Chengde Lulu invests 200 million yuan to build a factory in Zhengzhou

Yesterday (August 25th), the company issued an announcement saying that it will set aside 200 million yuan to build a factory in Zhengzhou and invest in building an annual output of 60,000 tons of almond dew. The expansion strategy of Chengde Lulu's construction of plants outside the country, which has been waiting for many years, may be officially kicked off.

Invest 200 million in a factory in Zhengzhou

Chengde Lulu released its interim results report yesterday. The performance of the company in the traditional off-season in the second quarter was basically the same as in previous years. In the first half of the year, the company realized operating income of 980 million yuan, an increase of 40.45% year-on-year; net profit of 123 million yuan, a year-on-year increase of 134.28%; basic earnings per share of 0.65 yuan.

Compared with the interim results, the announcement made by the company on the same day was even more noticeable. Chengde Lulu announced that it will invest more than 200 million yuan to acquire land and build factories in the Zhengzhou Economic and Technological Development Zone. The company will build an annual output of 60,000 tons of almonds dew series beverage projects here. The funds required by the project will be raised by the company itself. Chengde Lulu said that this investment is due to increase the company's beverage production capacity considerations to ensure availability of peak seasons to meet the needs of the downstream market.

The capacity limitation is the Chengde Lulu has been criticized by the market for many years. The current production of the company is mainly concentrated in Chengde. Although there are two production lines in Langfang, it has not yet been fully put into production. The limitation of regional logistics also made Chengde Lulu to be in peak season. The goods are not timely. The sales of almond dew, the leading product of Chengde Lulu, has very obvious seasonal characteristics. The company’s securities affairs representative Wang Jinhong told the “Daily Economic News” reporter that the first and fourth quarter of the year is the peak season of the company, while the second and third quarters are relatively flat. At present, the company's total production capacity is about 300,000 tons. During peak season, production capacity will be very tight, but it will be idle in the middle of the year.

Analyst Hu Chunxia of Guotai Junan believes that the Zhengzhou project will help solve the problem of the inability to transport high-season product shipments due to underdeveloped local freight transport in Chengde. The announcement also shows that Chengde Lulu selected Zhengzhou because it is a transportation hub in the Central Plains and has logistics distribution advantages. The construction period of the project is 1.5 years, and it is expected to be put into production in 2012 and reach capacity in 2013. The company expects to increase annual sales income of 368 million yuan and profit of 30 million yuan after reaching production, which accounted for 28% of the company's total annual index of the same year last year. %.

Follow-up or will continue to expand

In the eyes of investors familiar with Chengde Lulu, this investment is not just as common as setting up a factory in Zhengzhou. The biggest requirement of the market for Chengde Lulu over the years is that it hopes to expand production in different places.

At this year's annual general meeting of shareholders, Wang Qiumin, general manager of Chengde Lulu, introduced investors to the company's production capacity. He said that one of the main shortcomings of Chengde Lulu is that there is no reasonable market layout. “Now the beverage industry is still estimating that there is only Chengde Lulu.”

Wang Qiumin said that due to many factors, each year in the peak season at the end of the year, the railway will not be shipped to the company. The company can only ship it in January each year; but the production date of the product exceeds 3 months, the dealers are reluctant to purchase. , it will cause the company to supply goods in the peak season. Chengde Lulu also said in yesterday’s announcement that there was a large supply-demand conflict during the company’s peak supply period, and the shortage of goods this year was particularly serious during the Spring Festival.

How to solve this problem, Wang Qiumin believes that it is necessary to actively expand production capacity, especially the expansion of production in other places, "to control the transport radius within 500 kilometers."

Yesterday’s “Daily Economic News” reporter called Chengde Lulu and asked whether the company still has a follow-up expansion plan. The company’s securities affairs representative Wang Jinhong stated that only the Zhengzhou project that has been announced in the short term will be decided by the board of directors. . However, she said that from the perspective of the company, it is definitely hoped that it will continue to expand.

And Chengde Lulu also stated in yesterday’s announcement that the investment in Zhengzhou will help the company to rationalize the layout and expand the market in Henan and its neighboring provinces, laying the foundation for future expansion to the south and to home and abroad.