At the same time, the company has not been involved in other catering areas, business model and product type is single, resulting in a continuous decline in traffic.
In 2019, the net profit of Quanjude is 44.6279 million yuan, a year-on-year decrease of 38.90%, but its investment income is as high as 55.1743 million yuan, which is 1.23 times of the net profit.
In the investment income, in addition to the financial return of nearly 20 million yuan from the purchase of structured deposits, the companys joint ventures also brought about an investment return of nearly 30 million yuan.
Beijing Jude Huatian Holding Co., Ltd. (hereinafter referred to as Jude Huatian), a catering enterprise with many time-honored brands, recorded a net profit of 92 million yuan in 2019, far exceeding Quanjude. For future development, Quan Jude said that it will further focus on the creation of classic boutique stores of time-honored brands and strengthen the classified guidance; meanwhile, it will accelerate the development of the food industry and form a pattern of catering business + food industry driven by two wheels to jointly support brand development.
Quanjude introspection: gap with young customers consumption cognition
According to the annual report released by Quanjude on the evening of April 13, in 2019, the companys operating revenue reached 1.566 billion yuan, a year-on-year decrease of 11.87%; and the net profit attributable to the parent company was 44.6279 million yuan, a year-on-year decrease of 38.90%.
In fact, since 2017, Quanjude has been in decline for three consecutive years. Compared with the net profit level of 136 million yuan in 2017, the companys net profit shrank by more than 60% last year. With the overall performance decline, the companys business indicators also showed a significant downward trend.
By the end of 2019, the company had 118 catering stores, 3 less than 121 at the end of 2018; the catering business received 6.5892 million guests in the whole year, 1.1 million less than 7.7047 million in 2018. In 2017, the number was 8.0407 million.
Quan Jude explained in the announcement that in the past three years, in the face of the challenges brought by the rapid changes in the catering market demand and consumption structure, the catering industry has become increasingly competitive. The companys catering and food sector have a certain degree of decline, there are many reasons. From an internal point of view, products and services lag behind the market demand, especially the rise of the post-90s and post-00s consumer groups, and the consumer demand is changing rapidly. However, the catering and packaged food of Quanjude have problems such as outdated products, insufficient innovation and slow adjustment,
In particular, it has formed a gap with the consumption cognition of young customers.
From the external point of view, the restaurant business type is more diversified and differentiated, there are many market entrants, and the source of customers in the dinner market is obviously diverted. Quanjude, as a well-known brand in the field of traditional dinner, has not been involved in other catering fields. Its business model and product type are single, and the industry expansion is insufficient. Therefore, the passenger flow shows a continuous downward trend, and the companys performance and business development are greatly affected.
It is worth noting that in the past few years,
Quanjude has repeatedly emphasized enterprise transformation and innovative layout, such as testing water delivery system and promoting small shop model.
In 2019, due to the application for bankruptcy and liquidation of its subsidiary Beijing Yage Technology Co., Ltd. (hereinafter referred to as Yage Technology) and other long-term equity investment disposal income, the amount of non recurring profit and loss has increased, and Yage technology is a subsidiary company of Quanjude that has increased capital control shares to open takeout business.
The source of profit is highly dependent on investment income
In addition to the catering and food sectors, the Shenzhen Stock Exchange also inquired about the decrease in the companys monetary capital and whether related parties occupied the funds of the listed company.
According to the annual report, the balance of monetary funds in Quanjude at the end of 2019 was 698 million yuan, a decrease of 29.63% year on year. In response to this phenomenon, Quan Jude explained that the company invested in Beijing Capital Tourism Group Finance Co., Ltd. (hereinafter referred to as capital travel finance company) in cash during the reporting period.
As capital travel finance company and Quanjude Groups subsidiary companies, this transaction constitutes a related party transaction. By the end of 2019, Quanjudes investment income from capital travel finance company was 1.8228 million yuan. However, according to the self-examination of Quanjude, there is no case that related parties occupy the funds of listed companies.
As a listed company mainly engaged in catering and food business, investment income is becoming the most important source of profit in Quanjude.
As for the increasing proportion of investment income in net profit year by year, Quan Jude said that on the one hand, the amount of investment income realized by the company increased year by year; on the other hand, due to the impact of intensified competition in the industry, the companys net profit attributable to the parent company declined.
Photo source: photo web
According to the specific classification of the companys investment income, it mainly includes the investment income recognized by the equity method for the three joint ventures and the income from the purchase of structured deposits.
In 2019, Quanjude obtained an interest return of 1982.34 million yuan by using idle funds to purchase structured deposits. In terms of joint ventures, in addition to the return of 1822800 yuan from capital travel finance company, Quanjudes equity investment income to Jude Huatian is as high as 28.203 million yuan.
Jude Huatian owns many time-honored catering brands, such as hongbinlou, Xian restaurant, Huguo Temple snacks, etc. In 2005, the former Quanjude Group transferred its 30.91% equity of Jude Huatian to Quanjude. Since then, Quanjude has calculated the investment income according to the equity method.
As a catering company with time-honored brand as its main selling point, Jude Huatians brands are slightly less well-known than Quanjude, but the overall performance of the company has steadily improved in recent three years. In 2019,
The net profit of Jude Huatian reached 92 million yuan, more than twice that of Quanjude.
As for the future development of the enterprise, Quanjude said in reply to the inquiry letter that the company has started to adjust. As a representative of typical time-honored enterprises, Quanjude will, based on the brand advantages, take the promotion of traditional culture of time-honored brands as the foundation, increase the protection and inheritance of time-honored brands, and focus on the creation of classic boutique stores of time-honored brands. At the same time, the company will strengthen the classified guidance, promote the coordinated development of Quanjude, Fangshan, fengzeyuan and Sichuan Hotel, and accelerate the development of food industry. In view of Quanjudes development dilemma, Zhu danpeng, an analyst of Chinas food industry, once told reporters of the daily economic news (micro signal: nbdnews), in the final analysis, the reason is the system and mechanism. If this root problem is not solved, then all the innovation and upgrading of enterprises are in vain. For Chinese time-honored brands such as Quanjude, brand accumulation is certainly important, but if the system and team are not innovated and reformed, the innovation and upgrading of its brand, products, scenes and services will be difficult to achieve the expected effect. Extended reading full screen bull market! WeChat group fried pot netizens: weekend is an endless billion dollar deposit missing case on the painting end of the liquor, the 70 million of the compensation of the Agricultural Bank of China, the official account number is WeChat, the 20 million official account is now being turned into success. NB12679
As for the future development of the enterprise, Quanjude said in reply to the inquiry letter that the company has started to adjust. As a representative of typical time-honored enterprises, Quanjude will, based on the brand advantages, take the promotion of traditional culture of time-honored brands as the foundation, increase the protection and inheritance of time-honored brands, and focus on the creation of classic boutique stores of time-honored brands. At the same time, the company will strengthen the classified guidance, promote the coordinated development of Quanjude, Fangshan, fengzeyuan and Sichuan Hotel, and accelerate the development of food industry.
In the final analysis, it is the system and mechanism.
If this root problem is not solved, then all the innovation and upgrading of enterprises are in vain. For Chinese time-honored brands such as Quanjude, brand accumulation is certainly important, but if the system and team are not innovated and reformed, the innovation and upgrading of its brand, products, scenes and services will be difficult to achieve the expected effect.