Donge Ejiao's performance in 2020 turned losses into profits?

In terms of product breakdown, Ejiao and its series products achieved revenue of 2.
79 billion yuan, accounting for 81.
82%, an increase of 46.
23% year-on-year, and sales gross profit margin of 62.
74%, contributing 93.
72% of profits; donkey breeding and sales achieved revenue of 296 million yuan, Accounted for 8.
7%; other medicines and health products achieved revenue of 212 million, accounting for 6.
23%, and sales gross profit margin of 56.
82%
.

In terms of market area, East China, North China, South China, and Central China had revenues of 1.
516 billion, 505 million, 466 million, and 416 million respectively, accounting for 44.
46%, 14.
81%, 13.
67%, and 12.
21% respectively
.
Among them, the fastest growth rate was in South China, with a year-on-year growth of 358%, followed by Southwest China, with a year-on-year growth of 48.
05%
.

According to relevant data, Ejiao is on the list of sales of proprietary Chinese medicines in 22 key cities such as Beijing, Shanghai, Guangzhou and other physical pharmacies
.
In Guangzhou, the sales volume of TPO1 was won by Dong E Jiao, which sold over 500 million yuan.
In Shanghai and Beijing, among the top 5 Chinese patent medicine brands in sales, Dong E Jiao ranked first and third respectively
.

In addition, Donge Ejiao also significantly reduced its expenses during the last year
.
Sales expenses in 2019 and 2020 were 1.
327 billion and 838 million, respectively, a decrease of 490 million last year
.
Among them, marketing expenses were reduced by 100 million compared with the previous year, advertising expenses were reduced by 260 million year-on-year, and the two expenses were reduced by 360 million in total
.

According to the financial report, sales expenses have decreased significantly, mainly due to the company's active promotion of digital marketing transformation, and the reduction of traditional media brand expenses and terminal promotion expenses
.

In terms of digital transformation, in order to cater to consumer trends, the company realizes “operating a city without leaving the house” through a digital platform, establishing a digital marketing path around customers, applying mobile Internet technologies and tools, committed to customer operations, and refined operations.
Each customer and online and offline mutual empowerment and other aspects have become a model for the medical and health products industry
.

According to statistics, in the first half of 2020, the total number of customers of Donge Ejiao's new social retail platform "Jiao Life" reached 950,000
.
At the same time, according to crawler data, in 2020, Tmall platform Dong Ejiao GMV (total turnover) has reached 469 million yuan, an increase of 109% year-on-year.
It is expected that online channels will expand into new consumer markets in the next 3 to 5 years.
Maintain a high growth rate of more than 20%
.

In addition, in order to enrich the product category, Dong-e-Ejiao has created more than 10 new ways to eat E-Jiao powder, such as "E-Jiao powder + yogurt", which provides convenience and new experience for taking E-Jiao; developed new instant preparations of E-Jiao and 9 ointments.
Fang products and 5 bird's nest products were successfully launched; explore new areas of beauty, develop donkey-hide gelatin hand cream, moisturizing, anti-aging and other series of cosmetics
.

As of the end of 2020, the company had 378 R&D personnel, accounting for 8.
38%; accumulated R&D funds of 153 million yuan, a decrease of 25.
41% year-on-year, 206 million yuan, and R&D investment accounted for 4.
51% of operating income, a slight decline year-on-year
.
This is mainly related to the company's reform to strengthen senior management
.

Three, growth can be expected

With the gradual improvement of Donge Ejiao's operating status in recent years, especially after the new management took office, the company's channel destocking has basically been completed, and perhaps the performance of turning losses into profits is just the beginning
.
After "packing lightly" and then accelerating its advancement with digital transformation, is Dong Ejiao's long-term goal, which is worth looking forward to
.