Original link: https://ljf.com/2022/05/19/1093/
Explanation of the company’s main accounting data and financial indicators for the first three years at the end of the reporting period
During the reporting period, the company’s operating income was 6.978 billion yuan, a year-on-year increase of 40.72%; the net profit attributable to shareholders of the listed company was 1.193 billion yuan, a year-on-year increase of 46.90%; the company’s sales scale and efficiency maintained rapid development.
During the reporting period, the net cash flow generated by the company’s operating activities was 2.077 billion yuan, a year-on-year increase of 54.95%, mainly because the increase in sales during the reporting period resulted in a substantial increase in cash received from sales of goods compared with the same period of the previous year.
At the end of the reporting period, the company’s net assets attributable to shareholders of listed companies amounted to 4.238 billion yuan, a year-on-year increase of 121.51%, mainly due to the receipt of funds raised from public offerings during the reporting period and the increase in undistributed profits from net profit this year.
During the reporting period, the company’s basic earnings per share was 3.1120 yuan per share, the diluted earnings per share was 3.1120 yuan per share, and the basic earnings per share after deducting non-recurring gains and losses was 2.8285 yuan per share, a year-on-year increase of 37.96%, 37.96% and 26.51% respectively. %, mainly due to the increase in net profit during the reporting period.
Business situation discussion and analysis
During the reporting period, the company adhered to the corporate mission of “providing consumers with healthy and effective beverages, building a career platform for employees, and creating reasonable returns for shareholders”, and put forward the corporate vision of “making strugglers have the energy to fight”. To become the first brand of energy drinks in China. Under the values of “simplicity, integrity, collaboration, and hard work”, all employees work together: new product development is getting better and better, forming a product pattern of “one super and multiple strong”; the national market is successfully developed, and the revenue in Guangdong is 3.199 billion yuan. Accounting for 45.94%, the national regional revenue was 3.002 billion yuan, accounting for 43.10%, and the direct sales and online revenue was 763 million yuan, accounting for 10.96%
Sales strategy: differentiated sales by region, continuous optimization of regional revenue structure
In the traditionally strong Guangdong region, the company continues to implement the strategy of intensive cultivation of all channels, broadening the consumer group, refining the township market, and covering a full range of products. As of the end of the reporting period, the company had 2,312 dealers, 2.09 million active terminal outlets nationwide, and the sales revenue in Guangdong was 3.199 billion yuan, a year-on-year increase of 29.67%; in the national market, the company strengthened the development of small stores, independent convenience stores, newsstands, etc. The development of traditional channels, accelerated the development of special/modern channels such as expressway service areas, gas stations, large supermarkets, chain supermarkets, chain convenience stores, etc., to improve the overall market rate and coverage of products, among which: sales in East China The revenue was 772 million yuan, an increase of 79.07% year-on-year; the sales revenue in the southwest region was 432 million yuan, an increase of 65.37% year-on-year; the sales revenue in North China (including the northern region) was 339 million yuan, an increase of 45.00%; the sales revenue in the central China region was 753 million yuan Yuan, an increase of 44.32% year-on-year; the national development has achieved remarkable results, the proportion of Guangdong region has dropped from 49.99% to 45.94%, the regional revenue structure has been continuously optimized, and the nationalization process has been significantly accelerated.
Industry situation of the company during the reporting period
1. Coffee drinks and energy drinks ranked the top three in terms of growth rate, leading the beverage market.
According to statistics from the China Beverage Industry Association, the market size of the beverage industry in 2021 has reached 519.274 billion, with a total output of 18,333.84 tons, a year-on-year increase of 12.15%. According to Nielsen IQ data, coffee beverages and energy beverages have the leading growth rates in the market segments, 16.80% and 10.80% respectively. With the continuous and steady growth of the national economy, the continuous improvement of residents’ consumption level and the upgrading of consumption structure, my country’s beverage industry as a whole has shown a good growth trend.
During the reporting period, Dongpeng Special Drink’s sales volume in my country’s energy drink market increased from 27.00% to 31.70%, making it the energy drink with the highest sales volume in my country; Ranked second.
