Recently, the IPO of Shandong enterprise Qingdao daruman Machinery Co., Ltd. (hereinafter referred to as “daruman”) on the main board of Shenzhen Stock Exchange was successfully launched, and another member will be added to the camp of A-share listed pig enterprises!
company is not affected by pig cycle
It is reported that the herder plans to raise 1.44 billion yuan, of which 570 million yuan is used for the phase II construction project of Jiaozhou manufacturing center, 200 million yuan is used for the expansion and transformation project of equipment production lines with an annual output of 360000 fans and automatic poultry feeding lines, 310 million yuan is used for the phase II construction project of Jiaozhou R & D center, and 360 million yuan is used to supplement working capital.
According to public information, the predecessor of the great Shepherd is the great shepherd Co., Ltd., which was established in 2005 and changed into a joint stock limited company in 2013. Since its establishment, the herder has been focusing on the R & D, design, production, sales and installation of livestock and poultry breeding machinery and equipment. At present, it is a large-scale manufacturer of complete sets of breeding equipment and an overall solution provider for farms in China. The company’s products are divided into meat and poultry breeding equipment, egg and poultry breeding equipment and pig breeding equipment. The products cover the main links of livestock and poultry breeding and can provide customers with comprehensive product types and high-quality solutions. In recent years, it has undertaken the modern and large-scale breeding projects of Wenshi, Zhengbang, Tangrenshen Group Co.Ltd(002567) , Fengxiang, Xiantan, Xiangjia, Lihua and New Hope Liuhe Co.Ltd(000876) shares, creating a good brand image for the company.
(asset structure of herdsman)
In terms of asset structure, the total assets of the herdsman from 2018 to the first half of 2021 were RMB 1.489 billion, RMB 2.377 billion, RMB 3.696 billion and RMB 3.449 billion respectively, showing an increasing trend year by year, mainly due to the annual growth of the company’s sales scale and operating income and the rapid rise of current assets. The current assets of the company account for 85.24%, 87.32%, 91.09% and 90.01% of the total assets respectively, which are the main components of the company’s assets.
It is worth mentioning that in recent years, affected by the pig cycle, the performance of most pig enterprises has been under pressure, but the herders have not been greatly affected. From 2018 to the first half of 2021, the herdsman’s revenue was 1.084 billion yuan, 1.719 billion yuan, 2.411 billion yuan and 1.477 billion yuan respectively, and the net profit was 152 million yuan, 255 million yuan, 273 million yuan and 191 million yuan respectively. Among them, the revenue of pig raising equipment was 496 million yuan, 659 million yuan, 928 million yuan and 779 million yuan respectively; The gross profit margin of main business is 32.67%, 32.39%, 26.01% and 26.71% respectively.
With regard to the decline of the company’s profitability, the herdsman once said that since January 1, 2020, the company has implemented the new income standard, taking the transportation fee as the contract performance cost and included it in the operating cost or inventory accounting, while in 2019, the detailed calculation of the transportation fee included in the sales expense according to the original accounting policy. If the caliber is consistent, excluding the impact of the new income standard on the adjustment of transportation expenses, the gross profit margin of main business is basically stable during the reporting period. In other words, the decline in gross profit of big herdsmen is not affected by the pig cycle.
Dashu has no controlling shareholder and actual controller
In addition, according to the prospectus, the herdsman has no controlling shareholder and actual controller. At present, there are five shareholders of big shepherd. The top three shareholders, Wuhan KEGU, Hong Kong Jiafeng and Shandong Liuhe, all hold 25.875% of the shares of the issuer, and the ESOP platform, Fengyuan and pastoral songs together hold 22.375% of the shares of the issuer. Since March 2010, the shareholding ratio of Shandong Kefeng and Wuhan gujia has remained the same as that of the previous three issuers in Hong Kong.
(ownership structure of the herdsman)
According to the letter of commitment on waiver of voting rights issued by Shandong Liuhe, Shandong Liuhe waived its voting rights and director nomination rights corresponding to its shares in the company on June 16, 2021. Shandong Liuhe’s waiver of voting rights has not caused changes in the company’s equity structure. The company’s equity structure is still in a decentralized state. Hong Kong Jiafeng and Wuhan KEGU hold the same proportion of shares and have the same proportion of voting rights of the issuer. Neither Hong Kong Jiafeng nor Wuhan KEGU can unilaterally control the issuer.
