On the occasion of the Approaching Dragon Boat Festival, the century-old store "Wufangzhai" is preparing to be listed and is expected to become the "first share of Zongzi".
According to the prospectus disclosed on June 4, Wufangzhai's revenue last year was 2.421 billion yuan, down 3.44% year-on-year, and the net profit attributable to the mother was 142 million yuan, down 12.90% year-on-year. The main reason is that due to the new crown epidemic, the production of rice dumplings in the first quarter of 2020 has been greatly affected.
At the same time, Wufangzhai suggested that there is obvious seasonality in rice dumplings and mooncakes, and if the company does not make market forecasts and organize production and inventory reserves in a timely manner, it will face the risk of losing business opportunities. It is understood that the funds raised this time will be mainly used for the construction of the third phase of smart food workshops and the upgrading of Chengdu production base.
There are obvious seasonal risks in rice dumplings, mooncakes, etc
On June 4, Wufangzhai disclosed the latest prospectus, the main underwriter is Zheshang Securities, which has previously replaced two listing counseling institutions.
In April 2019, GF Securities became the first listing counseling broker in Wufangzhai and announced the termination of the counseling five months later, due to the fact that "in view of the strategic development needs of Wufangzhai, the two parties agreed to terminate the listing counseling agreement through consensus". Since then, CICC has become the second counseling institution in Wufangzhai and has not been updated until June 19, 2020, when the third phase of the counseling work progress report was disclosed. Zheshang Securities took over the counseling work of Wufangzhai in September 2020.
It is understood that "Wufangzhai" was founded in 1921, and Zhang Jinquan, a businessman from Lanxi, Zhejiang Province, opened the first "Rongji Wufangzhai" Zongzi store in ZhangjiaLongkou, Jiaxing at that time. In 1992, Jiaxing Wufangzhai Zongzi subsidiary was established, and "Wufangzhai" was rated as "China Time-honored Brand". In 2004, Wufangzhai was recognized as a well-known trademark in China by the State Trademark Office.
Wufangzhai is mainly engaged in the research and development, production and sales of glutinous rice food as the leading food, including moon cakes, tangyuan, pastries, egg products, other rice products, etc., with two major production bases in Jiaxing and Chengdu.
As of December 31, 2020, Zhejiang Wufangzhai Industrial Co., Ltd. (hereinafter referred to as "Wufangzhai Industry") has established a total of 474 stores through direct operation, cooperative operation, franchise and distribution.
According to the Tianyancha APP, Wufangzhai Industry was established on April 27, 1998, with a registered capital of 75.557 million yuan, the legal representative and chairman is Li Jianping, and its business scope includes food processing and production, dairy products wholesale and retail, cold storage rental, e-commerce information services, etc.
Among the risk factors, Wu Fangzhai said that the company's operations may have risks such as food safety, trademark and trade name infringement, raw material supply, and seasonal fluctuations in product sales.
Among them, the seasonal fluctuation risk of product sales mainly refers to the obvious seasonal characteristics of traditional seasonal foods such as zongzi and mooncakes - the sales of zongzi products are mainly concentrated before the Dragon Boat Festival, and the sales of mooncake products are mainly concentrated before the Mid-Autumn Festival. If in the concentrated consumption season of rice dumplings and mooncakes, Wufangzhai cannot make market forecasts, organize and arrange production and inventory reserves in a timely manner, and will face insufficient stocking of some products and lose business opportunities.
According to the prospectus, the number of shares issued in this issue shall not exceed 25185750 shares, not less than 25% of the total share capital after the issuance. After deducting the issuance costs, the funds raised will be invested in the construction of the third phase of wufangzhai intelligent food workshop, the construction of wufangzhai digital industry smart park, the construction of wufangzhai R&D center and information upgrading, and the upgrading and transformation of wufangzhai Chengdu production base.
Wufangzhai raised funds for the purpose
Last year, Wufangzhai's revenue and net profit declined
In the equity relationship, Li Jianping, chairman of Wufangzhai Group, holds 20% of the shares of the group, and Li Haojia, director and chief auditor of Wufangzhai Industrial Co., Ltd., holds 20% of the shares of the group. Li Jianping and Li Haojia are father and son, who together hold 40% of the shares of Wufangzhai Group, and indirectly hold 50.06% of the shares of Wufangzhai Industry through Wufangzhai Group, and are the actual controllers of Wufangzhai Group.
Born in 1956, Li Jianping has a college degree, a hong Kong national, and no foreign permanent residency. From 1976 to the present, he has successively served as a police officer of the Ruian County Public Security Bureau, the director of the Suburban Branch of the Jiaxing Public Security Bureau, and the deputy director of the Jiaxing Municipal Public Security Bureau. Born in July 1985, Li Haojia is a French national with permanent residency in Singapore and has worked in a number of accounting firms or companies in France and Singapore.
According to the prospectus, Wufangzhai Industry was reorganized by the subsidiary of Jiaxing Wufangzhai Zong, and incorporated natural persons such as Jiaxing Department Store, Jiaxing Meat Center, Jiaxing Brewing and Shen Weimin as the initiators, and was initiated and established on April 27, 1998. It is worth noting that in 2001, at the beginning of the establishment of Wufangzhai Industry, the company had an equity transfer storm, which was not calmed down until 2004. During this period, the company completed the process of transforming from state-owned assets into private enterprises, and the actual controllers were also changed from Zhao Jianping, Ni Jianeng and Wei Rongming to the "Li Family".
In terms of revenue, the operating income of Wufangzhai in 2018, 2019 and 2020 was 2.423 billion yuan, 2.507 billion yuan and 2.421 billion yuan respectively, and the revenue in 2020 was 3.44% lower than that in 2019; the net profit attributable to the shareholders of the parent company was 0.97 billion yuan, 163 million yuan and 142 million yuan, respectively, and the net profit in 2020 was 12.90% lower than that in 2019.
Wufangzhai disclosed the revenue of the past 3 years
As of December 31, 2020, Wufangzhai Industry and its subsidiaries have 543 domestic registered trademarks and 57 overseas registered trademarks, and have obtained a total of 135 authorized patents, including 16 invention patents and 119 utility models.
Public information shows that in 2017, Zongzi accounted for 59% of Wufangzhai's total revenue, which is its core source of income. According to the plan released by Li Jianping in 2018, by 2021, Wufangzhai will reduce the proportion of zongzi in revenue to less than 50%.
By the end of last year, Wufangzhai had a total of 169 directly operated stores. However, the Red Star Capital Bureau reporter noted that most of these directly operated stores will be in a state of loss in 2020.
Red Star News reporter Lu Yanfei
Edited by Yang Cheng
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