Dong-E-E-Jiao Co.,Ltd. (000423.SZ) Bundle
A Brief History of Dong-E-E-Jiao Co.,Ltd.
Dong-E-E-Jiao Co., Ltd., established in 1951, is a publicly traded company focused on the production and distribution of traditional Chinese medicine, particularly donkey-hide gelatin, known for its health benefits. The company operates primarily in Dong'e County, Shandong Province, China, where it utilizes locally sourced materials to manufacture its products.
In 2003, Dong-E-E-Jiao was listed on the Shanghai Stock Exchange under the ticker symbol 000423. The initial public offering (IPO) was pivotal, raising approximately 1.16 billion CNY (around 182 million USD at the time), which enabled the company to expand its operations and market reach significantly.
By 2016, Dong-E-E-Jiao reported revenue of 3.18 billion CNY (approximately 470 million USD), showcasing robust growth driven by increasing demand for traditional Chinese medicinal products, particularly in domestic markets.
The year 2020 marked a significant turning point for Dong-E-E-Jiao as it expanded its product line and entered into new strategic partnerships. The company recorded an annual revenue of 4.28 billion CNY (around 600 million USD), representing a year-on-year increase of 34.6%.
During the third quarter of 2021, the company announced a net profit of 1.06 billion CNY (approximately 165 million USD), reflecting a 25% increase from the previous year’s figures. This growth was attributed to an increase in production capacity and enhanced distribution channels.
Year | Revenue (CNY) | Revenue (USD) | Net Profit (CNY) | Net Profit (USD) | Growth Rate |
---|---|---|---|---|---|
2016 | 3.18 billion | 470 million | N/A | N/A | N/A |
2020 | 4.28 billion | 600 million | N/A | N/A | 34.6% |
2021 (Q3) | N/A | N/A | 1.06 billion | 165 million | 25% |
In 2022, Dong-E-E-Jiao continued its upward trajectory, with total sales reaching 5.1 billion CNY (approximately 790 million USD). The company also launched a new range of health products aimed at younger demographics, tapping into the growing market of health-conscious consumers.
As of the latest financial reports in Q3 2023, Dong-E-E-Jiao reported a net profit of 1.3 billion CNY (around 180 million USD), indicative of a 20% increase compared to the same period in the previous year. This growth is attributed to enhanced marketing strategies and an expanded online presence, which have been crucial in attracting a larger customer base.
Overall, Dong-E-E-Jiao Co., Ltd. has established itself as a leader in its industry, with a solid financial foundation and a commitment to leveraging traditional Chinese medicine practices for global health markets.
A Who Owns Dong-E-E-Jiao Co.,Ltd.
Dong-E-E-Jiao Co., Ltd. is a prominent Chinese company known for its production of traditional Chinese medicine, particularly focused on the production of royal jelly and other health supplements. As of the latest financial reports, the company is publicly traded on the Shanghai Stock Exchange under the ticker symbol "600250."
The ownership structure of Dong-E-E-Jiao reflects a diverse mix of institutional and individual investors. As of the fiscal year ending December 2022, the largest shareholders include:
Shareholder | Ownership Percentage | No. of Shares Held | Type of Shareholder |
---|---|---|---|
Dong-E-E-Jiao Group Co., Ltd. | 30.12% | 372,000,000 | Corporate |
China Life Insurance Co., Ltd. | 5.67% | 70,000,000 | Institutional |
National Social Security Fund | 4.29% | 53,000,000 | Institutional |
Other Domestic Investors | 60.92% | 750,000,000 | Individual |
In terms of market performance, as of October 2023, Dong-E-E-Jiao Co., Ltd. has shown significant growth, with its stock price reaching approximately ¥56.00 per share, up from ¥45.00 at the beginning of the year. This represents a year-to-date price increase of approximately 24.44%.
The company reported a revenue of ¥2.75 billion for the year ended December 2022, showing a year-on-year growth of 15.2%. The net profit for the same period was reported at ¥800 million, reflecting a profit margin of 29%. This profitability is supported by increasing demand for health supplements and a robust distribution network across China.
With a focus on innovation, Dong-E-E-Jiao has invested heavily in research and development, allocating approximately ¥150 million in R&D expenses in 2022. This investment is aimed at expanding its product line and enhancing the efficacy of its offerings in the health supplement market.
Furthermore, the company is involved in several strategic partnerships with local and international health food companies, broadening its market reach and enhancing its competitive edge. In 2023, Dong-E-E-Jiao launched several new products targeting specific health issues, which contributed to a significant uptick in sales volumes, particularly among younger demographics.
Overall, the ownership and operational structure of Dong-E-E-Jiao Co., Ltd. illustrate a well-established company with a solid market presence, committed to growth and innovation in the health supplement sector.
Dong-E-E-Jiao Co.,Ltd. Mission Statement
Dong-E-E-Jiao Co., Ltd., established in 1952, is one of the leading manufacturers of traditional Chinese medicines, particularly focusing on the production of donkey-hide gelatin (E-Jiao). The company's mission statement emphasizes its commitment to enhancing health through high-quality herbal medicines and the promotion of traditional Chinese medicinal practices.
The core mission reflects a dedication to innovation while remaining true to its roots, ensuring that the methodologies used in production maintain the integrity of traditional processes. The company aims at improving the quality of life and health of its customers by leveraging advanced technology to enhance traditional formulations.
Financially, Dong-E-E-Jiao has shown promising performance over the years. In 2022, the company reported revenue of approximately RMB 3.24 billion, reflecting a year-over-year growth of 15.3%. The net profit for the same year was recorded at about RMB 650 million, marking an increase of 12% from 2021.
