scratchgd| Bairun shares increased income and reduced profits and terminated 2 billion yuan in fixed inventory increased to 864 million yuan, accounting for 30% of current assets
Changjiang Business Daily
RIO (Ruiao cocktail) cocktail parent company Bailun shares (002568)Scratchgd.SZ) termination of huge fundraising.
On the evening of May 16, Bairun shares announced that it would stop issuing shares to specific targets in 2023.ScratchgdThe announcement. In August last year, the company issued a plan to raise no more than 20% of the capital.Scratchgd.25 billion yuan for the construction of capacity expansion projects and R & D testing centers.
A reporter from the Yangtze River Business Daily noted that more than two months ago, Liu Xiaodong, chairman of Bairun shares, was placed on file for investigation and detention on suspicion of paying bribes.
In the first quarter of 2024, the income of Bailun shares increased but decreased. From January to March, the net profit was 169 million yuan, down 9.8% from the same period last year.
In addition, by the end of the first quarter, the company's inventory was high, reaching 864 million yuan, accounting for current assetsScratchgdThe proportion rose to 31.45%, 5.87 percentage points higher than at the end of 2023 and 14.86 percentage points higher than at the end of the first quarter of 2023.
2 billion fixed increase termination
After a lapse of 9 months, the fixed increase plan of Bairun shares was terminated.
According to public data, in August 2023, Bairun shares issued a plan to increase the number of shares, with a total of no more than 315 million shares (including) and no more than 2.025 billion yuan. After deducting the issuance expenses, it invested in a number of capacity expansion projects such as Jiangsu, Tianjin, Foshan and Chengdu, as well as the second phase project of Shanghai Bacchus Wine Co., Ltd., and the Baxter Wine (Chengdu) R & D and testing center project.
Among them, the investment amount of the production capacity expansion project is 2.04 billion yuan, the investment amount of the second phase project of Shanghai Bacchus Wine Co., Ltd. is 93.82 million yuan, and the investment of the R & D and testing center of Baxter Wine (Chengdu) is 198 million yuan.
On the evening of May 16, Bairun shares issued a notice saying that the above fixed increase plan was terminated.
In this regard, the company said that taking into account the market environment and the company's own project construction progress, after full communication with all parties, careful analysis, the company decided to terminate the issue of shares to specific targets.
It is worth noting that on February 27 this year, Liu Xiaodong, chairman and general manager of Bairun shares, was put on file for investigation and retention by the Nanzheng District Supervisory Committee of Hanzhong City, Shaanxi Province on suspicion of bribery. Bairun shares did not disclose more details. It should be noted that the filing of the case for investigation and retention means that the subject under investigation is suspected of job violations or job crimes, and the supervisory organs have mastered some illegal facts and evidence, but important issues need to be further investigated.
On the day the news was released, Bairun shares said that the production, operation and management of the company were normal, and the above matters would not have a significant impact on the normal production and operation of the company.
Stock price deviates from performance
Data show that Bailun shares was established in 1997, at first with the research and development, production and sales of flavors and flavors as the main business; in 2003, it began to enter the pre-mixed cocktail market, set up a subsidiary, Bacchus Liquor, and launched RIO (Ruiao) brand pre-blended liquor.
Liu Xiaodong briefly spun off the pre-blending business in 2009, listed Bailun shares on the Shenzhen Stock Exchange in 2011, and then re-acquired Bacchus in 2014, becoming a company specializing in pre-mixed cocktails and flavors.
At present, the company's main brands are "RIO" pre-prepared cocktails, "BAIRUN" flavors and fragrances. In 2015, the company's pre-blending revenue was 2.213 billion yuan, accounting for 94.13% of the company's total operating income, while the flavor and flavor business revenue was 136 million yuan, accounting for 5.8% of the revenue.
However, in 2016, the company's pre-blending revenue fell to 813 million yuan, causing the company's revenue to plummet by 60.64%. Bairun said that the main factor affecting the performance was that the pre-mixed cocktail business continued to digest channel inventory in 2016, resulting in a decrease in shipments of pre-mixed cocktail products and a large decline in the main business compared with the previous year.
After the inventory crisis was resolved, the company's pre-blending revenue began to pick up year by year, rising to 1 billion yuan in 2017 and 2.285 billion yuan in 2021 to the 2014 level. In 2022, Bairun shares showed a double decline in performance, with revenue of 2.593 billion yuan, down 0.04% from the same period last year; net profit of 521 million yuan, down 21.74% from the same period last year, and gross profit margin decreased by 1.65% to 63.78% compared with 2021.
It is reported that in the first half of 2022, Bairun shares faced challenges in raw material supply, production, logistics and sales promotion, which had a great impact on the revenue and operating costs of the pre-mixed cocktail business. That year, the company's cocktail revenue dropped slightly to 2.257 billion yuan. After entering the third quarter, the company's production and operation returned to normal, and the pre-prepared cocktail business recovered month by month, but revenue still failed to maintain growth in 2023.
In 2023, with the recovery of consumption, the company's pre-blending business increased greatly. In 2023, the preset cocktail sector achieved a main business income of 2.884 billion yuan, an increase of 27.76% over the same period last year, and a net profit of 571 million yuan, an increase of 68.57% over the same period last year, driving the overall revenue growth of 25.85% to 3.264 billion yuan. The net profit of returning home increased by 55.28% to 809 million yuan over the same period last year, both reaching record highs.
However, it should be mentioned that the company's secondary market is contrary to the performance. The company's stock price reached a two-year high of 44.46 yuan per share in April 2023 and only 22.56 yuan per share as of May 17, 2024.
April 25, Bairun shares released first-quarter results, data show that the company increased income and reduced profits, the current company's revenue and return net profit of 802 million yuan, 169 million yuan, respectively, a year-on-year change of 5.51%,-9.8%.
It should also be noted that by the end of the first quarter of this year, the company's inventory was high, reaching an all-time high of 864 million, rising to 31.45% of current assets. At the end of 2023, the proportion was only 25.58%. Compared with the first quarter of 2023, it is up 14.86 percentage points.