New Hope Dairy's 10 billion yuan revenue target, in the country's "breaking the city" of the "merger and acquisition bureau" detailed

In the past two years, New Hope Dairy Co., Ltd(hereinafter referred to as New Dairy) has grown rapidlyThe dairy company, founded in 2006 and just landed in the capital market early last year, has been "attacking the city" throughout the country, and this year raised a target of 10 billion yuan in revenueAfter the June 16 shareholder meeting, the new dairy executive detailed the company's "merger and acquisition bureau"Jian refers to the revenue of 10 billion yuanon June 16 this year, the new dairy industry held the 2019 annual general meeting of shareholders, completed the acquisition of Xiajin Dairy and other related matters voteXi Gang, chairman of the new dairy industry, said that the acquisition of Xiajin Dairy will help the new dairy industry to sprint into the 10 billion yuan revenue target this yearnot long ago, new dairy industry issued a report mentioned a revenue target of 10 billion yuanThe report shows that in 2019, the new dairy industry achieved revenue of 5.675 billion yuan, up 14.14 percent year-on-year, and if the annual sales of 1.5 billion yuan were incorporated into Xiajin Dairy, the company's revenue could pass the 7 billion yuan markThe report mentions that consumer demand for health products has been high since 2020, especially for low-temperature milk rich in immunoasiesandic and nutrients, and that the company is expected to hit its revenue target of 10 billion yuan this year if new dairy stocks and incremental growth are combinedfrom the 2019 annual data of 27 dairy enterprises, the dairy industry revenue of more than 10 billion enterprises a total of five, respectively, Yili shares, Mengniu Dairy, Bright Dairy, Feihe Dairy, Jianhe Group, the new dairy industry ranked eighth in the industryit is understood that new dairy is the new hope group chairman Liu Yonghao control of the new hope group's dairy sectorLiu Chang, daughter of Liu Yonghao and director of the new dairy industry, told China Business Daily after the June 16 shareholders' meeting of the new dairy industry, which is owned by New Hope Group, which is naturally and food-relatedAround 2000, New Hope Group entered the dairy industry is to enter the C-side (consumers), into urban life, the future New Hope Group will be rooted in agriculture and food this line's intention to acquire Xiajin Dairyat the shareholders' meeting, Xi Gang talked about the acquisition of Xiajin Dairy is an important step for the new dairy this yearIn May 2020, New Dairy announced that it will acquire Ningxia Xiajin Dairy for RMB1,711 million, with 60% of the acquisition funds being self-financing and 40% of which will be paid through convertible bonds 's intention to acquire Xiajin Dairy, Mr Xi said the new dairy industry wanted to complement the company's short board in the northwest market He admitted that the new dairy industry in the southwest market share is higher, but the northwest market to engage less, and Xiajin dairy normal temperature milk in the northwest market share of more than 50%, larger than the leading enterprises Yili, Mengniu data show that after the completion of the transaction, new dairy in 2018 and January-November 2019 compared to the pre-trading indicators of increased, revenue change rate of 29.6% and 26.68%, net profit change rate of 20.25% and 39.38%, respectively the "merger and acquisition bureau" of the new dairy industry in fact, the acquisition of Xiajin Dairy is only part of the new dairy merger strategy Coupled with this merger, new dairy has made three acquisitions in the last year In April 2019, the company announced the acquisition of a 55% stake in Fuzhou O'Ox Dairy-related assets, and in July of the same year it acquired a 9.28% stake in Hyundai Livestock Song Liang, a dairy expert, said that, on the one hand, through mergers and acquisitions, the new dairy industry's national map and business pattern can achieve a qualitative improvement From the southwest along the Yangtze River line east-eastward expansion, one after another layout of central and eastern China, extending to north and southeast China, heavy warehouse northwest, layout of the Yellow River basin market, the new dairy industry from the regional dairy enterprises to the national dairy enterprises transformation On the other hand, the success of the merger and acquisition for the new dairy industry has brought more high-quality stable and controlled milk source, the new dairy fresh business of the basic advantages have been further expanded it is worth noting that since its inception, the new dairy industry has been relying on mergers and acquisitions to "attack the city" to achieve scale expansion It is reported that in 2001-2003, the new dairy industry in the merger and acquisition of small trial knife Since 2015, new dairy industry has started the second wave of mergers and acquisitions, has acquired Hunan Nanshan, Suzhou Shuangxi, Asahi Dairy, Asahi Agriculture and other enterprises Data show that so far, new dairy has 41 holding subsidiaries, 13 major dairy brands, 15 dairy processing plants and 12 own pastures the underlying logic of mergers and acquisitions for the reasons for the expansion of the new dairy industry through mergers and acquisitions, there are comments that the current dairy industry is highly competitive, the new dairy industry through the main "fresh" low-temperature milk differentiation, and low-temperature milk by the sales radius restrictions, it is difficult to promote nationwide Through large-scale mergers and acquisitions, the new dairy industry can solve the problem of regional sales and scale expansion however, with the low-temperature milk products more and more recognized by consumers, Yili, Mengniu and other large dairy enterprises have also entered the bureau It is reported that from 2018, Alibaba, Mengniu jointly explore the issue of cold chain distribution of milk into the home In 2019, Yili said it will actively expand its low-temperature milk business through the industry chain layout In this regard, Xi Gang said, if the industry's major enterprises are concerned about a category, then the opportunity to explain this category has come In this context, the new dairy industry will do a good job of user services, user experience, user perception, to solve the problem of consumer awareness however, the company's big acquisitions mean high debt as it expands on its scale Data show that in 2015-2019, the new dairy asset-liability ratio was 68.5%, 71.59%, 64.66%, 63.6%, and 61.66%, respectively , Xi Gang said that the high debt of the new dairy industry is due to the company in order to accelerate the development of mergers and acquisitions to increase financing, not poor management caused by cash flow In order to boost the company's rapid growth, he argues, the right high debt need not worry Source: China Business Daily