Written by|Planet
Source|Beduo Finance
On November 19, Xiamen Yanzhiwu Bioengineering Co., Ltd. (hereinafter referred to as "Yanzhiwu") passed the hearing of the Hong Kong Stock Exchange and disclosed the post-hearing information set (i.e. prospectus). CICC and GF Securities as its joint sponsor.
According to Beiduo Finance, Yanzhiwu tried to go public in Hong Kong as early as 2011, but it was terminated due to the "poisonous bird's nest" incident. Ten years later, in December 2021, Yanzhiwu submitted a disclosure prospectus and planned to be listed on the main board of the Shanghai Stock Exchange. However, it voluntarily withdrew the IPO application materials on the eve of the Shanghai Stock Exchange meeting in September 2022.
Yanzhiwu has explained that due to the continued uncertainty in the overall A-share approval process, and considering its future business development plans and the fact that listing on the Hong Kong Stock Exchange will provide it with an international platform to obtain foreign capital, the company Decided to pursue a listing plan on the Hong Kong Stock Exchange.
After more than ten years of IPO planning, Yanzhiwu finally "saw the clouds and saw the moonlight."
1. Pure bird’s nest products support the sky
Yanzhiwu stated in its prospectus that the company is committed to the research, development, production and sales of modern bird's nest products.
According to reports, Yanzhiwu's product portfolio mainly includes three product categories: pure bird's nest products, "bird's nest+" products and "+ bird's nest" products. In 2022, Yanzhiwu has a total of 250 SKUs, among which there are 194 types of pure bird's nest products in the four major product series, including bowl bird's nest, fresh stewed bird's nest, rock sugar official bird's nest, and dried bird's nest.
In 2020, 2021 and 2022, Yanzhiwu's revenue was 1.301 billion yuan, 1.507 billion yuan and 1.730 billion yuan respectively, gross profits were 556 million yuan, 727 million yuan and 878 million yuan respectively, and net profits were 123 million yuan respectively. , 172 million yuan and 206 million yuan.
In the first five months of 2023, Yanzhiwu achieved revenue of approximately 783 million yuan, an increase of 12.30% from 697 million yuan in the same period of 2022; gross profit was approximately 406 million yuan, an increase of 12.92% from 460 million yuan in the same period of 2022; net profit 100 million yuan, an increase of 19.99% from 838 million yuan in the same period in 2022.
Under non-IFRS, Yanzhiwu's adjusted net profits in 2020, 2021, 2022 and the first five months of 2023 (hereinafter referred to as the "reporting period") were 124 million yuan, 194 million yuan, 211 million yuan, respectively. billion and 114 million yuan.
Beido Finance found that Yanzhiwu’s revenue is mainly contributed by pure bird’s nest products. During the reporting period, its pure bird's nest product revenue was 1.254 billion yuan, 1.442 billion yuan, 1.638 billion yuan and 739 million yuan respectively, accounting for 96.4%, 95.8%, 94.7% and 94.3% of the total revenue respectively.
Among them, Wanyan's revenue accounted for the highest proportion, accounting for 559 million yuan, 661 million yuan, 673 million yuan and 283 million yuan respectively, accounting for 43.0%, 44.0%, 38.9% and 36.2% of Yanzhiwu's total revenue. During the same period, the revenue share of fresh stewed bird's nests was 24.7%, 28.1%, 28.1% and 27.5% respectively, making it the second best-selling category of Yanzhiwu.
2. Spending a lot of money on marketing to buy popularity
Yanzhiwu stated in its prospectus that it has established a geographically diversified physical sales network, including self-operated stores and dealer stores. As of May 31, 2022, Yanzhiwu has a nationwide offline sales network, consisting of 91 self-operated stores and 214 offline dealers, covering 614 dealer stores.
In terms of online business, Yanzhiwu has established channels on major e-commerce or social media platforms, and built a customer membership network through Yanzhiwu membership mini-programs, Jinyanhui membership plans and other methods. As of the Latest Practicable Date, more than 1.8 million customers have participated in Yanzhiwu's membership registration.
In order to attract and retain consumers, Yanzhiwu spares no effort in marketing and promotion. During the reporting period, Yanzhiwu's sales expenses (sales and distribution expenses) were 317 million yuan, 399 million yuan, 504 million yuan and 209 million yuan respectively, accounting for 24.4%, 26.5%, 29.1% and 26.6% of its total revenue respectively. %.
Among them, advertising and promotion expenses are the "biggest part" of Yanzhiwu's sales expenses. During the reporting period, these expenses were 236 million yuan, 269 million yuan, 326 million yuan and 125 million yuan respectively, accounting for 74.3%, 67.4%, 64.8% and 60.0% of its sales and distribution expenses.
In other words, Yanzhiwu has spent a total of about 1 billion yuan on advertising and promotion fees in the past three and a half years.
Unlike the high sales expenses, Yanzhiwu's investment in research and development is slightly "stingy". During the reporting period, its R&D expenditures were 17.679 million yuan, 18.982 million yuan, 24.320 million yuan, and 9.579 million yuan respectively. The R&D expense rates were 1.4%, 1.3%, 1.4%, and 1.2% respectively, which were less than a fraction of the advertising expenses.
3. Accurate dividend distribution before IPO of about 460 million yuan
Beido Finance found that Yanzhiwu is quite generous in paying dividends to shareholders.
In 2020, 2021 and 2022, Yanzhiwu declared dividends of 120 million yuan, 100 million yuan and 80 million yuan respectively to the then shareholders. All such dividends declared during the track record period have been fully settled through bank transfers. paid to shareholders.
On March 31 this year, Yanzhiwu once again declared a dividend of 160 million yuan, which was fully settled through bank transfer in April 2023. During the reporting period, Yanzhiwu paid a cumulative dividend of approximately 460 million yuan, while its cumulative adjusted net profit during the same period was 643 million yuan. Most of this goes to management.
In the equity structure before this listing, Yanzhiwu founder, chairman and executive director Huang Jian, vice chairman and executive director Zheng Wenbin, general manager and executive director Li Youquan and Xiamen Shuangdanma collectively held shares through a concerted action agreement Yanzhiwu holds 41.40% of the shares and is the company's joint controlling shareholder.
Among them, Huang Jian and Huang Jian's son Huang Junhao hold 21.17% of the shares through Xiamen Shuangdanma, Huang Jian directly holds 1.00% of the shares, Zheng Wenbin and Xue Fengying hold 7.68% and 1.99% of the shares respectively, and Li Youquan holds 7.67% of the shares. Employee Stock Ownership Platform Jinyan Tengfei Limited Partnership holds 1.89% of the shares.
In addition, Guangyao Tianxiang Limited Partnership holds 13.84% of the shares of Yanzhiwu, Xiamen Jinyanlai Limited Partnership holds 9.61%, Hongyan Investment Limited Partnership holds 8.96%, Hu Qiaohong holds 7.61%, and Yangming Kangyi Limited Partnership Holding 3.84% of the shares, Zeng Huanrong holds 3.61%, Liu Zhen holds 2.77%, and Huang Jincheng holds 2.60%.
While raising funds and cashing out, Yanzhiwu still needs to raise funds through IPO even if it is not short of money. According to reports, it plans to use the proceeds from the fundraising to establish new R&D laboratories and pilot workshops, expand and consolidate its sales network, enrich online channels and upgrade existing offline channels, strengthen brand building and marketing promotion efforts, and strengthen the supply chain. Management capabilities, etc.