In the past, Jiu Yang Shares, which once boasted "a cup of soy milk to conquer the nation," not only faces the predicament of being "attacked from both sides" in its main business. The established strategy for the future, "good machine + good beans + good water = good soy milk," has been criticized as "vague and unclear" and difficult to achieve.
This year, Jiu Yang Shares (SZ002242) seems to be experiencing some bad luck. First, it announced a downward revision of its net profit forecast, with the growth rate dropping significantly from 15%-50% to 0%-15%. It then indicated the cancellation of the equity incentive plan announced at the beginning of the year. Simultaneously, it publicly announced an investment of 1 billion yuan to enter the healthy leisure tourism project. However, the most controversial move is Jiu Yang's shift from specialization to diversification in the home appliance industry, promoting its development strategy of "good machine, good beans, and good water make good soy milk."
Zhejiang Wanli University guest professor Feng Hongjiang analyzed for the China Enterprise News reporter: "On the surface, from soy milk machines to soybeans, purified water, and ultimately a good cup of soy milk, a perfect corporate strategy chain has been formed with health culture as the bond. But considering the current state of the Chinese market, soy milk machines, water purifiers, and soybeans span two fields—industry and agriculture—and eventually need to be integrated into the cultural tourism industry. Given Jiu Yang Shares' existing strength and capital base, leveraging the entire home appliance cost to move the cultural tourism industry lever is clearly unrealistic."
**Main Business of Soy Milk Machines Under Pressure**
In the past, soy milk machines emerged from the small home appliance industry, which had over 300 categories, thanks to the social context created by the 'melamine' tainted milk incident and the industrial competition surrounding the soy milk machine market led by companies like Jiu Yang and Midea, which quickly expanded the market share of this product category.
In May 2008, Jiu Yang, the king of soy milk machines, seized the opportunity to go public, achieving an upgrade and transformation in its enterprise development. Unfortunately, just four years after going public, Jiu Yang encountered the impact of "the overall slowdown in the domestic soy milk machine market growth," leading to declining profits and increased pressure on performance growth.
In the view of Hong Shibin, deputy chairman of the China Home Appliance Marketing Committee: "The slowdown or even decline in the soy milk machine market was predictable. Compared to major appliances like air conditioners and TVs, soy milk machines are not essential household items. The future growth of this product depends not only on the proactive promotion by large enterprises but also on the impetus provided by societal consumption habits and industry trends." It is reported that after several years of concentrated and explosive growth in the domestic soy milk machine market, the next few years will see a period of adjustment and decline. This will pose significant challenges to the entire soy milk machine industry.
For Jiu Yang, this is not the worst news. The China Enterprise News reporter noticed that Jiu Yang Shares warned in its annual report: "The main raw materials required for production include copper parts, plastic parts, and stainless steel components, with key raw materials accounting for more than 90% of operating costs. In the near term, inflationary pressures have increased, and the prices of bulk commodities continue to rise, keeping production costs high, negatively impacting company performance."
Yingkang Market Research Director Peng Yu pointed out: "From a global perspective, the prices of raw materials such as copper and iron will continue to rise, and the increase in operating costs for the home appliance industry is a general trend, a challenge all enterprises must face." The slowing market growth, even stagnation, and rising raw material operating costs have further exacerbated the already fiercely competitive soy milk machine market. However, in Hong Shibin's view: "Jiu Yang not only faces the challenge of upgrading its product technology to mitigate cost pressures but also faces pressure from competitors like Meiling, Dongling, and Supor. At this stage, Jiu Yang does not yet have an unassailable leading advantage in the soy milk machine market."
**Transition from Home Appliances to Culture: Vague and Unclear**
Recently, Jiu Yang Shares...