Why are the huge sales of Gaga Foods so low? Doing fake accounts to fool the stock?

Enterprise fall, the most painful is not strategic mistakes, lack of capacity, but when enterprises struggle to play digital games, tell capital stories, all business theories and analysis will be completely defeatedAfter all, no one can wake up a sleeping mansoy sauce is a small item, but it's definitely a big businessThe market value of soy sauce leader Haitian flavor industry beat Vanke reached 294.8 billion yuan, and the performance data published by several other condiment listed companies were almost exceptional, but the former king Gaga Foods (Rights) Group Co., Ltd(hereinafter referred to as "Gaga") is a counterexamplewas hailed as "the first stock of Soy Sauce in China" when Gaga Foods was listed on the Shenzhen Stock Exchange in 2012In 2018, The net income of The iRe 17.034 billion and net profit of RMB4.365 billion, while Gaga's 2018 operating income was ONLY RMB1,788 million, down 5.44% YoY from 2017, and the net profit attributable to shareholders of listed companies was RMB115 million, down 27.58% from the same period last yearAugust 29, Gaga released its 2019 half-year lying report, which appears to be turning a corner: the company achieved operating income of 1.025 billion yuan in the first half of the year, up 10% YoY;1, tear off and add a shame clothpeople come out to mix or sooner or later to return, this sentence is a bit rightwas fined 400,000 yuan by the Hunan Regulatory Bureau of the China Securities Regulatory Commission for information disclosure violationsThe following is the "Prior Notice of Administrative Penalties" shows three specific information for violations:, failure to disclose the holding of non-operating funds of controlling shareholders in a timely mannerOn February 9th and February 11th, 2018, Jiajia Foods, Hunan Premier And Chairman Yang Zhen instructed Gaga Foods Finance Personnel to transfer 24 million yuan of Gaga Foods to its designated natural person, Liu Yu, and 30 million yuan to Hunan Pai Food Co., Ltd., which is controlled by The Controlling Shareholder of Jia food, Hunan Pai Food Co., LtdThe total amount of these two transfers amounted to RMB54 million, accounting for 2.62% of the Company's audited net assets in the Company's 2017 annual report, failing to disclose the transaction with the controlling shareholder's related party as requiredFrom March 7, 2017 to January 30, 2018, Yang Zhen instructed Gaga Foods Finance Personnel to collect the company's U Shield, Review U Shield, Password, etcto the Financial Director of Hunan Excellence, which issued a total of 698.8 million yuan of commercial acceptance bills to its two affiliated enterprises, and issued a commercial acceptance bill of 20 million yuan to another company designated by Yang ZhenThe above-mentioned related transactions of 718.8 million yuan of commercial acceptance bills, accounting for 34.91% of the Company's audited net assets in 2017, failed to disclose the guarantee for the controlling shareholder in a timely mannerIn November 2017, Yang Zhen used the official seal of Gaga Foods to guarantee Hunan's outstanding external borrowing in the name of Gaga Foods, amounting to 295 million yuan, accounting for 14.33 percent of the company's audited net assets in the company's 2017 annual reportthis is not the first time Gaga Foods has been named, and has been a major focus of the Shenzhen Stock Exchange for nearly two yearsPrior to this, Gaga Foods has received several inquiries from The Shenzhen Stock Exchange for "unlawful external guarantees" and "cancellation of the scheme for the increase of the actual controller"Gaga's response to all this has been "hands-on"according to the announcement, Gaga Foods above the above three violations have been corrected, but the rectification does not mean that the company is not responsiblesince June 5, the China Securities Regulatory Commission issued a notice of investigation into Gaga, the next day Gaga's share price fell, the close still has 560,000 lots of throw, the following days after the cliff-off-style decline, the stock holder suffered heavy lossesNow that the administrative penalty has come to fruition, investors can claim for the floating losses incurred during this period, according to the relevant judicial interpretationThe amount claimed by the shareholder as a whole in the future may be very highThe stormy Gaga is clearly at its most dangerous moment2, soy sauce first shareaccording to the 2019 mid-year report shows that Gaga's revenue is nearly twice the revenue of chi-yu industry (594 million), Plus's doubling of the peak against chi-chi-chi is not the beginning of this year, chi-yuan industry 2018 revenue of 1.070 billion, also plus half, but strangely, the net profit of 240 million yuan, double the increasethe actual sales of plus soy sauce really is so big? ,,? All kinds of illegal operations, it is inevitable that people on the authenticity of the plus performance figuresWhat is The competitiveness of Gaga's market? Open JD.com and Taobao to