Village Ki submitted a listing application again, this time in Hong Kong stocks.
Chongqing-based Rural-based Fast Food Chain Holdings Limited (hereinafter referred to as "Rural-based") formally submitted a prospectus to the Hong Kong Stock Exchange on January 25, with Goldman Sachs and CMB International acting as joint sponsors.
This is the second impact on the capital markets by founders Li Hong and Zhang Xingqiang, the last time in the US stock market in 2010.
Not only did the listing location return to Hong Kong, China, but Also Found that the nationality of Li Hong and his wife had also quietly returned to China.
After being listed on the U.S. stock market in 2010, Li Hong and his wife immigrated to Singapore in 2012.
Shanshui rotation, from the serious losses at the time of the delisting of the US stock market, the closure of many stores, the stock price of the waist, and then to the secondary listing of Hong Kong stocks, more than a thousand stores, a sharp increase in profits, a valuation of nearly 5 billion, the world has changed, even the nationality of Li Hong and his wife has returned to China from Singapore, the two sons are also working in the countryside, and the nationality is also Chinese.
Li Hong and his wife control the entire family of Chinese nationality through a family trust
According to the application version of the prospectus, Haocheng Company is the largest shareholder of The Village Foundation, holding 53.15% of the shares, about 888.30354 million shares.
Carolina Blue is owned by Seletar and Serangoon 50% and 50% respectively. Seletar and Serangoon, each free to Credit Suisse Trust Limited, are controlled as sole trustees of the Xing Hong Family Trust.
Xing Hong Family Trust is principaled by Li Hong and Zhang Xingqiang, and the beneficiaries of Xing Hong Family Trust include Li Hong, Zhang Xingqiang, Executive Director Xu Longxiang and Non-Executive Director Zhang Kunwei.
Under the Securities and Futures Ordinance, Carolina Blue, Seletar, Serangoon, Credit Suisse Trust Limited, Li Hong, Zhang Xingqiang, Xu Longxiang and Zhang Kunwei are each deemed to have an interest in 888,303,540,000 shares held by Haocheng.
In addition, Li Hong also directly holds 1,770,060 shares of Rural Foundation, and Zhang Xingqiang directly holds 1,474,240 shares.
According to the prospectus, Li Hong, aged 53, obtained a diploma in Chinese Chinese and Literature from Sichuan Normal University in October 1991 and a master's degree in business administration from Peking University in August 2007. Zhang Xingqiang, aged 56, received a bachelor's degree in economics from Nankai University in July 1988.
Executive Director Xu Longxiang is the son of Li Hong and the stepson of Zhang Xingqiang, and Zhang Kunwei is the son of Zhang Xingqiang and the stepson of Li Hong.
Xu Longxiang, 27, was transferred to the Executive Director on 6 January 2022, responsible for the Group's overall supply chain management and procurement planning, and is pursuing an online business administration degree at the Catholic University of San Antonio, Spain.
Zhang Kunwei, aged 29, was transferred to the position of Non-Executive Director on 6 January 2022, mainly responsible for participating in the formulation of corporate and business strategies, and is enrolled in the online business administration degree program of the University of International Business and Economics. Zhang Kunwei studied tennis from an early age, won the national youth tennis championship at the age of 17, and later started a cake brand.
Penetrating Jun found that at present, Li Hong and Zhang Xingqiang are shown to be Chinese nationals, and soon after the previous US stock listing, Li Hong and his wife have immigrated to Singapore, and at present, they are returning to Chinese nationality. Both sons are also Chinese, and Xu Longxiang lives at the same address as Li Hong.
Because of the problem of the actual controller immigrating to Singapore, the village base was also punished by the State Administration of Foreign Exchange.
On May 20, 2019, the Circular on Cases of Foreign Exchange Violations published on the official website of the State Administration of Foreign Exchange showed that Rural Foundation (Chongqing) Investment Co., Ltd. was severely punished for evading foreign exchange.
From November 2016 to March 2017, the actual controller of Rural Foundation (Chongqing) Investment Co., Ltd. failed to register and change the foreign exchange of overseas investment in accordance with the regulations, and illegally remitted profits to the overseas parent company, with a total amount of US$8.8599 million.
This act violates Article 16 of the Regulations on foreign exchange management and constitutes an act of evasion of foreign exchange.
According to Article 39 of the Foreign Exchange Administration Regulations, a fine of 3.02 million yuan was imposed. The penalty information is included in the credit reporting system of the Chinese Minmin Bank.
After delisting, there are more than 1,000 stores with a valuation of nearly 5 billion
If the LISTING of the US stock market is a failure case, then now that it is fighting Hong Kong stocks, the rural base is full of confidence.
In 2007, Murachi began to formulate plans to go public in the United States, and in November 2007, it was favored by Sequoia Capital and Haina Asia Venture Capital, with an investment of US$20 million. In September 2010, it landed on the New York Stock Exchange, becoming the first Chinese catering company listed on the main board of the United States and the first stock of Chinese fast food. At that time, the issue price was $16.5 per share.
However, after the listing at that time, the performance of the village base changed its face, the store profit declined, and the stock price then fell all the way, and when it was finally privatized, the stock price was about $5. After five years of listing, the village base did not pull out a dime, without any dividends, and finally in 2016, the village base delisted the privatization price of $5.23.
The privatization cost $45.5 million and was fully loaned by China Merchants Bank's New York branch, which was repaid by Village Foundation in October 2018. Interest on the loan was not disclosed.
After six years of dormancy and re-listing, Rural Foundation has achieved more than 1,000 stores and revenue of more than 3 billion yuan. In 2020, sequoia Capital China Growth received 300 million yuan in financing, with a valuation of nearly 5 billion yuan.
At present, Village Base mainly operates two brands: Village Base and Mr. Rice. As of September 30, 2021, there are 1,145 directly operated restaurants in the village base.
According to the prospectus, the revenue of the rural foundation in 2019 and 2020 was 3.257 billion yuan and 3.16 billion yuan, respectively; the profit during the period was 82.7 million yuan and -2.42 million yuan, respectively. Revenue for the first nine months of 2021 was $3,424 million, compared to $2,189 million in the same period last year; profit for the period was $163 million, compared to a loss of $13.81 million for the same period last year.
Stores are opening more, and the number of rental stores and employees in the village base is also rising rapidly.
According to the data, there are currently 76 self-owned properties, 1120 rental properties, 9086 full-time employees and 2741 part-time employees in the village base. According to the village-based plan, about 90 to 110 village-based restaurants and about 160 to 180 mr. rice restaurants will be opened in 2022, and about 140 to 160 country-based restaurants and about 200 to 240 mr. rice restaurants will be opened in 2023.
However, there are also some flaws.
There are 90 village-based restaurants without fire safety inspection certificates. At present, 66 of them are applying for certificates of conformity, while 24 are really difficult to handle, and may face a fine of up to 7.2 million yuan, and 3 of the 24 restaurants are expected to be suspended in the first half of 2022.
In terms of social security and provident fund payments, there are also non-compliant places, which the village base said is because employees are reluctant to participate in the decline in wages, migrant workers are reluctant to participate, and employee mobility is large, but from 2019 to September 30, 2021, 4.5 million yuan, 3.4 million yuan and 6.9 million yuan were also allocated.