[The Epoch Times, March 31, 2024]The 2023 financial report of Weilong Delicious Global Holdings Co., Ltd. (Weilong Spicy Tiao) shows that the company’s seasoned noodle products (spicy strips) revenue was 2.549 billion yuan (RMB, the same below), year-on-year A decrease of 6.25%; sales volume was 124,400 tons, 26,200 tons less than the previous year, and a year-on-year decrease of 17.4%.
The decline in sales of spicy strips has caused Weilong’s seasoned noodle product capacity utilization to continue to decline. In the annual report released by Weilong Spicy Tiao on the evening of March 21, in 2023, the designed production capacity in Weilong dropped from 242,400 tons to 237,700 tons.
This has been the second consecutive year of decline in sales of Weilong Spicy Tiao. Financial report data shows that in 2022, the sales volume of Weilong seasoned noodle products fell by 22.23%, selling 43,000 tons less than the previous year.
The spicy tiao business is the main revenue source of Weilong spicy tiao. Nowadays, the sales volume of spicy strips has declined, which has also caused this segment to contribute less and less to the company’s revenue. In 2023, the overall revenue share of seasoned noodle products fell by 6.4 percentage points to 52.3%.
Not just Weilong Spicy Tiao, but food sales across China are declining. On January 29, 2023, Hurun Research Institute and Global released the “2023 Global Premiere Hurun China Food Industry Top 100 List”, which showed that the total value of the companies on the China Food Industry Top 100 List in 2023 was 8 trillion yuan. A decrease of 12% compared with the previous year. Among them, the value of 57 companies decreased compared with the previous year. The value of Weilong decreased by the largest proportion, reaching 55%.
Red Star News, a subsidiary of the Chinese media Chengdu Business Daily, analyzed on March 30 that the decline in sales of Weilong Spicy Tiao was mainly due to its continued rise in price. According to the company’s prospectus and annual reports, from 2019 to 2023, the average selling price per kilogram of the company’s seasoned noodle products was 14.3 yuan, 15.0 yuan, 15.1 yuan, 18.1 yuan, and 20.5 yuan respectively. In recent years, the overall increase was approximately 43.36%. .
In September 2023, Weilong Spicy Tiao launched a product called Overbearing Panda. Currently, this product is priced at 9.9 yuan/192g in the Weilong Tmall flagship store, which is equivalent to 25.78 yuan/500g, which is higher than the current price. The price of pork.
In addition, the market for spicy noodles is highly competitive, and consumers have many types of spicy noodles to choose from, which is also one of the reasons for the decline in sales.
Although sales of spicy strips declined, revenue from Weilong vegetable products of Weilong spicy strips increased. The 2023 financial report shows that Weilong’s vegetable products revenue in 2023 was 2.119 billion yuan, a year-on-year increase of 25.1%, accounting for more than 43% of total revenue. But in 2022, this figure is only 36.6%.
After the news was released, nearly two hundred netizens expressed their opinions.
Some netizens believe that as prices rise and people’s incomes decrease, people buy less.
Netizen “More Confused at Forty” said: “Many companies cannot recognize their own position, blindly pursue high profits and take high-end routes, and cannot see clearly the current economic downturn.”
“Letter, j” also thinks: “Why, it’s not because it’s too expensive. Consumers should save money and spend money. When I was a kid, it cost 50 cents a pack, but now it costs 45 yuan a pack. How many people can accept it?”
Some netizens think the taste is inappropriate and not healthy enough.
“Xiaoya Xiaochenchen” said: “I also liked to eat it before, but now there are too many additives in the food, and the burping caused by eating it is too disgusting, so I basically don’t eat it anymore.”
Netizen “Huidieryou” also said: “The current trend is health, and the industry of beverages and snacks will definitely be reshuffled. It would be good if this kind of junk food can maintain a certain stable share.”
Editor in charge: Liu Yi#
2024-03-31 02:24:57
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