Fellow chicken is finally going to IPO!
Since the chairman tore the joint letter of the employees out of the circle, the industry has paid more and more attention to the Chinese catering brand of local chicken. According to the prospectus disclosed by the company on the official website of the CSRC, the company plans to be listed on the main board of the Shanghai Stock Exchange and Guoyuan Securities Company Limited(000728) acts as a sponsor.
If it can be listed successfully, the local chicken may become the first share of Chinese fast food.
nationwide thousands of stores
Anhui market contributes 80% of revenue
In October 2003, Shu Congxuan, the founder, opened the first Feixi old hen shop in Hefei, Anhui Province, which is the predecessor of hometown chicken. It is characterized by Feixi old hen soup and is mainly engaged in Chinese dishes such as chicken. Then, with the continuous development, Feixi hen shop began to go out of Hefei and opened more than 100 stores in Anhui.
After its popularity in Anhui, in order to make the brand better move to the whole country, Shu Congxuan decided to change its name, and Feixi old hen was renamed Laoxiang chicken in 2012. The products are also expanded to dishes with chicken, pork, beef and vegetables, rice noodles and aquatic products as raw materials, as well as pasta and porridge.
Since 2017, local chickens have gradually opened stores in Shanghai, Hubei, Jiangsu, Shenzhen, Beijing, Zhejiang and other places. According to the prospectus, at present, there are 1073 rural chicken Direct stores and franchise stores nationwideP align = “center” source: local chicken official website
It is worth noting that although the stores have been expanded to cities such as Beijing, Shanghai and Shenzhen, from the perspective of the company’s regional market revenue, Anhui, as the company’s base camp, has always maintained a high proportion of revenue in the past three years, accounting for 82.01%, 79.97% and 70.65% respectively from 2019 to 2021. The company has a market concentration risk that its operating revenue mainly comes from Anhui.
In this regard, the local chicken said that this is mainly due to the fact that the company’s current production and processing base is still mainly in Hefei, Anhui Province, which is limited by the sales radius of fresh and short-term guaranteed food. With the subsequent construction and operation of Shanghai production and processing base, the company will further increase the market coverage in East China and surrounding areas.
According to the local chicken plan, in the next three years, the company plans to use the raised funds to open 700 Direct stores in key areas in Shanghai, Nanjing, Suzhou, Shenzhen, Beijing, Wuhan, Hangzhou, Hefei, Wuhu and other regions.
performance increased steadily and gross profit margin decreased
From the revenue data, the company’s performance has been in a steady growth trend in the past three years. From 2019 to 2021, the revenue of rural chickens was 2.859 billion yuan, 3.454 billion yuan and 4.393 billion yuan respectively; The net profit was 159 million yuan, 105 million yuan and 135 million yuan respectively; The net profit deducted from non profits was 161 million yuan, 948815 million yuan and 139 million yuan respectively.
In terms of gross profit margin, the gross profit margin of the company has decreased in recent three years. From 2019 to 2021, the comprehensive gross profit margin of rural chickens was 19.02%, 17.28% and 16.56% respectively. In this regard, rural chickens said that the main reasons were the rise of the company’s main raw material costs, labor costs and the impact of the epidemic.
In terms of expense changes, the company’s period expenses accounted for 11.31%, 13.09% and 12.49% of operating revenue respectively. Laoxiangji said that the company’s expenses during the period are mainly composed of sales expenses and management expenses. With the continuous expansion of the company’s scale, the company’s market investment continues to increase, and the human resource cost is in an upward trend, resulting in the increase of the total expenses during the period. Specifically, the proportion of the company’s management expenses has increased year by year in the past three years. In 2021, there was less investment in R & D expenses, accounting for 0.21%, which is lower than that in the previous two years.
