Text | AI Finance and Economics Yang Qiao
Edit | Yang Jie
On March 18, the Tianyancha APP showed that the operating status of Tianjin Dogbuli Catering Management Co., Ltd. was changed to cancellation on March 17, and the reason for the cancellation was the resolution to dissolve.
It is understood that Tianjin Dogbury Catering Management Co., Ltd. is a wholly-owned subsidiary of Dogbury Group Co., Ltd., and the actual controller is Zhang Yansen. The company was established in March 2015 with a registered capital of 500,000 yuan, and its main business scope includes catering management, catering services, conference services, pre-packaged food and bulk food wholesale and retail.
After AI Finance and Economics contacted Dogbury Group Co., Ltd., the other party said that Tianjin Dogbury Catering Management Co., Ltd. could not meet business expectations and could only close; in addition, the group's operation was normal. The official contact number of Tianjin Dogbury Catering Management Co., Ltd. has been unanswered.
The dog is left alone
This is no longer the first company of the Dogbury Group to be deregistered. According to the Tianyancha APP, nearly 14 companies, including Dog Ignore Chain Restaurant (Beijing), Tianjin Dog Ignore Fast Food, Tianjin Dog Ignore East Lake Hotel, Tianjin Dog Ignore Jinlong Stew Restaurant, Tianjin Dog Ignore Human Resource Management, Dog Ignore Hepingli (Beijing) Restaurant, etc., have all been in a state of cancellation.
Dogbury Group's diversification path began in 2005. In 2005, Dogbury Group was transformed from state-owned to private, and Tianjin Tongrentang Co., Ltd. auctioned the state-owned property rights of Tianjin Dogbury Group Company and its shareholding in subsidiaries for 106 million yuan.
Since then, the business philosophy of DogBuli has also changed accordingly, while opening branches, while listing quick-frozen products, shipping quick-frozen buns to all parts of the country with the sign of "Dog Ignore", and the business line has gradually expanded to high-end hotels, coffee brands, etc.
In 2012, Dogbury rushed to the capital market with its diversified business to land on A-shares, but in July 2014, the IPO status of Dogbury Group became "terminated review". At that time, some insiders pointed out that unstable profits, financial opacity, and irregular management were important reasons why established catering enterprises could not pass the listing approval.
Subsequently, the dog ignored the new third board "curve to save the country". In 2016, Tianjin Dogbury Food Co., Ltd. was listed on the New Third Board as a subsidiary of Dogbury Group, which holds 99% of the shares. In the same period, Tianjin Tongrentang was also listed on the New Third Board. After this, Tianjin Tongrentang transferred the shares of Dogbury Group held by it. As of the end of 2016, Tianjin Tongrentang no longer holds shares in Dogbury Group.
After the listing on the New Third Board, although the revenue of Dogbu has increased year by year, its net profit has not shown a significant increase. From 2017 to 2019, the revenue of Dogburi was 108 million yuan, 129 million yuan and 155 million yuan, and the net profit was 18.2082 million yuan, 20.6849 million yuan and 24.2458 million yuan, respectively, and the growth rate was always limited. In these three years, the gross profit margin of Dog Ignore was 39.8%, 39.26%, and 37.99%, respectively, which declined year by year.
Dogburi positioned itself as a "producer and seller in the quick-frozen food industry", in addition to restaurants, since 2016, quick-frozen buns have gradually become its main revenue support. In 2019, the revenue of quick-frozen buns was 63.9862 million yuan, accounting for more than 40% of the total revenue. It was followed by sauce and marinade meat products, with revenue of 30.0746 million yuan, accounting for 19% of the total revenue.
Dogbury revealed in the financial report that 65% of the sales and operating results of the company's products came from Tianjin. The dog, which has a single product and relies heavily on regionalized operations and tourism consumption, although it enjoys the reputation of a long-established signboard, has not achieved much growth after the listing.
In the end, the new three board road that the dog ignored ushered in the end. In May 2020, Dog, which has been listed for less than five years, formally applied for termination of listing from the New Third Board. For the reason for this, Dogbu explained that "according to the needs of business development and long-term strategic development planning, combined with its own business development needs and actual operating conditions, apply for termination of listing".
