IPO Again! Zuming Shares' Impact On The "First Share Of Bean Products" Business Is Difficult To Break Through The Yangtze River Delta Industry

Zuming bean products Co., Ltd. (hereinafter referred to as "Zuming shares") will be listed on the SFC's official website on August 13. If the meeting goes smoothly, a shares will be born "bean products first stock".

Zuming shares, which started from selling tofu, mainly produce fresh bean products, vegetable protein drinks and leisure bean products. At present, the main sales areas cover Zhejiang, Shanghai, Jiangsu, Anhui and other places, and the sales revenue of Jiangsu, Zhejiang and Shanghai accounts for more than 95%.

It is worth mentioning that the shares of Zhejiang environmental protection Co., Ltd. were listed again in 2013. However, the IPO plan failed. Subsequently, Zuming shares was listed on the new third board in March 2016, delisted more than three months later in 2019, and again rushed to A-share IPO four months later, and submitted a prospectus on June 21, 2019.

In response to the application, in April 2020, the CSRC gave initial feedback, mainly involving 46 issues related to standardization, information disclosure, and financial and accounting materials. Subsequently, Zuming shares updated its prospectus on June 16 this year.

The market revenue of Jiangsu, Zhejiang and Shanghai accounts for more than 95%

According to the updated prospectus on June 16, Zuming shares has been focusing on the R & D, production and sales of bean products since its establishment in 2000. Its main products are fresh bean products (tofu (boxed tofu, plate tofu), tofu skin / beancurd, dried tofu, vegetarian products, Qianzhang, vegetarian chicken, oil products, stinky tofu, etc.), vegetable protein drinks (self-contained bag of soybean milk and Tetra Pak bean curd) There are more than 400 kinds of products in three major series, including milk, leisure bean curd, leisure vegetarian meat, etc.

In addition to the above main products, Zuming also produces and sells bean sprouts, sufu, gluten, New Year cake, yingyu tofu, Mulian Bingshuang and other products.

From the market point of view, Zuming's products are deeply rooted in Jiangsu, Zhejiang and Shanghai, and cover the vast majority of provinces, autonomous regions and municipalities directly under the central government. Its customers cover large and medium-sized supermarkets such as RT mart, Auchan, Yonghui, Century Lianhua, China Resources Wanjia, Wumart, Sanjiang supermarket, Carrefour, well-known catering institutions such as Haidilao, grandma's home, uncle Yang Guofu, HEMA Xiansheng, dingdong buy vegetables, each Riyouxian and other fresh exclusive retail platforms.

It has more than 200 refrigerated fresh bean products and more than 200 customers.

Data show that Jiangsu, Zhejiang and Shanghai are Zuming's main market.

From 2017 to 2019, the total sales revenue of Zhejiang, Jiangsu and Shanghai accounted for 96.61%, 96.54% and 97.09% of Zuming's total revenue respectively.

Among them, Zhejiang is the top priority. In 2019, 69.01% of Zuming's sales share comes from Zhejiang Province.

In terms of performance, Zuming's revenue in 2019 has exceeded 1 billion yuan.

From 2017 to 2019, Zuming's net profit of revenue maintained a steady growth, with revenue of 863 million yuan, 939 million yuan and 1.048 billion yuan, respectively. The growth rate of revenue in 2019 was 11.56%, and the net profit was 41.4887 million yuan, 63.9418 million yuan and 90.1651 million yuan, respectively. The net profit growth rate in 2019 was 41.01%.

In addition, according to the prospectus, Zuming shares is expected to achieve 279 million yuan of revenue in the first quarter of 2020, with a year-on-year increase of 22.42%, and the net profit attributable to the parent is 23.44 million yuan, with a year-on-year growth of 82.66%; in the first half of 2020, the revenue is expected to be 510 million yuan-530 million yuan, and the expected net profit to the parent is 37 million yuan-39 million yuan.

