Beime two times of business experience declines overseas gold-plated disputes

Overseas gold-plated dispute strategy transformation in the throes of the milk powder expansion to meet the challenges of the whirlpool in the milk of the boss August 27, 2014, is Wang Zhentai into Beime (002570) Chairman of the post 6 months of the most memorable day. On this day, Beime announced that with foreign milk giant Fonterra Group to establish a global strategic partnership, Fonterra will be more than 3 billion yuan in the cost of part of the offer to buy 20% of the company's shares, Beime to take this is the hope of a key step of globalization. Since February 24, 2014, the 6 months since his appointment, no doubt is also stepped Wang Zhentai heavy pressure on 6 months, Wang Zhentai in May, "The pressure of Alexander" to describe their feelings after taking office. In fact, while trying to find international collaborators and making strategic transition, the "ugly" financial figures of Wang Zhentai have become an unavoidable embarrassment: in the first quarter of 2014, the net profit of 36.34% and 2014.5 declined by 72.09%, 2014 third quarterly forecast net profit decline 25%-75% ... 20% the international cost of equity August 27, 2014 midday, has suspended a long Beime suddenly announced its and Fonterra group strategic Cooperation News----------------------------------------------- The cooperation is mainly divided into two steps: First, Fonterra Hong Kong will, by issuing a partial offer to all shareholders of the United States of America, make equity investments in order to buy up to 200 million shares of the Bedouin, accounting for all of the outstanding shares in the U.S. Second, upon completion of the offer, the two sides will jointly form a joint venture entity in Australia, which will purchase the Darun (darnum) infant formula factory, which is owned by Fonterra's affiliated party in Australia, and produce powdered infant formula, base powder and other nutritional powder for Fonterra Group and Belle-American. The total investment is expected to be 200 million Australian dollars (51% of Bedouin shares, Fonterra Holdings 49%). Both sides did not disclose the offer price, the New Zealand media reported that Fonterra's chief financial officer disclosed part of the offer price of 18 yuan per share. The closing price of the June 18 before the U.S. suspension was 14.36 yuan/share. The comparison of these two prices means that Fonterra has paid a premium of about 25% per cent for the offer and will pay a total of about 3.6 billion yuan for the bid. Dairy Expert song that this is a good deal for Fonterra. Beime as a domestic well-known milk powder brand, in the domestic has a mature channel, but also has a higher market share, is undoubtedly the need for localization and mature channels of Fonterra in China excellent partner. Fonterra Besides is the main raw material supplier of China Dairy industry, its under the same own "is full", "Anlene", "an Jia" and so on the brand of milk powder, but it is not ideal that the infant milk powder brand "full" effect is promoted in the Chinese market since last year. In reducing the risk of the policy at the same time, can use the channel of the United States to distribute its milk powder brand, becomeFonterra "Bundle" The main reason for local enterprises. According to the U.S. bulletin, future cooperation between the two sides will also include: to explore joint investment in China to build pasture, will be further cooperation in other areas, including product General Agency agreement, future cooperation expansion, priority cooperation, New Zealand/Australia supply chain development, intellectual property and other aspects of cooperation. As for the U.S. side, let the 20% stake in the Chinese dairy market has long been laid out as a supplier but to some extent also can be called a competitor of Fonterra, this deal is cost-effective? Then we need to talk about the cooperation intention of the Bedouin. "From the consumption of Chinese dairy industry, the production is far from enough, must have global resources to do a strong complement." Globalization is the inevitable route of Chinese milk powder enterprises. "Wang Zhentai, chairman of the United States, said in an interview with the China Securities News reporter. On August 27, the announcement of cooperation news, Wang Zhentai also said that the United States will take advantage of this strategic cooperation, in China at the same time, accelerate the internationalization of the strategy, and actively build global brands, accumulated in the global market operation experience, to carry out a global operating model, to promote the world's industrial layout, The realization from the milk source management to the internationalization of production technology, for China's dairy enterprises to go out a solid step. As Wang Zhentai said, internationalization strategy is the most important reason for us to seek cooperation with Fonterra. Dairy industry expert Song said, compared with the demand, China's milk resources supply is relatively weak, the north-South regional Gap, and the price is relatively high, the future with the increasing