It is worth noting that Tianjin Tongrentang has launched an IPO again this year, and wants to sprint to the ChiNext board, which is now in the stage of listing counseling. According to the Tianyancha APP, Zhang Yansen, chairman of Dogbury Group, is the majority shareholder of the two companies, holding 55.5% of the shares of Dogbury Group and 41% of the shares of Tianjin Tongrentang.
The old brand doesn't work?
As a long-established dog, he has carried out a series of transformation efforts.
In 2014, Dogbury took over the permanent use rights of the Australian coffee chain brand Gao Leya in China and tried to sell coffee. In 2017, Dogbuli also acquired health care products and probiotic companies on the pretext of expanding the big health strategy; and even tried to enter the beauty industry, selling masks, eye masks and other products, but there was no effect, and soon there was no following.
Dog ignore is still one of the older brands that have tried to "electrocute" for a long time. In 2015, Dog Ignoring successively entered the e-commerce platforms such as JD.com, Tmall, and Daily Fresh, played fresh e-commerce, and then tried e-commerce live broadcasting. However, the sales volume of e-commerce channels has never formed a strong support for its operation.
In contrast, on social platforms, the negative evaluation of dogs ignoring buns as "expensive and unpalatable" has always existed. In September 2020, a video of a food blogger visiting the Beijing DogBu Li BaoZi Wangfujing Main Store caused the dog to ignore it and fall into a public opinion storm. Wangfujing Dog Ignore Shop believes that the blogger's evaluation violates the store's right to reputation and calls the police, causing an uproar, and Dog Ignore's handling of this incident has also been criticized by CCTV. In the end, the Dogbury Group announced that it would terminate the cooperation with the franchisee of the storefront.
According to the statement, the original 12 franchise stores in Beijing have been recovered 11, and the Wangfujing store is the only franchise store that dog ignores in the Beijing market before. This also makes the problem of dog management that is ignored more concerned by the outside world.
At present, AI Finance and Economics has learned that there are no franchise stores in Beijing, and only one direct-operated store of Dog Ignore Qian store remains.
The dog's situation of ignoring it is lamentable. But the old-fashioned brands that are currently facing the problems of transformation and growth are not the only dogs that ignore the family. For example, from 2017 to 2019, Beijing's long-established Quanjude had revenue of 1.86 billion yuan, 1.78 billion yuan and 1.57 billion yuan, and net profit of 150 million yuan, 73.042 million yuan and 47.187 million yuan, respectively, and its performance declined year after year.
Zhu Danpeng, an analyst in the Chinese food industry, believes that for the old brand, the biggest problem is the system and mechanism of the enterprise, which restricts its iterative upgrading at the product innovation level, which means that the old brand enterprise needs to think about whether its entire organizational structure has the ability to match the current highly open competitive environment.
In addition, the development of long-established brands is gradually not adapted to the current market situation. Wu Zhiwei, CEO of Kaiheng Capital, said in an interview with AI Finance and Economics that the long-established brands "only have no heat for the brand", the quality declines, and the investment of the brand is low, which is easy to make the product marginalized and forgotten by the market. In addition, there are many domestic long-established enterprises, in fact, there is not much scarcity, and enterprises lack competitiveness just by relying on a "time-honored" signboard.
He also said that for the development of long-established brands, online channels, offline monopolies, operation teams and other factors are also very important, many companies have not done a good job in the above three dimensions, and profitability is naturally very poor.
But at present, there are still well-known long-established brands that are trying to sprint the capital market. Zhang Xiaoquan, a 400-year-old long-established brand in the knife and scissors industry, and a long-established Texas grilled chicken in the catering industry in more than 300 years are preparing to go public; 100-year-old Wufangzhai has also changed the listing counseling agency for the third time and is ready to sprint into the A-share market again.
Whether long-established enterprises can continue to revitalize and gain a foothold in the capital market, "the focus is not whether it is a long-established brand, but where the part of the enterprise is really worth investing." Investor Zhang Ping told AI Finance and Economics. But what can play a role in it is obviously not just the nostalgic "feelings" pinned on the old brand. "Feelings are expressed on the basis of making money, if survival is a problem, what is the use of feelings?" Zhang Ping said.
This article is originally produced by AI Finance and Economics, an account of Caijing Tianxia Weekly, without permission, please do not reprint it on any channel or platform. Violators will be prosecuted.