A few days ago, Chen Sheng, the founder of Tiandi No. 1 and No. 1 Food (hereinafter and became the "No. 1 Enterprise"), said that the two companies are undergoing listing counseling.
Driven by the power of capital, the listing of Chen Sheng's No. 1 enterprise is getting closer and closer. In fact, in 2013, Tiandi One had sprinted for an IPO, but due to multiple reasons, the IPO was terminated. No. 1 Food also sought to go public, but it was folded in the middle.
For this IPO, No. 1 Enterprise told Blue Whale Financial Reporter that the company's performance is eye-catching, and the advantages of enterprises in the policy and market environment are emerging, so consider an IPO. At present, No. 1 Enterprise has obtained the "Guangdong Securities Regulatory Bureau Counseling Filing Registration Confirmation" issued by the Guangdong Securities Regulatory Bureau. At present, we are receiving listing counseling from CITIC Securities, and when the conditions are ripe, the No. 1 epidemic will be declared.
In the view of industry insiders, consumer goods enterprises are favored by capital, No. 1 enterprises have certain brand and product advantages, the entry of capital has accelerated the listing process of No. 1 enterprises, and through listing, No. 1 enterprises have funds and resources to layout in multiple products, multi-scenarios, and multi-channels to consolidate the moat, otherwise No. 1 enterprises may have the risk of falling behind.
Chen Sheng learned Zhong Huihui, and the two companies went public at the same time
Recently, Chen Sheng told the outside world that its Tiandi No. 1 and No. 1 Food are conducting listing counseling and preparing to go public. Which one goes public first depends on which company "goes faster".
The relevant person in charge of Tiandi No. 1 told Blue Whale Financial Reporter that recently, Tiandi No. 1 submitted the counseling filing materials for initial public offering and listing to the Guangdong Securities Regulatory Bureau. Tiandi No.1 has obtained the "Guangdong Securities Regulatory Bureau Counseling Filing Registration Confirmation" issued by the Guangdong Securities Regulatory Bureau. At present, the company is receiving listing counseling from CITIC Securities, and the counseling period will be calculated from August 11.
As for why it is listed, Chen Sheng believes that "at this time, the conditions for Tiandi No. 1, whether it is scale or influence, have matured, and it is time to become a public company."
At this time, the person in charge of Tiandi No. 1 said: "The financial situation of Tiandi No. 1 is very stable, and there are no interest-bearing liabilities so far. Compared with many enterprises in the current capital market, the report card handed over by Tiandi No. 1 is eye-catching." The data shows that since the listing of Tiandi One on the New Third Board in 2015, its revenue and net profit have achieved four consecutive increases. From 2016 to 2019, the revenue of Tiandi No. 1 was 1.390 billion yuan, 1.684 billion yuan, 2.112 billion yuan and 2.585 billion yuan, and the net profit was 220 million yuan, 286 million yuan, 344 million yuan and 400 million yuan, respectively. In addition, from 2015 to 2020, Tiandi No. 1 paid dividends a total of 10 times, with a total dividend amount of nearly 1.9 billion yuan.
No. 1 Food has also been rubbed. The relevant person in charge of the enterprise said: "No. 1 Food does not take the listing as a goal, but in the case of mature conditions, the company will seriously consider the declaration."
The two companies are also counseling the listing, which is very similar to the practice of Zhong Huihui, the founder of Nongfu Mountain Spring. In 2020, two of Zhong's enterprises, Wantai Bio and Nongfu Shanquan, were listed on A-shares and Hong Kong stocks respectively. On November 18, Nongfu Spring's stock price hit a new high of HK$46.4 per share, and Zhong's net worth reached US$63.4 billion, and Zhong became China's richest man and a model of wealth creation in the field of consumer goods.
With the help of capital, No. 1 Enterprise accelerates the listing process
Chen Sheng's high-profile announcement that his two companies are preparing for ipipos simultaneously is driven by the power of capital. In the past two years, the two companies have carried out multiple rounds of financing, and shareholders have appeared a number of investment institutions.
Previously, Tiandi No. 1 issued an announcement that it intends to issue no more than 12 million shares to the SDIC Central Enterprise Poverty Alleviation Fund at 26.30 yuan per share, and raise no more than 315.6 million yuan to supplement working capital and optimize the company's financial structure.
In 2019, the SDIC Poverty Alleviation Fund has invested in Chen Sheng's No. 1 Food. On June 13 of that year, the SDIC Central Enterprise Poverty Alleviation Fund and Zhi Investment completed a joint investment of 500 million yuan in No. 1 Food.
