The price of Flammulina velutipes has been cut, and the net profit of Zhongxing Fungi Industry in the first half of the year has fallen, cross-border...

On August 10, the semi-annual report of Zhongxing Fungus Industry was released

Due to rising product costs and declining prices, Zhongxing Mushroom has delivered a report card of increasing revenue but not profit

Zhongxing Mushroom has recently made frequent moves on the capital side.

The price of Flammulina velutipes has fallen more, and Zhongxing Fungus Industry's revenue in the first half of the year does not increase profit

In the first half of 2021, Zhongxing Bacteria achieved operating income of approximately 704 million yuan, an increase of 11.

Regarding this report card of increasing revenue but not increasing profits, Zhongxing Fungus Industry explained that: mainly because of the rebound of the epidemic in the early Spring Festival, some farmers' markets/dealers closed early, and the sales price of enoki mushroom products dropped more year-on-year in the traditional peak season

The main business of Zhongxing Mushroom is the research and development, factory cultivation and sales of edible fungi; the main products are Fresh Flammulina velutipes and Agaricus bisporus

As of June 30, 2021, Zhongxing Mushroom has a daily production capacity of 1,025 tons of edible fungi, of which, Flammulina velutipes has a daily production capacity of 745 tons, and Agaricus bisporus has a daily production capacity of 280 tons

Due to the decline in sales prices, Zhongxing Fungus's operating income of Flammulina velutipes products in the first half of this year also fell year-on-year, accounting for 56.

Due to the single business structure, Zhongxing Bacteria's ability to resist risks is relatively insufficient.

It is understood that, in order to enhance the capital strength of Hubei Zhongxing and Anhui Zhongxing, reduce financial risks, optimize resource allocation, and meet their business development needs, the company used its own funds of RMB 70 million and 40 million to pay for Hubei Zhongxing and Anhui Zhongxing, respectively.

In addition, Tianshui Yusheng, its holding company, participated in the bidding for the main bidding project of Tianshui City's urban renewal financing and has signed the "State-owned Construction Land Use Right Assignment Contract.

Large enoki mushrooms "drink" across borders, aiming to achieve the development of dual core businesses

Zhongxing Mushroom has recently made frequent moves on the capital side.

On the afternoon of June 20, Zhongxing Fungi Industry issued an announcement stating that the company, Liu Jian and Liu Liangyue, had initially reached a cooperative intention and signed the "Letter of Intent on Equity Acquisition Cooperation" on the company's acquisition of 100% equity in Shengjiao Winery

Public information shows that Shengjiao Wine Industry is located in the core production area of ​​7.

It is reported that after years of development, Shengjiao Wine Industry has achieved a national distribution of sales channels and is one of the main manufacturers of Maotai-flavor liquor in China

The cross-border "drinking" of Zhongxing Mushroom Industry touched the curse of "drinking wine and going up" in the capital market.

At the same time, the exchange also issued a letter of concern to Zhongxing Bacteria, requesting it to explain the background and necessity of the transaction and whether it is in line with the development strategy of the listed company
.

In this regard, on the one hand, Zhongxing Fungus Industry has admitted the insufficiency of its own business structure.
“The company cultivates edible fungi products in a factory-based way, and is not affected by changes in the external natural environment.
Therefore, the output of edible fungi is relatively constant, subject to market supply and demand in the seasons.
The mismatch on the above has caused obvious seasonal fluctuations in the sales price of edible fungi.
The second quarter of each year is the traditional off-season for Flammulina velutipes
.
Although the company continued to make profits from 2018 to 2020, the net profit in the second quarter was a loss.
, The company’s net profit fluctuates greatly seasonally
.
"

At the same time, he expressed his optimism about the liquor industry.
"Since its establishment, Shengjiao Liquor Industry has focused on the research and development, production and sales of sauce-flavored liquor.
Its business operation is stable and its market position is constantly improving
.
The seasonal fluctuation of the liquor industry is not large, and the consumption In the context of upgrading, the company is optimistic about its future development for a long time
.
"

In addition, Zhongxing Mushroom also responded to the integration plan after the completion of the acquisition: "After the acquisition is completed, the company does not need to send mature talents in the liquor industry (including production technicians and sales personnel), just send relevant management personnel.
, The entire production and operation will continue to use the original production team and sales team of Shengjiao Wine Industry
.
"

"On the one hand, the company strengthens the integration of business systems, organizational structures and management processes, and operates fully in accordance with the requirements of listed companies; on the other hand, it will increase financial support for Shengjiao Wine Industry to ensure that it has been approved by the government.
The expansion project will be implemented and put into production as soon as possible
.
" Zhongxing Bacteria said
.