In 2012, Jiajia food entered the A-share market with the halo of soy sauce first share, but its performance in recent years was not satisfactory. Now, Jiajia, with a market value of 5.4 billion, is not a single order of magnitude in the face of Haitian flavor industry with a market value of more than 370 billion.
How is the gap between the seasoning enterprises which are originally regional? Apart from the worrying internal control construction, what are the unresolved crises of Jiajia food? Does it really have the power to rebound from the bottom?
From June 15, due to the implementation of other risk warnings, Jiajia food changed its stock abbreviation from Jiajia food to St Jiajia, and its daily rise and fall was limited to 5%.
The incident originated from the self inspection of Jiajia food. On June 11, Jiajia food disclosed that during the self inspection, it was found that the company and its wholly-owned subsidiary pan Zhongfan grain, oil and food (Changsha) Co., Ltd. had illegal guarantee of about 466 million yuan, accounting for 19.94% of the companys latest audited net assets.
It is worth noting that Gaga food has not been aware of this. Jiajia food said in the announcement that the above guarantee is the illegal guarantee of the actual controller, and the company has not found the approval process and record of the use of seal related to the above guarantee, nor the relevant legal documents retained.
In addition, the outstanding investment of the controlling shareholder and the illegal operation of the actual controller Yang Zhen in the name of the company repeatedly appear in the notice prompt of Jiajia food. On April 27, 2018, the announcement showed that preeminent investment and Yang Zhen illegally provided guarantee amount of 153 million yuan for their own debts in the name of the company; in addition, they also issued commercial bills of 694 million yuan in violation of regulations; they occupied the companys funds in violation of regulations, and provided loans totaling 54 million yuan to natural persons Liu Shengyu and Hunan paizai Food Co., Ltd. to solve the capital turnover problem of the actual controller of the company.
Zhang Ji, chief consultant of Shanghai Zhihui strategic marketing, said in an interview with the economic observer that the repeated violations reflected the imperfection of the companys governance mechanism, the personal influence exerted by the controlling shareholders on the company, and the companys failure to effectively control the relevant management system, resulting in the individual behavior of the controlling shareholders restricting the development of the company. This situation shows that the listing The company must establish a systematic and transparent management system to avoid the controlling shareholders over the listed companies.
Li Wei, director of Oriental positioning strategy research and head of condiment industry research center, pointed out in an interview with the economic observer that although Jiajia took the lead in completing the listing, at that time, condiment enterprises such as Haitian flavor industry and Li Jinji had their own brand foundation and advantages. Haitian, on the one hand, launched large-scale advertisements on CCTV, on the other hand, took the lead in the nationwide layout, and the technical improvement of product brewing was also relatively ahead, with constant actions to consolidate the brand foundation, while Li Jinji took the lead in forming high-end cognition in the minds of consumers with high-end brand positioning. As a regional market brand, Jiajia started in the third and fourth tier cities, and is in the second camp in the soy sauce industry. Therefore, although Gaga took the lead in taking the road of capitalization, it was already facing greater competitive pressure at that time.
According to the announcement, the company implements the business model of coordinated development of multiple brands, categories and channels, such as vinegar, chicken essence, monosodium glutamate, soy sauce and common edible oil, high-grade tea seed oil and rapeseed oil, with the Jiajia series soy sauce as the leading.
In 2019, the annual operating revenue of Jiajia food was 2.04 billion yuan, an increase of 14.05% year-on-year, but the net profit deducting non attributable to the parent decreased to 85 million yuan, a decrease of 19.89% year-on-year. Not only that, in the seven years from 2013 to 2019, except for 2016 and 2017, the net profit of deducting non attributable parent business on behalf of the main business increased, the rest were declining.
In addition to the outward extension of soy sauce category, Jiajia food also focuses on the market other than condiments.
According to the data, in 2015, Jiajia food invested in Changsha cloud kitchen e-commerce Co., Ltd. (hereinafter referred to as cloud kitchen e-commerce) by means of capital increase, and obtained 51% equity of cloud kitchen e-commerce with 50 million yuan, trying to take e-commerce as a new breakthrough, but the result was not ideal. As of October 31, 2017, the total debt of cloud kitchen e-commerce reached 34 million yuan, and Jiajia food finally converted it at 0 yuan Let 51% of the shares declare the failure of investment in cloud kitchen e-commerce.
On March 12, 2018, Jiajia food issued a further announcement to acquire 100% equity of Dalian Ocean Fishery tuna fishing Co., Ltd. at a transaction price of 4.71 billion yuan. However, the deal was questioned at that time. In terms of the size of both sides, the total assets and net assets of Jiajia food were 2.879 billion yuan and 2.059 billion yuan respectively. In addition, the total revenue of Jiajia food in 2017 was 1.891 billion yuan, while the net profit was only 159 million yuan. The deal was also considered as a snake swallowing elephant M & A, but the acquisition has not been completed yet.
Zhang Liming, director of China sugar yunshang condiment industry research center, pointed out in an interview with the economic observer that he was keen to seek profit growth through M & A and investment, which led to the lack of sustainable development of the main industry of Jiajia food, thus missing the golden opportunity for industry development.
