Click on the image for details Expansion and cross-industry moves are common in the capital market, whether for short-term arbitrage or long-term strategy. Kemen Noodle Manufacturing (002661.SZ), a company known for its dried noodles, is no exception. This time, it spent 52.28 million yuan to acquire the assets of Wugudao Chang, finally putting an end to the matter. However, a company that has focused on dried noodles for 30 years suddenly buying an instant noodle company is indeed thought-provoking. Kemen Noodle Manufacturing only gave a formulaic response, saying it is "conducive to further enriching the company's product categories." In plain terms, Kemen Noodle Manufacturing has long been dissatisfied with just selling dried noodles. The phrase "enriching product categories" made Sister Jing of Zebra Consumption's heart skip a beat. When it comes to dried noodles, Kemen Noodle Manufacturing is almost unmatched in China, but crossing over to instant noodles seems a bit abrupt. Kemen Noodle Manufacturing doesn't need to engage in a close fight with giants like Master Kong and Uni-President. By studying Kemen Noodle Manufacturing's past statements, Sister Jing believes that it is eyeing Wugudao Chang's brand, channels, and other intangible assets to promote its fresh wet noodle products, and that's all. But think about it: after COFCO took over Wugudao Chang for 7 years, it lost everything, and by 2016, it had nearly 1 billion yuan in debt. For Wugudao Chang, finding a new owner smoothly is a blessing, as there are no longer many valuable assets. COFCO Took Over for 7 Years, Lost 900 Million Yuan When Sister Jing was in college, Wugudao Chang rose, and many people switched from Master Kong and Uni-President to Wugudao Chang. Although it was a bit more expensive and the noodle cakes were not too big, they were non-fried, which attracted many loyal fans. At its peak, Wugudao Chang achieved sales of 2 billion yuan, with monthly sales growth of up to 30%. On the other hand, rapid growth also made the company lose its bearings. Wugudao Chang invested heavily, spending 1.8 billion yuan to expand production lines nationwide, with advertising expenses alone reaching 170 million yuan, showing great financial strength. Such boldness is necessary for big moves, but it must be viewed dialectically. At that time, instant noodle companies like Master Kong and Uni-President occupied half of the domestic instant noodle market. In a narrow encounter, Wugudao Chang had to move fast or die faster, but in market competition, it seemed overwhelmed. First, in terms of cost, it had already lost to Master Kong and Uni-President. Non-fried instant noodle production lines required an investment of over 20 million yuan, while fried instant noodles in the market only required a few million yuan. Moreover, there was a significant price difference in raw materials. Wugudao Chang's pricing was always near cost, which accelerated its decline. As the elders often say, what comes quickly also declines unexpectedly. By 2008, Wugudao Chang's debt had reached 600 million yuan, and it had to stop production. A year later, Wugudao Chang finally found a "godfather" in COFCO Group to take over. It was thought that after COFCO Group took over, it would at least turn Wugudao Chang's fortunes around, but COFCO invested a lot of manpower and resources without reversing the situation. It remained in a loss for 7 years, especially in 2015 when its debt reached 927 million yuan, making the hole bigger and bigger. Wugudao Chang became increasingly "hot," and COFCO could no longer sit still. It urgently wanted to divest this non-performing asset, so it listed it for auction. In fact, the transfer of equity and debt was listed as early as January and March this year, but it probably didn't attract much market attention. It wasn't until the listing conditions were changed and it was re-listed that Kemen Noodle Manufacturing emerged halfway. "Rich Father" Kemen Noodle Manufacturing Is Not Short of Money Cumulative 2 Billion Yuan Spent on Wealth Management Products Wugudao Chang has found another "rich father" this time, but the difference is that this "father" sells dried noodles. In 2015, Kemen Noodle Manufacturing sold 380,000 tons, equivalent to every person in the country eating 3 bowls of dried noodles, each bowl weighing 2 liang. However, when Zebra Consumption checked Kemen Noodle Manufacturing's announcements, it found that almost the entire screen was filled with wealth management announcements. According to media statistics in April this year, Kemen Noodle Manufacturing used idle raised funds to purchase bank wealth management products over the past 12 months, with a cumulative amount reaching 1.958 billion yuan, accounting for 33.91% of the company's unaudited total assets in the most recent year. By May, Kemen Noodle Manufacturing planned to use another 900 million yuan for wealth management. It seems that the company is anxious about idle money lying in bank accounts. However, Kemen Noodle Manufacturing, known as the first stock in dried noodles, is not focusing on dried noodles but spending a lot of time using idle funds to buy bank wealth management products. Small and medium investors are puzzled: Is Kemen Noodle Manufacturing a representative of the dried noodle industry or the wealth management industry? To be honest, listed companies using idle funds for wealth management is normal financial management, and it is in the interests of all shareholders. But Kemen Noodle Manufacturing's frequency and cumulative amount of wealth management are rare in the industry. At least it shows that there are problems in the dried noodle industry or a lack of projects. At least, from the perspective of capital efficiency, frequent wealth management without focusing on industry is not a responsible move