Junyao health (605388. SH), who made his debut under the name of “the first share of lactic acid bacteria drinks”, has a poor performance.

In 2021, most enterprises began to enter the recovery period, and the negative impact of the epidemic in 2020 gradually dissipated. Recently, Junyao health disclosed its performance in 2021. Junyao health did the opposite, not only did it not return to the pre epidemic level, but its profitability went to the next level.

The lactic acid bacteria drinks that take the lead are in decline, and Junyao health tries to get involved in other industries to get rid of difficult times.

After the listing of nongnongshan spring and the upgrading of consumption caused the mineral water industry to become a hot spot, Junyao health entered the board through the acquisition of mineral water resources. Recently, there is news that Jun Yao is healthy or shares in the holy cellar liquor industry, thus entering the Baijiu industry.

Blue whale chanjing reporter learned from Junyao health that Junyao health does not have any equity relationship with the liquor industry. In an interview with the media, the chairman of Shengjiao liquor said that Shengjiao liquor and Junyao health are mainly cooperative at this stage.

The first round of mineral water business has been dragged down. If we catch up with the Baijiu hot spot again, will it become the next hot potato in the next year?

Lactobacillus that can’t drink

The benefits of becoming a listed company are self-evident. Capital and corporate image will be significantly improved to help the enterprise to a higher level. However, Junyao health is running in the opposite direction after listing.

Junyao health achieved an operating revenue of 914 million yuan in 2021, a year-on-year increase of 7.24%; The net profit was 147 million yuan, a year-on-year decrease of 31.26%; The net profit after deducting non profits decreased by 46.94% year-on-year.

“Affected by uncertain factors at home and abroad, the net profit declined, mainly due to the increase in investment in new products, new business units and R & D, as well as the increase in investment in channels, resulting in an increase in expenses.” Junyao Health said in the announcement, “in 2020, the national phased social security relief policy led to lower labor costs than the current period; the price rise of some raw materials led to an increase in product costs, and the discount rate in the current period was higher than that in the previous period, resulting in a decline in net profit after deduction.”

Statistics show that Junyao health is a dairy beverage enterprise with lactic acid bacteria beverage as the core, and the main brand is “flavor power”. From 2017 to 2019, Junyao health has not yet landed on the Shanghai Stock Exchange. During this period, the company’s operating revenue was 1.146 billion yuan, 1.287 billion yuan and 1.246 billion yuan respectively.

In 2020, Junyao health was successfully listed, which was also in the first round of the epidemic. In the first year of listing, Junyao’s health income shrank to 852 million yuan.

The following year, the negative factors of the epidemic gradually dissipated. Although the epidemic will still occur intermittently in some areas, most enterprises are still on the right track and regain growth.

However, Junyao’s health has never recovered. In the case of overweight mineral water business and probiotic business, Junyao health revenue has only a slight increase compared with 2020, there is a significant gap with that before the epidemic, and the net profit is halved compared with 2019.

The development prospect and profitability of the core business “flavor power” lactic acid bacteria beverage can not help but make people think deeply.

According to the data, Junyao healthy lactic acid bacteria beverage achieved an operating revenue of 754 million yuan, with a year-on-year decrease of 2.09% and a year-on-year decrease of 5.69 percentage points in gross profit margin.

In fact, before the epidemic, that is, the sales volume of “flavor power” plastic bottles of normal temperature lactic acid bacteria drinks had decreased in 2019.

Song Liang, a dairy expert, said that the entry threshold of lactic acid bacteria products is low, and products about lactic acid bacteria are emerging one after another in the market. For example, large dairy enterprises rely on their own strong moat, channel, scale and brand, but enterprises at the level of Junyao health will be disturbed by miscellaneous manufacturers and small enterprises.

He further said, “the price of small enterprises may be lower than that of Junyao health. This type of product itself is in low-line cities, and consumers will be affected by price factors, so the market is easy to be divided, and large manufacturers will seize the market. Junyao health is to maintain the market scale with large and small manufacturers.”

Junyao health also admitted in the announcement that affected by the epidemic, the normal temperature lactic acid bacteria industry continued the overall downward trend in 2020. Although it slowed down, the trend remained unchanged. From the perspective of the overall trend of domestic dairy products, except for low-temperature fresh milk and other categories well known by consumers, the sales of other categories fluctuate to varying degrees. “Among them, the category of normal temperature lactic acid bacteria is also facing overall challenges. Competitive enterprises adopt low-cost promotion to obtain market share, and Junyao health is also forced to respond, resulting in a further rise in the promotion rate of Junyao health terminal, and more short-term behaviors in the industry threaten the cycle of benign competition.”

Is mineral water and Baijiu good?

The knee is broken and will not be able to move forward. Core business frustrated, Junyao health will also be on standby.

Walking on multiple legs has become a healthy self-help scheme for Junyao.

Recently, Junyao health disclosed the suggestive announcement of planning for major asset restructuring and signing the acquisition intention agreement. Junyao health plans to transfer part of the 51% equity of Shanghai hongyiyuan Supply Chain Management Co., Ltd. (hereinafter referred to as Shanghai hongyiyuan) held by Wang Xueyi by itself or designated its related parties in the form of cash payment.

Before signing the formal equity transfer agreement, Shanghai hongyiyuan will complete the placement of 100% equity of a limited liability company registered in Shanghai and whose main business is to provide FMCG distribution / marketing and other supply chain services (hereinafter referred to as the “proposed assets”). After the placement of the proposed assets, it will become a wholly-owned subsidiary of Shanghai hongyiyuan.

It is understood that Wang Xueyi has worked in yiyatong Yihe (Shanghai) Supply Chain Management Co., Ltd. since May 2019. Behind this company Wang Xueyi is one of the domestic consumer goods digital supply chain service providers, and is also a well-known Baijiu operator in China.

Coincidentally, there are rumors that Jun Yao’s health acquisition of holy cellar wine industry is entering the field of Baijiu.

Blue whale industrial economics reporter learned from the Board Secretary Office of Junyao health that Junyao health does not have any equity relationship with the liquor industry. Based on the consideration of its channel resources and operation ability, the acquisition of Shanghai hongyiyuan can quickly and safely complete the strategic layout. Since 2021, a series of probiotic products focusing on functional strains have been put into the market.

However, Junyao group, the major shareholder of Junyao health, has a close relationship with Shengjiao wine industry