About 400 million Zongzi are sold annually, and Wufangzhai sprintSay A shares "Zongzi First Shares"

Source: Economic Reference Newspaper

Another "Chinese time-honored brand" enterprise plans to land on the A-share market. According to the official website of the China Securities Regulatory Commission, the IPO application of Zhejiang Wufangzhai Industrial Co., Ltd. (hereinafter referred to as "Wufangzhai") for the Main Board of Shanghai has been accepted. The "Economic Information Daily" reporter noted that at present, there is no listed company with Zongzi as the main business in the A-share market, and if Wufangzhai is successfully listed, it may become the "first share of Zongzi".

Inheriting a century of craftsmanship casts the industry leader

According to the prospectus, Wufangzhai is mainly engaged in the research and development, production and sales of glutinous rice food as the mainstay. In recent years, Wufangzhai has continuously innovated on the basis of inheriting the national food culture, modernized the production process of the famous "Jiahu Fine Point" in the Ming and Qing dynasties, and has formed a product group dominated by rice dumplings and integrating mooncakes, tangyuan, pastries, egg products, other rice products and other foods.

The "Economic Information Daily" reporter learned that Wufangzhai, which began in 1921, was the first batch of "Chinese time-honored brand" enterprises in the country. For a long time, while retaining the characteristics of "Wufangzhai Zongzi series products" of "glutinous but not rotten, fat but not greasy, tender and fragrant meat, salty and sweet", Wufangzhai attaches great importance to the inheritance of the traditional production process of Zongzi and the improvement and modernization of production technology, which can not only ensure the quality and food safety of products, but also meet the requirements of production efficiency and scale and standardization. Over the years, with the inheritance of centuries of production skills and stable product quality, Wufangzhai has developed from a small rice dumpling shop on the downtown street to a world-renowned private enterprise group today.

The data shows that during the reporting period (referring to 2018, 2019 and 2020, the same below), Wufangzhai achieved operating income of 2.423 billion yuan, 2.507 billion yuan and 2.421 billion yuan respectively; the net profit attributable to the mother was 96.985 million yuan, 163.1413 million yuan and 142.1013 million yuan, respectively, an increase of 68.21% in 2019 compared with the previous year; in 2020, even under the impact of the new crown epidemic, Wufangzhai still maintained a high level of revenue and net profit. Among them, the sales volume of Wufangzhai Zongzi series products was 411 million, 408 million and 366 million, and the sales revenue was 1.502 billion yuan, 1.609 billion yuan and 1.644 billion yuan, accounting for 61.99%, 64.18% and 67.91% of the operating income, respectively. Wu Fangzhai said in this regard that the company's Zongzi sales in 2019 were basically the same as in 2018, due to the increase in sales unit prices, the company's Zongzi series product revenue increased by 7.09% compared with 2018; in 2020, affected by the epidemic, Zongzi sales fell by 11.19% compared with 2019, due to the rise in raw material prices and changes in product structure, the sales unit price increased by 15.04%, and the company's Zongzi series product revenue increased by 2.17% compared with 2019.

Nowadays, "Wufangzhai" as a "Chinese time-honored brand" has been deeply rooted in the hearts of the people and has been highly recognized in the hearts of consumers in many regions. Industry insiders pointed out that with excellent product quality and excellent service awareness, Wufangzhai has developed into a leading enterprise and industry standard setter in the Zongzi industry, occupying a pivotal position in the domestic Zongzi market. According to the "2020 Dragon Boat Festival China Zongzi Brand Ranking List TOP10" released by Ai Media Consulting, Wufangzhai topped the list with a gold list index of 96.3; in September 2018, Ali Research Institute and Guanghua School of Management of Peking University jointly released the "China Time-honored Brand Development Index", and Wufangzhai ranked sixth in the top 100 list of long-established brands and first in the list of food and catering; in 2011, "Wufangzhai" The technique of making rice dumplings was included in the third batch of national intangible cultural heritage list by the Ministry of Culture at that time. In addition, as the chairman unit of the Zongzi Industry Committee of the China Food Industry Association, Wufangzhai also led the formulation of zongzi industry standards, filled the domestic gap, and drafted the zongzi international standard as one of the main proposed units, which fully demonstrated the company's industry status and competitive strength.

Marketing model continues to innovate and sales channels are becoming more and more abundant

With the steady development of the national economy and the continuous improvement of residents' consumption level, China's food manufacturing industry has formed a production and operation system with relatively complete categories, continuous technological progress, increasingly rich products, and smooth marketing networks.