demand, milk resources supply and demand gap between the big contradictions will exist for a long time. Through overseas investment or with foreign large dairy enterprises strong cooperation, will directly enhance the enterprise milk resources supply support capacity. To the dairy industry research for many years, Putian Sheng Road Chairman Leyong also pointed out that the dairy enterprise internationalization very early, especially milk powder enterprises, on the one hand, the need for a stable import of milk source protection, on the other hand, consumers of domestic milk powder distrust also prompted enterprises to go out, " Domestic enterprises in the field of milk powder competition must go out to do a good job in the global layout, Beime as domestic milk powder boss, also need to use global resources to seek their own development. "Before this, including Yili, Guangming, Shengyuan, Li, flying cranes and other domestic dairy enterprises in the internationalization of the action." Beime 2012 also with the Irish Kerry Group strategic cooperation, and on this basis in 2013 to further establish a wholly-owned Irish subsidiary, the production of infant formula and so on. But there are dairy analysts for the U.S. and Fonterra's strategic cooperation is not optimistic, think Beime pay 20% Stakes is too big, "No shareholding can also get Fonterra raw materials, more can use like other dairy companies such as direct set up factories or even acquisitions and other international means, no need to Wolf." "After the offer is completed, Fonterra will become the second largest shareholder in the United States." It is reported that by virtue of the 20% stake, Fonterra will be entitled to 9 people in the U.S. Board of directors to get 2 seats. But in the announcement, Fonterra also committed itself and its affiliates not to seek control of the Bedouin, and the Xiahong group and the U.S.As the controlling shareholder and the actual control person status unchanged, the strategic direction of Bedouin beauty is unchanged. In this regard, Leyong that no way to evaluate the cost of 20% equity is not worth it, because in the process of international cooperation business interests are not the only evaluation criteria, and for China's milk powder enterprises, compared with other foreign milk companies, Fonterra is definitely one of the most familiar, more understanding of the partners. 2014 is also a year of great change in China's infant milk powder industry. The policy that has been promulgated since last year, is changing the market environment and development mode of milk powder industry gradually, also make the competition between milk powder enterprises more white-hot. "Rowing Against the Tide," as the boss of domestic milk powder in the United States, can grasp the key period of the industry, solid domestic leading position, in the U.S. founder Xiahong "Fade Out", such a heavy burden also fell on the Wang Zhentai shoulder. "Two times" encounter performance decline regardless of the nature of the cooperation is worth, and regardless of the external evaluation of this, internationalization strategy in the development of the United States, the status of the plan is already established. A dairy source said that the current Bedouin beauty is "the next big Game", and internationalization strategy in which plays a very important role in the booster. Wang Zhentai said that the globalization strategy of the United States is a very important aspect of whether the U.S. has been able to maintain a good momentum of development under the current scale and volume, since the "two startups". Wang Zhentai's "two pioneering" is the new stage of development that is being experienced by the United States--from "domestic milk powder boss" to "baby food first brand" advanced. Compared to Yili, Mengniu and other old dairy companies, founded in 1999, the development of the Bedouin-American history is not long, but the rise of the speed is indeed amazing. In 2002, rice noodles started with the United States to officially enter the field of infant milk powder, and in 2008, "melamine" after the rapid win market opportunities, in 12 years will develop into domestic milk powder market share first. AC Nielsen data show that 2012, in terms of sales, the first five brands of milk powder market share for the United States 12.3%, more than 11.7%, Wyeth 11%, Bedouin United States 8.7%, Abbott 7.7%, the top five brands, only Beime a domestic milk powder enterprises. 