In many Shaanxi restaurants, cold skin + roujiamo + Bingfeng (soft drink) are integrated into “Sanqin set meal” among them, “Bingfeng” soda is the youngest, but it was born in 1948. It is also 74 years old and is a proper grandfather.
Under the background of the rise of national tide, it has a certain popularity among young people like many old national brands. Xi’an Bingfeng Beverage Co., Ltd. (hereinafter referred to as Bingfeng beverage) behind the brand pressed the pause button at the last moment after nearly 11 months in the IPO queue. The name of “the first share of domestic soda” cannot fall under the name of Bingfeng beverage for the time being.
On May 18, the official website of the CSRC showed that Xi’an Bingfeng Beverage Co., Ltd. (hereinafter referred to as “Bingfeng beverage”) had applied to withdraw the application materials and decided to cancel the examination of the company’s issuance application documents at the 57th working meeting of the 18th development and Examination Commission in 2022.
According to the prospectus, the main business of Bingfeng beverage is the R & D, production and sales of orange flavored soda and sour plum soup. The main products are “Bingfeng” glass bottle orange flavored soda, canned orange flavored soda, glass bottle sour plum soup, canned sour plum soup, etc. It is understood that the sales volume of Bingfeng beverage’s four main products in 2020 totaled 292 million bottles / can p align = “center” Image Source: screenshot of Bingfeng official website
withdraw the application before the meeting
On May 18, the issuance supervision department issued a supplementary announcement to the announcement of the 57th working meeting in 2022. As Bingfeng beverage applied to the CSRC to withdraw its application materials, it decided to cancel the examination of the company’s issuance application documents at the 57th working meeting of the 18th development and Examination Commission in 2022.
According to the audit progress previously announced by the development and Examination Commission, haopeng technology, Bingfeng beverage and zhengte Co., Ltd. are expected to launch at the meeting on May 19.
The reporter of the daily economic news learned that after it was accepted on June 28, 2021, the IPO of Bingfeng beverage has been advancing steadily, and it is about to get the opportunity of the general examination on May 19.
According to the prospectus, Bingfeng beverage plans to issue no more than 60 million shares on the main board of Shenzhen Stock Exchange. After the issuance, the number of shares to be publicly issued will account for no less than 25% of the total share capital after the issuance.
According to the prospectus, Bingfeng beverage plans to raise 669 million yuan to invest in the reconstruction and expansion project of glass bottled production line, the upgrading of marketing service network and brand construction project, and the construction project of information management platform. It plans to raise 199 million yuan, 430 million yuan and 403299 million yuan respectively.
The withdrawal of the application materials on the eve of the initial meeting means that the IPO road of Bingfeng beverage, which has been queuing for nearly 11 months, is terminated, and a series of upgrading projects of Bingfeng beverage are temporarily put on hold.
80% of the revenue comes from Shaanxi
The main business of Bingfeng beverage is the R & D, production and sales of orange flavored soda, sour plum soup and other beverages and the main products are “Bingfeng” glass bottle orange flavored soda, canned orange flavored soda, glass bottle sour plum soup, canned sour plum soup and so on.
Bingfeng beverage is a joint stock limited company established by Bingfeng Co., Ltd. in November 2019. The sponsors of the company are Xi’an sugar and Wine Group Co., Ltd. (hereinafter referred to as sugar and Wine Group) and Xi’an Jiuyue wine industry Co., Ltd. Until the signing date of the prospectus, the equity structure of the company was still simple, with only two shareholders, of which sugar and wine group held 99%.
Zhang Jun, a natural person, controls 91.83% of the voting rights of the sugar and wine group through direct shareholding, acting as the executive partner of other shareholders and entrusted the voting rights of other shareholders. Zhang Jun controls 100% of the voting rights of Bingfeng beverage through the sugar and wine group and Xi’an Jiuyue wine industry Co., Ltd. and Zhang Jun is the actual controller of the company.
When it comes to ice peak, people in Western Shaanxi are most familiar with it, but after leaving Shaanxi, perhaps most people will still shake their heads and say: I haven’t heard of it. From 2018 to 2020, the proportion of Bingfeng beverage sales revenue from Shaanxi reached 87.44%, 81.73% and 80.23% respectively.
Shaanxi has the largest market, which is closely related to the brand history.