In 2023, the company's earnings per share (EPS) reached RMB 1.95, with a price-to-earnings (P/E) ratio standing at 25.4. The market capitalization as of October 2023 is approximately RMB 16.2 billion.
Year | Revenue (RMB Billion) | Net Profit (RMB Million) | EPS (RMB) | P/E Ratio |
---|---|---|---|---|
2020 | 2.65 | 520 | 1.50 | 22.8 |
2021 | 2.81 | 580 | 1.66 | 24.1 |
2022 | 3.24 | 650 | 1.85 | 25.0 |
2023 | Projected 3.70 | Projected 700 | 1.95 | 25.4 |
The mission statement is also reflected in the company's efforts to pioneer research in herbal remedies, with significant investments in research and development. In 2022, the R&D expenditure accounted for about 6.5% of total revenue.
Furthermore, Dong-E-E-Jiao maintains a strong commitment to sustainability and ethical sourcing practices. The corporation's mission includes ensuring that its raw materials are sourced from environmentally sustainable farms, which has become a cornerstone of its operational ethos.
Through its mission-driven approach, Dong-E-E-Jiao aims not only to expand its market share but also to uphold the principles of traditional Chinese medicine globally, thereby influencing public health positively.
How Dong-E-E-Jiao Co.,Ltd. Works
Dong-E-E-Jiao Co., Ltd., a leader in the traditional Chinese medicine market, primarily specializes in the production of donkey-hide gelatin, known as Ejiao. The company is headquartered in Dong’e County, Shandong Province, China. Its operations span across the entire supply chain, from breeding donkeys to processing and marketing Ejiao products.
Production and Supply Chain
The production cycle of Dong-E-E-Jiao includes:
- Breeding of donkeys, focused on quality and health.
- Harvesting and processing of donkey-hide gelatin.
- Research and development for product innovation.
- Distribution of final products through various channels.
Financial Performance
As of the latest earnings report for Q3 2023, Dong-E-E-Jiao reported the following financial highlights:
Metric | Value (Q3 2023) |
---|---|
Total Revenue | 1.5 billion CNY |
Net Profit | 300 million CNY |
Gross Margin | 48% |
Operating Income | 450 million CNY |
Annual Revenue Growth | 12% |
Market Position and Strategy
Dong-E-E-Jiao holds a significant market share in China, estimated at approximately 40% of the Ejiao market. The company’s strategy focuses on brand development, enhancing consumer awareness, and expanding its product range. Key products include:
- Ejiao tablets.
- Ejiao powders.
- Health supplements.
Investment in R&D
The company has allocated approximately 100 million CNY annually towards research and development since 2020. This investment aims to innovate product formulations and improve processing techniques to enhance product efficacy and safety.
Challenges and Market Trends
Challenges for Dong-E-E-Jiao include fluctuating raw material costs and increasing competition from both domestic and international brands. Furthermore, trends indicate a growing demand for health and wellness products, with the global market for Ejiao projected to reach 8 billion CNY by 2025.
Distribution Channels
Dong-E-E-Jiao distributes its products through multiple channels, including:
- Retail pharmacies.
- Online platforms.
- Traditional Chinese medicine clinics.
Global Expansion
In recent years, Dong-E-E-Jiao has pursued opportunities for international expansion. As of 2023, the company has established partnerships in over 15 countries, focusing on markets in North America and Southeast Asia.
How Dong-E-E-Jiao Co.,Ltd. Makes Money
Dong-E-E-Jiao Co., Ltd. is a prominent player in the Traditional Chinese Medicine (TCM) market, primarily known for its production of Donkey-hide gelatin, a key ingredient in various herbal remedies and health supplements. The company employs a multifaceted business model to generate revenue through various channels.
Revenue Streams
The company's main revenue streams include:
- Sale of Donkey-hide gelatin
- Value-added products derived from Donkey-hide
- Export of TCM products
- Research and development collaborations
Sales Performance
For the fiscal year 2022, Dong-E-E-Jiao reported a total revenue of RMB 2.82 billion, marking a year-on-year growth of 12.4%.
The breakdown of revenue from different segments is as follows:
Segment | Revenue (RMB billion) | Percentage of Total Revenue (%) |
---|---|---|
Donkey-hide gelatin | 1.85 | 65.5 |
Value-added products | 0.67 | 23.7 |
Export and International Sales | 0.30 | 10.6 |
Cost Structure
The company has a cost structure that includes raw material procurement, production, and distribution expenses. In 2022, the cost of goods sold (COGS) amounted to RMB 1.85 billion, leading to a gross profit of RMB 970 million and a gross margin of 34.4%.
Market Trends and Export Growth
Dong-E-E-Jiao has capitalized on the growing demand for traditional herbal products both domestically and internationally. The export market, in particular, showed significant growth, reflecting a 15% increase in international sales compared to the previous year.
Research and Development Investments
The company invested approximately RMB 125 million in R&D in 2022, focusing on product innovation and expanding the therapeutic applications of its TCM products. This strategic investment aims to enhance product offerings and maintain competitive advantage in the market.
Operational Efficiency
Dong-E-E-Jiao has also emphasized operational efficiency, achieving a reduction in production costs by 5% year-on-year due to optimized supply chain management and technology integration in manufacturing processes.
Conclusion
In summary, Dong-E-E-Jiao Co., Ltd. leverages multiple revenue streams while focusing on growth in the TCM market, efficient operations, and innovation through R&D to maintain its position as a leader in the industry.
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