It looks like a "fruit chain", not a "fruit chain".
Author | Liu Qinwen
Editor丨Li Baiyu
Source | Bronco Finance
Every September, the new iPhone is launched, and the unboxing video of the new phone always occupies the front page headlines of major technology media. As a world-renowned technology company, Apple not only has strong strength, but also cultivated a number of "fruit chain" enterprises born around Apple. The so-called "fruit chain" enterprise not only refers to providing electronic accessories to Apple, but also a manual and a packaging box, which are also part of the "fruit chain".
Guangdong Gaoyi Packaging Technology Co., Ltd. (hereinafter referred to as "Gaoyi Packaging") is responsible for providing paper packaging products to Apple, as well as Microsoft, Xiaomi, Laifen, etc., with an annual income of 900 million yuan, and has recently knocked on the door of the capital market and is expected to become a member of the A-share "fruit chain" army.
It is worth noting that although Gaoyi Packaging mentioned Apple 11 times in the prospectus, it is not a direct "fruit chain" enterprise, but a supplier of Apple suppliers, indirectly supplying products to Apple.
Relying on packaging boxes, etc., the annual income is 900 million
CITIC Securities and others became shareholders
In the packaging of a new machine, it is generally composed of a mobile phone, a data cable, a card pick-up needle, an instruction manual, and a packaging box.
In addition to mobile phones, liquor gift boxes, hair dryers, computers and other products have a strong demand for "packaging", and paper packaging has become one of the most commonly used packaging materials today. According to the report "The Future of Packaging: Long-term Strategic Forecasts to 2028" published by Smithers Pira Limited, an internationally renowned printing industry information research company, the global packaging market will grow at an annual rate of nearly 3% between 2018 and 2028, reaching more than $1.2 trillion.
The products of Gaoyi Packaging mainly include color boxes, manuals, one-stop procurement products such as foam, cartons, labels, etc., to provide appearance beautification, brand declaration, functional description and transportation protection for products. It is mainly used in consumer electronics, small household appliances, electronic cigarettes and alcohol industries.
Color box is the largest source of revenue for Gaoyi packaging, accounting for more than 65% all year round. According to the prospectus, in 2022, Gaoyi Packaging sold 288 million color boxes and 297 million manuals.
These products were mainly sold to Pegatron Technology, Jinshiyuan Liquor, Fugang Electronics, etc., and then directly or indirectly used in the sales of Microsoft, Apple, Philip Morris, Green Mountain Coffee, Xiaomi, Laifen, iRobot, Shark Ninja, Jinshiyuan, Bisheng and other brands.
Source: "Prospectus"
Gaoyi Packaging also specifically mentioned in the prospectus that the company is an A-level honorary brand audited for the first time by Apple SR in 2018, and an important supplier of Microsoft.
The strong demand from overseas customers has driven the export revenue of Gaoyi Packaging to gradually increase, from 32.1% in 2020 to 51.05% from January to September 2023.
Source: "Prospectus"
With this, from 2020 to 2022 and from January to September 2023, the revenue of Gaoyi Packaging was 742 million yuan, 871 million yuan, 934 million yuan and 798 million yuan respectively, and the net profit was 79.8588 million yuan, 75.1085 million yuan, 88.4899 million yuan and 65.6659 million yuan respectively.
"At present, packaging paper and other industries are fiercely competitive, market share is scattered, and even meager profits, but some leading enterprises have begun to improve industry concentration by strengthening mergers and acquisitions, resource integration, etc., to further strengthen their competitive advantages and market share. In the future, with the intensification of market competition and the acceleration of industry reshuffle, industry concentration is expected to be further improved and concentrated, and the competitive advantage of leading enterprises will be further consolidated and strengthened. Zhang Xinyuan, head of research at the Kefangde think tank, said.
Backed by many high-quality customers and a broad market, Gaoyi Packaging has also received investment from many institutions.
In June 2021, China Securities Investment invested 60 million yuan, Bozi Tongze invested 30 million yuan, Innovation Investment invested 30 million yuan, and Kechuang Capital invested 30 million yuan to increase capital and expand shares of Gaoyi Packaging. In December 2021, Sunshine Education invested 30 million yuan to increase its capital and shares.