It is worth noting that the prospectus also disclosed a job occupation loss of 12.091 million yuan in 2019. It is reported that in March 2017, Laoxiang chicken appointed Wang as the manager of the financial department and the manager of the human resources department of Jiangsu Laoxiang chicken. From October 2017 to may 2019, Wang misappropriated funds of 24.738 million yuan from the Alipay account of Jiangsu Laoxiang chicken, of which 12.091 million yuan was confirmed as the loss of job encroachment in 2019. After the incident, due to Wang Yixing’s suicide and other reasons, the company did not further recover the relevant personnel and assumed the relevant losses, which were included in the company’s non operating expenses and the loss of job occupation.
family real control, shareholders rush to take shares
From the perspective of equity structure, Shu Congxuan, the founder and chairman of the company, does not hold shares of the company, and the actual controlling shareholder Hefei Yuyi holds 51.62%; The direct shareholding ratio of Shu Xiaolong, the son of Shu Congxuan, is 24.81%, and the direct shareholding ratio of Shu Wen, the daughter of Shu Congxuan, is 4.96%. In addition to the direct shareholding, the brother and sister also indirectly hold the equity of the company through Qingdao Shudong and Hefei Yuyi. Dong Xue, the wife of Shu Xiaolong, also holds the equity of the company through indirect shareholding, and the three together hold 91.32% of the shares of the company.
In addition, Zhang Qiong, the deputy general manager of the company, is the mother of Shu Xiaolong and Shu Wen, and does not hold the equity of the company.
Therefore, the five family members of Shu Congxuan, Zhang Qiong, Shu Xiaolong, Dong Xue and Shu Wen are the actual controllers of the local chicken.
From the financing process of rural chickens, there have been only two external financing since its establishment.
For the first time, in May 2019, Laoxiang chicken announced that it had completed the first round of financing of 200 million yuan, and the investor was Jiahua capital. The second time occurred in December last year. Maixing investment and Guangfa Qianhe invested 89 million yuan and 50 million yuan respectively in rural chickens. Before the IPO, maixing investment and Guangfa Qianhe held 0.49% and 0.28% shares respectively, and Yuhe investment managed by Jiahua capital held 4.94% shares of laoxiangji, which is the largest institutional investor.
In addition, according to the prospectus of rural chicken, the rural chicken plans to issue 63.53 million new shares and raise 1.2 billion yuan, which will be used for rural chicken east China headquarters project, new catering store construction project and data information upgrading construction project.
Chinese catering queuing IPO
According to frost Sullivan data, the market scale of China’s catering market continues to grow steadily based on the total amount of commodity transactions. It is expected to grow to about 6100 billion yuan by 2025, and the compound annual growth rate from 2020 to 2025 is 9.1%. The Chinese catering market is the main segment. The market scale will reach about 4800 billion yuan in 2025, and the compound annual growth rate from 2020 to 2025 will be about 9.0%.
Under the broad space and market scale of China’s catering market, Chinese catering brands have developed rapidly in recent years. Since the fourth quarter of last year, many restaurants including Laoxiang chicken, Yang Guofu spicy hot, Hefu Laomian, rural base, old aunt and so on have successively opened the road to listing.
At the end of December last year, my uncle disclosed the guidance and filing publicity documents in Zhejiang securities regulatory bureau and planned to launch an IPO in a shares; On the eve of the Spring Festival, Juewei Food Co.Ltd(603517) announced that Jiangsu Hefu Catering Management Co., Ltd. (i.e. “Hefu Laomian”), a wholly-owned subsidiary of the company with shares of Shenzhen Wangju, plans to implement the overseas listing plan and has signed a restructuring agreement with the relevant shareholders of Hefu Laomian; Chinese fast food chain Ruanji and Chinese seafood chain qixintian also officially submitted the prospectus at the Hong Kong Stock Exchange in January this year; In February, Yang Guofu spicy hot officially rushed to the Hong Kong stock IPO
For catering enterprises to get together for listing, some industry analysts believe that before the epidemic, the cash flow of catering enterprises was generally relatively stable, so the enthusiasm of participating in the capital market was not high. In recent years, due to the continuous impact of the epidemic, the growth of revenue slowed down and the demand for funds increased, and catering enterprises had to start to rely on the power of capital to maintain their development and growth.
However, the listing of catering companies has not been smooth. Taking Chinese restaurant green tea as an example, it has impacted the Hong Kong stock IPO three times so far, and Guangdong hot pot brand Laowang is also the second Hong Kong stock IPO… In this context, the industry is particularly concerned about who will eventually spend the “first share of Chinese fast food”.
\u3000\u3000