know one or two Haitian, Li Jinji, Chichi, Miji, Yanran, Mrs Le, Cook Bang, exhibition art, six must-live and other brand products almost occupied the top 250 sales of JD.co.tin And add-in single sales of the highest plus-plus noodles fresh, did not enter the top 250 sales Only 4,500 reviews, with Haitian Li Jinji's single million reviews, many hot products hot situation is not at all in a scale Taobao search results and JD.com search results are comparable, in addition to some of the gaps between the few brands, mainly the above brands occupy most of the hot products, Gaga's hottest product noodles fresh is still the most popular products, but more embarrassing is that this product has not yet entered Taobao sales ranking of the top 400 Compared with the top five popular products, Gaga and Chiga's online product sales are not the same How Gaga achieves sales is inevitably questionable of the company's layout on e-commerce and online sales has not been smooth, but through online sales can still be seen, Gaga has no old style in the late 1980s, Yang Zhen, a middle school language teacher, threw away the "iron rice bowl" to do business in the sea, doing "invisible screen" and "technology" transfer business Yang Zhen found that the traditional soy sauce bottle cap to use a sharp device to break, in order to pour out soy sauce, so he invented with a pull ring, with holes in the soy sauce bottle cap Ben wanted to sell the scheme to Hunan's soy sauce factory for 500,000 yuan, but asked three not willing to ask Yang Zhen sold soy sauce bottle cap design blocked, simply opened their own soy sauce factory in early 1997, Gaga soy sauce factory was founded in Ningxiang County, Hunan Province, when there were only 3 acres of land, dozens of workers But unlike the low-cost soy sauce on the market, Yang Zhen insists on his own soy sauce to go high-end route He believes that the market has the ability to pay, and can be educated, at that time the market price of soy sauce generally at about 1.6 yuan, Yang Zhen a bottle of soy sauce market price of 6.5 yuan Two years, relying on the "bottle cap advantage", Gaga became the first brand in Hunan soy sauce industry later, like many of the rising domestic fast-moving brands, Yang Zhen put forward the "exclusive distribution system" marketing concept, and dealers to form a community of interests, to seize the national market share In order to expand the market, Gaga soy sauce in 2000 began to move towards the country, in 2001, Gaga proposed "the red flag to the countryside", the channel sinking There must be a contradiction between rural consumption power and Gaga's high-end positioning, and dealers are protesting to demand that Yang Zhen reduce prices with high-end dream of Yang Zhen, in order to do the company's sales staff and dealers of the idea, in the general meeting, small meeting over and over again stressed the importance of brand positioning, brand tuning once down will not come But there is no one to buy the core technology, simply rely on price and bottle cap support of the "nobility", in the sinking market natural water and soil Subsequently, gaga soy sauce began to reduce prices, some products once dropped to 2.5 yuan per bottle fast consumer is very dependent on channels and transportation, who can make their products appear on more shelves, to achieve the widest range of channel coverage, who have mastered the market initiative Today in the big fast-killing industry dominate the enterprise, such as Dali, Haitian, Libai and so on, all is not the proof of this logic Gaga to take exclusive distribution-based dealer mode, to second- and third-tier cities and counties, townships (towns) market as the focus of the target market, throughout the country to develop about 1200 dealers, product sales channels sinking radiation to more than 80% of the county From Hunan, Hubei, Jiangxi regional brands, has taken Jiangxi, Hubei, Henan, Anhui and other provinces, and gradually spread to the whole country Because of its channel capabilities, Nestle and Danone are rumoured to have wanted to buy it Despite the desire to sink, but Yang Zhen do not want to lose the status of the noble, in his insistence, plus soy sauce market prices have increased In order to mark the Japanese soy sauce consumption capacity, in 2010, Gaga launched a price of 8 yuan of light soy sauce "noodlefresh", in March 2013, the introduction of about 25 yuan of raw brewed soy sauce, the second quarter, the introduction of about 10 yuan of raw pulp raw pumping, products toward the "high-end soy sauce" goal Yang Zhen proposed that "China's soy sauce will enter the era of 10 yuan consumption", soy sauce products should be sold at about 10 yuan and above "Production of low-end products will contract, and low-end products will gradually exit the market, except in remote rural areas." riveted enough to try to turn themselves into flowering "soy sauce nobles", Gaga's prospects are not optimistic, squeezed by competitors, the internal capacity of the difficulties Only Changsha and Zhengzhou two production bases, lack of production capacity seriously hampered the growth of Adda In 2012, Gaga sought to go public and raise funds to expand production capacity As the third soy sauce industry, Gaga Foods and the domestic flavoring industry giant - Haitian almost at the same time to launch the listing process, but Gaga Foods first landed on the small and medium-sized board, become "China's first share of soy sauce." 