2013, by the industry changes, "Botox" and many other factors, milk powder market before the top five brands have also changed, Wyeth's market share rose to the first, more than the United States to exit the top five brands, and the United States is still firmly occupy the first domestic brand, all brand third position. "The brilliance of powdered milk has become the past, Beime put forward two times pioneering slogan, entered the new category." How to develop better in the new field is also an entrepreneurial process. "Wang Zhentai said. February 8, 2014, the United States to rename the company, the name of "Zhejiang Bedouin industry and Trade Co., Ltd." changed to "Belle-American Baby Food Co., Ltd.", the formal release of the company's strategic transformation, focus on baby food signals. However, the "two-time entrepreneurship" process is the continued decline in the performance of the U.S.This also causes the market parties to the company's strategic transformation path to have the worry. Since 2013, the performance of the United States and the U.S. growth rate of the ladder-type decline in the net profit indicators, for example, Its net profit growth rate fell from 94.21% in the middle of 2013 to 64.28% in the third quarter of 2013, down to 41.54% in the 2013 annual report, while net profit in 2014 was a negative growth, down 36.34% per cent. The latest disclosure of the 2014.5 Annual report of net profit decline further deepened. In the first half of this year, the United States to achieve business income of 2.405 billion yuan, the year-on-year decrease of 25.24%, to achieve the ownership of the listed company's shareholders net profit of 108 million yuan, the year-on-year decrease of 72.09%. Bedouin reputation, formula milk industry reform, the company is undergoing business transformation and process reengineering, resulting in sales of infant formula milk products in a short period of time, the first half of the business income fell a larger, lower profit than expected. The company also expects net profit to fall 25% to 75% per cent in the first three quarters of this year. As the performance of the U.S. quarterly decline, another milk company in China, Yili shares of milk powder business is showing an upward trend. 2013, the Yili milk powder business sector income growth of 22.92% year-on-year, the first half of this year, its milk powder business plate revenue growth of 9.1% year-on-year. After a six-month report by the U.S., Societe Generale Securities analyst Huangmao Cut the full-year performance forecast for the U.S., which is expected to fall 14% in 2014 years, net profit down 40% and temporarily maintain a "neutral" rating. Like Huangmao, most analysts are wary of the US performance this year. CICC expects the adjustment period to last for more than half a year, with a low forecast for its full-year performance for 2014, and hopes the company can complete the adjustment as soon as possible and travel light by 2015. In fact, a short-term adjustment to the future of "light" is also what the United States has always hoped. Wang Zhentai that the core of the Bedouin is to build a sustainable business, profitability is only an important part of the company to do a lot of things are not for today, but for tomorrow, the day after. A marketing insider who continues to be concerned about the US, said the Chinese securities News reporter that it is too early to evaluate the two-time venture or strategic transformation of the US, which will take at least two years. But focusing on the baby food industry, the direction is correct and the road is tortuous. Another industry has expressed concern about the two ventures in the United States. In his view, these two years is the most critical period of development of infant milk powder industry, the deepening of industry policy is gradually changing the interest pattern of infant milk powder industry, all enterprises are doing their best. As the boss of domestic milk powder in the United States, if you can not go all out, but also by other business dispersed energy, the lost market will be very difficult to get back. Non-milk powder business Addition challenge "in the United States to build hundreds of billions of corporate goals, has talked to industry experts, they are startled, because the current Chinese infant milk powder market total size is not enough billion." ButDue to the internal positioning of the United States has changed a lot, the future can not be simply interpreted as a milk powder enterprise, the future of the U.S. business income from the United States is not milk powder business. Wang Zhentai, chairman of the U.S., said to the China Securities News reporter. With the flowers, according to data show that since 2008, the U.S. Milk powder business share has continued to grow, milk powder revenue accounted for the proportion of the company's operating income from the 2008 Annual report of 77.7% rose to 2013 annual report of 94.41%, in the middle of this year the figure is up to 96.21%. It is well known that the current market for infant milk powder, which contributes more than 90% of the income of the U.S. Fonterra CEO Sio Shi Gans August 27 also said that the next five years, China's infant and child products demand, the increase will be more than the rest of the world add up. According to AC Nielsen statistics, 2013 domestic milk powder market sales of about 60 billion yuan. Nielsen also predicts that in the next few years infant milk powder will expand to billions in 2016, at a compound rate of nearly 14%. For the change in the status of milk powder business, Wang Zhentai explained, Beime for the prospect of good milk powder is not not to pay attention to, is not to reduce the proportion, but to do addition, on the one hand does not weaken the development of milk powder, on the other hand also to increase the investment in the