Zhang Liming said that there is no mistake in Jiajia foods attempt to promote revenue growth through diversified product and channel layout. However, the result is that it misses good market development opportunities, such as the high-end soy sauce market rising with consumption upgrading when the middle and low-end soy sauce market is saturated.
Li Wei also pointed out that in each segment of the diversified layout of Canada and Canada, there are enough strong competitors in its own market, such as grain and oil, oil consumption, vinegar and so on, all of which have corresponding leading brands.
Zhang Ji also said that there was a deviation in the strategy of Jiajia food. At the same time, he involved in two categories of condiments and edible oil, and the strategic focus was not prominent.
Missing, missing, or missing, in the expressions of many industry insiders interviewed by the reporter, this is the most mentioned word. Behind the loss of focus of Gagas food strategy is the passing of good opportunities again and again. Zhang Ji pointed out that Jiajia food missed the outlets of soy sauce and oyster sauce. Li Wei said that Jiajia is the first enterprise in the industry to create a product category, but he did not put the product to the strategic level for promotion, but only as a supplement.
Dongyu, a partner of Dongji positioning, said to the economic observer that under the background of a large number of homogenization in every product category, it is very difficult to rely on products to fight against differentiation.
As early as 2007, Qianhe flavor industry put forward the concept of zero addition for the first time in the soy sauce industry, and launched the first zero addition product - toudaoyuanxiang in 2008 to expand the market of high-quality healthy condiments. When the mainstream price band of the soy sauce industry is still around 5 yuan / 500ml, Qianhe flavor industry took the lead in entering the price band of 15 yuan-50 yuan / 500ml. In 2011, Haitian also launched salt limited soy sauce, with the concept of healthy salt limited and fresh taste unchanged, occupying the salt reduced soy sauce market.
Dongyu said that there is no high-level technical barrier for such products, so what Gaga needs to think about is how to improve the quality and upgrade of products, and at the same time, start from the cognitive level of consumers to create the competitiveness of travel alienation. How to make consumers think of a brand when they think of a certain category is a subject that needs to be considered.
In Dongyus view, the high-end products launched by Jiajia are actually based on an unstable brand foundation, so the response is flat. Jiajia soy sauce originated in the second and third tier cities, and the brand driven customer base itself is quite different from the first and second tier cities. Li Wei also pointed out that unlike Haitian flavors strategy of attaching importance to brand building in recent years, Jiajia has not made enough efforts in this regard. Therefore, the foundation of taste is not solid enough to support the high-end products.
But in fact, facing the vast condiment market, the development space of enterprises is still available. Zhang Liming pointed out that there is a large space for price increase of condiments. According to price, there is at least four times more room for growth of super high-end soy sauce above 12 yuan in the future, and 8-12 yuan high-end soy sauce is the main direction of product upgrading.
Moreover, the high growth trend of the industry is obvious. According to the data, the market scale of compound condiment in China was about 55.7 billion yuan in 2013, increased to 109.1 billion yuan in 2018, with an annual compound growth rate of about 15.83%. It is predicted that it will reach 165.8 billion yuan in 2021.
On the other hand, Li Wei pointed out that family, catering and food processing are the three main channels of seasoning. With the growing demand for seasoning products in catering, seasoning products suitable for catering industry can be added or customized. Zhang Liming said that this year is undoubtedly the key year for Gaga foods development. To continue to promote the market operation of the original brewing and noodle fresh two strategic products is one of the main focuses of Jiajia food in this years development. Not only that, the extension of Gagas product line should also be reoriented in combination with the characteristics of each category. On the basis of the existing, it should focus on the advantageous resources and improve the channel layout. Zhang also pointed out that Jiajia still has a certain foundation and brand influence in the market. Seasoning enterprises must carry out forward-looking layout in strategy, accurate core value positioning, optimize category structure and strengthen channel construction, so as to win competitive advantage in the market. Extended reading: how many cases of investor lawsuits will come out this year, and Arctic employees will be infected with the new crown? Enterprise rumor: all staff nucleic acid negative market value soared 15 billion yuan 5g giant clarification: not that chip! Source: Yang Qian, editor in charge of Economic Observer_ NF4425
On the other hand, Li Wei pointed out that family, catering and food processing are the three main channels of seasoning. With the growing demand for seasoning products in catering, seasoning products suitable for catering industry can be added or customized.
Zhang Liming said that this year is undoubtedly the key year for Gaga foods development. To continue to promote the market operation of the original brewing and noodle fresh two strategic products is one of the main focuses of Jiajia food in this years development. Not only that, the extension of Gagas product line should also be reoriented in combination with the characteristics of each category. On the basis of the existing, it should focus on the advantageous resources and improve the channel layout. Zhang also pointed out that Jiajia still has a certain foundation and brand influence in the market. Seasoning enterprises must carry out forward-looking layout in strategy, accurate core value positioning, optimize category structure and strengthen channel construction, so as to win competitive advantage in the market.