Coca-Cola’s sales in China fell in the first quarter
“It’s hard to find a company that can match Coca-Cola in size and sales, and keep its product unchanged for ten years,” Fortune magazine wrote in 1938.
Over the past 84 years, Coca-Cola’s production line has expanded many times and its business lines have become more diversified, but this sentence is still a good description of Coca-Cola. They have regained continuous growth in many regions, and their strong brands and operating capabilities enable them to reasonably transfer the rising pressure on raw materials, labor, and transportation costs, consolidate market shares, and obtain excess profits.
From January to March this year, Coca-Cola’s revenue increased by 16.31% year-on-year to US$10.491 billion, and operating profit reached US$3.433 billion, 20.63% higher than the same period last year. The week before the earnings report, Coca-Cola stock had hit a record high of $67.2 (P/E about 29). The FT LEX column jokes that this rises faster than a shaken Coke bubble.
The management said that the cost pressure caused by inflation is still very large, but at the same time, the gradual opening of the world has improved the overall demand, and the channel strategy that Coca-Cola made for the stay-at-home policy in the past two years is now also working in some regions.
Performance in China will inevitably be affected. Coca-Cola CEO James Quincey said that China had a strong start to the year, spurred by the Chinese New Year brand marketing campaign, but the sales trend turned down in February and March, and the quarterly sales fell year-on-year, and the situation in April was not very good. improve.
However, Quincy said that it is working closely with mainland bottling plants (Swire and COFCO) to pay attention to actual demand, appropriately increase multi-pack SKUs, and maximize the inventory of channels that have not been sealed. Recently, Hema users in Shanghai were limited to one 6-can Coca-Cola (330ml) a day.
“It’s a bit difficult to accurately predict the development of the new crown epidemic in China in 2022, but we think we are better prepared and more resilient than in 2020,” Quincy said. (Gong Fangyi)
The national highway passenger and freight volume is running at a low level
- The Ministry of Transport mentioned on the 26th that due to the impact of the epidemic in the first quarter, passenger traffic was operating at a low level.
- In the first quarter, the number of business passengers was 1.54 billion, a year-on-year decrease of 22.5%;
- 36 central cities across the country completed 10.91 billion passenger trips, a year-on-year decrease of 10.7%;
- The number of passenger car trips on expressways was 4.63 billion, a year-on-year decrease of about 13.4%.
- According to Wind data, on April 25, the national vehicle freight flow index fell by 28.8% year-on-year; since April (April 1 to 25), the average fell by 26.9% compared with the same period last year.
- Shanghai dropped 84.9% year-on-year on the 25th, with an average drop of 83.4% since April;
- Beijing dropped 43.0% year-on-year on the 25th, and the average drop since April was 42.1%;
- Guangdong fell 35.3% year-on-year on the 25th, and the average decline since April was 27.7%;
- Jiangsu dropped 42.8% year-on-year on the 25th, and the average drop since April was 39.9%;
- Shandong fell 14.5% year-on-year on the 25th, and the average decline since April was 10.3%;
- Zhejiang fell 19.5% year-on-year on the 25th, and the average decline since April was 17.7%;
- Henan dropped 29.5% year-on-year on the 25th, and the average drop since April was 26.6%;
- Jilin dropped 78.6% year-on-year on the 25th, with an average drop of 81.5% since April.
- The Ministry of Transport disclosed today that as of 24:00 on the 25th, a total of 8 toll stations were closed on expressways in various provinces (autonomous regions and municipalities), accounting for 0.07% of the total, 670 less than on April 10; a total of 32 service areas were closed; Only Hebei, Shanghai, Jiangsu, Anhui, Guangxi, and Yunnan are suspended.
- According to CCTV news, the Ministry of Transport stated on the 26th that during the “May Day” holiday, small passenger cars with less than 7 seats (including 7 seats) will be exempted from highway tolls nationwide, and the free period is from 0:00 on April 30th to May 4th. Time. (Lin Guangying)
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Pig company Wen’s shares continue to suffer huge losses
- Wen’s, one of China’s top three pig-raising companies, posted a net loss of 3.6 billion yuan in the first quarter of this year, down 767 percent from the same period last year.
