Bright Dairy has lost 30% of Yili's income due to Sheng's failure in 10 years

In the first half of this year, Bright Dairy realized revenue of 6.46 billion yuan, which is 29% of Yili shares and 35% of Mengniu Dairy.

When everyone talks about the food safety crisis, little attention has been paid to the quiet changes in the dairy industry in the capital market in the past 10 years.

In 2002, Bright Dairy was listed. This is another giant of the domestic dairy industry that has entered the capital market following the listing of Yili in 1996. Two years later, the late Mengniu Dairy (microblogging) also stepped into the capital circle and chose to list in Hong Kong. As a result, a tripartite pattern was formally formed.

The Big Three's contest was initially undivided. By 2004, the market capitalization of Yili, Mengniu and Guangming were 2.38 billion, 8.21 billion and 7.5 billion respectively.

However, in the past eight years, the Big Three’s situation has now become a race for duo. The market capitalization of Yili and Mengniu reached 32.2 billion yuan and 41.6 billion yuan, respectively, and Bright was only 8.86 billion yuan.

Not long ago, Guangming had just completed its definitive increase. Why did this company, which lost its golden age to China's dairy industry, decline in 10 years, and it once again reached out to the capital market, and how it relates to its rising strategy?

10 years of prosperity and decline "The success of the light is in the hands of the former chairman Wang Jiafen. She worked hard for more than 10 years to make the company go public, but after the company's product structure lags the market, when Yili and Mengniu are at room temperature milk When it comes to power, the light also depends on low-temperature milk, and it is not surprising that opponents easily overtake or even beat back." A person close to Bright Dairy told reporters.

Before the watershed in 2003, the most popular product in the dairy market was low-temperature milk.

A food analyst in Shenzhen told reporters that “low-temperature milk has good nutrition, high prices, and strict preservation conditions, and it is naturally more suitable for the consumption of residents in large and medium-sized cities.”

From this point of view, light occupies the edge. Due to the high degree of concentration of large and medium-sized cities in East China, the bright and natural location in Shanghai has a geographical advantage. Since Wang Jiafen’s entry into the Ming Dynasty in 1992, he has been deepening the improvement of the cold chain system and the construction of milk resources in East China. So, East China The flow of fertilizer into the light of this home field is also a matter of course.

Just in 2002 when Guangming was listed, Guangming stood at the highest peak of the domestic dairy industry. The company’s revenue exceeded Erie for four years in a row, and Mengniu at the time was still planning for the market.

However, one year later, the situation deteriorated.

The Iraqi interest rate first promoted normal temperature milk, followed by Mengniu. This kind of product is easy to carry, has lower preservation conditions, and is cheaper. The vast rural market has thus opened its doors to Yili and Mengniu.

From then on, Yili produced normal-temperature milk in batches, and its annual income surpassed that of light for the first time. Since then, Yiqi had stopped flying, and Mengniu, who followed Yili, also came from behind, and the light fell from heaven to the bottom.

“The light is not a lack of opportunity. If it was decided to change the product structure at that time, the current situation would be difficult to say.” The aforementioned bright-sighted people sighed. “In the urban and rural areas in 2005, Wang Jiafen refused to cooperate with Tetra Pak at room temperature. Milk, now it seems that this is a losing move."

Later stories are well known. Bright growth continued to be sluggish, even with a net loss of 286 million yuan in 2008. Wang Jiafen also stepped down as general manager and chairman in 2007 and 2008.

Post-Wang Jia Fen's Passive Assault <br><br><br><br><br><br><br><br><br><br><br><br><br><br> Post-Wang Jia Fen's Bright Dairy, the company adjusted its product structure In 2007, the cold chain system of low-temperature milk was laid out in the eastern coastal areas and has not been constructed since then. At the same time, the company added the “Excellent Plus” series of normal-temperature milk against the giants of Yili’s Jindian and Mengniu’s Terunsu to last year. Until now, normal temperature milk has accounted for nearly 40% of the main income, and low temperature milk is 17%.