Bingfeng soda originated in 1948. At that time, a businessman introduced a set of soda manufacturing equipment from Tianjin to Xinjiang. He stayed in Xi’an due to heavy snow. The northwest soda factory was built in 1951 and later incorporated into Xi’an food factory. After another heavy snow, the well pulley used to draw water for the production of soda was frozen, and the snow was frozen like a small peak, so it was named “Bingfeng”.
Although it has been 73 years since the alternation of cold and heat, outsiders who don’t know the company don’t see much change here. For example, in addition to orange soda, the product of Bingfeng beverage is basically sour plum soup. From 2018 to 2020, the total sales amount of glass bottle orange flavor soda and canned orange flavor soda accounted for 86.38%, 84.38% and 81.48% respectivelyP align = “center” Image Source: screenshot of prospectus (application draft)
From 2018 to 2020, Bingfeng beverage’s revenue rose year after year, respectively RMB 286 million, 302 million and 333 million, and net profit attributable to parent company in the same period was RMB 70 million, 78 million and 65 million respectively.
Bingfeng beverage lists two categories of competitors: one is the carbonated beverage market, mainly Pepsi, Coca Cola, Beijing Arctic Food Co., Ltd. and Guangdong Jianlibao Group Co., Ltd the other is plant beverage companies, mainly including Master Kang Holding Co., Ltd., Guangzhou Wanglaoji Health Industry Co., Ltd., Beijing Xinyuanzhai Beverage Co., Ltd. and Beijing jiulongzhai Beverage Co., Ltd.
China’s carbonated beverage market pattern has been basically stable, with Coca Cola and Pepsi accounting for 80% of China’s carbonated beverage market.
The reporter of the daily economic news noted that PepsiCo’s revenue in 2020 was US $70.372 billion and its net profit was US $7.175 billion; Coca Cola’s operating revenue in 2020 was US $33.014 billion and its net profit was US $7.768 billion.
Compared with these industry giants, Bingfeng beverage is obviously not in an order of magnitude.
Xu Xiongjun, a strategic positioning expert and founder of Jiude positioning consulting company, said in an interview with the daily economic news that Bingfeng beverage products are mainly soft drinks, which are seriously homogenized with other products on the market. It is difficult to compete with Coca Cola, PepsiCo and other brands nationwide. In addition, the packaging of Bingfeng beverage is too simple. Glass bottled Bingfeng orange soda is the best-selling product in Xi’an, but the bottled packaging is not conducive to long-distance transportation and mass storage, which limits the expansion of the market outside the province .
was asked by CSRC 54
The reporter of the daily economic news learned that the CSRC had put forward feedback on December 3, 2021 on the normative issues, information disclosure issues and issues related to financial and accounting materials of Bingfeng beverage prospectus.
From the feedback, the CSRC raised a total of 54 questions, which not only requires the supplementary disclosure of a number of information, but also needs to explain whether there is any adjustment of income, profit or cost through related party transactions, whether there is benefit transmission, etc.
On December 14, 2021, Bingfeng beverage updated its prospectus. Bingfeng beverage supplemented and disclosed in detail the above problems in the prospectus, denying other interest arrangements and the loss of state-owned assets. Bingfeng beverage said that the equity transfer price is based on the approval of Xi’an SASAC and transferred at zero consideration. The transfer price is higher than the amount after the adjustment of the assessed value and the deduction of the stripping project. It does not involve the payment of the price and the source of funds of the transferee. The pricing is fair and does not cause the loss of state-owned assets.
At the same time, Bingfeng explained the disputes or potential disputes with Xi’an Pepsi Cola.
During Zhang Jun’s tenure as vice chairman of Xi’an PepsiCo, there was no benefit transfer to the issuer by means of transferring Xi’an PepsiCo customer resources, or by means of transferring the issuer’s customer resources to Xi’an PepsiCo. Since March 11, 2021, Zhang Jun, the actual controller of Bingfeng beverage, has no longer served as the vice chairman of Xi’an Pepsi Cola Beverage Co., Ltd.
As of the date of the prospectus, 79.0% of the shares held by Xu Bingjun and 79.63% of the shares held by Zhang Zhenxing on behalf of Xu Bingjun, the legal shareholders of the group, were still undisputed.
In addition, the proxy shares have been restored, and the shares of sugar and wine group held by the shareholders of sugar and wine group are clear, without dispute or potential dispute.
As of the time of the interview, Bingfeng has not replied to the above questionsp align=”center”>
