In Shandong’s Luxi Plain, there are only two major Ejiao producers separated by a river.
Yesterday, the reporter learned from Shandong Fucao Group that its $2 billion Ejiao capacity expansion project will be completed and put into production in 2014. By then, the annual output of the Ejiao block will reach 4,000 tons, which will be far higher than the leader of the Ejiao industry. Ejiao Co., Ltd. (000423. SZ, hereinafter referred to as "Dong E-Jiao") production.
2 billion investment expansion According to Yang Fuan, general manager of Shandong Fucao, the company has spent 2 billion yuan to start two projects. The Fujiao Industrial Park project has invested 1 billion yuan to build a Chinese medicine preparation workshop that meets the GMP standards, a production line for the expansion of gelatin production, and a logistics center with a total construction area of ​​160,000 square meters. At the same time, it will build a donkey breeding and Chinese herbal medicine cultivation base covering an area of ​​130 acres. It can form a comprehensive Ejiao Industrial Park integrating Ejiao production, diet, catering and sightseeing.
“At present, we are carrying out basic construction of comprehensive preparation workshops. The first phase of the project will be completed before the end of the year. After all the projects are completed, they can produce an annual output of 6,000 tons of donkey-hide gelatin products and achieve a sales revenue of 2 billion yuan,†Yang Fuan said.
Regarding the source of investment, Yang Fuan told this reporter that investment funds have all been self-raised and there are no plans to introduce foreign investment.
The local Jinan City attaches great importance to this project. Since this year, the main leaders of the Jinan Municipal Party Committee and the Municipal Government have already conducted research on the Fucao Group 3 times.
Do not take the price increase profit Lufu rubber Group and Dong-E Ejiao only a river (Yellow River), at the same time, the two companies are playing "Dong A" this card.
Dong'e Ejiao emphasizes "Dongdong Ah, hence the name Ejiao", while Fujiao Group emphasizes "Dong'a Town is the only hometown of Ejiao in China and is the largest Ejiao production base in China."
The impact of Fucao's expansion on Dong'e Ejiao is still unknown. The reporter interviewed relevant persons from Dong-e-Ejiao and did not receive a response.
Yang Fuan told reporters that Fukigao Group will not take the path of simply increasing the price for profit, but instead extend the Ejiao industry chain to cultivate profit growth.
Fuolix Group estimates that after the above projects are put into production, annual sales income will reach 5 billion yuan and profits and taxes will reach 1 billion yuan. Comparing this figure with the annual output of 4,000 tons of gelatin blocks, we can see the "conservativeness" of Fukigao Group in terms of price.
The increase in the price increase in the East ejiao performance is more obvious. The public information shows that from the beginning of 2007, Dong'e E-Jiao entered the period of continuous price increase. From 2007 to 2010, the price of E-Jiao blocks increased by 40%, 18%, 21% and 52% respectively. The latest price increase was at the beginning of this year, and the price of ejiao retail was increased by 10%.
East E-Jiao quarterly report shows that the total operating income of 714 million yuan, an increase of 1.35%, net profit attributable to shareholders was 333 million yuan, an increase of 23.92% over the same period last year, the company's product gross margin in the first quarter has been raised to 75%.
Qin Yufeng, chairman of Dong-E Ejiao, said earlier that it will not continue its radical price-raising strategy in the past and shift to a “small step and go†in a restative manner, but “the value-return strategy will not changeâ€.
The suspense of the source of donkey hides The biggest bottleneck in the future is the donkey skin, the main source of donkey-hide gelatin.
The production and control of donkey hides is always a fog. Dong E-Jiao has published a set of third-party survey data on the official website, saying that it has mastered 80% of the country's donkey skin resources. At the same time, some media quoted Li Shizhong, deputy general manager of Dong'e Ejiao, as the only pharmaceutical company that imported donkey hides in China.
However, Yang Fuan said that last year, Fukigao Group's Ejiao block production was 2,300 tons. According to media reports, the production of Dong'e Ejiao's gelatin block in the same period was about 1,400 tons. There are obvious contradictions in the above series of arguments. To be sure, some of the arguments are not true.
According to insiders, it is difficult to expand the scale of large-scale donkey breeding. Donkeys are very angry animals, would rather starve to death, do not eat feed, so their growth period is longer.
Yang Fuan did not explain to the reporter how to solve the problem of donkey skin after the expansion of production. Just vaguely said that the tension of donkey skin is relative and is the result of the expansion of donkey-hide gelatin products. This statement is in contradiction with the fact that Fucao Group has doubled its production capacity.
To be sure, if the Fuko Group's expansion project reaches production, the future of the Litter and Skin War will be even more intense.
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