Because its financial report shows that the profit is less than expected, especially in the fourth quarter of last year, the stock price plummeted. Arowana, as a leading edible oil brand in China, was just listed on the A-share market last year. At first, everyone was excited to see this food leading stock. Because the A-share market has not seen such a large-scale food enterprise for a long time, at the initial stage of listing, the market gave a very high price-earnings ratio, and the market value once reached 780 billion yuan. However, the good times did not last long, and it continued to decline in the following months, especially the recently released financial report, which accelerated the pace of decline. At present, the share price of Arowana is only two-thirds of its peak, falling by more than 300 billion.

The direct cause of the stock market decline is this financial statement. Judging from the growth rate, Arowana performed fairly well in the past year. Both revenue and profit have seen double growth, but the net profit is only 6 billion, which is far from the 7 billion profit predicted by previous institutions. Therefore, after the release of the financial report, many institutions have also lowered the price of Arowana, thinking that its profitability is not optimistic.

However, the person familiar with the matter pointed out that the profit of Arowana increased normally in the first three quarters, and the main profit declined the most in the fourth quarter. The core reason is that the price of feed futures products purchased by Arowana rose, which caused the company to lose money and eventually lost some profits.

References:

In the first three quarters of 2020, Arowana achieved a net profit of 5.09 billion yuan, a year-on-year increase of 45.88%. Obviously, the company's annual profit is less than expected, mainly due to the large decline in the fourth quarter of 2020. It is estimated that the company's profit in the fourth quarter of 2020 is only 9 1 1 billion yuan, which is 52.55% lower than that in the same period of 20 19.

For the above performance, Arowana explained that on the one hand, it was attributed to the performance of the kitchen food business segment. During the reporting period, relying on the advantages of brand operation and channel operation of edible oil, the company continued to expand the product sales network, strengthen marketing work, and increase the promotion and sales of rice, flour, vinegar, soy sauce and other products. In addition, due to the trend of consumption upgrading and the continuous improvement of consumers' health awareness, the company continues to promote existing high-end products and more high-quality new products, which makes the sales of high-quality nutritional products of the company continue to grow.