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Source: Changjiang Business Daily
Officially take over Bowling Bao (002286Topdappgames.SZ) three years later, the chairman of the post-1995 generation, Desjue, seems to be a little powerless.
Dai Si Jue was born in 1995 to parents Dai Yumin and Deng Shufen, both of whom are capital market leaders. He began to dabble in financial and business knowledge at the age of 15, founded Yongyu Investment at the age of 19, and joined Baolingbao, a listed A-share company at the age of 22. It may be due to inexperience that Desjue officially took over the management of the company in 2021.
Baolingbao is a leading sugar production enterprise. three years ago, the popularity of Yuanqi Forest made Baolingbao popular, and its performance reached its peak since its establishment. However, the technical barriers of the industry are not high, with the acceleration of companies in the industry, the situation is not optimistic. In 2022 and 2023, the company's operating income and net profit fell for two consecutive years. The company's share price is down more than 70% from its 2020 high.
Dai Si Jue also tried to open up a new direction, but a reporter from the Yangtze River Business Daily noted that Bao Lingbao's statement on the strategic layout in his annual report for the last three years was inconsistent and did not seem to have a clear direction.
Encounter performance and share price double kill, can the young Desi feel able to deal with it?
Become the actual controller of a listed company at the age of 22
Like the chairmen of many "post-90s" listed companies, behind Dai Si Jue stands a strong capital family.
Born in 1995, Desjue has a pair of parents who have dominated the capital circle for many years. His father is Dai Yumin, a popular figure in the Hong Kong stock market. He was an executive director of Hong Kong-listed companies such as Zhongmu International and China Regenerative Medicine, and now works for seven companies, including China Merchants Group. Her mother, Deng Shufen, also has a long history. According to data, she is now the executive director, vice chairman and president of the Chinese Business Group, as well as the director of the China Reproductive Health Industry Association and vice chairman of the Strategic Development Committee.
Born with a golden spoon, Desi felt that his childhood was not very easy. At the age of 15, at the request of his father, Desjue came into contact with financial knowledge. According to him, "thousands of pages of a financial book take a week to finish, because a week later, my father will come back from a business trip and make a surprise check on his recent studies." Later, he was sent to study in Singapore and the UK and graduated with a master's degree in financial economics from the University of Manchester.
After graduation, Desjue entered the financial industry in accordance with his parents' expectations. In 2014, at the age of 19, he founded Yongyu Investment, starting at the grass-roots level of the industry. In 2017, at the age of 22, Desjue borrowed 540 million yuan from his mother, Deng Shufen, to take ownership of Bao Lingbao, an A-share listed company.
At the age of 22, he became the controller of a listed company, which aroused heated discussion in the market at that time. However, in the first two years, Dai Si-Jue did not fight in person. instead, his mother, Deng Shufen, served as chairman of the company for many years and served as general manager for a short time.
It is reported that Bao Lingbao was founded by Liu Zongli. In 1997, he paid attention to the tuyere of "oligosaccharides" and led Bao Lingbao to develop rapidly into the field of functional sugar. Soon, Baolingbao partnered with Wa, Xi Zhilang, Mengniu, Yili and other well-known brands, and became the only supplier of fructose syrup to Coca-Cola in China in 2004.
In 2005, Baolingbao's revenue was only 115 million yuan and its net profit was 7.3 million yuan. But when it went public in 2009, its revenue reached 525 million yuan and its net profit reached 39.27 million yuan. When Desijue took over in 2017, the revenue and net profit of Bao Lingbao were 1.593 billion yuan and 49.62 million yuan respectively, a substantial increase.
However, because the raw materials of the products come from corn, corn starch, etc., the upstream is affected by the fluctuation of raw material prices, and at the same time, because the downstream are all giants in the food industry, the company's bargaining power is not strong, so although revenue continues to rise, but Baolingbao's gross profit margin and deduction non-net profit fluctuate greatly.
It was not until March 2021 that Desjue appeared on the list of Bao Lingbao's new board of directors. At this point, Desjue officially took over the leading listed company in the sugar industry. On April 14, Bao Lingbao issued a notice saying that the legal representative had also been officially changed to Desjue.
The competition in the industry is under great pressure and the performance has dropped continuously.
Today, Bao Lingbao is suffering from a "double kill" of performance and stock price.
In 2018 and 2019, in the first two years of taking over, Bao Lingbao continued to increase its income without increasing profits. Until 2020, the demand of the global health market has upgraded, and the sugar substitute has been welcomed by the market. Baolingbao, which is mainly composed of erythritol, has achieved double growth, with an operating income of 2.055 billion yuan and a net profit of 49.86 million yuan.
In 2021, the year Desjue officially took over Bowling Bowling. With the popularity of bubble water in Yuanqi Forest, sugar-free drinks also became popular. As a partner of Yuanqi Forest and a producer of sugar, Baolingbao's performance also soared. In 2021, Baolingbao achieved an operating income of 2.765 billion yuan, an increase of 34.58% over the same period last year.TopdappgamesThe net profit was 202 million yuan, an increase of 304.65% over the same period last year. The company said that in 2021, the supply and demand of erythritol products were booming, and the price of erythritol products increased greatly compared with the same period last year, while driving the market demand for other functional sugar products.
However, the technical barrier of sugar substitute industry is not high, but the input cost of new capacity is high. In 2022, the industry began to expand production rapidly. According to Frost Sullivan's forecast, the total global demand for erythritol in 2022 is only 173000 tons. However, according to the Baolingbao Annual report, the total production capacity of erythritol that can be produced by only six head manufacturers will reach 445000 tons per year, which is 20 times the total consumption of erythritol in China in 2021.
Under the "inner volume" of the industry, the performance of Bao Lingbao has declined sharply. In 2022 and 2023, the company achieved revenue of 2.713 billion yuan and 2.524 billion yuan respectively, down 1.89% and 6.96% respectively from the same period last year. In the same period, net profit was 133 million yuan and 53.97 million yuan respectively, down 33.94% and 59.47% respectively. In the first quarter of 2024, its revenue and net profit were 551 million yuan and 23.17 million yuan respectively.
At the same time, the company's gross margin has fallen sharply, peaking at 13.39% in 2021 and falling to 8.1% in 2023. At the end of 2023, the company's inventory was 279 million yuan, the inventory turnover rate decreased from 9.55 times in 2021 to 7.56 times, and the inventory turnover days increased from 37.69 days to 47.65 days.
The performance of the secondary market is also not optimistic. In August 2020, Baolingbao's share price reached 25.49 yuan/share, and has continued to fall since then. As of the close of May 17, 2024, its share price fell to 6.67 yuan/share, a decline of more than 70% during the period.
To this end, Deseger has tried many times to find a second growth curve, but this goal seems to always change.
In the 2021 annual report, Baolingbao mentioned in his "Future Outlook" that on the premise of consolidating the B-end business, it will actively expand the development of the C-end health business and form a new pattern of integrated development of the three major sectors of biology, health, and industry and finance.
In 2022, Baolingbao said that the company will independently cultivate or select appropriate M & A targets, and form a new pattern of integrated development of the three major sectors: B-end raw material manufacturing, C-end functional food, and investment M & A in the future.
In 2023, Baolingbao also stated that in the future, through business optimization and extension, it will establish three major business segments: food nutrition, medicine, and quality improvement.
Desijue no longer seems to plan to rely on Erythritol. Since 2020, Baolingbao has been deploying a new generation of sugar psicose. However, psicose has not yet been approved as a new food raw material.
Under the fierce competition in the industry, the young Desi felt that he needed to find a way to break through as soon as possible.
