Haixin's net profit dropped by 40% in 8 months

On the evening of July 28, the food industry ushered in the fourth listed company to issue an interim report. Haixin Foods did not continue its outstanding performance before listing. After eight months of listing, the company’s net profit dropped by 40% year-on-year. Of the other three food companies that released Midterm, only Quantum Tech achieved a net profit growth of 6.21% year-on-year. Both Qiaqia Foods and Angel's yeast net profit declined.

Net profit decreased by 40% year-on-year

According to the announcement, Haixin Food's net profit attributable to the owners of the parent company in the first half of 2013 was 16.4995 million yuan, a decrease of 41.24% from the same period of last year; the operating income was 338 million yuan, an increase of 4.19% over the same period last year; Earnings per share was 0.117 yuan, a decrease of 77.92% from the same period last year.

As for the decline in performance, Haixin Foods stated that 2013 is a key year for the company's transformation and improvement. Affected by external factors such as the slowdown in macroeconomic growth, H7N9 emergencies, and intensified competition in the industry, the company’s sales revenue in the first half of the year slowed down; however, the company’s new project to raise 30,000 tons of frozen frozen fish and meat products and meat products was orderly. To carry out, actively promoted around the customer and marketing work, effectively guaranteed product production, and gradually improved the overall management level.

“The slowdown in sales growth is mainly affected by the decelerating growth of the macro economy and intensified competition in the industry.” The company said that the company’s profit decline was mainly due to the rapid growth in sales expenses in the first half of the year, while the investment in new sales expenses did not bring business for the time being. Large-scale growth in income.

It is worth mentioning that when Haixin Food announced its first quarterly report in 2013, it is expected that the net profit growth attributable to shareholders of listed companies from January to June this year will be positive. However, later, Haixin Foods released a performance correction announcement. It is expected that the company will achieve a 48%-41% year-on-year drop in net profit during the reporting period. In other words, after Haixin Foods was listed in October last year and achieved a slight increase in the first quarter of this year, the company’s net profit dropped by 40% during the interim period.

In addition, Haixin Food's performance forecast for the company's January-September period has improved. It is expected that the net profit attributable to shareholders of listed companies from January to September will fall by 42.3% year-on-year to 4.8%.

In the eyes of people in the industry, under the general environment of slowing economic growth, the performance of listed companies is not satisfactory nor is it normal.

4 Only 1 company grows

In addition to the release of the 2013 mid-year report by Haixin Food, four companies, including Food, Quantum Hi-Tech, and Angel Yeast, also released their interim results.

Among them, it is Angel Yeast who shares the same concerns with Haixin Foods. Angel Yeh achieved a net profit attributable to the shareholders of the listed company during the reporting period of 97,516,600 yuan, a year-on-year decrease of 38.6%. However, the net profit of Qiaqia Food decreased slightly by 7.76% in the first half of the year. In the first half of the year, Quantum, the only company listed on the GEM, had a slight increase in net profit of 6.21%, and the net profit attributable to shareholders of listed companies was RMB 21,818,000.

For the performance of the four companies mentioned above, Jian Aihua, a food industry researcher at China Investment Consulting Group, believes that “on the one hand, due to slowing economic growth at home and abroad and political turmoil in some overseas markets, market demand is shrinking, so some listed companies’ Sales volume is bound to decline; on the other hand, market demand is unfavorable, and production capacity is released in a concentrated manner. The operating pressure of the company tends to be heavy, mainly due to the three major aspects of increased inventory pressure, tight cash flow, and a decline in net profit.