Yangtze River Business Daily News ● Yangtze River Business Daily reporter Huang Cong
Inventories soared by 63.56%, and Andre is still expanding production aggressively.
On the evening of May 12, Andre (605198. SH, 02218.HK) announced that the company plans to invest in the construction of concentrated juice production projects in Yichuan County.
Moreover, just a few days ago, on the evening of May 9, Andeli announced that the company planned to increase no more than 300 million yuan for an annual output of 7,200 tons of decolorization and deacidification concentrated juice production line project, an annual output of 12,000 tons of NFC juice project and supplementary working capital projects.
A reporter from the Yangtze River Business Daily found that in 2023, the production of Andeli apple juice will reach 94,700 tons, a year-on-year increase of 57.83%; sales volume reached 65,000 tons, a year-on-year decrease of 44.01%; The inventory reached 92,700 tons, a year-on-year increase of 45.75%.
Figuratively speaking, based on the sales volume in 2023, it will take about 17 months for Andre to "digest" the existing inventory.
Inventories exceeded 900 million, soaring 63.56%
Andre's main business is the processing, production and sales of concentrated fruit juice, and it is one of the world's major concentrated fruit juice processing enterprises.
In April 2003, Andeli H-shares were listed in Hong Kong, which is the earliest concentrated fruit juice company listed in China. In September 2020, the company's A-shares were listed on the Shanghai Stock Exchange, becoming the first "A+H" dual-listed enterprise in China's fruit juice beverage category.
On May 12, Andeli announced that the company signed the "Strategic Cooperation Framework Agreement" with the People's Government of Yichuan County, Yan'an City on May 11, and the company plans to invest in the construction of concentrated juice production projects in Yichuan County.
Andre said that this project is in line with the company's strategic plan to deepen its main business, and if the agreement can be effectively implemented, it can further enhance the company's competitiveness in the industry in the long run.
It is worth noting that the above-mentioned framework document does not involve a specific amount, and Andre said that the project is affected by various factors such as policy, market and pre-approval, and there is some uncertainty about whether it will be implemented.
Is Andrew's expansion of production capacity a suitable choice?
Founded in 1996, Andeli is one of the earliest enterprises involved in the processing and production of concentrated juice in China, and its concentrated juice processing capacity and production scale rank among the top in the same industry in China.
In 2023, Andeli will build a new production line of 40 tons of concentrated peach juice and 10 tons of concentrated hawthorn juice in Yongji, and set up a factory in Xinjiang through auction, increasing the company's industrial layout from 8 factories in 6 provinces to 9 factories in 7 provinces, and increasing the number of production lines from 16 to 18.
According to the 2023 annual report, the production capacity of Andeli juice concentrate is 700 tons/hour, and the actual production capacity is 341 tons/hour.
Andre explained that because the apple raw materials are seasonally ripe, the company's actual capacity calculation only refers to the actual production capacity of each factory during the production season.
In 2023, the production of Andeli apple juice will reach 94,700 tons, a year-on-year increase of 57.83%; sales volume reached 65,000 tons, a year-on-year decrease of 44.01%; The inventory reached 92,700 tons, a year-on-year increase of 45.75%.
Figuratively speaking, based on the sales volume in 2023, it will take about 17 months for Andre to "digest" the existing inventory.
Corresponding data shows that as of the end of 2023, Andeli's inventory reached 901 million yuan, a year-on-year increase of 63.56%.
The controlling shareholder may passively reduce its holdings
In fact, in addition to the planned investment in the construction of concentrated juice production projects in Yichuan County, Andeli also has other expansion projects.
On the evening of May 9, Andeli issued an announcement showing that the company intends to raise no more than 300 million yuan by issuing shares to specific objects through simplified procedures, which will be used for an annual output of 7,200 tons of decolorization and deacidification concentrated juice production line project (120 million yuan of raised funds), an annual output of 12,000 tons of NFC juice project (100 million yuan of raised funds), and supplementary working capital projects (80 million yuan of raised funds).
Andre said that through the implementation of this fundraising project, the company can enhance profitability and provide financial support for the development and operation of future business, so as to enhance the company's market share and industry competitiveness.
Due to poor sales, Andrew's performance was also not satisfactory.
In 2023, Andeli will achieve operating income of 876 million yuan, a year-on-year decrease of 17.77%; net profit was 256 million yuan, a year-on-year increase of 31.48%.
Andre said that in 2023, in the face of risks and challenges such as rising prices of raw fruit and high tariffs in the U.S. market, the company will increase production and operation control and market development, and the output will increase significantly compared with 2022. Both gross profit margin and gross profit increased significantly, making the company's net profit increase significantly compared with 2022.
In 2023, Andre's gross profit margin will be 32.99%, a significant increase from 20% in 2022. The company said that the increase in gross profit and gross margin was mainly due to the significant increase in product selling prices compared with the previous year and the decrease in sea freight.
In the first quarter of 2024, Andeli achieved operating income of 270 million yuan, a year-on-year increase of 20.93%; The net profit was 53.3567 million yuan, a year-on-year decrease of 13.82%.
It is worth mentioning that the controlling shareholder of Andeli is also facing the risk of passive reduction.
On April 10, Andre announced that on April 9, the company received a notice from its controlling shareholder, Andre Group, that it had recently received the "Enforcement Notice".
Specifically, on January 3, 2024, Lin'an Trading and Andeli Group signed the "Loan Contract (Share Pledge)", under which Andeli Group pledged its 8 million shares of Andeli to Lin'an Trading to guarantee the loan of 160 million yuan under the loan contract.
However, because Andeli Group failed to return the principal to Lin'an Trading as agreed, Lin'an Trading filed a lawsuit with the Yantai High-tech Zone Court.
Andre said that if the relevant pledged or frozen shares are enforced by the court, it may trigger the subsequent passive reduction of Andre Group, which is not its subjective will.
Why Andre Group has not paid the money, the listed company Andre has not explained, but it may be related to its real estate business.
According to the official website of Andeli Group, the company was founded in 1996, mainly focusing on the production of concentrated fruit juice and pectin, and is a world-renowned food raw material manufacturer with total assets of more than 5 billion yuan.
In addition, Andeli Group also owns subsidiaries such as Andeli Real Estate and Andeli Yitong Thermal Power.
According to Andeli Group, Andeli Real Estate is an emerging pillar industry of the group company, and the successful development of Andeli Garden and Andeli Yinghai Garden marks that the development of Andeli has entered a new development area.