Calling On The Three Major Industries Of Stewed Flavor To Be Listed On A-Share Market

On July 14, Shanghai Ziyan Food Co., Ltd. (hereinafter referred to as "Ziyan food") which is well known as "Ziyan Baiwei chicken" (hereinafter referred to as "Ziyan food") disclosed on the official website of Shanghai Securities Regulatory Bureau the report on the guidance and filing of IPO guidance, planning A-share listing, and guiding the securities company Guangfa Securities.

As one of the well-known stewed cooked food enterprises in China, Ziyan food was established in June 2000. Its representative products include Ziyan Baiwei chicken, husband and wife's lung slices, rattan pepper chicken, purple swallow duck (goose), etc., as well as duck neck, duck wings, dried bean curd, etc.

It is worth mentioning that Huang Shanghuang (002695. SZ) once pointed out in the annual report that in 2019, the retail scale of China's Halogen products industry reached 110 billion yuan, with a year-on-year growth of 20%. It is estimated that the retail sales of China's Halogen products will reach 123.5 billion yuan in 2020.

In front of the market of "HK $60.458 billion" and "salted duck (SH)" have landed in the market. However, the leisure halogen products industry is relatively scattered. According to the public data, the top five brands of Juewei duck neck, zhouheiya, Ziyan Baiwei chicken, Huangshanghuang and jiujiuya only account for 20%.

In this context, can Ziyan food go on the market smoothly and recreate the myth of "bittern makes wealth"? The market remains to be seen.

More than 4000 stores

According to the official website, Ziyan food originated in Sichuan in the 1980s, and its predecessor, Zhongji oil scalded duck, was founded in Xuzhou in 1989 by Zhong Chunfa, the parents of Zhong Huaijun, the chairman of the board of directors. It has developed in Jiangsu Province and is stronger than the whole country. Now the company's headquarters are located in Xinzhuang Industrial Park, Minhang, Shanghai.

"By breaking their fingers, Ziyan Baiwei chicken was 30 years old. At that time, Sichuan people Zhong Chunfa and his wife came to Xuzhou with a dream of starting a business. They made a name for Zhongji oil hot duck. Then they marched into Nanjing, known as" duck capital ", and officially founded Ziyan Baiwei chicken." An article on the official website mentioned.

Ziyan Baiwei chicken claims to "return to the essence of products", and its products are mainly divided into three categories: the first is Ziyan Baiwei chicken, which achieves the best performance price ratio and quality through the supply chain remodeling; the second is the micro innovation of products, including Tengjiao chicken, hand shredded chicken, and the newly launched Ziyan chaopin Shuang Jiaohua and Baiwei native chicken in 2020; the third category is category creation, Ziyan's hi Spicy lips, shuqu and Jiaoyan are new products of differentiation.

According to a media report, at the 2nd China (Fujian) international smart business conference in October 2019, GUI Jiuqiang, vice chairman of Ziyan food, revealed that "what Ziyan food can do at present is poultry, livestock, vegetables and so on. Now it promotes two products every quarter, eight products a year, and basically 1-2 products a year. Now, the dish of "husband and wife lung slices" will achieve a sales revenue of nearly 1.6 billion yuan in 2019 ", but this data has not been supported by other channels for the time being.

On July 27, the reporter called Ziyan food official website customer service telephone inquiry, but no one answered.

From the perspective of development mode, Ziyan food launched internal and external franchise mode in 2015-2016 to expand its stores mainly through "direct marketing + franchise".

In 2014, Ziyan's flagship store was officially opened on the official website of Ziyan. In 2018, Ziyan food has settled in 40 large and medium-sized cities such as North China and central China; by 2019, it has more than 3500 outlets; in 2020, it has more than 4000 stores, covering Shanghai, Beijing, Guangzhou, Shenzhen, Chengdu, Chongqing, Wuhan, Hefei, Suzhou, Changsha, Hangzhou and other places.

In addition, Ziyan food has also opened up multiple online platform channels, such as meituan, hungry Mo and Shuo Yin.

So, under the influence of the epidemic situation, how about the management of Ziyan food this year?

