On October 29, the evening third quarter report of "Oil Mao" Arowana (300999) showed that the company's net profit in the third quarter was 711 million yuan, down 65.86% year-on-year; the net profit in the first three quarters was 3.681 billion yuan, down 27.68% year-on-year.
Entering the third quarter, the performance of Arowana has not stopped, the cost has risen, and the intensification of competition is the reason given by the company. In the secondary market, Arowana's stock price has fallen by 58% from the high of 145.62 yuan at the beginning of this year, and the market value has evaporated by 456 billion yuan.
Raw materials rose under pressure
The latest performance shows that the operating income of Arowana in the first three quarters of this year was 162.725 billion yuan, an increase of 16.24% year-on-year. Net profit was 3.681 billion yuan, down 27.68% year-on-year. Net profit after deduction of non-net profit was 4.157 billion yuan, a decrease of 33.61% year-on-year. Basic earnings per share were RMB0.68.
In terms of quarterly, Arowana's overall revenue growth, but the revenue growth rate in the second quarter declined. In the first quarter, second quarter and third quarter of 2021, Arowana achieved operating income of 51.08 billion yuan, 52.15 billion yuan and 59.495 billion yuan respectively, an increase of 28%, 10.8% and 12% respectively. In terms of net profit, the first quarter, the second quarter and the third quarter of this year were 1.57 billion yuan, 1.4 billion yuan and 711 million yuan respectively, an increase of 29.12, -21.85% and -65.85% year-on-year.
While increasing revenue and not increasing profits, Arowana's net profit in a single quarter continued to shrink. Arowana explained in the third quarter that pre-tax profit and net profit attributable to the mother decreased by 67.27% and 65.86% compared with the same period last year, mainly because during the reporting period, the cost of raw materials rose by a large margin, and the company's production and operating costs faced greater pressure. Although the selling price of some products has been raised, it has not completely offset the impact of rising raw material costs, and profits have been squeezed.
At the same time, this year, with the gradual improvement of the domestic epidemic situation, the intensification of market competition, Arowana retail channel products have been impacted, with the rapid recovery of the catering market, Arowana product structure in the lower gross profit margin of the catering channel product sales proportion increased. In addition, the soybean purchase and crushing volume of Arowana during the reporting period decreased compared with the same period last year, although the soybean crushing profit gradually recovered, but the profit level in the same period last year was higher, so the crushing profit in the reporting period was lower than the same period last year. These reasons have also led to a sharp decline in deducted non-net profit year-on-year.
According to public information, the main business of Arowana is the research and development, production and sales of kitchen food, feed raw materials and oil technology products. Focusing on the upstream and downstream of the industrial chain, the company is mainly involved in oilseed pressing, oil refining, oil filling, special oils and fats, oil technology, rice circular economy, corn deep processing, wheat deep processing, soybean deep processing, food raw materials, grain and oil technology research and development and other industries.
At the end of the third quarter of this year, the net cash flow generated by Arowana's operating activities decreased by 53.93% compared with the same period last year, mainly due to the expansion of business scale and the increase in raw material prices, and the increase in procurement volume.
It is understood that the raw materials of Arowana are mainly agricultural products, including soybeans and processed products, rice and processed products. In the first half of this year alone, the purchase price of soybeans and processed products, the main raw materials purchased by Arowana, increased by more than 30% year-on-year.
It is worth noting that Arowana continues to increase the development and promotion of high-end products and launch more high-end products. In the first three quarters of this year, Arowana's research and development expenses reached 148 million yuan, an increase of 17.83% over the same period last year. In recent years, Arowana has successively launched the "Zero Trans Fat" series of edible oils, "Arowana" rice oil, "Olivilan" olive oil, and high-end brands in the field of rice noodles, "Milk Jade Princess", "Rice Fresh" series and other products, making the penetration rate of high-end and high-end continuously improving, and deepening consumer awareness.
The more the forest garden fell, the more it increased its holdings
As a leader in the grain and oil industry, Arowana has been highly sought after since it landed on the GEM on October 15 last year. It is called "oil grass" by netizens. However, since the end of January this year, Arowana's stock price has continued to pull back. As of October 29, Arowana was reported at 60.88 yuan per share, with a total market value of 330.1 billion yuan, which is less than 400 billion yuan.
With the disclosure of the semi-annual report of Arowana of "Oil Mao", the circulating shareholders behind it have also surfaced.
According to the third quarterly report, 4 funds under the well-known private equity tycoon LinYuan appear in the list of the top ten circulating shareholders of Arowana, ranking the third, fifth, seventh and ninth largest circulating shareholders of Arowana. Compared with a new fund at the end of the second quarter.
Compared with the end of the second quarter, Linyuan's four fund products held a total of 4.4689 million shares, a total of 909,200 shares, and the total reference market value at the end of the period was about 272 million yuan.
It is worth noting that since the listing of Arowana, LinYuan has been actively building positions. At the end of 2020, Linyuan Investment No. 12 Private Equity Fund and Linyuan Investment No. 158 Private Equity Fund became the 7th and 8th largest circulating shareholders of Arowana, with a total number of 2.5223 million shares. In this year's mid-year report, Linyuan has a total of three funds entering the top ten circulating shareholders of Arowana, holding a total of 3.5597 million shares, and the momentum of increasing positions has not stopped.
In contrast, Arowana's stock price performance since its listing is not ideal. After the listing, Arowana's stock price rose by more than 196% in 61 trading days, and its market value once exceeded 780 billion yuan, and hit a record high of 145.62 yuan on January 11, 2021.
However, due to the increase in market volatility after the Spring Festival, the style switch, and the general serious blood loss of value stocks, Arowana's stock price has fallen continuously this year. It is also worth noting that on the evening of October 11, Arowana announced that on October 15, 162 million restricted shares were released from listing and circulation. If estimated according to the closing price on October 15, the value of the unblocked stock market is as high as about 11 billion yuan. It is reported that the relevant stocks that were lifted this time are all pre-listing and first strategic placement shares issued before listing, and these shareholders have made a lot of profits after the listing of Arowana.
Under the pressure of stock prices, from the high point of the stock price on January 11 to the present, the stock price of Arowana has fallen by 58%, almost to the waist, and the market value has evaporated by 456 billion yuan.