2. Bubble products are favored by young consumers.
In recent years, as the consumption of bubble products has gradually increased, new flavors based on various fruit flavors have emerged, bringing fresh taste to consumers. CBNData consumption big data shows that sparkling water ranks first in the post-90s beverage preference list with a high degree of preference. Various innovative sparkling water categories have been launched successively, such as sparkling juice, sparkling milk, sparkling tea, etc., with rich taste and superimposition, which are loved by young consumers, and the market sales volume has grown rapidly.
3. The sugar-free market is booming, and zero sugar has become a new trend on the track.
According to the “Ipsos 2020 Healthy Beverage Research”, 75% of consumers believe that health is very important for beverage categories. Sugar-free meets the needs of consumers with 0 calories and 0 fat, which is in line with the current healthy concept of sugar control and weight loss. Public data shows that in 2019, the sales of sugar-free beverages in my country accounted for only 1.25%, and the CAGR from 2014 to 2019 was 40%+, and the growth rate is large. In 2019, the market size of China’s sugar-free beverage industry was 9.87 billion yuan. According to Zhiyan Consulting, the market size of my country’s sugar-free beverages will reach 27.66 billion yuan in 2027. The sugar-free beverage market is in a period of rapid development and has huge market space
4. Health consumption has been upgraded, and functional ingredients have attracted much attention.
Under the social environment of epidemic + anxiety, people seek a healthier and more self-disciplined lifestyle, improve the quality of life in all aspects, and consumption upgrading has become the current focus. According to a quantitative survey by Ipsos, 89% of consumers believe that “adding functional health ingredients” to food and beverage promotions can improve their purchase intention. Sleep aid ingredients such as collagen and glycine, and traditional Chinese herbal medicines (such as wolfberry, ginseng, donkey-hide gelatin, etc.) have also attracted much attention.
In December 2021, the “She Neng” juice energy drink with a juice content of 30% and fish collagen peptides added to conform to the “She Economy” is mainly aimed at female consumers.
Overview of the company’s main business
The company’s main business is the research and development, production and sales of beverages. As a pioneer of energy drinks, the company has been committed to promoting the development of my country’s energy drink market for many years, and has successfully created a well-known brand “Dongpeng Special Drink”. At the same time, the company is actively innovating and upgrading energy drinks. Currently, it has formed a series of products including “Dongpeng Special Drink”, “Dongpeng Big Coffee” Shake Latte, “Dongpeng 0 Sugar Special Drink”, “Dongpeng Jiaji”, The “Energy+” product matrix composed of energy drink products such as “She Neng” is well recognized by consumers.
Description of main business by industry, product, region and sales model
1. Product description
During the reporting period, the company’s main business income mainly came from Dongpeng Special Drinks, Dongpeng Special Drinks accounted for 94.66% of the revenue, of which 500ml bottled special drinks revenue was 5.024 billion, accounting for 76.22%, a year-on-year increase of 62.84%; 250ml bottled special drinks The revenue was 848 million, accounting for 12.87%, a year-on-year increase of 3.31%; the 250ml Tetra Pak special drink revenue was 123 million, accounting for 1.87%, a year-on-year increase of 46.34%. Revenue from other beverages accounted for 5.34%. The gross profit margin of Dongpeng Special Drinks remained stable compared with last year, while the gross profit margin of other beverages increased by 2.63 percentage points compared with last year, mainly due to the higher gross profit margins of Dongpeng 0 Sugar and Dongpeng Jiaji among other beverages.
