Dong Ejiao’s third quarter net profit increased 295.58% year-on-year and inventory recovery was confirmed.

Original title: Dong Ejiao’s third-quarter net profit increased 295.58% YoY and inventory recovery confirmed

On the night of October 30,Don EjiaoThe third quarterly report for 2020 is published. The report shows thatDon EjiaoAchieved in the first three quartersOperating income2,041 million yuan, realized attributable to the listingthe companyshareholderfromNet profit-21 million yuan.But it is worth noting that the company’s third quarterPerformanceIt continued to rebound, achieving operating income of 945 million yuan,Year with yearIt increased by 0.6%, realizing theNet profit63 million yuan, the third quarter of last year’s networkprofitAn increase of 295.58%.

After suffering its first loss in the market last year,Dong EjiaoBy reducing stocks and transforming digital marketing, seeking to slow down the performance decline From the perspective of single-quarter performance changes, the company’s first quarter 2020LostThe amount is 83.87 million yuan, and the net profit attributable to shareholders of listed companies in the first half of the year was -84.02 million yuan, which also means that Dong-e Ejiao basically achieved break even in the second trimester. In the third quarter, Donge Ejiao not only achieved a radical change in performance, but also achieved substantial year-on-year growth.

According to industry estimates, Donge Ejiao’s “inventory recovery bottoming out” logic has been confirmed.SupplyGiven the circumstance that the terminal demand of the pharmacy gradually recovers, the companyShippingVolume is expected to increase further in the fourth quarter.

Donge Ejiao noted in the above performance forecast that due to the national epidemic of new corona pneumonia, during the reporting period, especially in the first quarter, the resumption of work and production by some national distributors was postponed, and in general they were considered places of sale such as pharmacies.Passenger flowThe severe drop in volume has severely affected the company’s offline business.

However, the offline business is blocked and it is also a company in disguise.AccelerationThe word transformation has increased motivation. This year, the company will moveThe InternetAs infrastructure, grafting traditionindustry, Make full use of offline resources, empower each other online and offline, and deependealModel reform, establish and perfect the digital operation platform, and promote theBrandDigital transformation of marketing.

At the same time, the company continues to optimize and enrichproductThe system continuously introduces Ejiao products that are convenient, instant, and meet the needs of different consumers, effectively improving the comprehensive value of the products; actively expand the extension business, create a new category of Ejiao bird’s nest, and deepen the ready-to-eat product,DifferentiationCompetence to promote the innovative development of new business volumes.

Some analysts believe that the profitability of Dong Ejiao cannot be separated from two main factors: one is the Ejiao powder and the Ejiao pearls (Chinese medicinal herb decoction pieces) recently released by the company and other practical and instant products. Second, operations with online and offline clients have been vigorous, to some extent, to cover adverse effects in the first half of the year.

It is understood that in 2020 Donge Ejiao will officially start its digital transformation, and its new social retail platform “Jiao Life” has a total of 1.08 million customers. The analysis pointed out that digital transformation can help Dong-e E -Jiao to further clean his inventory at the same time, and can also stimulate Dong-e E-Jiao to innovate and adapt.marketdemand.

With the first results of the digital transformation, the reduction of stocks of the Ejiao faucet also comes to an end. The company also said that the current channel inventory is gradually decreasing, while assimilating the existing inventory, the company rationally controls shipments and promotes a healthy and healthy channel cycle.jobsPreview, it is expected that by the end of this year, the channel in general is healthy.

(Source: Securities Daily)

(Responsible editor: DF532)