1. Revenue grew rapidly last year:
The company's turnover increased from RMB 150.4 million in 2012 to RMB 194.7 million in 2013, while annual profit increased from RMB 57.2 million in 2012 to RMB 70.8 million in 2013, with increases of 29.5% and 23.8% respectively. The company builds its brand through retail stores operated by Zhongsheng and Campel brands. The Zhongsheng series products are positioned as safe and reliable nutritional dietary supplements for middle-aged and elderly consumers, while the Camber series products are positioned as high-end, efficient and convenient natural nutritional dietary supplements for young people and families.
2. Leading health product production technology:
Health products require health approval. Currently, the company has 30 approvals, and the workshops have all passed GMP certification. The company has its own channels. Currently, there are 70 direct-run stores, which can guide consumers and promptly feed back consumer requirements and information to the R&D department to better improve product positioning. The company has many regular customers. The company produces its own products domestically and also imports them from Australia. Production of the 2010 Camper series began in Australia.
3. The company has a deep heritage in the health products industry, and health services are systematized:
The company has been operating in the health products industry for 15 years, its performance has been rising steadily, and product prices are higher than those of companies such as Tomson. The main reason for the premium is the difference between the company's products being high-tech products, brands and after-sales service. The company carries out detailed maintenance, tracks the customer situation, and visits back after 1 week of sales. It is very purposeful and focuses on spreading health knowledge as an adjuvant treatment for cardiovascular and cerebrovascular diseases. 30% of the company's sales and customer service staff are nutritionists.
4. E-commerce business is being developed:
A Cambell online store has already been opened on Tmall, and operators were recruited this year to take responsibility for promotion. Product prices are basically the same as offline, that is, there are occasional differences when promoting products. More than 5 million sales are planned this year. Sales work on the WeChat Mall is also being carried out.
5. Shareholding structure:
Fosun invested in the company's shares in 2013/5, accounting for 10% before the IPO. There are no special agreements when investing. Domestic stocks will circulate later; there should be no policy barriers. Management currently holds 3.3% of the shares, and equity incentives will be considered in the future.
6. The speed of opening stores is expected to accelerate:
The company plans for the next 2-3 years: opening 50 stores each year, and there is a shortage of management talents. Currently, the company is actively reserving management talents. Sales are expected to explode in 2015-16. Sales and customer service staff account for 70%, and sales account for the majority. Selling expenses rate: 15%, which is lower in the industry.
7. The channel will continue to expand
The company operates steadily and is a professional health management expert. We must do a good job in developing products, quality, and services. In terms of channel expansion, it is not easy to enter supermarkets. Dealers will be considered and the right dealer will be selected. Since Fosun is a shareholder, it is possible to consider entering Fosun's pharmacy and designing different products.
8. Summary and suggestions:
The company's product structure is reasonable, the variety is rich, and it has a certain competitive advantage. It has a deep heritage in the health products industry. The speed of opening stores will accelerate in the future, and performance is expected to improve. It is recommended to actively track the company's changes.