JONJEE(SH:600872)2024-05-30 06:44Summary of Conference Call Company and Industry - The conference call involved Zhongju Gaoxin, a company in the food and beverage industry. The discussion focused on the company's mid-term strategy and performance outlook. Key Points and Arguments Industry Demand and Performance - The overall demand in the food and beverage industry has been relatively weak during April and May, with a slight improvement noted in the latter half of April [2][3]. - The company is undergoing internal reforms and optimizations, particularly in production and procurement departments, which may impact sales performance in Q2 [3]. Distributor Management and Strategy - The company has implemented a more detailed guidance system for distributors, aiming to reduce costs and enhance profitability for both the company and its distributors [5]. - Approximately 70% to 80% of distributors are supportive of the company's current strategy, which includes a focus on empowering distributors through better communication and support [5]. - The company plans to increase investment in distributors and expand its channel development in June [6]. Sales and Marketing Strategy - The company aims to establish a more structured distributor management system, categorizing distributors into three levels to enhance operational efficiency [12][13]. - The target for the number of distributors is set between 300 to 500, with a focus on increasing their sales volume significantly [10][14]. - The sales strategy is shifting towards consumer-driven marketing, with an emphasis on promotional activities and direct engagement with end consumers [33]. Cost Management and Profitability - The company has seen a positive impact on gross margins due to procurement cost optimization, with expectations for further improvements in Q2 and beyond [16][18]. - The raw material costs are expected to remain stable, with the company achieving a greater reduction in costs compared to industry averages [18][36]. Organizational Structure and Personnel - The company has completed adjustments to its marketing team, ensuring that each division has a designated leader to enhance service coverage for distributors [20][21]. - There is an ongoing assessment of the sales team's effectiveness, with expectations for potential expansion in response to distributor growth [22]. Future Outlook and Goals - The company is focused on expanding its presence in the restaurant sector, aiming for a significant increase in market share [39][45]. - The long-term goal includes achieving a sales target of over 3 billion in specific channels, with a strategic focus on enhancing brand influence and market penetration [46]. Competitive Landscape - The competitive environment in the food and beverage industry is intensifying, with the company aiming to improve its market share through internal reforms and enhanced management practices [59][61]. Other Important Content - The company is exploring new product lines and enhancing existing ones, particularly in high-demand categories such as soy sauce and oyster sauce, with plans for capacity expansion [43][55]. - There is a focus on developing partnerships with large-scale distributors and institutions to strengthen market presence [39][46]. - The company is also monitoring the impact of external factors, such as government policies and market trends, on its operational strategies [51].