3, Gaga: in the end how much water Gaga's listing is very extraordinary, the listing on the "big heel", the opening is "breaking", to the close, from the issue price fell 26.33 percent, the a-share 20 years of the largest first day of decline Before and after the listing of the company's operating cash flow is negative, the 2012 listing plus raised a net fund of 1.115 billion yuan, in the Gaga Food prospectus, it is clear that all its funds raised will be used for an annual output of 200,000 tons of high-quality soy sauce project and annual output of 10,000 tons of high-quality tea seed oil project, the duration of one year the harsh reality is that even if the projects are successfully completed, the gap between Gaga's capacity and that of giant Seaday is still very large And tea seed oil as a low-tech and low gross margin products, but also can not afford Toaga to become a leader's dream The road to growth and growth is difficult, Yang Zhen developed a new way of thinking a year later, the company spent 101 million yuan to complete the acquisition of Sichuan Wang Zhongwang Food Company, and also heavy gold hand CCTV 2013 "Star Avenue." The fund-raising project did not go into production as scheduled, the company staff explained: "The current project has not been carried out on schedule, mainly by the weather and other objective factors." It makes one wonder if your workers are solar (3.390, 0.08, 2.42%)? But soon to the shareholders of greater harm hit, listed for a year, Plus ushered in the release of restricted shares, shareholders to reduce their holdings let people more can not take a good look at the enterprise since then, under the guidance of alternative ideas, Gaga has carried out a series of "God operations", but also achieved a "jaw-dropping" effect 2011, Gaga Foods added 190 personnel to strengthen its channels, bringing the total number of dealers to 1,199, and in 2012, 144 new dealers were added, 116 were cancelled, and the total number of distributors increased to 1201 After the listing, the grain and grass sufficient plus in 2013 will be the channel from the second and third-tier cities upward expansion, with "one shop a day, one day activities" means to carry out the north-bound key market terminal construction, the company's channel scale reached a peak the following year But soon the company's sales staff began to decline this attempt to expand the channel upward, and Yang Zhen's soy sauce noble dream is not unrelated, but it is not in the context of product upgrading, the corresponding channel up is the company's year by year to reduce the price of products The wholesale price of the company's soy sauce condiments decreased from 3,713 yuan/tonne in 2008 to 3,658 yuan/tonne in 2012 and finally to 3,504 yuan/tonne in 2014 Stronger sales team, lower sales prices, but still did not let dealers pay, the company's accounts receivable and inventory turnover days continue to rise, product sales phenomenon is obvious in the overall condiment market "continued to show the volume of price rise" in the years, with Gaga in sharp contrast to the sea-day soy sauce channel sinking and rapid progress In 2013, Haitian layout of 1000 people will cover the channel to more than 300 cities across the country, more than 1000 counties, 330,000 terminal marketing outlets, the year sales reached 8.402 billion yuan In order to stimulate the enthusiasm of dealers, Haitian monthly settlement, there are additional incentives, such as Apple phones, BMW, Mercedes-Benz and so on In 2013, the sales revenue of Sea Tianyu oil was RMB 1.114 billion, and the sales revenue of the sauce was RMB1.160 billion, ranking first in the sub-sector high-end need brand strength to support, and add food brand strength is difficult to support its high-end layout Under the impact of the sinking of the channels of strong competitors, adding reinforcement has the battlefield is not guaranteed, lost part of the market share, self-righteous channel upgrade, did not let it enjoy the industry consumption upgrade dividends, but become the victim of increased brand concentration After 2014, Haitian ushered in explosive growth, should have been in the industry competition more and more marginal Gaga, the trend of weak performance is evident, high-end products to obtain high gross margin of large single-product strategy, but it seems that Gaga began to turn around the background of general price increases such as sea days / delicious fresh / chipped soy sauce and other general price increases, in 2014 Gaga also embarked on the road of price increases, from 3504 yuan / ton to 3768 yuan / ton, a three-year increase of 7.5% Although.