuan through IPO fundraising, issuance of convertible bonds (2 times), private placement and other means.
In addition to frequent financing, the company's founders, executives and controlling shareholders have also continued to reduce their holdings and cash out. In January 2020, when the ban on Anjing Food expired, Liu Mingming, the founder and chairman of the company, announced a shareholding reduction plan, cashing out a total of 217 million yuan, and half a year later, Huang Jianlian, deputy general manager of Anjing Food, also cashed out more than 90 million yuan by reducing his holdings.
Since then, in addition to Liu Mingming and Huang Jianlian, Zhang Qingmiao, director and general manager of the company, Liang Chen, secretary of the board of directors, Tang Yi, chief financial officer, Huang Qingsong, deputy general manager, and others have successively reduced their holdings of the company's shares many times, and the reason for the reduction is "personal capital needs". According to incomplete statistics, since 2020, the founders and executives of Anjing Food have reduced their holdings of more than 35 million shares of Anjing Food, accounting for more than 15% of the company's total shares, and the cumulative cash out funds have exceeded 4.8 billion yuan.
In addition to the reduction of the founders and senior management team, Anjing Food has also been repeatedly reduced by the controlling shareholder Fujian Guoli Minsheng Technology Development Co., Ltd. (hereinafter referred to as "Guoli Minsheng"). From 2022 to 2023, Guoli Minsheng has reduced its holdings of Anjing Food by nearly 3 billion yuan through centralized bidding and block trading, and its shareholding ratio has also decreased from the previous 30% to 25%.
Following the announcement of the results of the shareholding reduction of the controlling shareholder by Yasui Foods in June 2023, the actual controller of the company ushered in a change. The announcement on September 12, 2023 pointed out that the actual controller of the company was changed from Zhang Gaolu, the largest shareholder of Guoli Minsheng, to Hang Jianying and Lu Qiuwen, but the controlling shareholder has not changed, and it is still Guoli Minsheng. (This article was first published on the Titanium Media APP, author: Chen Weina)