It is worth noting that China Securities Investment is a wholly-owned subsidiary of CITIC Securities, the sponsor of the IPO of Gaoyi Packaging, holding a total of 3.38% of its shares.
He was administratively punished for work-related deaths
Invest millions in safety production every year
Guangdong Province has a complete industrial system and supply chain, and a large number of packaging bag manufacturing enterprises are concentrated, which is one of the most important manufacturing bases in the packaging industry in mainland China. Among them, Shenzhen, Dongguan and Guangzhou are the main packaging bag production and supply centers.
Gaoyi Packaging is located in Dongguan, Guangdong, as a manufacturing enterprise, front-line production personnel are an important part of Gaoyi Packaging. The reason why production personnel are important is not only because it is directly related to the company's product problems, but also because safety production issues are also one of the key directions of the company's IPO review. In the work area of Gaoyi Packaging, there have been work-related injuries and fatalities.
On the online judgment documents, a "civil judgment" shows that in 2017, Gaoyi Packaging signed a "purchase and sale contract" with Bolida, Gaoyi Packaging purchased paper products from Bolida, and on August 29, 2017, Bolida Company assigned the driver He Mouping to transport paper products to Gaoyi Packaging Company. During the handling of the goods, Li Mouwei entered the range of the forklift unloading operation area and was injured by the goods.
According to the "Regulations on Work-related Injury Insurance", the specific compensation standard for Grade 9 disability is four years of disability compensation according to the local per capita disposable income of urban residents or per capita income of rural residents in the previous year, as well as medical expenses, hospital meal subsidies and nursing expenses.
Subsequently, Li Mouwei filed a lawsuit against Gaoyi Packaging on the grounds of infringement of the right to life, health, and body, demanding compensation.
In the end, the court ruled that Li Mouwei should bear 20% of the fault liability, and Gaoyi Packaging compensated Li Mouwei 271,100 yuan.
Source: Canned Gallery
In addition to Li's injury, some people directly lost their lives. On July 15, 2021, an employee of Dongguan Xingdong Renewable Resources Recycling Co., Ltd., which contracted the waste paper recycling project of Gaoyi Packaging, suffered a mechanical injury accident while working in Gaoyi Packaging and Printing Co., Ltd., resulting in one death.
Although the person is not an employee of Gaoyi Packaging, according to the "Dongkeng Town 2021 "7.15" General Mechanical Injury Accident Investigation Report" published by the Dongguan Emergency Management Bureau, Gaoyi Packaging failed to provide a governance account for the investigation of hidden dangers of safety production accidents in the waste paper recycling project contracted by Xingdong Company, and there was a failure to coordinate and manage the safety production work of the contractor. was fined 20,000 yuan administratively.
In addition to safety production problems, in terms of employment, Gaoyi Packaging has also experienced the number of labor dispatch exceeding the standard. According to the prospectus, as of September 30, 2023, the production staff of Gaoyi Packaging is 1,495, accounting for 68.55% of the total number of employees. In addition, Gaoyi Packaging also has 159 labor dispatch people.
According to Article 4 of the Interim Provisions on Labor Dispatch, an employer shall strictly control the number of dispatched workers, and the number of dispatched workers used shall not exceed 10% of its total number of employees. However, in 2020, the number of labor dispatch personnel of Gaoyi Packaging reached 241, accounting for 17.12%. However, in September 2023, Gaoyi Packaging has reduced the number of labor dispatches, accounting for 8.17%, in line with relevant regulations.
Source: "Prospectus"
In addition, in order to ensure safe production, Gaoyi Packaging is also continuously strengthening safety training and purchasing safety facilities. According to the prospectus, the company has safety production expenses every year, mainly used for the purchase of labor protection supplies, fire emergency equipment purchases, medical treatment, physical examination fees, safety testing, monitoring fees, etc. From 2020 to 2022 and from January to September 2023, Gaoyi Packaging's safety production investment gradually increased, with 1.0562 million yuan, 1.4907 million yuan, 2.1361 million yuan and 1.6645 million yuan respectively.