- Revenue also fell by 13.25% to 14.59 billion yuan. Consecutive losses since the second quarter of last year.
- The decrease in revenue and profit was mainly due to low pig prices, higher breeding costs and impairment charges.
- From January to March this year, the average selling price of commodity pork in a single month was 14.09 yuan, 12.55 yuan and 12.17 yuan per kilogram, respectively. That’s about half of what it was at the same time last year.
- In the whole year of 2021, the average selling price of live pigs of Wen’s Co., Ltd. is 17.39 yuan/kg, and the average breeding cost is about 25 yuan/kg.
- The good news for businesses is that the impact of African swine fever has largely subsided since 2019.
- Starting from May 2021, the number of live pigs listed by Wen’s shares has continued to grow every month. In January this year, the number of live pigs has grown to more than 1.5 million, basically returning to the average level of 2015-2018. (Gong Fangyi)
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Tesla’s revenue in China in the first quarter increased by more than 50% year-on-year
- In the first quarter of this year, Tesla’s total global revenue was $18.76 billion, 310,000 vehicles were delivered, net profit increased by 658% year-on-year to $3.318 billion, and the gross profit margin of the entire vehicle jumped to a record 32.9%.
- Among them, the Chinese market revenue reached 4.65 billion US dollars, a year-on-year increase of 52.8%. The proportion of income is second only to the United States, close to 1/4.
- According to data from the Passenger Federation, Tesla delivered 182,200 vehicles in China in the first quarter of this year, accounting for nearly 60% of global deliveries.
- Tesla said the increase in production capacity at its factories in Shanghai and California, and localized production offset rising costs and other factors, jointly driving performance growth.
- The Shanghai plant, which accounted for nearly half of Tesla’s production capacity last year, resumed work on April 19, and production capacity is climbing.
World’s largest miner’s copper, nickel, iron ore output drops
- In the first quarter of this year, the world’s largest miners – Rio Tinto, BHP Billiton, Vale and Anglo American – all reported lower production. Vale’s nickel production fell by 5.4% year-on-year, iron ore production by 6%; Anglo American’s copper production fell by 13%; BHP Billiton’s copper production fell by 6% and nickel production by 8%. The drop is even larger than that of the previous month.
- Three of them cited labor shortages due to the pandemic. Workers in Chile and other places have surged in sick leave, and Western Australia did not open its borders until early March because of the epidemic, making it difficult for local projects to recruit enough miners and train drivers.
- Vale and Anglo American were also hit by heavy rainfall in Brazil, BHP Billiton faced protests in Chile, road blockades, environmental lawsuits, and Rio Tinto said existing mines were depleted and new mines were delayed.
- There are also currency and inflationary pressures, with Anglo American forecasting a 9% rise in costs, mainly due to higher diesel prices for mining trucks.
- Profits won’t necessarily decrease, though. Many commodities are still trading at or near record highs, with lower production helping to support prices. In the second half of last year, thanks to the rising prices of iron ore, copper and nickel, BHP Billiton achieved a net profit of US$9.4 billion, an increase of nearly 1.5 times year-on-year.
- However, miners are concerned that the mining industry could face more government intervention as inflationary pressures mount. Chile recently passed a preliminary proposal to nationalize the mines. (Lin Guangying)
OTHER NEWS
China has approved two domestically-produced inactivated vaccines against the novel coronavirus Omicron variant for clinical trials.
On April 26, Sinopharm Group China Biotechnology and SINOVAC Kexing’s inactivated Omicron Variant Vaccine respectively obtained clinical approval from the State Food and Drug Administration. It is the first batch of inactivated vaccines specifically targeting Omicron strains to enter the clinic in the Mainland. Live vaccines. Clinical studies such as sequential vaccination will then be conducted in specific populations to evaluate the safety and immunogenicity of the vaccine.
Kweichow Moutai’s first-quarter revenue and net profit both hit record highs.
In the first quarter of this year, Kweichow Moutai’s revenue was 32.3 billion yuan, a year-on-year increase of 18.4%; its net profit was 17.25 billion yuan, an increase of 23.6%; both hit new highs. When it announced its performance at the end of last month, it mentioned that the sales momentum of products in the first quarter was improving, and the market showed a booming trend.
