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Personally, Vive likes peach and plum bread very much. I ate it for basically five years in college (study medicine) After studying for five years), the shelves in the school’s supermarket and canteen are almost filled with peach and plum bread.

At that time, I thought that peach and plum bread, like Huishan milk, were both specialties of the Northeast. There would be no place to eat them outside the Northeast. Who would have thought that when I first started working (in Beijing), there were many supermarkets of all sizes. , canteens, including the company’s unmanned retail shelves are also full of peach and plum bread.

So, I ate it again...

Later, when I returned to Chongqing, the economic conditions improved, and I never ate peach and plum bread again, but this did not prevent me from eating peach and plum bread in Chongqing. It can be seen everywhere.

At first, I had an argument with Leo about the check because Leo was in Shenzhen and had never seen peaches and plums. But at the beginning of this year, Leo’s wife discovered peaches and plums when she was visiting Wal-Mart.

Haha, actually the above description illustrates a problem.

First of all, Taoli's distribution is already very good. In addition to its base camp in Northeast China, it has completed distribution in some important cities. It is very popular and has strong replicability; secondly, Taoli's performance will be improved in the next few years. , can maintain a relatively stable growth. After all, once the model is run through, the rest is a problem of off-site replication.

Judging from the recent semi-annual report released by Taoli Bread, it is as stable and excellent as ever!

In the first half of 2020, revenue was 2.739 billion, +7.08% year-on-year, and net profit was 418 million, +37.54% year-on-year. In the second quarter of 2020, revenue was 1.416 billion, basically the same as the same period last year, and net profit was 2.23 billion. billion, +22.33% year-on-year.

Of course, many people in the market have been dissatisfied with Taoli's semi-annual report recently. The reason is that revenue in the second quarter has stagnated.

It is easy for everyone to understand that the performance in the first quarter is good. After all, during the epidemic, you can’t go anywhere. If Keming Noodles, which sells noodles, and Fuling Mustard, which sells pickles, become popular, it will naturally make Taoli Bread popular.

The stagnant revenue in the second quarter represents the company’s true performance. A casual search on the Internet will reveal a large number of bearish articles... Oh my god, if you believe this, it will be miserable. .

The main reason why Taoli’s revenue stagnated in the second quarter is that the epidemic has been basically controlled. Of course, everyone has to go out to eat something else. Who has nothing to eat bread every day? Secondly, a large number of students in colleges and universities have not started school. , A large part of the consumer groups of peach and plum come from colleges and universities; thirdly, another important consumption scenario for this kind of food-packaged short-term bread is long-distance travel, such as eating on a train or in a car.

The above three points will return to normal in the third quarter. "Value Firm" can responsibly say that in the 2020 annual report, Taoli can still grow at double digits.

The company's cash flow is also very good, exceeding the net profit by a large margin, and this happens every year, which proves that the company receives real money and its operations are really excellent.

The company’s performance has been good, and its gross profit has continued to rise. It can always launch new products to “upgrade”, such as the popular products launched in 2018: dirty buns, purple rice sandwich bread, Introducing egg yolk crisps, angel bread, etc.

As mentioned in the previous article, Taoli is a company that takes the flexibility of the supply chain to a new level.

When we used to buy bread, we either bought it freshly made by the bakery on the same day, or went to the supermarket to buy bread with a shelf life of more than one and a half months. We had to make a trade-off between freshness and convenience. However, Taoli Bread has put bread with a shelf life of 7 days into circulation channels on a large scale.

In order to achieve this, Taoli adopts the "central factory + wholesale" model, spreading its production capacity to 17 regions across the country, with a Taoli bread factory almost every two to three hundred kilometers. Production and shipment are completed at 4:30 every day, and the bread of the day will appear on the shelves at 6:30.

The company’s strong supply chain management and control capabilities cannot be learned from other companies. For example, Taoli’s inventory turnover rate is significantly higher than that of Dali, almost three times that of Dali.

Efficient supply chain management capabilities and stable and rapidly growing performance have led the company to continuously expand production capacity. In 2019, the company issued convertible bonds in order to expand its business in Jiangsu, Sichuan Taoli, and Qingdao. , Zhejiang builds a production base.

At present, the company's business model has been fully operational. As of the semi-annual report, the company's income is still uneven across the country, with one company in the Northeast being the largest. This also confirms that the company's room for development is still very large. , now, the company only needs to open central factories everywhere within its own control.

The company is a typical family business. Wu Zhigang and Sheng Yali are husband and wife, and they founded Taoli. However, it currently seems that the second generation successor should be the second son Wu Xuequn. For the healthy development of the company, Taoli launched four phases of employee stock ownership plans in March 2017, March 2018, March 2019, and April 2020, covering 108, 109, 127, and 127 employees respectively, realizing the long-term interests of employees. Certainly.

Taoli Bread is the leader in short-term guarantee bread in China. Its national layout is steadily advancing, and its scale effect has gradually emerged.

We believe that short-term bread is a highly prosperous track. Judging from the comparison of per capita consumption in different countries, there is a large space for the future. At present, Taoli, as the leader in bread, has a market share of only 11%. In the future, as the industry grows, market share increases, new products are continuously launched (focusing on fewer but better products, not pursuing more varieties), and cost reductions brought about by economies of scale, the company's Profitability will become stronger and stronger.

Warm reminder: The "Getting Rich Slowly" column is not finished after updating 30 articles. It is updated every Saturday and is ongoing. The latest issue was launched on August 29.