"Although the threshold of room temperature milk is not high, but a single brand as long as a certain scale, it is difficult for other brands to come in." The aforementioned analyst said.

Indeed, the excellent + normal temperature milk that Guangming once strongly promoted has been suppressed by Yili's Jindian and Mengniu's Terunsu since its launch. Since the brands of Yili and Mengniu have already been deeply rooted in people's hearts, sales channels have also been fully sunk to all parts of the country, and the opportunity for missed opportunities has been difficult to make a difference. The products are in a state of low profit all year round.

Just last year, Bright's "Excellent Plus" had a price increase, but the sensitive market immediately caused the sales of this product to fall. Although the achievements of Wang Jiafen's steering at the helm of the East China region have deepened in the East China region, the limitations of the market have been lingering. Bright nowadays the regional income is 1/3 in Shanghai, 1/3 in East China outside Shanghai, and 1 in other provinces and cities. 3, of which South China and North China were at a loss last year. Yili's penetration of the national strategy is more effective, with headquarters in North China accounting for 31.9%, South China 26.67%, and Huadong Huazhong 40.88%.

In the face of perennial passive attacks, it has forced Bright Dairy to finally embark on a radical path.

Bet into the disease in Moss Lee <br> <br> end of last year, the development of light milk at room temperature for several years still could not escape the shadow of loss, loss of profits in 2011 totaled 86.9 million yuan. However, this year, the trend seems to have a turning point.

In the first half of this year, Bright Dairy's income was 6.46 billion yuan, up 16.49% year-on-year, and net profit was 96.68 million yuan, up 31.89% year-on-year. Although the scale is not comparable to the 12.1 billion yuan revenue of Yili shares, but both Yili and Mengniu have signs of declining performance year-on-year, the bright rebound has attracted attention.

Institutions generally believe that this is the bright start from last year's normal temperature yogurt Mossian began to release the scale effect.

“Mosilian is a common room temperature yoghurt that is not common in China. Bright has now followed the example of that year, and wants to occupy the market through large-scale production and determine the core position of the brand. However, Yili and Mengniu want this kind of product not to be special. Difficulties, fortunately there is a killer in bright light." The aforementioned analyst said.

The so-called "killer" is the exclusive brand of Mosley. Mossarian is a village located in Bulgaria. It is said that the yogurt made from local special bacteria can prolong life. Guangming signed an agreement with Bulgarian Changshou Village, which has exclusive rights to use the brand for a long time in China.

"To achieve this, Mossarian will have to achieve a scale of 2 billion. Now that Guangming is stepping up its efforts to build a production line, it must go to the market in large scale before the right to use expires."

According to the semi-annual report, Mosley’s eight production lines in Texas have been put into operation one after another, and the production line in Nanjing has also achieved progress of 63%. The only worry is whether the production line in Shanghai can be completed on time.

The Maqiao plant, which is planned to be put into operation next year, has a progress rate of only 14%. Bright will relocate its three existing factories in Shanghai. The company is now relocating while producing. After the production capacity is centralized, Maqiao will produce 1,000 tons of yoghurt, 600 tons of pasteurized milk, and 400 tons of normal-temperature milk per day. The intention of brightly supporting Mosilian is obvious.

However, the high density of construction led to a continuous increase in bright liabilities. In the first half of this year, the bright debt ratio was 63.63% and current liabilities were 4.02 billion yuan. The Maqiao project company has invested 497 million yuan in advance, but according to plan, the factory still has a funding gap of 1.42 billion yuan, accounting for nearly 20% of total assets. With high debts, rising costs, and fiery eyebrow project gaps, the bright capital chain has become extremely hungry.

As a last resort, Guangming turned to the capital market. It raised 1.42 billion yuan from 8 institutions through fixed income increase, and it has already replaced the previous investment funds and temporarily solved the urgent need.

However, “Whether or not Mosilien can establish the core position of the market, whether or not the normal temperature yogurt can be compared with milk such as Telensu is still a problem. After all, people who drink yogurt are no more than milk.” The aforementioned person told reporters.