However, from the perspective of the development process of the company, the development path of the herdsman before and after the share reform is inseparable from the New Hope Liuhe Co.Ltd(000876) group of Sichuan’s richest man Liu Yonghao.
In December 2008, Wuxi herdsman signed the equity transfer agreement with Shandong Liuhe under New Hope Liuhe Co.Ltd(000876) banner, and Wuxi herdsman transferred 31.25% of the company’s equity to Shandong Liuhe at the price of 8.4052 million yuan; In June 2009, the company increased its paid in capital. Shandong Liuhe invested 7.625 million yuan (1.1172 million dollars) in cash equivalent to 2.07 million US dollars and after tax profit in 2008, accounting for 31.25% of the registered capital. After several equity transfers and capital increases, Shandong Liuhe finally held 25.875% of the current shares.
The same is true in terms of business. Wuhan KEGU and Hong Kong Jiafeng are actually engaged in foreign equity investment and do not carry out other businesses. Their main assets are long-term equity investment and monetary funds; Qingdao Fenghe is the issuer’s employee stock holding platform. It has no other business except holding the issuer’s equity, and its main assets are long-term equity investment; Shandong Liuhe is mainly engaged in import and export business, sales of feed drug additives, operation of feed raw materials, enterprise management consulting services, etc. its main assets include houses, buildings, office equipment, electronic equipment and other assets corresponding to the above business.
accounts receivable account for more than 50% of New Hope Liuhe Co.Ltd(000876) accounts receivable. Will the company’s expected income be affected
Although the great Shepherd said in the prospectus that New Hope Liuhe Co.Ltd(000876) Liuhe is not the controlling shareholder of the company and Liu Yonghao is not the actual controller of the company and does not belong to the scope of limiting horizontal competition, the business exchanges between the two companies are very close.
Over the past three years, New Hope Liuhe Co.Ltd(000876) has always been the largest customer of the shepherd. According to the data, from 2019 to the first half of 2021, the amount of New Hope Liuhe Co.Ltd(000876) sales of herdsmen to was 281 million yuan, 497 million yuan and 423 million yuan respectively, and the proportion of revenue also increased from 16.34% to 28.61%. The main products sold were pig raising equipment. In addition, as of the end of the reporting period, the book balance of the company’s accounts receivable for New Hope Liuhe Co.Ltd(000876) shares was 819147 million yuan, accounting for 53.28%.
(source: prospectus)
However, affected by the pig cycle and the epidemic situation, New Hope Liuhe Co.Ltd(000876) the past two years have not been easy. The 2021 performance report released by the company not long ago shows that the company achieved an annual operating revenue of 126262 billion yuan, a year-on-year increase of 14.97%; The net profit attributable to the parent company was -9.591 billion yuan, a year-on-year decrease of 293.98%, from profit to loss over the same period of the previous year. Within one year, the profits of two years will return to zero directly.
As a result, the market has a certain degree of concern about the future performance expectations of the herder.
In response to what the herherherherhas said, the big herdsman says that apart from the New Hope Liuhe Co.Ltd(000876) havea significant adverse impact on the company’s performance.
livestock and poultry breeding machinery manufacturing has entered a steady development stage
In addition, according to the product types of the company, the herder belongs to the subdivided industry of special machinery manufacturing for livestock and poultry breeding. From the analysis of the development process of China’s animal husbandry machinery market, we can trace back the market development trend of more than ten years from 2009 to now. Since 2017, the animal husbandry machinery industry has entered a stage of steady development. The structure of the market dominated by large and medium-sized products and supplemented by small products has been formed, and the market shows a good development trend of steady and slight increase. From 2013 to the end of 2020, the number of animal husbandry machinery manufacturing enterprises in China increased from 68 to 147. According to the data of China Agricultural Machinery Industry Yearbook, the owner business income of China’s animal husbandry machinery manufacturing increased from 9.56 billion yuan to 27.989 billion yuan from 2013 to 2020. The industry is in a stage of rapid development. During the same period, the total profit of China’s animal husbandry machinery manufacturing industry increased from 731 million yuan to 1.854 billion yuan.
It is worth noting that although the development of China’s animal husbandry machinery industry has shown a good trend in recent years, there is still a certain gap between China’s animal husbandry machinery industry and other developed countries, especially in the field of high-end products, and the polarization is obvious.
