McCall has an aftershock due to food safety problems. Close as of May 22BestcryptobasedgamesMcCall shares fell 0. 5%Bestcryptobasedgames.83%, with a total market capitalization of only 12.Bestcryptobasedgames.47 billion yuan. The night before, the Shenzhen Stock Exchange sent an inquiry letter to McCall, including "combined with the company's industry environment, main business structure, operating conditions, comparable companies in the same industry and other factors, indicating that the company's net profit increased year-on-year in the reporting period."BestcryptobasedgamesAnd explain the reasons and rationality for operating income, net cash flow generated by operating activities and net profit to change in the opposite direction.
Receive a letter due to declining performance
McCall has lost money for two years in a row, and revenue has long hovered in single digits. McCall was listed on the Shenzhen Stock Exchange in January 2014. according to the annual report of that year, its revenue was 321.4 million yuan and its attributable net profit was 41.43 million yuan, forming a product line dominated by dairy products and baked goods. Among them, dairy products include sterilized milk, prepared milk, milk drinks and fermented milk; baked goods include bread, cakes, Chinese and western cakes, moon cakes and other products. Until 2021, McCall briefly broke through the 1 billion yuan revenue mark, but the attributable net profit fell 65.01% to 18.46 million yuan compared with the same period last year.
In 2022, McCall got caught up in the "propylene glycol" food safety incident, which cast a shadow over his brand. In June 2022, Changji City Market Supervision and Administration Bureau received the inspection report of Qingyuan County, Lishui City, Zhejiang Province, which was pushed by the National Food Safety sampling Information system platform. The inspection conclusion is that 2 batches of pure milk contains propylene glycol, which is substandard food. In response, Changji City Market Supervision and Administration confiscated 360200 yuan of McCall's illegal income and confiscated all substandard pure milk products and fined him 73.151 million yuan. Affected by the incident, McCall's revenue and attribution net profit both declined: in 2022, revenue fell 13.71 per cent year on year to 989.1 million yuan, while attribution net profit plummeted 2000.54 per cent to a loss of 350.8 million yuan, which exceeded the sum of net profits since listing.
Zhan Junhao, a well-known strategic positioning expert and founder of Fujian Huatze Brand Positioning Consulting, believes that this is a problem that is difficult to repair. The "propylene glycol door" food safety incident has caused great damage to the company's reputation and brand image. Although McCall has taken corresponding measures to rectify, consumers pay very high attention to food safety issues. So the impact of the incident on McCall is likely to last for some time. In the future, with the passage of time and McCall's strict control of food, consumers may gradually restore their trust in McCall.
Get into financial trouble
The house leaked and it rained all night. On April 15 this year, the China Executive Information publicity Network showed that McCall was listed as a breach of trust by the Shanghai Jinshan District people's Court because he refused to perform his obligations under the effective legal documents because of his ability to perform.
McCall was already in financial trouble. In January 2023, due to a contract dispute between the controlling shareholder "McCall Group" and Huarong overseas Chinese Asset Management Co., Ltd., part of the shares held by the McCall Group and its real controllers were pledged or frozen, and a public auction was held at Ali auction.
Economist Yu Fenghui said that the financial difficulties of controlling shareholders and controllers, especially the issue of equity pledge and freezing, have undoubtedly added uncertainty to McCall's development. In this case, the company may face financing difficulties, the decline of decision-making efficiency and the potential risk of shareholder structure change. If the shares are auctioned, the entry of new shareholders may bring a new strategic direction, but it may also be accompanied by the challenges of management changes and internal integration. In the long run, the stability of the shareholder structure is very important for the sustainable operation and development of the company. Mitchell needs to properly deal with these issues to ensure the stability and transparency of the corporate governance structure.
In Zhan Junhao's view, McCall is now in "internal and external troubles." Internally, food safety is the lifeblood and bottom line of food enterprises. The "propylene glycol" food safety incident has led to a sharp decline in McCall's word-of-mouth and sales; externally, throughout the dairy market, the situation of "two superpowers" is still maintained, and the competition is becoming more and more fierce. McCall may face the dilemma of continuing to lose money.
Zhan Junhao suggested that McCall should first strengthen product quality control and food safety management to ensure product quality and safety and rebuild consumer trust. Secondly, McCall should strengthen research and development, launch more new products that meet the needs of consumers, and improve market competitiveness. At the same time, it can strengthen brand marketing and channel expansion, improve brand awareness and reputation, and attract more consumers. In addition, McCall can also consider cooperating with enterprises in the same industry to jointly open up the market and achieve mutual benefit and win-win results. Finally, the company needs to solve the debt problem and ensure the soundness of the company's operation.
McCall once said in the financial report that in the future, in the golden era of "producing area competition", which is the third largest outlet of China's dairy industry, it will focus on national circulation channels with a multi-brand strategy, and lock in the high-end and ultra-high-end demand of the domestic dairy market. To create good Chinese milk.
For future development and other issues, the Beijing Business Daily reporter contacted McCall, but as of the press release, the other side did not reply.
Beijing Business Daily reporter Bai Yang