The Net Profit Of Golden Dragon Fish Has Exceeded 6 Billion Yuan, And Its Channel Advantages Have Been Continuously Expanded

By Zhang Xiaojun

On the evening of March 23, Jinlongyu (300999. SZ) released its 2020 performance. According to the report, despite the impact of last year's epidemic situation to a certain extent, the annual revenue of golden dragon fish was still 19.922 billion yuan, an increase of 14.2% over the same period of last year, and the net profit attributable to the mother was 6 billion yuan, an increase of 11% year-on-year.

      Golden Dragon Fish said in its annual report that the profit in 2020 will increase significantly year-on-year, on the one hand, it is because the kitchen food business has taken a series of measures, including expanding product sales network, strengthening marketing work, launching high-end products and new products, and increasing factory layout; on the other hand, it is because the negative impact of African swine fever on feed raw material business has subsided, and domestic pigs have been saved The sales volume of feed raw material business increased significantly, and the sales volume, income and profit of feed raw material business increased.

Profitability continues to improve

The financial report shows that under the influence of the new epidemic situation, all business sectors of golden dragon fish will maintain growth in 2020, of which the sales of kitchen food will reach 121.202 billion yuan, with a year-on-year increase of 11.4%; the sales of feed raw materials and oil technology will reach 72.490 billion yuan, with a year-on-year increase of 18.9%. The overall gross profit margin of the company is 12.33%.

In 2020, the growth momentum of golden dragon fish's performance will be better, mainly due to the company's more than 30 years of adhering to the development concept of deep cultivation of channel management and optimization of brand products, both of which continue to promote the sales growth of golden dragon fish products.

As one of the largest agricultural products and food processing enterprises in China, golden dragon fish has realized global procurement, established stable supply channels, has the industry-leading capacity scale, has a perfect direct sales + distribution mode, and has achieved full coverage of retail, catering and industrial channels.

According to Nielsen's retail research data on the national small package edible oil, packaged flour and packaged rice market, the golden dragon fish ranked first in the modern channel market share in the three years from 2017 to 2019.

At present, goldfish has a complete and full coverage of product categories, business involving retail, catering, food industry, feed raw materials and oil technology. In recent years, golden dragon fish has continuously launched new products in line with the current consumer views and trends, such as "zero trans fat" series of edible oil, functional noodles, etc., and the products have won great praise from consumers once they are put on the market.

At the same time, with its leading technology advantages and strong R & D strength, golden dragon fish constantly promotes the category innovation of kitchen food, and promotes the sales, income and profit growth of its kitchen food by expanding the category and sales volume of high value-added products. In addition, the company has been committed to improving brand awareness and product competitiveness.

Over the years, golden dragon fish has always paid attention to brand maintenance and adopted diversified brand operation modes, including media advertising, entertainment marketing, food product marketing, cultural marketing, sports marketing or new media marketing. For example, the group's main brand "golden dragon fish" took part in the Winter Olympics and redefined the new height of food health. The group's "hujihua" ancient oil pressing technology was selected as Qingdao's intangible cultural heritage.

According to the financial report, under the rapid strategic adjustment and overall layout during the epidemic period, the sales volume of small package products for household consumption and products for food public welfare were greatly increased, which to a certain extent made up for the decline of product sales in catering channels, and the overall sales volume achieved steady growth.

Create all-round digital marketing channels

For more than 30 years, the sales channels of golden dragon fish have been keeping pace with direct sales and distribution, and through the combination of the two, a nationwide penetration marketing channel has been built in an all-round way. Online marketing channels are mainly composed of e-commerce platforms such as Jingdong and tmall; offline marketing channels include retail channels of distribution and direct sales, catering channels represented by restaurants and hotel groups, and industrial channels mainly composed of food industry, flour and feed raw materials.