According to Tianyancha data, at present, There are 10 shareholders of Tiandi No. 1, except for three natural persons such as Chen Sheng, the remaining 7 shareholders are investment companies, including GF Securities, Industrial Securities and investment institutions under Shenzhen Venture Capital. No.1 Food has a total of 21 shareholders, including Zhanjiang Tiandi Shared Investment Center, Zhanjiang Tiandi Hengfu Investment Center (limited partnership), Guangzhou Hezhi Equity Investment Center (limited partnership), Central Enterprise Poverty Area Industrial Investment Fund Co., Ltd. and other investment institutions.
In the view of Bao Yuezhong, a new retail expert in consumer goods, in the past two years, the consumer goods field has been favored by capital, while the listing process has been simplified and food companies have accelerated their listing. As far as the development of the industry is concerned, enterprises choose to go public when facing new situations and development inflection points, which is conducive to realizing in the secondary market and does not provide financial support for future development.
It is understood that Tiandi No. 1 was established for 23 years, and in 2013, Tiandi No. 1 began a sprint IPO plan and became a "dark horse" in the beverage industry. However, it was terminated due to complaints about the quality of apple cider vinegar and the suspension of corporate IPOs by regulatory authorities. On August 20, 2015, Tiandi No. 1 was officially listed on the New Third Board, becoming the first share of vinegar beverages on the New Third Board.
No.1 Foods has also tried an IPO. In 2012, No. 1 Food carried out a share reform, and since then it has been regulated, and the company's revenue and profit have grown well in 2012-2018, and during the period, it has also considered filing for an IPO, but also slowed down the plan for various reasons.
Although both companies are actively preparing, the relevant person in charge told the Blue Whale financial reporter: "We will have a plan to control the pace of investment, and will not affect the long-term strategy for the sake of short-term efficiency improvement." The overall business style may change because of the development of strategic enterprises, but without accommodating short-sighted investment behavior, everything will be stable first."
Listing enhances competitive strength and breaks regional and category circles
In Bao Yuezhong's view, the development of Tiandi One in the past two years has not been smooth, and it has not formed a large market impact at present, so it is selected to be listed at this point in time, hoping to enhance market competitiveness through the capital market.
As far as Tiandi No. 1's apple cider vinegar products are concerned, the product is only sold in South China, which is mainly based on liangguang, and has not been able to surpass the Yangtze River. In this regard, Tiandi No. 1 said: "Guangdong Province, as the base camp in the company's strategic planning, will be a strong support area for the company to lay out the whole country, and the company will continue to intensively cultivate the market in Guangdong Province in the future, and firmly expand the pace of north expansion, and actively explore the market outside the province, in order to complete the development and coverage of the national market."
It is understood that Tiandi No. 1 has opened up Guangdong, Guangxi, Hainan, Hunan, Hubei and other provinces. In the future, we will concentrate on the advantages of resources such as capital, technology and talents, and gradually open up the national market.
In contrast, No. 1 food is spreading faster across the country.
"No. 1 food's No. 1 earth pig, No. 1 native chicken, No. 1 egg and other products are in line with consumer trends, and the market audience is wider. However, compared with the giants such as Shuanghui and Yurun, the volume of No. 1 food is too small, so it needs to be listed to enhance the potential energy and confidence of the brand. Xu Xiongjun, a strategic positioning expert and founder of Jiude Positioning Consulting Company, thinks. Shuanghui, Yurun and other enterprises have also continuously expanded their scale through capital operation after listing."
How to break the situation is a difficult problem facing Tiandi No. 1 and No. 1 Food.
To this, the answer of Tiandi One is diversification. "Tiandi No.1 has always attached importance to the diversified development of products. The company holds a controlling stake in Guangdong Mingmei and diversifies into the field of juice. At present, bright juice has been promoted in many markets across the country. At the same time, the company has completed the research and development of low-calorie apple cider vinegar beverage echelon products, and has launched market trial sales in the second quarter of 2020. ”
At present, Tiandi No.1 has laid out more than 10 wholly-owned subsidiaries in Hebei, Shanxi, Jiangxi and other places, and has built multiple bases in Guangdong and Jiangxi, covering South China, East China, North China and Central China.
Chinese food industry analyst Zhu Danpeng believes that in the process of national promotion, the layout of multiple categories, multiple scenes, multiple audiences and multiple brands needs financial support, and listing can be a deeper and wider moat.
This article originated from Blue Whale Finance
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