Shanghai Ziyan Food Co., Ltd. (hereinafter referred to as “Ziyan food”), which pre disclosed the prospectus in July last year, recently updated the prospectus, further from the sprint to the main board of Shanghai stock market.
Ziyan food’s main business is the R & D, production and sales of halogen food. Its main products include husband and wife lung slices, Baiwei chicken, rattan pepper chicken, etc. unlike the three giants of halogen, Ziyan food’s application scenario is dominated by meal consumption. Ziyan food plans to raise 800 million yuan for phase II of Ningguo food production base, phase II of Rongchang food production base, storage base construction project and other projects.
main product: husband and wife lung tablets
There is fierce competition in the “stewed flavor” market. At present, the three giants Juewei Food Co.Ltd(603517) (603517), Zhou Heiya (1458. HK) and Jiangxi Huangshanghuang Group Food Co.Ltd(002695) (002695) have already completed listing in the capital market. After the pre disclosure of the prospectus in July last year, the rising star Ziyan food updated the prospectus in mid January this year, further from the sprint to the main board of Shanghai stock market.
Ziyan food is a large-scale halogen food production enterprise in China. Its main business is the R & D, production and sales of halogen food. Its main products are husband and wife lung slices, Baiwei chicken, rattan pepper chicken and other halogen food with chicken, duck, cattle, pig and other poultry and livestock products as well as vegetables, aquatic products and bean products as raw materials. The application scenarios are mainly meal consumption and supplemented by leisure consumption, The main brand is “Ziyan”.
In terms of production links, Ziyan food has successively built several high-standard regional central factories such as Jinan, Wuhan, Jiangsu Lianyungang Port Co.Ltd(601008) , Ningguo and Chongqing. It has built an all-round supply chain system with various production subsidiaries as production bases for distributing products to the national sales network and the optimal cold chain distribution distance as the radiation half path. At present, Ziyan food has more than 4700 terminal stores in China, and its products cover more than 140 cities in more than 20 provinces, autonomous regions and municipalities directly under the central government.
The updated prospectus shows that from 2018 to the first half of 2021, Ziyan food achieved an operating revenue of about 2.002 billion yuan, 2.435 billion yuan, 2.613 billion yuan and 1.405 billion yuan respectively, with a corresponding net profit of about 124 million yuan, 138 million yuan, 389 million yuan and 175 million yuan respectively. During the reporting period, the income of its main product husband and wife lung tablets was 628 million yuan, 765 million yuan, 810 million yuan and 423 million yuan respectively, accounting for about 31.37%, 31.42%, 31% and 30.45%.
How much money does it make to make stewed food? According to the prospectus, from 2018 to the first half of 2021, the gross profit margin of Ziyan food’s main business (excluding the impact of product distribution cost) was 25.51%, 25.41%, 30.53% and 26.87% respectively. Ziyan food pointed out that the gross profit margin of its main business is mainly affected by the purchase price of raw materials, labor cost, product price and other factors. In the future, if the company cannot timely digest the above impact due to the rise of raw material price and labor cost by analyzing the change trend of raw material market price, raw material reserve and reasonably adjusting product price, the gross profit margin of main business will face the risk of decline.
Ziyan food raw materials account for more than 80% of its main business costs, of which whole chicken, beef, chicken feet, beef offal, pig hoof and pig ear account for more than 50% of the total procurement of raw materials. Therefore, the price fluctuation of the above main raw materials will affect the gross profit margin and profitability of the issuer.
the market scale of brine is expanding
According to the consumption scenario, halogen food can be mainly divided into meal halogen food and leisure halogen food. Among them, stewed food with meals mainly refers to the food with meals enjoyed in families, restaurants, hotels and other table consumption scenes. Leisure marinated food mainly refers to the marinated food such as duck neck and duck claw enjoyed in leisure time, that is, the food enjoyed as snacks in dinner, social and sports activities.
In China, Ziyan food, Jiangsu halogenated Jiangnan Food Co., Ltd., Liaoji food chain Co., Ltd., Shanghai Liufu Enterprise Management Consulting Co., Ltd., Henan jiuyuquan Food Co., Ltd. are mainly engaged in the production and sales of snack halogenated food, and Jiangxi Huangshanghuang Group Food Co.Ltd(002695) , Juewei Food Co.Ltd(603517) , Zhou Heiya Shanghai Dingyu Food Co., Ltd.
Benefiting from the influence of the expanding market scale of brine, according to Frost & Sullivan and other statistical data, the market scale of China’s brine food industry will be about 250-310 billion yuan in 2020. Among them, the market scale of brine food industry with meals is expected to reach 279.932 billion yuan in 2025, with a compound growth rate of 11.40% from 2020 to 2025. The concentration of superimposed industries is low, and the market share of the top enterprises such as Zhou Heiya, Jiangxi Huangshanghuang Group Food Co.Ltd(002695) and Jue Wei, the three giants of stewed flavor, is only nearly 20%, leaving a large space.
Ziyan food pointed out that with the change of consumer consumption concept and the improvement of consumer demand for halogenated food, the prosperity of halogenated food industry continues to improve, which is attracting enterprises above Designated Size and other new enterprises to join. At the same time, some enterprises focusing on leisure brine foods have also increased their R & D efforts and tried to enter the field of brine foods with meals to which the company’s main products belong. In other words, the competition in the brine food industry continues to be fierce.
It is worth noting that the sales revenue of Ziyan food in East China accounts for more than 74% of the main business revenue all the year round, and the sales area is relatively concentrated. The main reason for the concentration of Ziyan food sales area is that East China has a relatively developed economy, dense population and high per capita consumption capacity, so the company has invested more market development resources in East China. If the consumption habits in East China change or the market share of the company declines due to the fierce competition in the halogen food market in the future, it will have a certain impact on the operating performance of Ziyan food.
In addition, Ziyan food is a typical family business. The actual controllers include Zhong Huaijun, Deng Huiling, Zhong Qinqin, GE WuChao and Zhong Qinchuan, who are close family members. The above personnel control 88.58% of the voting rights of the company in total. After the successful issuance of the shares, the above-mentioned persons will still control 79.55% of the voting rights of Ziyan food.
