Recently, Qianhe Flavor Industry, known for its "high-end soy sauce", announced its 2020 annual report and 2021 first quarter report.

According to financial report data, Qianhe Flavor Industry's net profit for the whole of 2020 was 205.8 million, a year-on-year increase of only 3.81%, of which a single quarter loss of 18.11 million in the fourth quarter was a significant year-on-year decrease of 129.47%; and its first quarter report of 2021

The data is not ideal either, with net profit of only 39.89 million, a year-on-year decrease of 43.34%.

Under the pressure of a drastic change in performance, Qianhe Flavor Industry's stock price has also been falling recently.

Root statistics show that since reaching a high in February, its stock price has continued to fall. In just about three months, its market value has evaporated by 13 billion, causing heavy losses to the investors behind it.

As one of the three major A-share soy sauce stocks, Qianhe Flavor Industry's stock price has continued to rise, boosted by the surge in the consumer sector last year, and it was once touted by investors as the next Haitian Flavor Industry.

At present, the popularity of the large consumer sector is gradually receding. If Qianhe Flavor Industry's performance is not as good as expected, where will it go in the future?

Qianhe Flavor Industry's performance is "thunder"?

Speaking of soy sauce, most people may first think of Haitian Flavor Industry.

Indeed, Haitian Flavor Industry is indeed the leader in the soy sauce industry.

However, in addition to the vast swaths of Haitian soy sauce on supermarket shelves, there are also several soy sauces called Qianhe. Although they are not well-known, they should not be underestimated.

The owner of Qianhewei has added zero soy sauce and positioned it as a high-end soy sauce brand. With this differentiated positioning, Qianhewei has gradually gained a firm foothold in the fiercely competitive soy sauce industry.

Since its listing in 2016, Qianhe Flavor Industry's performance and stock price have maintained steady growth. Under the influence of the continued rise in stock prices, many investors have even predicted that it will have the opportunity to surpass Haitian Soy Sauce in the future and become a new soy sauce brand.

elder brother.

However, in 2020, investors who are optimistic about Qianhe Flavor Industry may have their dreams shattered.

According to financial report data, its net profit in the fourth quarter of 2020 was a huge loss of 18.11 million, a significant year-on-year decrease of 129.47%; the performance in the first quarter of 2021 was not satisfactory, with a net profit of only 39.89 million, a year-on-year decrease of 43.34%.

As for the reasons for the decline, the two quarters were different.

Regarding the thunderous performance in the fourth quarter of 2020, it was mainly caused by the provision for impairment of goodwill and intangible assets.

In August 2019, Qianhe Flavor Industry acquired 100% equity of Zhenjiang Jinshan Temple for 150 million yuan, a premium of 12.39 times. At that time, it estimated that by 2020, Zhenjiang Jinshan Temple would achieve revenue of 81.9 million yuan and a net profit of 6.49 million

Yuan.

However, the reality is quite the opposite. In 2020, Zhenjiang Jinshan Temple only achieved revenue of 41.05 million yuan, and its losses reached 25.54 million yuan.

And because the performance was not up to standard, Qianhe Flavor Industry made an impairment loss of 89.94 million yuan for Zhenjiang Jinshan Temple, which led to a sudden "thunder" in performance in 2020.

As for the decline in performance in the first quarter of 2021, expense growth is one of the main reasons.

According to statistics, the company's expense ratio exceeded 30% for the first time in the first quarter and reached 31.91%, which greatly reduced operating profits.

Although there are many reasons behind the decline in Qianhe Flavor Industry's performance, it has to be denied that this white horse stock, which used to have steady growth in performance, has now fallen from the altar.

Crazy flight of funds and large-scale cash-out by major shareholders. In addition to the decline in performance, the crazy flight of major shareholders, fund institutions and other large funds is also the reason why Qianhe Flavor Industry has been criticized recently.

According to statistics, since the share ban was lifted in 2019, the major shareholders of Qianhe Flavor Industry have begun a crazy reduction of holdings.

In early March 2019, the original shareholders had just ushered in the lifting of the share ban. At the end of that year, the largest shareholder Wu Chaoqun announced that he had begun to reduce his holdings. At that time, Wu Chaoqun held 42.64% of the shares of Qianhe Flavor Industry; subsequently in January 2020

In the five months from mid-June to mid-June, Wu Chaoqun, the actual controller of Qianhe Flavor Industry, reduced his holdings by 8.13 million shares, a reduction ratio of 1.72%, and cashed out 244 million yuan in one day.

This was just the beginning. One month later, the company issued another announcement on reduction of holdings. Chairman Wu Chaoqun planned to reduce the upper limit of holdings to 19.97 million shares, accounting for 3% of the company's shares. Two months later, this reduction was

The holding was completed, and Wu Chaoqun cashed out more than 800 million yuan again.

In addition, Wu Jianyong, the second shareholder and Wu Chaoqun's nephew, was also not lenient in reducing his holdings. At the time of the 2020 semi-annual report, he still held 81.75 million shares, accounting for 12.39% of the outstanding shares; but nine months later, in January 2021

In the first quarter, its shareholdings dropped to 65.4 million shares, accounting for 9.88% of the outstanding shares.

In addition to major shareholders, institutions also frantically reduced their holdings in the first quarter.

According to shareholder data, in the fourth quarter of 2020, the number of funds holding Qianhe Flavor Industry reached 128, and the number of shares held was 72.82 million; but in the first quarter of 2021, the number of funds holding Qianhe Flavor Industry

There were only 9 companies left, and the number of shares held was reduced to 28.98 million.