The volume and price of lithium salt products have risen, and Ganfeng Lithium’s net profit in the first quarter has increased nearly ten times year-on-year.
In the first quarter of this year, Ganfeng Lithium’s revenue was 5.37 billion yuan, a year-on-year increase of 234%, and its net profit after deduction was 3.102 billion yuan, a year-on-year increase of 956.4%; the increase in revenue was mainly due to the increase in the volume and price of lithium salt products. Taking battery-grade lithium carbonate as an example, the price per ton has risen by 80% to 503,000 yuan since April, but it has dropped since April, and the latest price is 461,500 yuan per ton. As of the end of last year, Ganfeng Lithium had a lithium carbonate production capacity of 43,000 tons per year.
It is reported that Nai Xue’s Tea plans to invest 500-100000000 yuan to acquire the bottled tea production line.
According to Sina Finance, due to the recent surge in sales of ready-to-drink products, Nai Xue’s tea hopes to seek to acquire relevant production lines in East China and South China. It is estimated that the investment will be 500-1000 million. Nai Xue’s tea responded that it is inconvenient to disclose the investment matters, and it is indeed vigorously developing bottled tea, and 7 products have been launched so far. Including sparkling water, good sugar-free tea, fruit juice tea.
Bubble Mart’s revenue in the first quarter increased by 65%-70% year-on-year.
In the first quarter of this year, the revenue of Bubble Mart’s box-pulling machine increased by 115%-120% year-on-year, retail store revenue increased by 75%-80% year-on-year, e-commerce and other online platforms 65%-70%, and robot stores 5%- 10%; the overall year-on-year growth rate is 65%-70%; the specific revenue amount is not disclosed. Last year, Bubble Mart’s revenue was 4.49 billion yuan, a year-on-year growth rate of 79%; online channels (including box extractors) accounted for 42% of revenue, retail stores 37%, and robot stores 10.4%.
Ruqi Chuxing completed a series A financing of more than 1 billion yuan, and Pony.ai and WeRide participated in the investment.
GAC’s online car-hailing platform Ruqi Chuxing announced today that it has completed a series A financing of more than 1 billion yuan. GAC Group led the investment. Participating investors include autonomous driving technology companies Pony.ai, WeRide Zhixing, as well as SPARX, Ruisheng Asia, Guangzhou Industrial Investment Group, etc. The management said that it will accelerate the commercialization of Robotaxi (autonomous taxis), including putting more than 200 Robotaxi into demonstration operations during the year. Two days ago, Pony.ai just announced that it has obtained a taxi operating license in Nansha District, Guangzhou.
NIO completed 100,000 mass-produced vehicles within a year.
NIO announced today that the 200,000th mass-produced car rolled off the production line at the JAC NIO Hefei base, and said that it took three years for the first 100,000 units and only one year for the second 100,000 units. On the 9th of this month, Weilai announced that the production of the whole vehicle would be suspended, because the suspension of production of many suppliers affected the supply of spare parts. After 5 days, it announced the gradual resumption of production, but the follow-up production plan depends on the recovery of the supply chain.
It took 12 days for Musk to finalize a $44 billion acquisition of Twitter.
Musk and Twitter on Monday finalized the acquisition agreement, which is expected to take six months to close. Analysis believes that the transaction is difficult to have variables. Twitter said it will continue to operate as usual and will not lay off workers until the deal closes. Employees said they had absolutely no idea what was going to happen next. Twitter announced a product freeze until Friday to prevent “unauthorized changes” by employees. Twitter founder Jack Dorsey, who left last year as CEO, said today that Twitter has been swayed by Wall Street, and that Musk’s taking it back is the right first step.
ByteDance has acquired 54 companies, surpassing Tencent and Baidu.
According to TouChina.com, up to now, ByteDance has acquired a total of 54 companies, more than Tencent and Baidu. The M&A companies involved social networking, games, VR, logistics, education, real estate, consumer brands and other fields, with the largest number of corporate services, 14.
The State Administration for Market Regulation said that it is carrying out work in accordance with the law on the “suspected monopoly of CNKI.”
