Don't just stare at the "fuel tanker", isn't there a problem with the driver and the oil company?
Recently, the topic of "mixing tanks for tanker transportation" has aroused heated discussions on the whole network, and the tanker industry and edible oil companies are deeply caught in the whirlpool of public opinion.
A "mixed tank truck" incident broke the unspoken rules of the edible oil transportation industry for 20 years.
The media called it "like poisoning", and we don't know whether to rejoice or regret it;
The Food Safety Office of the State Council took action, thoroughly investigated! We await the revelation of the truth behind it.
It is foreseeable that the storm of the edible oil industry chain is coming, and the "oil grass" Arowana in the center of the storm will undoubtedly usher in a huge test.
We'll see!
01
After the "mixed tank truck" incident was exposed, Arowana was very injured, and the stock price hit a record low!
Recently, some media have investigated the chaos of tanker transportation and found that many domestic general tankers transport liquids that are not fixed, not only to undertake edible liquids such as syrup and soybean oil, but also to transport chemical liquids such as coal-to-liquid.
After unloading the tanker of coal-to-liquid, the tanker is loaded with edible oil, can the edible oil still be eaten with confidence?
As soon as the incident fermented, it caused an uproar, and netizens commented one after another, and even accused: "This is simply murder!" "It's much more influential than the Sanlu milk powder incident at the beginning."
Fortunately, after the incident, the Food Safety Office of the State Council immediately set up a joint investigation team to thoroughly investigate the chaos of tanker transportation of edible oil!
At the same time, on July 9, a number of edible oil companies such as Arowana, Luhua, Xiwang, and Duoli successively issued statements in response.
It is worth mentioning that more clues have emerged about the whereabouts of the cooking oil carried by kerosene tankers.
The driving track shows that the mixed tanker truck once stopped at the factories of COFCO and Arowana, and Arowana suddenly got bigger!
In response to the "tank truck transportation chaos" incident, Arowana is obviously anxious, more than once stated that the Wuhan factory is a new car when the car is shipped, and the edible oil of the factory is transported after barreling in its own factory, from loading to unloading, forming a complete closed loop, and the product indicators are fully in line with national standards.
But even so, Arowana's stock price today is still almost "crashing" in the secondary market!
On July 10, Arowana opened down more than 8%, and its stock price hit a record low. As of the close, the decline narrowed to 4.41% to 26.04 yuan per share, with a market value of 141.2 billion yuan.
After disappointing performance again and again, Arowana stepped down from the altar step by step.
Three years ago, Arowana turned into a big bull stock when the market was hot.
Three years later, Arowana has not only become a big bear stock, but also faced the test of food safety issues (food safety issues)!
In the past three years, the market value of Arowana has fallen from the highest nearly 800 billion to 400 billion, and from 400 billion to less than 150 billion, and it has lost nearly 650 billion yuan in three years!
Arowana's recent stock market performance has also "pitted" more than 140,000 retail investors!
I have to sigh that when the stock price of food-related listed companies rises, they are the "sweet milk" of the secondary market; But once there is a food safety problem, it becomes a "deadly poison", and the stock price and consumers are deeply affected.
02
Arowana started in Shenzhen in 1988 by Mr. Kwok Henian, a well-known patriotic overseas Chinese, and his nephew Mr. Kwok Kong Fung (Singaporean), and the parent company is Yihai Kerry.
Yihai Kerry owns brands such as "Arowana", "Olivelan", "Orchid", "Xiangmanyuan", "Neptune" and "Jinwei", and ranks first in the market share of small packaged edible oil, packaged flour and packaged rice all year round, and is undoubtedly the "giant" in China's grain and oil industry.
Although Guo Henian is only an overseas Chinese, he has never forgotten his roots, and proved that he has a pure heart for China with his practical actions!
Guo Henian once said: "My strength alone to help the motherland China is just a drop of water in the sea, but I am an example, and at the same time many people come to compete with you, which is a good thing." ”
According to statistics, Guo Henian has invested in more than 20 projects in China, distributed in six provinces of Fujian, Guangdong, Guangxi, Zhejiang, Liaoning and Anhui, as well as two municipalities directly under the central government of Beijing and Shanghai, becoming one of the largest overseas Chinese investors.
Among the large-scale investments are the construction of the China World Trade Center (ITG), the construction of world-class Shangri-La hotels in Hangzhou and Beijing, the renovation of old cities in Beijing and Shanghai, and the construction of a large-scale chemical enterprise in Beihai, Guangzhou.
Especially after the reform and opening up, Guo Henian actively carried out economic and trade cooperation with Chinese mainland, mainly investing in the tertiary industry and grain and oil industry.
Today's well-known edible oil faucet Arowana is the pearl of the food processing industry developed by Mr. Guo Henian in China, and it is still the forefront of kitchen oil for many families.
From 2017 to 2019, the operating income of Yihai Kerry, the parent company of Arowana, was 150.766 billion yuan, 167.074 billion yuan and 170.743 billion yuan respectively, a year-on-year increase of 12.94%, 10.82% and 2.2%; The net profit attributable to the parent company was 5 billion yuan, 5.1 billion yuan and 5.4 billion yuan respectively, a year-on-year increase of 877.97%, 2.53% and 5.47%.