While further deepening the channel layout, golden dragon fish also actively promotes the digital transformation and upgrading, and is committed to building a domestic leading catering supply chain platform. With the advantages of digital channel distribution network and big data, the products can reach tens of millions of users accurately. At the same time, through digital information thinking, golden dragon fish set up a dealer information system to share the operation and management data of dealers, grasp the sales and inventory of different products at the first time, and scientifically schedule the production, so as to improve the operation efficiency.

It is understood that as early as 2013, golden dragon fish opened tmall flagship store. According to the data of its official flagship store, there are more than 20 product links with monthly sales of more than 10000, of which the number one sales volume is the functional noodles that are easy to digest and absorb, namely, golden dragon fish plus active fermentation hollow noodles. Through the collection of online sales data, goldfish can clearly grasp the feedback of consumers on various products. Today, golden dragon fish's "Olivier", "hujihua" and other brands have successively entered tmall to open official flagship stores.

At the same time, goldfish actively expand new retail and accelerate channel sinking. In terms of distribution channels, golden dragon fish has sunk its own distribution network, settled in e-commerce and fresh food platforms such as Jingdong and kuaiju, and successively reached cooperation with community retail e-commerce such as Alibaba retail link and Jingdong new channel.

Continuous optimization of product structure

Under the background of consumption classification, each level of products has its corresponding market, so category innovation has become a major development trend in all walks of life. In the rice flour grain and oil market, with the promotion of catering chain and urbanization, consumers' awareness of food safety and health has gradually improved, showing a tendency to choose brand grain and oil products.

According to the data of prospective industry research institute, the industry concentration of China's edible oil market is high in 2018, and the market share of the top four in the industry reaches 63.8%. Among them, the golden dragon fish ranks the first echelon. In rice zoning, high-end has become the production and consumption trend of rice products, and the additional characteristics of rice such as origin attribute and organic attribute are more and more recognized by consumers. At the same time, with the improvement of the quality of life of the people, the consumption of baking products increased in recent years, which also promoted the fine differentiation and high-end development of flour.

Different background of the times gave birth to the corresponding product categories. Looking back on the grain and oil market 30 years ago, consumers bid farewell to the grain and oil rationing system in China at the beginning of reform and opening up. According to the trend of the times, golden dragon fish took the lead in launching small package oil products in 1991, which promoted the consumption revolution of small package edible oil in China, and changed the impression of kitchen food in the minds of consumers. Subsequently, golden dragon fish successfully extended the brand development experience of small package edible oil to rice flour category. In 2006, it launched packaged rice, and in 2009, it launched specialized and differentiated packaging flour.

Small package kitchen food has become a successful example of golden dragon fish to seize the consumer choice. Relying on the rapid layout of existing channels, goldfish will copy the successful experience to other businesses, and continue to iteratively upgrade products and expand new categories. At present, the brand of golden dragon fish has covered many series of high-end, middle end and mass end, and has maintained the leading level in the industry.

In recent years, in order to comply with the trend of consumption upgrading and consumers' increasing health awareness, golden dragon fish has seized the opportunity to continuously promote the existing high-end products and more high-quality new products, so as to promote the sales growth of high-quality nutrition products of the company.

Taking the edible oil field as an example, the company has launched high-end products such as "golden dragon fish" rice oil, granny's small mustard seed oil, "olive oil of olive oil" and "Huji flower" peanut oil, all of which have achieved good market performance. According to Nielsen data, Olivier ranked first in China's olive oil market for nine consecutive years.

Last year, golden dragon fish also cooperated with a number of first-line brands to further deepen the brand channel layout and continuously expand the brand influence. According to the Chinese brand index (c-bpi) in 2020, golden dragon fish ranks first in edible oil and flour categories.

With its leading technical advantages and strong R & D strength, goldfish constantly promotes the category innovation of kitchen food, and has participated in the formulation and revision of a number of national standards, industry standards and group standards, and has won many awards. By the end of 2020, it has 546 patents, including 259 invention patents. It has maintained close cooperation and exchanges with government research institutes, American Oil Chemists Association, China Grain and oil society, and China Nutrition Society.