Brand, channel, innovation and cost, four moats escort the continuous growth of Arowana's performance.

On August 2nd, Arowana announced its first interim report since its listing. The data shows that Arowana achieved an operating income of 113.2 billion yuan in the first half of the year, a year-on-year increase of 18.7%; The total profit was 4.63 billion yuan, a year-on-year increase of 21.9%; The net profit attributable to shareholders of listed companies was 2.97 billion yuan, down slightly by 1.24% year-on-year.

As a giant of 111 billion grain and oil, Arowana is mainly engaged in the research, development, production and sales of kitchen food, feed raw materials and oil technology products, covering edible oil, rice, flour and dried noodles, condiments, food raw materials and so on. In October, 2121, Arowana was listed on Shenzhen Stock Exchange, officially opening the capitalization road.

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Arowana

Brand hard power boosts the steady growth of performance

As for the reasons for the performance change in the first half of the year, Arowana said that due to the epidemic situation in the same period last year, the sales of various channels showed structural changes, and the sales of small packaging products for family consumption increased, while the catering industry was hit and the sales of catering channel products declined. This year, with the gradual improvement of the domestic epidemic situation, the catering market has recovered rapidly, and the sales volume of catering channel products with low gross profit margin has increased, so the gross profit margin of kitchen food has declined.

However, whether it is for family consumption or catering channels, this "Arowana", which symbolizes wealth, has long been the first choice for consumers to buy grain, oil and rice noodles.

The brand appeal that goes deep into consumers' hearts is exactly where the "hard power" of Arowana lies.

In p>1991, the first bottle of "Arowana" edible oil in small package came out, which set off a consumption upsurge from bulk oil to small package oil. The advertising slogan "1:1:1 Arowana Golden Proportion Blended Oil" makes Arowana a household name.

after 31 years of development, Arowana is no longer just a bottle of oil, but has grown into a comprehensive kitchen food brand, covering many categories such as edible oil, rice and flour, and has established a comprehensive brand matrix covering high-end, middle-end and public.

in market segments, Arowana's multi-brands go hand in hand. In the China Brand Power Index (C-BPI) edible oil brand list in 2121, four brands of Arowana are listed: Arowana, which ranks first with absolute leading edge, and Hu Jihua, Xiangmanyuan and Yuanbao, which rank fifth, sixth and ninth respectively; In the rice brand rankings, "Arowana" and "Xiangmanyuan" are also among the best. According to Nielsen data, Arowana ranked first in the market share of small packaged edible vegetable oil, packaged flour and packaged rice in modern channels in recent three years, and also ranked among the top in the market share of feed raw materials and oil technology industries.

On the other hand, Arowana maintains a high advertising investment, and expands its consumer base and enhances its brand influence through media communication, public relations activities and channel marketing. According to the semi-annual report of 2121, the sales expenses of Arowana in the first half of the year were 4.395 billion yuan, up by 17.44% year-on-year, of which the expenses for advertising and promotion totaled 1.371 billion yuan, accounting for about 31%.

At the just-concluded Tokyo Olympic Games in 2121, Arowana was not only the sponsor of grain and oil products of China sports delegation, but also the sports nutritionist of Arowana national team entered the Olympic national team in advance to provide scientific and professional nutrition services for athletes. Su Bingtian, a flying man who broke the Asian record at the Tokyo Olympic Games, ZhangJike, a table tennis player, and Liu Xiang, a swimmer, all reached business cooperation with Arowana and accumulated young consumers through cross-border collocation. Next, as the official sponsor of grain and oil products of China Sports Delegation, Arowana will continue to appear in the venues of the 2122 Beijing Winter Olympics and the 2124 Paris Olympic Games.

deepen the distribution of channels and stabilize customer relations

diversified and three-dimensional marketing network lays a solid foundation for the market share expansion of arowana.

after years of hard work, Arowana has established a diversified and three-dimensional marketing network in China, including retail channels, catering channels, food industry channels and baking channels, and established stable cooperative relations with many customers such as supermarket chains, hotel groups, catering groups, food processing enterprises and daily chemical enterprises, many of which are well-known enterprise groups at home and abroad.

