Suddenly!Another IPO was terminated

Mondo Finance Updated on 2024-01-31

Towards the end of the year, the Shanghai and Shenzhen stock exchanges' months-long zero IPO declarations were broken, but the momentum of IPO termination (withdrawal) has not weakened, especially for projects related to "food, clothing and housing".

On December 29 and 30, as of press time, the Shanghai Stock Exchange and the Shenzhen Stock Exchange terminated 1 and 3 IPOs respectively, of which 2 of the 3 terminated projects of the Shenzhen Stock Exchange were food and beverage companies, namely hemp seed food and fresh drinks.

The fresh beverage company was accepted on March 3 this year, and planned to hit the main board, received the first round of inquiries on March 30, and replied to the inquiries on June 17, followed by half a year of waiting, neither the second round of inquiries, nor the listing committee meeting, until now withdrawn.

Judging from the first round of inquiries, the performance of fresh drinks has declined sharply, the gross profit margin has continued to decline, and the clearance dividend before the declaration has been focused on. According to the prospectus, during the reporting period (2020 to 2022), there were five dividends for fresh drinks, with a total of 4900 million yuan, which is higher than the total net profit during the period, and the transfer of funds to the listing will raise 4500 million yuan.

Growth and profitability both declined.

According to the prospectus of fresh drinks, the company, as a leading supplier of raw materials for comprehensive solutions for new tea drinks, is mainly engaged in the research and development, production and sales of beverages, taste granules, jams and pre-packaged new tea drinks, which is an important link in the new tea beverage chain.

It said that the company has established long-term and stable cooperative relations with new tea beverage companies such as Mixue Bingcheng, Shuyi Yao Xiancao, COCO Duke, Gu Ming, Shanghai Auntie, 7 Fen Tian, Lele Tea, Ice and Snow Time, Wu Yin Liangpin, 700cc, Ah Shui Big Cup Tea and Xuncha, as well as new retail enterprises such as Luckin Coffee and Hema Xiansheng.

However, from a financial point of view, the company's growth is not optimistic.

During the reporting period (2020 to 2022), the company's operating income was 81.2 billion yuan, 106.4 billion and 9300 million yuan, and the net profit attributable to the owners of the parent company was 1800 million yuan, 18.9 billion and 10.6 billion yuan. In 2021, the company's revenue growth slowed down and began to decline in 2022;In terms of net profit, its growth has been close to stagnation in 2021, and it has fallen sharply by 44% since 2022.

Entering 2023, the trend of declining performance continues, with the net profit of fresh drinks falling by 28% in the first quarter of this year, and the non-net profit falling by 36%.

In addition to growth, the company's profitability is also in question. During the reporting period, the company's comprehensive gross profit margin was as follows. 64% and 2505%, showing a continuous sharp downward trend.

One of the company's main products, the sales unit price and gross profit margin of "taste granule products" are even more precipitous. During the reporting period, the average sales unit price of such products was 133 yuan kg, 1015 yuan kg and 755 yuan kg, the gross profit margin of sales is respectively. 62% and 2075%。Fresh Drinks said that the decline was mainly due to the impact of fierce market competition.

In the first round of inquiry, the Shenzhen Stock Exchange asked the company to explain the reasons for the decline in performance in 2022, the consistency of the performance change trend with the current situation of comparable companies and industries in the same industry, and whether there is a risk of continuous decline;Combined with factors such as the market size, competitive landscape, penetration rate, stability of cooperation with major customers, and changes in product unit prices, the issuer's future business development space and sustainability are illustrated.

Dividends before declaration4900 million yuan.

Like many food and beverage companies, fresh drinks actually have a relatively generous capital chain. The company had no long-term borrowings in the reporting period, and short-term borrowings only exceeded 10 million yuan in 2020, and 0 in 2021 and 2022. As of the end of 2022, the company's debt-to-asset ratio was less than 15%.

In this case, the company continued to pay large dividends before declaring listing. According to the prospectus, during the reporting period, the company carried out 5 profit distributions, with a total dividend of up to 4900 million yuan, and the company's total net profit (non-deduction) during the period was only 46.5 billion yuan, which can be described as a clearance dividend.

Among them, in July and December 2021, the company distributed cash dividends of 9517670,000 yuan, 31.7 billion yuan, more than 400 million yuan in a year.

After the cash dividends, the company asked the capital market for money, and the IPO originally planned to raise 4500 million yuan will be invested in the construction projects of two production bases, and 50 million yuan is also planned to supplement working capital.

To this end, in the first round of inquiry, the Shenzhen Stock Exchange required the company to explain the whereabouts and final use of the funds after receiving cash dividends from shareholders at each level, whether there is objective evidence to support them, and whether the large cash dividends affect the issuer's ability to continue operations and adversely affect liquidity.

In addition, the Shenzhen Stock Exchange requires that the necessity and reasonableness of the raised funds be used to supplement liquidity in combination with the cash dividends and the purchase of bank wealth management in the reporting period.

Editor-in-charge: Tao Jiyan |Review: Li Zhen |Supervisor: Wan Junwei.

*: China ** newspaper).

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