On October 15, 2020, Yihai Kerry Arowana officially landed on the A-share Growth Enterprise Market, becoming the largest IPO in the history of the Growth Enterprise Market at that time.
Arowana soared 119% on the first day of listing, stunned a lot of A-share melon-eating people.
After that, the stock price of Arowana went all the way up, and the stock price almost tripled in 3 months.
03
In addition to the collective hype of the institutions, the "madness" of Arowana is also "indispensable" due to its strong performance growth.
In the year of listing, Arowana's revenue was 194.9 billion yuan, a year-on-year increase of 14%; net profit was 6 billion yuan, a year-on-year increase of 11%; The net profit after deduction reached 8.8 billion yuan, a year-on-year increase of 96%.
At that time, Arowana, together with Kweichow Moutai, Nongfu Spring, and Haitian Flavor, was ridiculed as the "Four Great Divine Waters" by shareholders.
As a rigid demand business, the market leader Arowana has not only been given the title of "oil grass", but also has been highly sought after in the financial market.
However, as one of the largest A-share companies in terms of revenue, the once big bull stock Arowana seems to be "unable to swim".
After climbing to the highest point in '21, Arowana's share price has been on a downward trajectory since then, despite some ups and downs.
The stock price of Arowana has plummeted, and people have begun to realize that Arowana is not Moutai.
The root cause is that Arowana has continued to increase revenue in recent years, and last year's revenue and net profit both declined.
On March 23, 2024, Arowana released its 2023 financial report. The company's annual revenue was 251.524 billion yuan, a year-on-year decrease of 2.32%; The net profit attributable to the parent company was 2.848 billion yuan, down 5.43% year-on-year, and the net profit after deducting non-profits was 1.321 billion yuan, down 58.5% year-on-year. This is the third consecutive year that Arowana's net profit has declined.
What's more worth mentioning is that Arowana's gross profit margin and net profit margin have been declining in the past few years.
From 2020 to 2023, the company's gross profit margin will be 11.01%, 8.18%, 5.68%, and 4.83% respectively.
The net profit margin in the same period was 3.37%, 1.98%, 1.21% and 1.11% respectively, which also fell all the way.
In fact, Arowana's business model has great flaws, low gross profit margin is to make hard money, but food safety risk is the top priority, after all, its business is related to people's livelihood, everyone has to eat, use rice, flour and oil, dare not be sloppy, otherwise it will be a big problem.
04
Arowana products do not have high-end attributes and belong to the natural Red Sea industry, so don't look at Arowana's annual revenue of hundreds of billions, but the profit is very low.
Arowana's first quarterly report shows that its revenue was 57.27 billion yuan, a year-on-year decrease of 6.17%; net profit was 882 million yuan, a year-on-year increase of 3.30%; deducted non-net profit of 244 million yuan, a year-on-year increase of 1.34%.
While becoming less and less profitable, the debt pressure of Arowana is also high. In 2023, the company's contract liabilities will increase by more than 32% month-on-month, and the asset-liability ratio will be around 60% all year round.
In short, one has no core competitiveness, two has no performance support, and three has no financial care, it is too difficult for "oil grass" to become Moutai!
Moreover, even if it is Moutai, it is now no longer in the past, let alone the Arowana that is involved in the whirlpool of "tanker mixed loading"!
In fact, the "mixed tank truck chaos" oil companies and drivers are responsible!
Recently, some media have investigated the chaos of tanker transportation and found that many domestic general tankers transport liquids that are not fixed, not only to undertake edible liquids such as syrup and soybean oil, but also to transport chemical liquids such as coal-to-liquid. In order to save costs, many tankers do not clean the tank during the exchange and transportation process, and some edible oil manufacturers do not strictly check whether the tank is clean according to the regulations, resulting in the edible oil being polluted by residual chemical liquid.
As early as 19 years ago, in 2005, the domestic media reported that "tanker cleaning is difficult to prevent cross-contamination and pulling food after pulling dangerous chemicals".
Although this is an "open secret" in the tanker transportation industry, it does not mean that the drivers of the entire industry are doing so, after all, the benefits are limited, once there is a food safety problem, the consequences are serious and you will go to jail, so this is just an individual phenomenon.
Moreover, the vast majority of tankers belong to the fleet, and even if the driver wants to wash it, he has to listen to the boss's arrangement.
CCTV commented that for the transport party, in the end, it is a matter of money, many tankers do not clean the tank during the exchange and transportation process, in order to save hundreds of yuan in cleaning costs, the cost has come down, the competitiveness has gone up, and other transport vehicles have to follow the "volume".
I have to say that the food industry is highly sensitive to cost, fixed costs are there, raw materials can not be saved processing and packaging, processing and packaging can not be saved, storage and transportation can not be saved, no matter that link "cost reduction and efficiency increase" is a bottom line, otherwise there will be problems sooner or later.
It is foreseeable that if the price war in the edible oil industry continues, it must be a point of no return, and it is not only the enterprises that will be damaged in the end, but also the rights and interests of consumers.
It is worth mentioning that the tanker mixed incident, the current focus of everyone's discussion on "whether there is cleaning" is a misunderstanding, in fact, this is not a "wash or not" problem, but should not be mixed at all!
In short, the food safety issue has pricked the public's nerves, and the intersection of the word "food" cannot be taken in a wrong step, and let us wait and see where the "mixed oil incident" goes.