Produced | Sohu Finance
Author | Gu Zitong
On the evening of June 14, Xiabuxiabu issued an announcement stating that its board of directors had held an extraordinary general meeting to remove Zhao Yi as an executive director.
In terms of the reasons for the recall, the Xiabuxiabu Board of Directors believes that Zhao Yi’s management methods and concepts are significantly different from those of other members of the board of directors, and that allowing Zhao Yi to continue to participate in the management of the company will not be in the overall best interests of the company and its shareholders. The board of directors believes that if the recall takes effect, it will not have a material adverse effect on the group’s operations.
It is worth mentioning that on May 20 this year, Zhao Yigang was dismissed from the post of chief executive officer of Xiabuxiabu.
Within two months, there have been three personnel changes in the senior management of Xiabuxiabu.
In terms of stock price, as of the close of trading on June 15, Xiabuxiabu’s share price has fallen 68.5% from the high in February this year to 8.5 Hong Kong dollars per share. The market value has evaporated by more than 20 billion Hong Kong dollars (about 16.5 billion yuan) in four months.
Three high-level personnel changes during the year, the stock price fell by nearly 70%
On May 20 this year, Xiabuxiabu issued an announcement stating that Zhao Yi was dismissed from the post of Xiabuxiabu’s chief executive officer because the performance of some of the group’s sub-brands failed to meet the expectations of the board of directors.
On May 21, He Guangqi, the founder and chairman of the board of directors of Xiabuxiabu, told the media including Sohu Finance that the appropriate flow of company personnel is a good thing for the group, because Xiabuxiabu’s previous performance in East China and South China was not good. It’s too ideal, so I consider taking over the surgeon’s adjustment and promotion personally.
According to Wind data, Zhao Yi joined Xiabuxiabu on November 12, 2012, and is mainly responsible for group auditing, accounting, financial management and IT-related affairs. From November 2012 to August 2019, Zhao Yi was the chief financial officer of Xiabuxiabu; from August 2019 to May 2021, Zhao Yi was the executive director and chief executive officer of Xiabuxiabu.
Before joining Xiabuxiabu, Zhao Yi served as the Commercial Manager of Unilever Services Co., Ltd., the Director of Retail Operations of Sony Ericsson, and the Chief Financial Officer of McDonald’s North.
As early as October 2019, Xiabuxiabu launched a young sub-brand “in xiabuxiabu”. Zhao Yi once publicly stated that the brand was launched by him personally, optimistic about the high-end development of small hot pot, and hoped to make the “one person, one pot” small hot pot to the extreme.
It is reported that the unit price of “in xiabuxiabu” is around 110 yuan, which is between Xiabuxiabu and Coucuo. So far, the brand has only opened two stores in Shanghai and Beijing.
As of last night’s announcement, Zhao Yi has been removed from the position of executive director of Xiabuxiabu, and currently has no current position in Xiabuxiabu.
It is worth noting that this is also the third change in Xiabuxiabu’s senior personnel in the past two months.
In April of this year, Zhang Zhenwei, the COO of the Coucou brand under Xiabuxiabu, confirmed to Sohu Finance that he would no longer serve as the COO of Coucou Catering from April 15th, and at the same time step down from all other positions related to Xiabu Xiabu Group and Coucou Catering.
Zhang Zhenwei revealed that he left Coucou for his current new catering business project.
Goldman Sachs previously issued a report stating that Zhang Zhenwei, CEO of Coucou, under Xiabuxiabu, has strong execution and investors need to pay attention to the risks associated with the departure of Coucou’s CEO. On the day Zhang Zhenwei announced his resignation, Xiabuxiabu’s share price fell nearly 15%.
The executives have left their posts successively, and the current major operations of the various brands of Xiabuxiabu are under the unified responsibility of the chairman He Guangqi.
It is reported that He Guangqi is the founder of Xiabuxiabu and serves as the chairman of the board of directors, chief executive officer and executive director of Xiabuxiabu. He is mainly responsible for formulating the group’s overall development strategy and business plan. He has more than 20 years of experience in the catering industry. Up to now, He Guangqi holds 41.46% of the shares of Xiabuxiabu.
One-fifth of the goal of opening stores in 2021 will be completed in half a year, and the number of new stores will be lowered
As of the close on June 15, the share price of Xiabuxiabu was reported at 8.5 Hong Kong dollars per share, a drop of nearly 70% from the February high. The market value had evaporated by more than 20 billion Hong Kong dollars (about 16.5 billion yuan) in four months.
Except for frequent high-level turmoil, Xiabuxiabu’s financial data has been bleak in recent years, and there has been no significant improvement in the later stages of the epidemic.
The financial report shows that Xiabuxiabu will achieve revenue of 5.455 billion yuan in 2020, a year-on-year decrease of 9.5%; net profit attributable to shareholders is 1.837 million yuan, a year-on-year decrease of 99.4%; net loss after non-deduction is 180 million yuan, a year-on-year decrease of 176.36%.
Sohu Finance found that Xiabuxiabu’s net profit growth rate has shown a downward trend for five consecutive years. From 2016 to 2020, Xiabuxiabu’s net profit growth rate was 39.74%, 14.17%, 10.07%, -37.71% and -99.36%, respectively.
In addition, the Taiwan turnover rate of Xiabuxiabu has also been declining year by year. From 2017 to 2020, the Taiwan turnover rate was 3.3, 2.8, 2.6 and 2.3 respectively.
As the main growth engine of Xiabuxiabu in recent years, Cocoa Hotpot will contribute 31% of total revenue in 2020. However, the turnover rate in 2020 will also drop from 2.9 in 2019 to 2.5.
In 2020, Xiabuxiabu will add 77 stores, including 39 Xiabuxiabu restaurants and 38 Coucuo restaurants, bringing the total number of restaurants to 1,201.
Previously, Xiabuxiabu had expected to open 100 new stores in 2021, but as of May 21 this year, it only opened 20 new stores, which is far below the target.
Xiabuxiabu Group CFO Yu Xiaofang previously stated that in order to solve the current development bottleneck, the group has made a series of adjustments. Previously, the vice president of development in charge of Cou Cou has also been transferred to the group level while managing Cou Cou and Xiabuxia. Bu, the speed of opening stores will also accelerate in the future.
He Guangqi told Sohu Finance that he would lower the target number of stores this year.
“Coucuo’s business will continue to focus on opening stores and the continued growth of the old store business in the short term. Before this, the tea and beverages part has declined, mainly due to the unavailability of imported raw materials due to the epidemic.” He Guangqi said.
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