The State Administration for Market Regulation recently responded to a number of media messages, stating that “it has been concerned about the suspected monopoly of CNKI reported by various parties and is carrying out relevant work in accordance with the law.” In December last year, the State Administration for Market Regulation said that whether CNKI violated the Anti-Monopoly Law requires law enforcement agencies to study and analyze, and determine according to procedures; in March this year, it responded again that it is “verifying and researching.” Since last year, CNKI has repeatedly caused monopoly disputes due to infringement and high fees.
Apple launched a smart water bottle in the United States that can sense the amount of water you drink and sync it to health apps.
Apple’s US official website has recently launched two smart water bottles. The stainless steel version has a capacity of about 0.9 liters and is priced at $79.95; the plastic bottle version has a capacity of about 0.68 liters and is priced at $59.95. The bottom is equipped with LED sensors, which remind users to drink water regularly through colors, and can also sense the amount of water they drink each time, and upload data to the health application Apple Health through Bluetooth.
The Shanghai Stock Exchange requires the underwriters to price the IPO reasonably, or to include the breakout as an evaluation indicator.
According to the Shanghai Securities News, the Shanghai Stock Exchange recently organized a number of brokerages to hold symposiums to discuss the current market breakout issues, requiring issuers to price IPOs more reasonably, and consider including breakouts as indicators for underwriter evaluation. Since the beginning of this year, more than 100 new shares have been listed, and nearly a third of them have fallen below the issue price, most of which are on the Science and Technology Innovation Board and the Growth Enterprise Market. Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said last week that the IPO pricing power of Chinese underwriters needs to be improved.
The first-quarter performance of China’s first foreign-funded public fund underperformed the benchmark.
“ BlackRock China New Vision Hybrid Fund ” has a net growth rate of -14.90% in the first quarter of this year, which is lower than the performance benchmark return rate of -10.50%. The fund manager said that it was mainly dragged down by related positions such as new energy and electronics. BlackRock is the world’s largest asset management company. It entered China in September last year. The first product “New Horizons” was raised 7 days ahead of schedule, attracting more than 110,000 subscriptions and raising 6.68 billion yuan.
In order to familiarize users with the “metaverse”, Meta opened a virtual reality experience store.
Meta’s first offline retail experience store, Meta Store, will open in California in May. In addition to selling VR glasses Quest 2, smart glasses Ray-Ban Stories, and video calling equipment Portal, the store will also set up a virtual reality experience area for consumers to try products. The person in charge said that this can make users more familiar with the “metaverse”.
Musk wants to try to build a hyperloop in the next few years.
Musk recently said on Twitter that his tunneling company, The Boring Company, will try to build a Hyperloop in the next few years, saying it may be the fastest way to get from one city to another in the future. Musk first proposed the concept in 2012, calling it a new form of transportation that transports passengers or cargo at high speeds in vacuum tubes, weather-proof, collision-free, potentially twice as fast as a plane, and uses less energy. less.
The U.S. FDA approves remdesivir as the first new crown drug for infants and young children.
The U.S. Food and Drug Administration (FDA) announced Monday that it has approved remdesivir for the treatment of infants and young children over 28 days old and weighing more than 7 pounds (about 3.18 kilograms), the first approved for use in infants under the age of 12. Covid-19 medicines for children. Because there is currently no vaccine for children under the age of 5, it is necessary to provide treatment options for infected people, but only if the children are hospitalized or at high risk of developing severe disease, the FDA said.
With Brexit, the number of small businesses exporting to the EU has decreased significantly.
The number of buying and selling relationships between the UK and the EU has fallen by a third since January last year when a new trade deal was struck, figures show. Small businesses are the hardest hit, as they tend to have fewer resources and struggle to adapt to new customs regulations, taxation and other fine print. Although overall, the bilateral trade volume has returned to pre-Brexit levels, but the industry believes that future trade growth often comes from today’s small companies, and if these export relationships are strangled, future export growth may slow down.
The above newsletter is provided by Lin Guangying and intern Yi Silin
This article is reprinted from: https://www.latepost.com/news/dj_detail?id=1119
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