Ziyan food said in the official website news that Ziyan Baiwei chicken opened some stores for the first time during the Spring Festival. In February, nearly 65% of the stores resumed normal business according to the requirements of street epidemic prevention. In March, with the strategy of "small window of cooked food and big safety of purple swallow", the average daily sales volume of the stores increased significantly year-on-year, and all other stores except Wuhan area recovered In addition, Hubei (except Wuhan) also returned to work on March 20 according to the local progress; from April to may, Ziyan made every effort to expand new cities, with more than 4000 stores.

Two rounds of financing before IPO

According to the above-mentioned guidance record report, the period of guidance for Ziyan food is no less than three months. Among them, the on-site guidance time of GF Securities shall not be less than 20 working days, of which the centralized teaching time shall not be less than 20 hours, and the number of centralized teaching shall not be less than 6 times. The counseling is divided into three stages: the first stage: the early stage, from the registration date (t day) to t + 30 day; the second stage: the mid-term stage, from t + 31 to t + 60; the third stage: the late stage, from t + 61 to t + 90.

The above publicity shows that the actual controllers of Ziyan food are Zhong Huaijun, Deng Huiling, Zhong Qinchuan, Zhong Qinqin and Ge WuChao. Zhong Huaijun and Deng Huiling are husband and wife. Zhong Qinchuan and Zhong Qinqin are the sons and daughters of Zhong Huaijun and Deng Huiling, and Ge WuChao is Zhong Qinqin's husband. The five members of the "Zhong family" directly and indirectly controlled 88.58% of the voting rights of Ziyan food, thus jointly controlling the company.

Before IPO, Ziyan food introduced two rounds of financing.

According to the public information, the investment institutions of round a include Julin Chengze and Zhilian capital; on June 28, 2019, Ziyan food held a signing ceremony for round B equity financing and institutional investment in Shanghai headquarters, and the investment institutions in round B included Zhilian capital, kangxu capital, Longbai capital and Hongzhang capital.

In addition, according to the above announcement, Ziyan food has 21 shareholders, and the ultimate beneficiaries of Jiaxing Zhilu investment partnership (limited partnership), which holds 1.62% of the shares, is the state owned assets supervision and Administration Commission of Shanxi Province; Shenzhen Julin Chengze venture capital partnership (limited partnership), which ranks ninth and holds 1% of shares, is backed by Bubugao Investment Group Co., Ltd. and jiajiajiayue holdings Group Co., Ltd. (603708. SH).

GUI Jiuqiang, the leading investor of round B, founder of Zhilian capital and vice chairman of Ziyan food, said at the signing ceremony of Ziyan food that "the reason why well-known investment institutions at home and abroad have a strong interest in Ziyan food is the development scale and popularity of the enterprise today, but in fact, the real core competitiveness is the fundamental concept of product oriented. Today, Ziyan relies on the first-class products, which cannot be separated from the enterprise's unremitting efforts in taste and quality. In recent years, internal management such as financial standardization, information construction and supply chain optimization has also stepped to a new level. In the next few years, more efforts should be made in brand promotion, marketing and new retail. "

How are the three famous brands of "Shanghuang" and "Shanghuang" as "yingjue"?

In 2019, Juewei food has a revenue of 5.172 billion yuan and a net profit of 801 million yuan. It is one of the leading enterprises with the largest scale, the largest number of stores and the highest degree of nationalization among the domestic halogen leisure food enterprises. In addition, Zhou Heiya has a revenue of 3.186 billion yuan and a net profit of 407 million yuan, and Huang Shanghuang is not willing to be outdone. In 2019, it will achieve a revenue of 2.12 billion yuan and a net profit of 220 million yuan.

In this regard, on July 27, Zhu danpeng, an analyst of the food industry, pointed out to the reporter of the 21st century economic report that "compared with Juewei food, Zhou Hei duck and other stewed flavor enterprises, the positioning of Ziyan Baiwei chicken is slightly different. It is mainly food for accompaniment rather than leisure food. As an enterprise with Shanghai as the center, it still has a certain pursuit of quality.".

He pointed out, "at present, the whole China's bittern market has entered a period of deep adjustment, and the industry is close to the ceiling. If Ziyan food wants to take the road of nationalization, good business districts or locations basically have enterprise layout, which needs to consider the cost or resource accumulation, and the overall layout may face greater challenges in the next step."