Source: "Prospectus"
"The company has formulated a relatively complete safety production management system and can effectively implement it, the safety facilities are operating normally, and the safety production investment and control measures are effective. During the reporting period, the issuer's safety production expenses matched its own scale and could meet the needs of the issuer's safety production and operation. Gaoyi packaging said.
A family of three holds shares, and relatives and friends share the capital feast
Behind Gaoyi Packaging, it is a story of a family business from friends to a family business.
In 2014, Ren Zhisheng, He Xiaohua and Wang Dong jointly funded the establishment of Guangdong Gaoyi Packaging and Printing Co., Ltd. (the predecessor of Gaoyi Packaging) because they were optimistic about the development of the packaging industry, and the investment ratio of the three was 81.02%, 15% and 3.98% respectively. In July 2018, He Xiaohua voluntarily withdrew from the company for personal reasons, and Li Donghong was transferred equity because he was optimistic about the company's development prospects.
Source: "Prospectus"
After several equity changes, Ren Zhisheng is still the largest shareholder, holding 44.6% of the shares, and his spouse Wang Xuemei and son Ren Baibin also hold shares in the company, respectively the third and fourth largest shareholders, and a family of three is acting in concert, holding a total of 73.47% of the company's shares. Li Donghong is the second largest shareholder of Gaoyi Packaging, holding 12.12% of the shares, and Wang Dong is the eighth largest shareholder of 3.22%.
In addition to his spouse and son, Ren Zhisheng also has many relatives and friends who work in Gaoyi Packaging or have related party transactions, and invested in Gaoyi Packaging at a low price before the IPO, intending to share this "capital feast".
Ren Zhisheng's two nephews, Ren Xianzhong and Ren Xianxi, respectively served as the manager of the purchasing department of Suzhou Gaoyi and the section chief of the supply chain in South China; Wang Xuemei's sister Wang Dongmei served as the buyer of Gaoyi Packaging; Wang Xuemei's younger brother Wang Junhua served as the account manager; and Ren Zhisheng's friend Liu Tingwei served as the section chief of the Gaoyi Packaging Infrastructure Engineering Department.
Among them, Ren Xianxi also provides transportation services for Gaoyi Packaging all year round, with transaction amounts of 843,800 yuan, 613,500 yuan, 789,300 yuan and 1,020,300 yuan from 2020 to 2022 and from January to September 2023, respectively.
Source: "Prospectus"
Ren Xianxi obtained not only salary and transportation income from Gaoyi Packaging, but also a feast of wealth with Ren Zhisheng's family if Gaoyi Packaging was successfully listed.
On March 1, 2021, Ren Zhisheng transferred his subscribed capital contribution of 1.3 million yuan to Gaoyi Partnership at a price of 5.174 million yuan, and the transfer price was 3.98 yuan per yuan of registered capital.
According to the prospectus, Gaoyi Partners has a total of 11 partners, of which 7 are Ren Zhisheng's relatives, including Ren Xianxi's nephews and nieces, as well as his wife Wang Xuemei's brothers and sisters, etc., and the remaining 4 are Ren Zhisheng's friends.
Source: "Prospectus"
In June of the same year, China Securities Investment invested in Gaoyi Packaging, and the capital increase price was 16.33 yuan per yuan of registered capital, an increase of 75%.
This is also required by the regulatory authorities to explain the reasons for Gaoyi Partnership's stake in Gaoyi Packaging, and the reasonableness of the purchase price being significantly lower than the purchase price of other shareholders in 2021.
In this regard, Gaoyi Packaging said, "The partners of Gaoyi Partnership are all relatives or friends of Ren Zhisheng, the actual controller of the company, and they invest because they are optimistic about the issuer's industry and future development prospects and based on their trust in the actual controller. The price of this equity transfer is determined by Ren Zhisheng and the partners of Gaoyi Partnership, with reference to the issuer's net assets as of December 31, 2020. ”
The listing of family enterprises is of positive significance for the promotion of corporate brands and the appreciation of family wealth, but after listing, it will also face stricter supervision and public attention. How to standardize the operation while ensuring the steady development of the enterprise is a problem that every family business needs to think about seriously. What do you think of the IPO story of Gaoyi Packaging?