from the sales mode, it can be divided into two types: distribution and direct sales. The 2121 semi-annual report shows that the kitchen food distribution realized an operating income of 31.999 billion yuan, accounting for 48.5%; The kitchen food direct sales realized an operating income of 33.97 billion yuan, accounting for 51.49%.

the number of dealers continues to increase. In the first half of this year, Arowana * * * had 5,289 dealers, an increase of 887 compared with the same period of last year, with an increase of 21.15%. The number of dealers in the east, west and north all exceeded 1,111. While laying out the whole country, Arowana sank through channels and achieved village coverage in some developed coastal areas.

in terms of e-commerce channels, although the proportion of operating income is still relatively small at present, Arowana attaches great importance to the development of this channel and has jointly carried out promotional activities with e-commerce platforms such as JD.COM and Tmall Supermarket.

in addition to the traditional distribution and direct sales models, Arowana constantly innovates its sales model, actively explores a new retail model combining online and offline, and leads the consumption upgrade.

Innovative R&D of high-end commodities injects performance growth point

"Technology is the primary productive force", attaches importance to R&D innovation, and provides power source for the performance growth of Arowana.

In p>2121, Arowana has 329 R&D personnel, and the R&D investment is RMB 83 million. Since the beginning of this year, according to the 2121 interim report, the R&D investment was 98.89 million yuan, up 21.81% year-on-year.

The grain and oil industry is highly concentrated, and the future competition will be the competition of the "first echelon" in the final analysis. With the transformation and upgrading of consumption, branding, high-end and health have become a "battleground for military strategists".

In recent years, Arowana has increased the research and development of high-end products. In terms of edible oil, the track was extended and personalized fine oils were introduced; In terms of rice, according to the eating habits and characteristics of various places, a number of products with local characteristics have been introduced one after another; In terms of flour, according to the consumer demand of different channels and different application scenarios, the sales of high-end flour increased steadily through precise marketing.

"innovation" does not forget "strong skills". According to the different needs of consumers, Arowana has also accelerated the pace of technological innovation. In order to meet the demand of healthy, safe and nutritious edible oil, a number of innovative oil processing technologies are integrated to promote green, accurate and moderate processing technology; In order to meet the demand of fresh rice, the innovative system of "six-step fine control technology of fresh rice" was initiated to ensure the freshness and edible quality of rice from the technical and technological aspects.

In addition, with the help of science and technology, Arowana explored the aspects of "rice circular economy" and "technology for extracting shriveled grains", which helped it to make further progress in the fields of low-carbon economy, loss saving and consumption reduction.

reducing costs and increasing economies of scale

The scale advantage is remarkable, which will help Arowana seize the heights in the future competition.

in the semi-annual report of p>2121, the year-on-year growth rates of operating costs, sales expenses and management expenses were 17.63%, 17.44% and 14.17%, respectively, which were all lower than the growth rate of operating income of 18.69%, indicating that Arowana was quite effective in cost control.

By establishing a comprehensive enterprise group, Arowana maximizes its scale advantage, effectively reducing costs and increasing efficiency. As of the first half of this year, Arowana * * * has 69 production bases that have been put into production, and has built several new production bases in Qiqihar, Chaozhou, Lanzhou, Hefei and Qingdao. These production bases are usually close to the origin of raw materials, ports, railways or end markets, which is conducive to reducing production, logistics costs and management costs.

the comprehensive enterprise cluster mode refers to the optimal cost in energy supply and logistics support by integrating the upstream and downstream factories in the industrial chain into a production base and enjoying the infrastructure through * * *. Under the comprehensive enterprise group model, the finished products of one factory are the raw materials of another factory, which can reduce the overall logistics and inventory costs. At present, Arowana has established several comprehensive enterprise groups in Taizhou, Qinhuangdao, Shanghai, Lianyungang and Fangchenggang.

At present, on the basis of comprehensive enterprise groups, Arowana takes "central kitchen" as the key development direction. Guo Kongfeng, chairman of Arowana, revealed at the 2121 annual general meeting that the "central kitchen" projects in Langfang, Chongqing, Xi 'an, Shaanxi and Hangzhou, Zhejiang are expected to land at the earliest this year. The market generally believes that after the "central kitchen" is fully implemented, it is expected to bring new profit growth to Arowana.

As of August 2, Arowana closed at 73.14 yuan per share, with a total market value of 396 billion yuan.