Last year's net profit was cut, and the Danish "pedigree" company that sold egg liquid still bravely broke into the North Stock Exchange

(Text/Zhang Yu Editor/Ma Yuanyuan) Relying on major customers such as Unilever, KFC, Holly Lai, Oufu Egg Industry, which is listed on the New Third Board, has shifted its target to the Beijing Stock Exchange.

On July 21, the Beijing Stock Exchange disclosed an inquiry letter on the review of the listing application documents of Oufu Egg, and raised inquiries from the company's equity structure, customer stability and large fluctuations in performance.

For matters related to the company's listing, on July 22, the Observer Network called Oufu Egg Industry for verification, and the staff politely rejected the Observer Network on the grounds that the relevant person in charge of the Board Secretary's Office was not in the unit.

Egg liquid supported 80% of the performance

According to public information, Ofo Egg is a Chinese member of Danish egg supplier OVODAN and a wholly-owned subsidiary of the Danish family business Thornico Group. Founded in 2004, the company currently has 3 independent companies integrating R&D, production and sales in China, namely Suzhou Oufu, Tianjin Sun and Guangdong Oufu. The company is mainly engaged in the research and development, production and sales of egg liquid, egg powder and various types of egg pre-products.

From 2019 to 2021, the main business income of Oufu Egg Industry was 679 million yuan, 618 million yuan and 847 million yuan, respectively. Most of this operating income comes from egg liquid products. During the reporting period, the revenue of egg liquid products was 567 million yuan, 492 million yuan and 690 million yuan respectively, accounting for 83.56%, 79.62% and 81.42% respectively.

It is worth mentioning that in the recent year, the net profit of Oufu Egg Industry has fallen sharply. During the reporting period, the company's net profit was -10.2086 million yuan, 48.7369 million yuan and 22.488 million yuan, respectively, and the net profit in 2021 fell by 53.86%.

In this regard, Oufu Egg Industry explained that the company's operating performance indicators fluctuated greatly, mainly because eggs as raw materials accounted for up to 80% of the company's main business costs, and the prices of these raw materials were affected by factors such as supply and demand and changes in upstream feed costs.

During the reporting period, the average price of eggs purchased by Oufu Egg Industry was 8.97 yuan/kg, 7.09 yuan/kg and 9.33 yuan/kg, respectively; The average sales unit price of the company's products was 14.78 yuan, 15.34 yuan and 15.68 yuan, respectively.

The sharp increase in raw material costs and the limited increase in average selling prices directly led to a sharp decline in the company's gross profit margin, which was 12.75%, 20.56% and 9.96% respectively during the reporting period.

Oufu Egg Industry admits that if the price of eggs rises further in the future, and the company cannot transfer all the increased costs to downstream customers, the company's performance may decline or even lose money.

From the perspective of the entire industry, the different trend of the gross profit margin of Oufu Egg Industry and comparable companies in the same industry has also attracted the attention of the Beijing Stock Exchange. According to the logic, the gross profit margin of chicken products of Hefeng Shares and Xiantan Shares and the gross profit margin of Oufu Egg Industry products should be reversed, during the reporting period, the gross profit margin of the comparable business of the above two companies was 11.95%, 5.11% and 0.63% and 28.19%, 9.36% and 0.61%, all showing a downward trend, while the gross profit margin of Oufu Egg Industry was 12.59%, 20.35% and 9.82%, showing a trend of first rising and then falling.

In addition, Egger Bio is mainly engaged in the production and sales of various types of egg powder, with gross profit margins of 25.82%, 22.97% and 15.11% respectively, and the gross profit margin of Egg Powder of Oufu Egg Industry is 12.67%, 18.24% and 8.96% respectively. Judging from the above data, the gross profit margin of Offord Egg Industry is significantly lower than that of Egger Biotech and the trend of change is inconsistent.

Two executives left their jobs suddenly

Behind the sprint IPO by selling egg liquid, the identity of the actual controller behind Oufu Egg Industry has also aroused public concern.

According to the disclosure of Offord Egg in the prospectus, the controlling shareholder of the company is China Egg Products ApS (Denmark), holding 135 million shares of the company, accounting for 87.96%.

Behind this, Christian Nicholas Stadil (hereinafter referred to as "Christian") indirectly holds 87.96% of the shares of Offord Egg Industry through China Egg Products ApS (Denmark) and is the actual controller of the company.

So, what is the origin of Christian? According to the prospectus, Christian, born in 1971, is a Danish citizen and has graduated from university. Christian has been a Director of Thornico A/S since 1991. Christian is also a director of Thornico Holding A/S, Thornico Food & Food Technology Group A/S and others. According to media reports, Thornico is a large Danish consortium.

In addition to the actual controller, Henrik Pedersen, chairman of Offu Egg Industry, is also a Danish citizen. According to the observer network combing found that 4 of the 7 directors of Oufu Egg Industry are foreign directors; 2 of the 3 supervisors are foreign supervisors; One of the 6 executives is a foreign executive.

In this regard, the Beijing Stock Exchange requested Oufu Egg Industry to explain whether the actual controller and the director and supervisor have worked and lived abroad for a long time, through what ways or methods to participate in the management of the company, and whether the actual controller has the ability to actually influence the issuer, taking into account the permanent residence area and part-time position of the actual controller and senior foreign personnel.

Interestingly, the Observer Network noted that the shareholding ratio of the chairman of Oufu Egg Industry is not among the top ten shareholders. In addition to the actual controller Christian, the company's second largest shareholder is Liu Wen, a Chinese national, with a shareholding ratio of 7%. In addition, the other shareholders of Oufu Egg Industry hold less than 1% of the shares.

According to public information, Liu Wen has served as the project manager of Shanghai Dairy Training and Research Center (Shanghai Milk Group), the director of the Dairy Research Institute and the deputy director of the Technical Center of Shanghai Bright Dairy Co., Ltd., the general manager of the milk powder division and nutrition branch of Bright Dairy Co., Ltd., and the general manager of Oufu Egg Industry since 2004.

Under the overly centralized equity structure, it is inevitable to face the situation of personnel turnover. On the eve of the IPO listing of Oufu Egg Industry on the Beijing Stock Exchange, on June 10 this year, Oufu Egg Industry announced that it had received the resignation report submitted by Independent Director Mr. Wang Liang. It is reported that Wang Liang does not hold any shares in Oufu Egg Industry and will no longer hold other positions in the company after resigning. On May 7 this year, Ye Lin, the former head of finance of Oufu Egg Industry, submitted a resignation report, which also did not hold shares in Oufu Egg Industry and still served as the secretary of the company's board of directors after resigning. Earlier, in 2018, Ronald Bowens, then chairman of Offord Egg, submitted his resignation report and resigned as chairman of the company.

In this regard, the Beijing Stock Exchange requested Oufu Egg Industry to explain the reasons and rationality of the change of the chairman of the company in 2018, whether the relationship between the chairman and the actual controller constitutes a material adverse change and the impact on the company's operation.

This article is an exclusive manuscript of the Observer Network and may not be reproduced without authorization.