Mashi to lose at least 120 million yuan in short term or difficult to take off the dilemma

Mashi (market, interrogation) 19th issued a notice that the first half of 2014 operating results will appear 120 million ~1.4 billion losses. This is the first quarter of this year to produce net loss of about 85 million yuan in the report card, Mashi again deficit. People close to the situation pointed out that the loss of Wells Square and the internal environment of the unrest has not been involved. In addition, the major brands in the industry in the low end of the big environment, Wells Square adhere to the high-end brand positioning strategy has attracted attention. Mashi fell 0.18 yuan, or 2.38%, to 7.37 yuan yesterday. Short-term or difficult to take off the plight of the first quarter after the loss of net profit, Mashi recently. 19th announced that the water Wells Square in the first half of 2014 operating results will appear 120 million ~1.4 billion losses. Previous Mashi 2013 annual report data showed that the company 2013 total operating income fell 70.31% year-on-year, net profit loss of 153 million yuan, the year-on-year decline of 145%. In the first quarter of 2014, the performance of Wells Square was even more bleak, with revenues of only 74 million yuan, down 77.03% per cent and net profit losing 85 million yuan, down 175% per cent year-on-year. For the reasons for this deficiency, Wells Square said that in order to deal with the changes in the industry and the market, the company's marketing network, product lines, sales channels and team structure adjustment to build the best development platform under the new situation. Affected by this, the first half of this year's cumulative net profit is expected to be a loss, but the overall operating situation has been slightly better than the company originally expected. The company said that the second half of the year will be from the stability of the price system, pay attention to the development of electricity channels, the reduction of non-alcoholic assets and other aspects to enhance business performance. It is understood that earlier this year, Diageo's corresponding executives have publicly said that this year's water Wells Square is expected to be flat, next year or return to profitability. However, many people in the industry say they are not optimistic. Some analysts believe that the performance improvement of Wells Square is not yet apparent, or difficult to get out of the predicament in the short term. The cause of the dilemma: continuous change in the business sector in addition, some industry insiders pointed out that the Wells square into the current plight, and its personnel constantly volatile internal environment. The personage discloses, because the company manages the layer to change continuously, the internal personnel environment is turbulent, it is easy to be the competitor to dig away the talented person. It is learnt that Diageo has been stepping up its control over the water well square since the completion of its 100% per cent stake in the water well Square Group (formerly the Wholly Hing Group) of the water Wells Square last year. This is something that can be seen slightly from the recent changes in the company's personnel. Earlier, Huang Jianyong, chairman of the company, resigned from his position as director and Chairman of the company on July 4, which seemed to mark the retreat from the company. At present, 5 directors of the Water Wells Square Board have been fully replaced by the "foreign team". People close to the water well square say similar changes will continue, and Diageo will be able to change the company in key positions. Some analysts also pointed out that the foreign people to some extent out of the domestic real market conditions and consumer demand, or not conducive to the future development of water wells Square brand.