business of non- It is understood that the United States and its consumer group positioning of the 0-6-year-old to expand to the current 0-12-year-old, to this end, in the milk powder business, Beime also set up a complementary food, parent-child food, children's health food, maternal and infant nutrition and other business departments. Wang Zhentai that the milk powder market competition has been very fierce, compared to the baby food can expand space. According to Wang Zhentai's public stance this June, the future of the U.S. milk powder business accounted for only one-third of the proportion. According to the planning of the United States, its non-milk powder business in the main product-the second half of child milk will be pushed to the national market, but also become one of the main concerns of the industry. November 2013, Beime announced the investment of 350 million yuan in Guangxi Beihai set up Children's Milk Co., Ltd. this year, Beime again announced the investment of 585 million yuan in Tianjin to build an annual output of 150,000 tons of child formula milk and regional distribution Center project. Security analyst Su Ching Qing, said that the United States completed the children's milk production capacity of the North and South areas covered, two projects completed after the child milk production capacity will reach 210,000 tons, is expected to reach the postpartum child milk will become the company's new profit growth point. The huge space in the children's milk market is the main reason why the industry is concerned about the children's milk action. In addition to you, Wahaha and other enterprises, a few big dairy giant Yili, Mengniu, bright have already cut into the children's milk market, QQ star, future star, etc. also in recent years, respectively, the rapid development of Yili and Mengniu Star products, sales are in the 1 billion yuan level above. Su Qingqing said that the children's milk industry is still in a boom period, the current industry size of 35 billion yuan, still maintain 30% annual growth. Su qingqing thought, Beime do child milk business is a natural extension, with children and consumers grow together, with a natural brandand Word-of-mouth advantage. There are many years of the word of mouth in the production of milk powder, the U.S. cut child milk than other from the "white milk" to expand to infant milk enterprises more has been recognized by consumers the advantage. Its conservative estimate, Beime 2014 child milk sales can reach 20,000 tons, income contribution 260 million yuan. However, a PayPal dealer told the China Securities News reporter that we also hope that the results of the introduction of child milk is good, but the final market effect is difficult to say, because to seize the share of others. Now the child milk market has yili, Mengniu and other strong brands, competition is very fierce, Beime as a new entrants, must have a stronger strategy and better implementation. The U.S. semi-annual report also showed that the first half of this year, the U.S. children's Milk Co., Ltd. sales income of 2.4275 million yuan, a loss of 17.74 million yuan. Apart from market control, another challenge for the U.S. to enter the non-powdered milk business is product storage and research and development. It is important for the "recruit" to develop the baby food which is suitable for market demand, differentiated and competitive. But product reserve and research and development need to accumulate continuously, not overnight work. "The timetable for the development of the non-powdered milk business is related to the progress of scientific research. "Wang Zhentai has admitted that in the future, Bedouin will use a lot of scientific research force to study the baby food outside the milk powder, will be suitable for 0-12 years old, especially the 3-12-year-old products big enough, and quickly to the market." The head of the Bedouin Research Institute has previously said the development of the business in the United States from the organization of the research Center can be seen, the institute has set up a formula, complementary food, parent-child food, children's health food, maternal and infant nutrition and other research and development centers, hope that in the other four areas will have the next formula such products appear. The worst time is the past "should say has been to the bottom, because the channel inventory has dropped substantially, raw milk prices are gradually falling, the future cost back to normal state, will gradually better." "This is the answer asked by Wang Zhentai at the end of May this year to look at the continued decline in the U.S. The high inventory is a major problem that Beime has criticized before, and it is also a major cause of the sharp decline in corporate performance. A U.S. distributor in Henan Province to China Securities newspaper reporter said that this year's sales decline is very strong, last year's Yahuo led to the price of this year is very messy, the flow of goods fleeing serious, dealers do not make money. According to him, before the inventory more time has nearly 3 months of inventory, now inventory has been basically restored to normal