When it comes to the most profitable of the many outlet projects in recent years, "Mother and Baby" is definitely one of the largest tracks. Especially with the opening of the three-child policy, the maternal and infant market will also present a new round of outbreaks in the next few years.
On October 14, 2021, 12 years after its establishment, the "Child King", as a leading domestic mother and baby enterprise, also successfully landed on the A-share CHINext!
On the first day of listing, the opening price of Child King was 21.00 yuan / share, and the highest rose to 25.20 yuan / share within 5 minutes after the opening, the highest increase was 336.74%. As of today's close, the stock price of Child King was 23.30 yuan, an increase of 303.81%, and the total market value was 25.350 billion!
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It is reported that Child King is mainly engaged in the retail and value-added services of maternal and infant and child goods, and is an innovative new family omni-channel service provider driven by data-driven and user-based operation.
Since its inception, Child King has been deeply cultivating the big store model of large commercial supermarkets offline. According to the data, up to now, Kid King has opened more than 500 large-scale offline stores in 180 cities in 20 provinces across the country, with more than 48 million members.
In addition to the large-scale stores offline, in recent years, Child King, which has taken advantage of the outlet of e-commerce, has also opened up digital layout and investment, built a comprehensive online channel, and further strengthened the brand building of Child King in the entire mother and baby industry.
With 12 years of online and online two-pronged approach, Child King has now become one of the well-known brands in the maternal and infant industry in China, and is deeply loved by consumers.
According to the prospectus, from 2014 to 2019, the operating income of Child King was 1.56 billion, 2.76 billion, 4.454 billion, 5.235 billion, 6.67 billion and 8.243 billion, respectively. In 2017, The child King turned a loss into a profit, achieving a net profit of 94 million.
From 2018 to 2020, the revenue of Child King was 6.67 billion yuan, 8.24 billion yuan and 8.35 billion yuan, and the net profit was 276 million yuan, 377 million yuan and 391 million yuan, respectively, ranking first in the domestic mother and baby industry.
In the first half of 2021, Ziwang once again embarked on the road of high growth, achieving revenue of 3.882 billion yuan, an increase of 13.65% year-on-year, and net profit of 62.6649 million yuan, a year-on-year increase of 38.32%.
From the perspective of revenue structure, in the past three years, the average revenue of the company comes from the sales of maternal and infant products, and the income contributed by members accounts for more than 98% of the company's total maternal and infant commodity sales revenue!
It can be seen that the store label of "heavy single-customer economy" played by the child king has become the company's core business model. As mentioned above, with the opening of the three-child policy in the future, the maternal and infant market is bound to usher in a new round of outbreaks, and the "child king" who rides the wind and waves is bound to be promising with the help of this wave of wind outlet.
It is worth mentioning that the capital force behind the IPO of Kid King can also be described as very luxurious, gathering many top capitals including Hillhouse, Warburg Pincus Investment, Tencent, and Dabao Capital.
In addition to the strong support of these top capitals behind the child king, the founder and actual controller behind the child king is also a veritable invisible top boss in the venture capital circle!
He is - Wang Jianguo!
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If you don't often mix in the venture capital circle, maybe you are not familiar with the name Wang Jianguo, but he is a veritable big man in the circle.
Maybe you haven't heard of the name Wang Jianguo, but you must have heard of five-star home appliances!
Yes, the five-star home appliances that once competed with Gome and Suning in the home appliance industry were founded by Wang Jianguo. Therefore, from the perspective of generations, Wang Jianguo, Dong Mingzhu, Wang Jianlin, Shi Yuzhu, Zhang Jindong and others all belong to an entrepreneur of one generation!
Today's Wang Jianguo has not only transformed from a "home appliance king" to a "mother and baby king", but also created two other unicorn companies with a valuation of more than 1 billion US dollars, namely Huitongda and Haoxiangjia, of which Huitongda is expected to IPO in Hong Kong stocks this year.