2. Description of the situation by region
During the reporting period, the company’s main sales areas were Guangdong, East China, Central China, Guangxi and Southwest markets, accounting for about 84.17% of the total revenue. The Guangdong region is the region with the highest proportion of income. By continuing to implement the omni-channel intensive cultivation strategy, focus on investing resources in weak areas to reduce the imbalance between regions. At the same time, through the new products “Dongpeng Zero Sugar” and “Dongpeng Big Coffee” Deploying CBD, science and technology parks, developing mid-to-high-end outlets, breaking through drinking crowds, and increasing single-point output, Guangdong region will achieve operating income of 3.199 billion yuan in 2021, a year-on-year increase of 29.67%, and revenue will account for 45.94%; With the advancement of the strategy, the National Marketing Headquarters continued to improve and build the sales system of distributors, wholesalers and postmen, adopted a large-scale circulation model in blank markets, and adopted an omni-channel intensive cultivation model in mature markets. “Freezing is the best display” idea, through strengthening measures such as freezer placement and product display at the channel side, the proportion of revenue has increased. The national marketing headquarters will achieve operating income of 3.002 billion yuan in 2021, a year-on-year increase of 53.63%. Revenue accounted for 43.10%, an increase of 3.52% over the same period last year.
Among them, the revenue growth of East China and Southwest regions was relatively rapid, with the growth rates reaching 79.07% and 65.37% respectively, mainly because the East China Division and the Southwest Division have continuously consolidated their business foundation, improved the distribution system, continued to develop terminal outlets, and strengthened terminal display. and seize new consumption opportunities to promote rapid sales growth.
3. Description of sub-sales model
During the reporting period, the distribution channel was the main sales channel, accounting for 88.63% of the revenue; the direct sales and online revenue grew rapidly, with a growth rate of 43.29% and 88.42%, respectively, and the growth rate exceeded the growth rate of the company’s overall revenue.
Promotion fee
During the reporting period, the company’s advertising investment was mainly for project communication, TV and radio advertising and outdoor advertising. It is mainly due to the new project communication expenses this year. Among them, the company took advantage of the successful listing to increase investment in brand building and promotion activities, and the new listing project promotion expenses were 99.4249 million yuan. After excluding the impact of listing project promotion expenses, the 2021 The sales expense ratio was 18.19%, down from 18.24% in the same period last year.
The company’s channel promotion fees mainly include freezer placement and supermarket promotion fees. The investment amount in this period increased by 124.75% compared with the same period of last year, mainly because the company further expanded the influence of sales channels and increased the market share of products, which increased compared with the same period of last year. About RMB 134,281,200 was spent on channel promotion expenses such as freezer placement.
Industry basics
In 1927, the first generation of energy drinks appeared in the UK, and in 1966, Red Bull was born in Thailand. Since then, various energy drinks have come out one after another. In 2002, Monster was launched in the United States and achieved great success. Today, energy drinks have become an important sub-category of the beverage industry, and have continued and rapid growth. Energy drinks entered the Chinese market in 1995, and there is a large gap between the per capita consumption of energy drinks and developed countries and regions such as the United States, the United Kingdom, Japan, and Hong Kong, China. According to Euromonitor data, the per capita consumption of energy drinks in my country in 2019 was 1.67 liters/person , the per capita drinking volume in the United States is 8.8 liters/person, which is 5.3 times that of my country; the per capita drinking volume in Japan is 3.66 liters/person, which is 2.2 times that in my country.
Energy Drink Market Potential
After years of development, leading companies have formed barriers to potential entrants in terms of brands, marketing networks, economies of scale, food safety and quality control, and technology research and development. my country’s energy drink industry is highly concentrated. The market share of the top five brands (Red Bull, Dongpeng Special Drink, Lehu, Zhongwo, and Magic Claw) in the Analysis Report is 89.90%. During the reporting period, the market share of Dongpeng Special Drinks increased, with sales volume accounting for 31.70%, ranking first in the market; sales accounting for 23.40%, ranking second in the market.
Company development strategy
Customer strategy: On the basis of consolidating and maintaining the existing “drivers” such as self-driving car owners and truck drivers, “blue-collar/new blue-collar people” such as takeaway riders and courier brothers, and “white-collar consumers” such as medical white-collar workers and IT programmers , to meet the scene needs of “sports crowd”, “student crowd”, “entertainment crowd”, “official crowd”, “overtime crowd”, “people who need a good state”, and create precise projects.
bussiness plan
The company’s core business objectives in 2022: It is expected that the company’s operating income will increase by no less than 15.00% year-on-year in 2022.
This article is reprinted from: https://ljf.com/2022/05/19/1093/
This site is for inclusion only, and the copyright belongs to the original author.