On May 7, 2025, the company held a business analysis meeting for April. The meeting was chaired by the company’s CEO Meng Qingfei, and attended by the general manager Xu Xinghua, department heads, and core business backbone. General Manager Xu Xinghua comprehensively reviewed the completion of business goals in April and analyzed the core issues of each business sector. Mr. Meng requested that after the meeting on the same day, all departments should sort out their key work from May to July and plan the next direction of work. On the afternoon of May 9th, the company held its second meeting, and each department reported on their key work. Mr. Xu reported on the key work and next steps of each business unit from May to July.
1、 Summary of Business Performance in April
General Manager Xu Xinghua reported the company’s operating data for April:
The overall sales of the company exceeded the budget in April, but the overall net profit and net profit margin of the company were lower than expected, and the company is still in a loss making state. The revenue and gross profit margin of the three major business departments, namely Special Express, Domestic Trade, and Foreign Trade, are significantly different from the budget, and the net profit of each business department does not meet expectations; The traditional sales department’s net profit did not meet expectations due to sales not meeting budget targets; The Walnut Oil Division has started to develop positively, with sales revenue exceeding expectations in April and achieving profitability. In terms of production, the initial processing has resulted in an increase in sales costs due to damage to the original fruit inventory and a high proportion of foam, which has affected the overall gross profit margin. In summary, the above problems are mainly reflected in two aspects: first, the sales volume of various business departments is unstable, and there is still a gap between the shipping price and the company’s positioning; second, the professionalism of various links in procurement, storage, and production still needs to be improved. The reasons for procurement prices, inventory losses, and production losses have a great impact on the company’s profit achievement.
Mr. Meng emphasized that since the beginning of the year, we have been emphasizing the key work items, and each member should have a clear understanding and maintain a high level of vigilance. At today’s meeting, we will also clarify our future work plans based on the business data so far this year, as well as the company decisions planned for May, and plan the company’s future work priorities. In this meeting, we will summarize and analyze the operational status of the company in April, plan the key tasks for May, and evaluate and arrange the company’s business strategy for the second half of the year and future development trends. We will clarify the areas that the company needs to improve in procurement, production, sales, quality inspection, and management, and jointly determine future opportunities and important tasks.
2、 Mr. Meng’s comments and next steps of work deployment
In response to the problems in production and operation in April, Mr. Meng has put forward work requirements to relevant departments:
Problem analysis:
Regarding the issue of insufficient gross profit:
The low selling price is mainly due to the increase in raw material prices and sales costs. The sales volume of the domestic trade department has significantly increased compared to other months this month, but the gross profit margin is still low. Procurement and production should try to reduce costs and provide higher gross profit space for domestic trade. Domestic trade should continue to increase sales and customer growth.
The increase in inventory loss rate may be due to insufficient experience in warehouse management. Production and warehousing need to analyze the reasons for high inventory damage, with moisture being the main cause. However, the transportation process, storage management, and production process may all lead to an increase in inventory damage rates. It is important to understand how the changes are caused, evaluate whether there is a risk of further improvement in inventory damage, identify the trend of changes, and find ways to reduce them, in order to accumulate experience for the next step of fruit storage. Production, quality, and warehousing should be tried more in terms of methods, and not arbitrarily reject any one method.
The problem of controlling production costs: the proportion of foam is relatively high, the processing of by-products is not smooth, the progress of transit warehouse work is slow, and the labor cost of circulation is high, resulting in overall high processing costs.
Regarding the long-term accounts receivable issue of the Special Communication Department:
There should be clear time frames and requirements, and we cannot just passively collect payments. We should also have certain constraints on department heads, and the special communication department should broaden channels to change the overall weak situation.
Core job requirements:
Sales end: Domestic trade should maintain stable sales volume and focus on improving gross profit; The foreign trade department needs to dig deep into the needs of European customers and analyze the reasons for mixed orders; Simultaneously pay attention to the impact of exchange rates on profits; Traditional sales departments are gradually increasing their sales volume, with a minimum sales revenue of 50000 to 60000 yuan during the off-season. The Walnut Oil Division maintains and expands its existing profit margin, and adjusts its internal pricing mechanism reasonably.
Production end: The efficiency and cost control of the initial processing production line need to be improved. The trial machine report should be completed as soon as possible to verify whether new equipment is needed to process by-products to reduce labor, complete the installation and commissioning of the transfer warehouse, test the output ratio of foam under different parameters, accelerate the inspection of new production line equipment, and improve the deep processing capability. The Walnut Oil Division is accelerating the inspection of plasticizer equipment and paying attention to the sustainability of subsequent plasticizer treatment by the equipment.
Exploration of high gross profit product line: Investigate the planning direction of the company’s future high profit product line, confirm and verify the market potential and production feasibility of high value-added products such as amber walnut kernels as soon as possible, find the most suitable development path for the company, and provide new profit growth points for the company.
Collaboration: The procurement and sales department completes the raw fruit procurement for the next two months’ shipment orders ahead of schedule, avoiding the risk of price increases, and coordinating the relevant work of raw fruit procurement before the arrival of the new production season to ensure the smooth progress of raw fruit procurement in the new season to the greatest extent possible. The quality department should understand in advance the time and materials required for the production license and various certifications of the newly launched amber peach kernel products, and prepare for the new production license and certification. The warehousing department should develop a warehouse expansion plan, evaluate the feasibility of promoting customized pallets, and the finance and human resources departments should develop corresponding budget plans to complete the recruitment and personnel reserve work of core personnel.
3、 Confidence and Commitment
In April, although we had some problems in the production and operation process, the overall trend was positive. The company achieved sales targets in April, and the sales expense ratio was mostly lower than the budget target. The net profit of various business departments also gradually improved, and many improvement points were discovered in production. Mr. Meng affirmed the efforts of each department and hoped that they would continue to work hard in May to ensure the completion of the company’s overall sales target. Although we still face many challenges such as rising raw material prices and low gross profit margins, as long as we dare to face the difficulties, turn “danger” into “opportunity”, and on this basis, maintain the basic situation, and each department does a good job in management and improvement in their respective business areas, we will definitely have greater opportunities and space to achieve the company’s predetermined profit goals.
The goal has been set, the mission must be achieved! From executives to frontline workers, only by working together, daring to be the first, and daring to explore, can we make everyone a profit creator and value contributor to the development of a fruit!