The "Economic Information Daily" reporter found that after years of operation and development, Wufangzhai has established and improved a marketing network that is "mainly based on direct sales channels and supplemented by distribution channels". As of the end of the reporting period, Wufangzhai had established a total of 474 stores nationwide through direct operation, cooperative operation, franchise and distribution. At present, the "Wufangzhai" store has landed in Jiaxing, Hangzhou, Shanghai, Wuhan and other major cities in East China and Central China, and has penetrated into key business circles such as large supermarket business districts, commercial complexes and transportation hubs. According to the prospectus, during the reporting period, the sales revenue of Wufangzhai's direct channels was 1.497 billion yuan, 1.522 billion yuan and 1.514 billion yuan, accounting for 66.04%, 64.08% and 65.18% of the main business income, respectively; the sales revenue of distribution channels was 770 million yuan, 853 million yuan and 809 million yuan, accounting for 33.96%, 35.92% and 34.82% of the main business income, respectively.

In addition, Wufangzhai also actively conforms to the development of Internet consumption, actively expands online sales channels in addition to traditional offline sales channels, strengthens strategic cooperation and resource investment with e-commerce platforms, and promotes the rapid growth of sales revenue of e-commerce channels. According to the prospectus, the online sales network of Wufangzhai has now covered major e-commerce platforms such as Tmall, JD.com, and Douyin, and combined with big data technology for precision marketing, close to consumers, especially young consumers, through taste innovation, IP co-branding, private customization, etc., so that the Dragon Boat Festival"Zongzi culture to young groups. According to the data, during the reporting period, the revenue of Wufangzhai e-commerce channels was 456 million yuan, 514 million yuan and 671 million yuan respectively, accounting for 20.12%, 21.66% and 28.89% of the main business income, respectively.

In-depth layout of the main business of Zongzi actively faces the tens of billions of tracks

Relevant studies have shown that benefiting from China's huge population base and urbanization process, the food manufacturing industry, as a just-needed industry, will continue to maintain a steady growth trend in the future. As Traditional Chinese culture has received more and more attention, Zongzi, a food that carries traditional culture, has gradually become a new favorite in the market, and sales have continued to increase. In addition to the function of seasonal food, the gift attributes of Zongzi have received more and more attention, and gifts such as gift boxes and welfare Zongzi have gradually occupied a place in the gift market.

According to industry statistics, in 2015, the scale of China's rice dumpling market was 4.916 billion yuan, and it grew to 7.337 billion yuan in 2019, with a compound annual growth rate of 10.53%. In the future, with the return and promotion of traditional culture and the superposition of the attributes of Zongzi convenience food, it is expected that by 2024, the scale of China's Zongzi market will grow to 10.291 billion yuan, and the compound annual growth rate from 2020 to 2024 is expected to be 7%, which will still maintain a good development trend.

The "Economic Information Daily" reporter noted that Wufangzhai as a "Chinese time-honored brand", has been adhering to the business philosophy of "Harmony and Business", carrying forward the core values of "harmony, integrity, excellence and innovation", adhering to the brand mission of "guarding and innovating Chinese cuisine", and continuously implementing the "Glutinous +" business development strategy around the strategic vision of "Glutinous Rice Food as the Core Chinese Seasonal Food Leading Brand". According to the prospectus, Wufangzhai intends to publicly issue no more than 25.19 million shares, and intends to raise 1.056 billion yuan, focusing on the construction project of Wufangzhai Phase III intelligent food workshop, the construction project of Wufangzhai Digital Industry Smart Park, the construction project of Wufangzhai R&D center and information upgrading, and the upgrading and transformation project of Wufangzhai Chengdu production base, which are closely related to its main business of Zongzi. According to industry analysts, after all the investment projects raised by the raised funds are in production, Wufangzhai will add 120 million yuan / year on the basis of the existing annual production capacity of Zongzi series products of 450 million, which will help Wufangzhai further improve market share and consolidate the leading position in the industry, thereby further enhancing the core competitiveness and profitability of enterprises.

Wufangzhai said that in the next three years, the company will take consumer experience as the core, take "glutinous rice" as the main line, focus on the "Dragon Boat Festival, Mid-Autumn Festival, Spring Festival, Lantern Festival, Qingming, Qixi, Chongyang" and other Chinese seasonal scenes, focus on creating high-value product lines, guide consumers to form a brand mentality of "Wufangzhai = Chinese Seasonal Cuisine", and achieve the goal of brand rejuvenation and brand continuous value-added.