The founder of Zuming tofu is called Zuming, and the actual controllers of the company are Cai Zuming, Wang chaying and CAI shuisaia. As of the date of the signing of the offering, Cai Zuming, Wang chaying and CAI shuichai directly held 32.11%, 9.79% and 13.05% of the shares respectively, and controlled 18.86% of the company's shares by controlling Hangzhou fiber products (the three hold 67.7% shares of Hangzhou fiber products), and actually controlled 73.8% shares of the company from the perspective of equity relationship.

Among them, Cai Zuming is the chairman and general manager of the company, while Wang chaying and CAI shuisait are both directors and deputy general managers of the company.

Can the breakthrough be successful?

It can be seen that the domestic soybean products industry is developing rapidly, but the industry concentration is still low and the market competition is more intense.

According to the prospectus, in addition to Zuming shares from Hangzhou, there are regional leaders in the bean product industry, such as "Qingmei" in Shanghai, "Baiyin" in Beijing, "Fuyin" in Shenzhen, "Fulai" in Shenyang, but no national leader has emerged.

Although the revenue of Zuming shares exceeds 1 billion yuan in 2019, it only accounts for 0.86% of the national market and 5.26% of the market scale of Jiangsu, Zhejiang and Shanghai.

"Even if the performance of East China's listed companies is good, it is still difficult to perform in the area of East China." Food industry analyst Zhu danpeng pointed out to the 21st century economic reporter that this is mainly due to the high demand for freshness of bean products and strong regional attributes.

On the other hand, it is helpful for Zhejiang to expand the market value of the food industry.

"In view of the company's long-term development strategy, the company urgently needs to expand the national market by establishing production bases and improving the marketing network." Zuming shares also realized the regional market limitations in its prospectus.

In this context, Zuming shares is planning to use the raised funds to invest 427 million yuan in A-share rush, which is mainly used in two major projects: the technical transformation of the production line with an annual output of 80000 tons of fresh bean products and the upgrading of the soybean products R & D and testing center. Among them, the technical transformation project of the production line with an annual output of 80000 tons of fresh bean products has landed in Anji.

According to the prospectus, Zuming shares were also involved in a trademark infringement dispute during the reporting period.

On November 16, 2018, dianfa food (Suzhou) Co., Ltd. (the plaintiff) sued Shang China (Zuming bean products business department of Qinghe District, the first defendant) and Zuming shares (the second defendant) for suspected infringement of trademark rights due to the registered trademark "thousand page tofu". The two defendants were required to immediately stop producing and selling the infringing products, and jointly compensate the plaintiff with a total economic loss of RMB 1 million.

On May 21, 2019, the State Intellectual Property Office (SIPO) issued the decision on approval of registration of "Zuming Qianye tofu" No. 23200665 (trademark Yizi No. 0000027888), refuting the trademark objection raised by dianfa food, and decided that No. 23200665 "Zuming Qianye tofu" should be registered. Zuming Co., Ltd. has obtained the Trademark Registration Certificate No. 23200411 "Zuming thousand page tofu" horizontal version and No. 23200665 vertical version of "Zuming thousand page tofu" issued by the State Intellectual Property Office.

On October 18, 2019, the intermediate people's Court of Huai'an City, Jiangsu Province issued (2018) Su 08 min Chu No. 377 civil ruling, ruling to reject the plaintiff's lawsuit of dianfa food.

On November 20, 2019, the State Intellectual Property Office (SIPO) issued to Zuming shares the notice of defense of trademark review cases, informing Zuming dianfa food to file a request for invalidation of No. 23200665 "Zuming thousand page tofu" trademark, and the Bureau will accept it according to law.

As of the signing date of the offering, the above trademark review cases are still in the process of evaluation.

In this regard, Zuming shares stressed that during the reporting period, the income and profit of the products involved in the case accounted for a small proportion of the company's current main business income and profit, only accounting for 0.37%, 0.56% and 0.44% of the total business income in 2017-2019.