for all shareholders. In the dried noodle industry, Kemen Noodle Manufacturing has achieved its current market share with great effort. The dried noodle industry has low entry barriers, little technical content, and no technical barriers. Moreover, many regions do not have the habit of eating dried noodles, so breakthroughs in dried noodles are actually very limited. However, for this acquisition of Wugudao Chang's equity and debt, a mere 50 million yuan is nothing. Adding the repayment of over 50 million yuan in debt, it costs about 100 million yuan in total, but Kemen Noodle Manufacturing is thinking of a business worth 100 million or even 500 million yuan. Kemen Noodle Manufacturing is very shrewd. Wugudao Chang's brand and channels are exactly what Kemen Noodle Manufacturing values. Considering its previous actions, Kemen Noodle Manufacturing is likely to link Wugudao Chang with its fresh wet noodle products. In August last year, Kemen Noodle Manufacturing launched fresh wet noodle products, including bagged noodles for family consumption and boxed instant mixed noodles. Although the company's main business is dried noodles, fresh wet noodles currently account for a small proportion of sales. Linking this with the acquisition of Wugudao Chang, everyone knows its good intentions. In May next year, Kemen Noodle Manufacturing's fresh noodle project with an annual output of 24,000 tons in Yanjin, Henan, will be put into production. Compared with this project, which invested 192 million yuan and is expected to contribute an annual profit of 16.1545 million yuan, with a payback period of 7.53 years, even with the help of Wugudao Chang, marketing strategies need to be restructured, and whether consumer demand is rigid remains to be seen. In non-dried noodle products, Kemen Noodle Manufacturing can only be considered a novice, with a long way to go. What everyone cares about is how long Wugudao Chang can survive under Kemen Noodle Manufacturing. Source: Zebra Consumption (ID: banmaxiaofei) New Distribution's "Seventh B-end E-commerce Inspection Class" is now recruiting! Activity Process:

June 19-23, Suzhou · Shanghai · Hangzhou 19th: Check in at designated hotel in Suzhou; 20th: Inspect Suzhou Medlin; 21st: Inspect Shanghai Hd; 22nd: Inspect Hangzhou Wangcang; 23rd: Return or free arrangement for sightseeing; Platform Introduction: Medlin Youshang Software, a well-known domestic information system provider. In 2015, it launched the "Medlin" brand. Based on Youshang Software products, with artificial intelligence technology as the internal force and efficient operation as a breakthrough, Medlin helps distributors build a new B2B business model. It has provided software technical services to distributors in more than 50 cities nationwide. Hd Company Shanghai Hd Information Engineering Co., Ltd. (hereinafter referred to as Hd Company): a domestic first-class management consulting and software R&D company for commercial circulation, e-commerce, and modern logistics solutions. Since its establishment more than 20 years ago, it has been committed to creating modern commercial management models for customers. The systematic products and solutions with independent intellectual property rights developed by Hd have strong competitiveness in the three business formats of chain retail, commercial real estate, and warehousing logistics. It currently supports more than 500 well-known large and medium-sized commercial enterprises and group users in 30 provinces and cities nationwide. It is the largest retail software provider in China. Wangcang Zhejiang Wangcang Technology Co., Ltd. was established in June 2011. It is the earliest and currently the only large-scale independent fourth-party smart warehousing and distribution service provider in China. Wangcang has been committed to the innovation, implementation, and daily operation of refined and collaborative solutions for e-commerce enterprise warehousing and distribution. Today, Wangcang has the ability to provide solutions from B2C e-commerce warehousing and distribution to B2B+B2C full supply chain integration (warehousing and distribution). Relying on its self-developed adaptive warehousing and distribution comprehensive management system, combined with years of warehouse construction and management experience, as well as self-developed equipment, Wangcang has formed comprehensive competitive advantages. Wangcang's system can seamlessly connect with all sales platforms, enterprise ERP, logistics transportation express resources, and warehouse operation resources (such as equipment, labor, warehouse area application, etc.). Through our services, the efficiency of a single warehouse can be greatly improved, achieving resource interaction and allocation between warehouses. Through big data, we provide value-added services such as supply chain optimization and supply chain finance for cargo owners. At the same time, through open systems and management advantages, we provide franchise business for warehouse owners. Organization Form ************1. Company visit

  1. Actual market case visit
  2. On-site explanation
  3. One-on-one communication************ Participating distributor friends only need to pay a registration fee of 200 yuan Other expenses are self-paid Long press this QR code or click Read Original to register Long press the QR code to add WeChat for registration Previous Inspection Group Photos: 6th B-end E-commerce Inspection Group Photo, from top to bottom: Zhongke Shangruan, Shuhai Supply Chain, Yunmei Co., Ltd., Yishang Logistics. 5th B-end E-commerce Inspection Group Photo, from top to bottom: Huiwangxing, Beiquan, Tongying Tianxia, Quanshihui, Zhongke Shangruan. 4th B-end E-commerce Inspection Group Photo, from top to bottom: Alibaba Retail Link, Qianmi Network. Click Read Original to register -END-