In the first three quarters of 2021, Sanyuan shares achieved operating income of about 5.932 billion yuan, an increase of about 9.44% year-on-year; the net profit attributable to the shareholders of the listed company was about 212 million yuan, turning losses into profits. In this regard, Sanyuan shares said in the announcement that it was mainly for the improvement of operations in the current period, and the net profit increased year-on-year.
Specifically according to product categories, in the first three quarters of 2021, Sanyuan Liquid Milk achieved revenue of 3.576 billion yuan, solid milk revenue of 552 million yuan, ice cream business revenue of 1.143 billion yuan, and spreading sauce business revenue of 589 million yuan. Compared with the same period last year, the liquid milk, solid milk and ice cream businesses all achieved year-on-year growth, while the spreading business decreased year-on-year.
According to the classification of sales channels, in the first three quarters of this year, the company's direct revenue was 2.125 billion yuan, the dealer channel was 3.024 billion yuan, and other channels were 710 million yuan.
According to the region, in the first three quarters of this year, the sales revenue in Beijing was 3.428 billion yuan, and the sales income outside Beijing was 2.432 billion yuan. In the same period last year, the revenue of Beijing was only 2.84 billion yuan.
In this regard, industry insiders said that the price war between yogurt and white milk in the Beijing market this year has also affected the sales of Sanyuan shares, and the performance of high-value-added products of Sanyuan shares has been better, helping the company's net profit growth.
In the third quarter of 2021, the operating income of Sanyuan Shares was close to 1.931 billion yuan, down about 4.27% year-on-year; the net profit attributable to the shareholders of the listed company was about 66 million yuan, an increase of less than 21% year-on-year; and the net profit attributable to the shareholders of the listed company after deducting non-recurring gains and losses was about 0.61 billion yuan, an increase of about 25% year-on-year.
In this regard, Minsheng Securities said in the research report that Sanyuan Shares implemented multiple measures such as "fresh milk leading", "new high-end", "broadening channels", "online power", "adjusting product structure", "reducing this section fee" and so on, to overcome the impact of the sharp rise in the cost of raw and auxiliary materials and improve the quality and profitability of operations.
In order to better expand market share, domestic and foreign dairy companies are also increasing their efforts to carry out epitaxial mergers and acquisitions while growing connotatively. Sanyuan shares are no exception, and the pace of pan-national expansion in the past two years has accelerated significantly, and it is also frequent in the capital market.
Wugu Finance noted that Sanyuan Shares is planning to acquire 41.7350% and 4.6325% of the shares of Beijing Shounong Animal Husbandry Development Co., Ltd. ("Shounong Animal Husbandry") held by the controlling shareholder and actual controller Beijing Shounong Food Group Co., Ltd. (hereinafter referred to as "Shounong Food Group"), namely Beijing Sanyuan Seed Industry Technology Co., Ltd. ("Sanyuan Seed Industry") and Beijing Xingshi Investment Management Center (Limited Partnership) ("Xingshi Investment") respectively, by way of cash payment. The total transaction value is initially expected to not exceed RMB1.2 billion.
At the same time, Shounong Animal Husbandry will acquire 20%, 40% and 40% of the equity of Chengde Sanyuan Xiaoya Dairy Breeding Co., Ltd. ("Chengde Xiaoya") held by Sanyuan Seed Industry, a holding subsidiary of Sanyuan Seed Industry (hereinafter referred to as "Chengde Sanyuan") and Beijing Milk Co., Ltd. (hereinafter referred to as "Milk Company") by paying cash, and the operating assets and liabilities of Yudaokou Dairy Cattle Branch (hereinafter referred to as "Yudaokou Branch"), a subsidiary of Chengde Sanyuan.
Prior to the acquisition, Sanyuan held 4.6325% of the equity of Shounong Animal Husbandry; after the completion of the acquisition, Sanyuan Shares will hold 51% of the equity of Shounong Animal Husbandry, and through Shounong Animal Husbandry, hold 100% of the equity of Chengde Xiaoya and the operating assets and liabilities of Yudaokou Branch.
It is reported that the main business of the proposed asset purchase is dairy farming, and the supply of fresh milk to the outside world is the upstream of the dairy processing and sales business. Among them, the number of livestock dairy cattle in Shounong is about 85,000 heads, the number of dairy cattle in Chengde Xiaoya is about 1,500 heads, and the number of dairy cows in Yudaokou Branch is about 800 heads, totaling 87,300 heads.
With the imbalance between domestic raw milk supply and demand, in order to ensure the safety of milk sources, from 2019 onwards, a round of milk source wars has been set off in China, and large-scale raw milk enterprises such as Modern Animal Husbandry, China Shengmu, Saikexing, Zhongdi Dairy, Fonterra China Ranch, etc. are mostly pocketed by Yili and Mengniu, and there are few high-quality raw milk enterprise targets left, so that all parties are competing for "fragrant food".
In this regard, Sanyuan shares said that the animal husbandry sector of Shounong Food Group is a specialized breeding base for large-scale holstein dairy cows in North China, and the yield and raw milk quality of adult cows have reached the international advanced level. Injecting the animal husbandry sector into Sanyuan shares can realize the integration of downstream dairy enterprises and upstream milk sources, strengthen the integration of the industrial chain, and continuously enhance the advantages of the industrial chain, which is conducive to the further synergy effect of Sanyuan shares and shounong animal husbandry, and is conducive to improving the medium- and long-term competitive position of Sanyuan shares.
Industry insiders told "Wugu Finance" that in the long run, the shortage of milk sources in China will not change, under the influence of the epidemic, the import risk has increased, and controlling milk sources has become the first choice for dairy companies to avoid risks.