state, maintained in one months. For high inventories, Wang Zhentai explained that last year, starting from May, because the main product capacity is insufficient, the international supply chain is not available, leading to market break, after many efforts to December products only to the market, to meet the orders and quickly replenish the market, resulting in high channel inventory last year, It has led to a slump in sales and a decline in profits since the first quarter of this year. So in the internal process reengineering, at the same time, the United States in the first quarter also began to purify the channel inventory, "not in accordance with the conventional plan to require distributors to add orders, but a benign digestion, the total channel trend is the moreMore benign. "Wang Zhentai said. According to the U.S. semi-annual report, the first quarter of this year to achieve operating income of 1.088 billion yuan, down 35.9%, the second quarter to achieve operating income of 1.317 billion yuan, down 13.4%; Hongyuan Securities Chen Songquin that this shows that the U.S. channel inventory has been gradually cleaned up to the normal state, the worst time has passed, the beginning of the three-quarter company revenue is expected to gradually stabilize. CICC also raised its forecast for 2015/16 of the company's performance. The reason is: optimistic about the company a series of internal and external combination of "combination boxing" effect appears; considering the company's "Green Love +" and children's milk business forecast; second quarter company income quarter-on-quarter growth 20%, social inventory also fell to 12-month low, showing the adjustment is nearing the end, the company's fundamentals will It is understood that the latest high-end products in Ireland, Irish original pot imported milk powder "Green Love +" has been listed, price of 335 yuan per can. Societe Generale Securities pointed out that the first half of the year, due to intensified market competition, especially high-end foreign capital of the original milk powder price, squeezed the high-end products "Love +" ("Love +" is only raw material imports, and pricing is not less than some foreign imports of imported milk powder) market space, but also led to "Green Love +" after the listing, is expected to contribute 2014/15 respectively income 500 million/1.6 billion yuan, part of the replacement before the "Love +" to enhance the product structure. From the industry level, since 2013, many ministries in the infant milk powder industry continued to vigorously promote a series of changes, including antitrust, import control, production license review, to promote milk powder enterprise mergers and acquisitions, policy to eliminate the industry environment, support national brands, the elimination of the industry's intention is obvious. "Promotion of infant formula milk powder Enterprise merger and reorganization work plan" made clear that by the end of 2015, for the formation of 10 or so annual sales income of more than 2 billion yuan of large infant formula milk powder Enterprise Group, the first 10 domestic brand enterprises industry concentration reached 65%; by the end of 2018, Strive to form 3-5 annual sales income of more than 5 billion yuan of large infant formula milk powder Enterprise Group, the first 10 domestic brand enterprises industry concentration of more than 80%. Wanguo Securities said that the short-term milk powder industry is expected to continue to increase competition, in the medium and long term, under the impetus of government integration policy, industry concentration is the trend, the future domestic milk powder is expected to be the pattern of oligopoly competition. Policy endorsement, domestic milk powder unique channel advantage make it or become the biggest beneficiary of policy. Since 2008, in the domestic infant milk powder market, domestic milk powder and foreign milk powder almost evenly divided the world. However, compared with foreign milk powder in the one or two-line city of high occupancy, domestic milk powder market is mainly concentrated in the two or three line and the following cities, and even already sank to the township market. Industry analysis that the state "separate child" policy gradually liberalized, the impact on the two or three-line city is greater, so the increase in milk powder market is also more appear in domestic milk powder entrenched in the two or three-line cityand the following markets. "Because the United States is the first to enter the city and township of milk powder brand, the three or four-line urban market Bedouin always attaches great importance to the future will not relax." "Wang Zhentai said. In fact, Beime in the domestic coverage of more than 80,000 sales outlets, but also the natural choice with its strategic cooperation is an important reason. UBS Securities, Wang Peng in the latest release of the report, said that the United States and the U.S. fundamentals of the worst time should have passed, the industry to inventory phased end, the local leading enterprises are expected to rely on "policy endorsement + channel Advantage" to further enhance market share.