[Epoch Times October 31, 2021](Epoch Times reporter Li Bing comprehensive report) China’s largest food processing company Yihai Kerry Arowana Cereals, Oils and Foodstuffs Co., Ltd. (hereinafter referred to as “Arowana”), its performance recently “exploded.” . According to the third-quarter financial report of Arowana, the company’s third-quarter net profit fell by 65.86% year-on-year, and its market value has evaporated more than 450 billion yuan from its previous high.
In the first quarter of this year, the stock price of Arowana was at a historical high. At that time, the total market value of Arowana was 789.5 billion yuan (RMB, the same below). But since February, the stock price of Arowana has been falling.
As of October 29, Arowana’s stock price closed at 60.88 yuan, a drop of nearly 60% from the previous high, a drop of 58%, and the latest market value was only 330.1 billion yuan.
Arowana released its third-quarter financial report on the evening of October 29, showing that the company’s net profit in the first three quarters was 3.681 billion yuan, a year-on-year decrease of 27.68%; the third quarter net profit was 711 million yuan, a year-on-year decrease of 65.86%.
“China Securities Journal” reported that Arowana’s net profit after deducting non-recurring gains and losses in the third quarter was only 245 million yuan, a plunge of 92.80% year-on-year. In the second quarter and the first quarter, net profits after deducting non-recurring gains and losses were 1.993 billion yuan and 1.919 billion yuan, respectively.
Regarding the sudden change in performance, Arowana said in its three quarterly reports that there are three main reasons, including the large increase in raw material costs, and the decrease in soybean purchases and crushing compared with the same period last year.
The market value of Arowana evaporates 380 billion in just one month
In early trading on March 24 this year, Arowana’s stock price plunged 4.65%, and its total market value fell from its highest point of RMB 789.5 billion to RMB 407.27 billion. In just one month, Arowana has fallen by more than 30%.
On the evening of March 23, Arowana’s first annual report after its listing announced that the company’s operating income and net profit attributable to the parent last year increased by 14.16% and 10.96%, respectively, lower than the general expectations of institutions.
In the fourth quarter of last year, Arowana’s performance suffered from Waterloo, a year-on-year decline of 52.52%. Arowana said that the profit in the fourth quarter of 2020 declined year-on-year, mainly because the company’s spot and futures corresponding subject confirmation time did not match exactly.
Public information shows that Arowana is one of the largest agricultural and food processing companies in mainland China. Its main business is the research and development, production and sales of kitchen food, feed ingredients and oil technology products. On October 15 last year, Arowana was listed on the Growth Enterprise Market of the Shenzhen Stock Exchange.
Editor in charge: Sun Yun#
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