It is worth mentioning that in addition to doing business, Wang Jianguo is also a well-known big guy investor in the investment circle, which not only runs the more than 10 billion scale of Xingnaher Capital, but also one of the managing partners of Yunfeng Fund, but also a personal LP, becoming the investor behind more than 10 investment institutions such as Sequoia China, Dachen Caizhi, CDH Investment, Qingsong Fund, Jiayu Fund, etc., and is an absolute invisible big guy in the investment circle.
So, along the way, how did Wang Jianguo build his huge business and investment empire step by step?
In 1960, Wang Jianguo was born in Suzhou, Jiangsu Province.
In 1981, after graduating from the Jiangsu Provincial Commercial School, Wang Jianguo became a staff member of the Jiangsu Provincial Department of Commerce. This work experience allowed Wang Jianguo to see china's transformation from a planned economy to a market economy, and thus also saw the huge business opportunities contained in Chinese business.
In 1991, like many big-money entrepreneurs at that time, Wang Jianguo also chose to give up the "golden rice bowl" in his hand and choose to go to the sea to do business. However, compared with the complete going to sea by other big men, Wang Jianguo also left a hand for himself, did not choose to resign, but chose to stop paying and transferred from the Department of Commerce to the Provincial Five Jiaohua Company. In the same year, Jiangsu Wujiaohua Company became the beginning of Wang Jianguo's formal engagement in the commercial sea.
In 1998, Wang Jianguo became the general manager of Wujiaohua Company in Jiangsu Province, and renamed it Wuxing Electric Appliances, mainly engaged in air conditioning wholesale business, and also did part of retail.
After changing the name to Five Star Electrical Appliances, after Wang Jianguo's half a year of operating Five Star Electrical Appliances to achieve sales of 7,000 units, and quickly opened the expansion mode, it took only one and a half years to open nearly 20 chain stores in Jiangning and other suburban counties around Nanjing and northern Jiangsu, becoming the dominant home appliance industry in Suzhou, Anhui and Zhejiang provinces.
In 2005, Five Star Appliances began to move from a regional chain to a national chain, opening up a large-scale commercial supermarket pattern of home appliances that stood on its own with Suning and Gome.
However, in the subsequent operation and competition, due to the lack of new growth points, in 2006, Wang Jianguo found the world's number one consumer electronics retailer Best to buy 945 million yuan and made it obtain 51% of the equity of the joint venture company to jointly establish the Sino-foreign joint venture New Five Star Appliances.
Later, Best Buy injected 1 billion yuan to acquire 51% of the equity of Five Star Appliances. Subsequently, Best Buy increased its stake to 75%. Wang Jianguo and his team remained in the joint venture after the five-star electrical appliances, Wang Jianguo served as chairman and president.
Until 2009, Wang Jianguo sold all the remaining 25% of his equity to Best Buy, making Five Star Electric a wholly foreign-owned company.
Recalling the experience of selling five-star electrical appliances, Wang Jianguo regretted that "in February 2009, I decided to sell five-star electrical appliances to Best Buy in the United States, which was the most difficult decision in my entrepreneurial career, and it can also be said that I was the loneliest moment. ”
After leaving Five Star Appliances with several of his closest entrepreneurial partners, Wang Jianguo began to turn to the field of investment. Although it has left the five-star electrical appliances, it is clear that the five-star electrical appliances have become the biggest regret of Wang Jianguo, so many companies registered by Wang Jianguo have not left the word "five-star", such as: five-star investment, five-star electrical appliances, five-star real estate, etc.
After continuous trial and exploration, in the next ten years, Wang Jianguo not only single-handedly created his own investment empire, but also created excellent unicorn projects such as the mother and baby brand "Child King", the rural e-commerce "Huitongda" and the "smart home integrator" Haoxiangjia, and the cumulative valuation of the three companies exceeded 30 billion yuan.
Perhaps everything is doomed in the dark, if there is no original departure, Wang Jianguo would not have these achievements today.
Nowadays, with the listing of the "child king" of the leading mother and baby industry, Wang Jianguo's commercial giant ship is about to break anchor and set sail, rolling forward and sailing farther away!
As Wang Jianguo once said: "Entrepreneurship is difficult, there is no success, only growth." We're still on our way to the exam..."