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Reporter丨Wang Jieren Trainee丨 Xia Lu
Produced by丨Aotou Finance (thesankei).
Yanzhiwu continued to fall below the offer price for a week after being listed.
On December 12, the House of Swallows (01497.)HK) was listed on the Hong Kong Stock Exchange, and its stock price opened higher on the day.
December 19 is the day when Yanzhiwu landed on the Hong Kong stock market for a week, and the stock price is only 9HK$26, down 201%, since the second trading day, the share price of Yanzhiwu has been at 9The offer price of HK$7 will continue.
As the "first share of bird's nest", Yanzhiwu's revenue has grown rapidly. The data shows that from 2020 to May 2023, the revenue of Yanzhiwu will be 130.1 billion yuan, 150.7 billion yuan, 173 billion yuan, 78.3 billion yuan, but the net profit has been low, corresponding to 12.3 billion yuan, 1$7.2 billion and $20.6 billion yuan, 10.1 billion yuan.
High revenues and low profits are inseparable from high advertising and marketing expenses. Yanzhiwu is a typical marketing-driven company, with sales and distribution expenses of 31.8 billion yuan, 39.9 billion yuan, 50.4 billion yuan, accounting for the total revenue of the same year. 5% and 291%。During the same period, the advertising and promotion expenses of Yanzhiwu were 23.6 billion yuan, 2$6.9 billion and $3MOP 2.6 billion, accounting for sales and distribution expenses. 4% and 648%, with a cumulative reach of 83.1 billion yuan.
In stark contrast to the advertising and marketing investment, Yanzhiwu has less than 2% of its revenue in product research and development.
Yanzhiwu has been mired in the whirlpool of "excessive marketing expenses" and "excessive publicity", and the advertising has been questioned by all parties many times, and the former "poisonous blood swallow" incident has buried a crisis of trust that is difficult to repair.
The road to listing was full of twists and turns
Founded in 1997, Yanzhiwu has a history of more than 20 years, and its products mainly include pure bird's nest products, "bird's nest +" products and "+ bird's nest" products.
The listing process of Yanzhiwu can be described as twists and turns, which lasted 13 years. In 2011, Yanzhiwu submitted a listing application to the Hong Kong ** market, but the listing failed due to the "poisonous blood swallow" incident.
In 2021, Yanzhiwu's IPO in Hong Kong failed again. At the end of 2021, Yanzhiwu switched to A-shares and received a reply of more than 20,000 words from the China Securities Regulatory Commission, asking for a total of 57 questions on normative issues, information disclosure issues, and other issues.
In June 2023, Yanzhiwu announced its listing in Hong Kong and was successfully listed on the Hong Kong Stock Exchange. On December 12, Yanzhiwu was listed on the Hong Kong Stock Exchange with an opening price of 1050 yuan shares, 2 more than the issue price68%。
As of the same day**, Yanzhiwu closed at 97 yuan, but after all, there was no breakage.
On the second day after the listing, the house of swallows still appeared 7A staggering drop of 22%, as of the 18th, the ** price of Yanzhiwu was 945 yuan shares, still below the issue price.
As for the reason why Yanzhiwu's share price fell below the issue price, the industry believes that the overall environment of the market has a great impact on the stock price. If the market as a whole or the economic situation is unstable, investors may be cautious about it, resulting in stock prices.
In recent years, the competition in the domestic bird's nest industry has entered a "white-hot" stage, according to the "2022-2028 China Bird's Nest Market Status Research and Analysis and Development Prospect Report", it is expected that the size of China's bird's nest market will exceed 100 billion yuan in 2025.
Tsubame House is facing more and more competitors. In addition to brands such as Xiaoxian Stew, Zhengdian Bird's Nest, Yan'anju, Yanfu, Xiyan Bird's Nest, and Upstairs Bird's Nest, there are also established pharmaceutical companies such as Tongrentang and Dong'e Ejiao that have also launched their own bird's nest products.
Yanzhiwu is also facing competition from outside the bird's nest industry, with various nourishing and health products such as collagen peptides vying for the market share of bird's nest, and the efficacy of these products is not much different for consumers.
In order to expand the market layout and create a second growth curve, Yanzhiwu has launched bird's nest derivative products such as quinoa fish maw bird's nest porridge and good night small blue bottle instant bird's nest that have been explored to about 100 yuan.
Although such products are growing, their small scale is difficult to become the pillar of revenue growth in the short term. From 2020 to 2022, the revenue of Yanzhiwu's "Bird's Nest + and + Bird's Nest Products" was 04.3 billion yuan, 05.6 billion and 07.3 billion yuan.
The high marketing expenses were questioned as "over-hyped".
Yanzhiwu is the first stock of bird's nest in China and the largest enterprise in the field of bird's nest.
From 2020 to 2022, Yanzhiwu's performance was stable**, with revenue of 130.1 billion yuan, 150.7 billion and 173 billion yuan, net profit was 12.3 billion yuan, 1$7.2 billion and $20.6 billion yuan. In the first five months of 2023, Yanzhiwu's operating income was 78.3 billion yuan, a year-on-year increase of 123% and net profit of 10.1 billion yuan, a year-on-year increase of 200%, the company's net profit margin** to 128%。
Yanzhiwu's performance has been criticized, and the high proportion of marketing expenses has always been the main reason for the market to question Yanzhiwu's performance.
According to the prospectus data, from 2020 to May 2023, the advertising and promotion fees of Yanzhiwu were 23.6 billion yuan, 26.9 billion yuan, 32.6 billion yuan and 12.5 billion yuan. During the same period, the cost of research and development was only 176790,000 yuan, 189820,000 yuan, 243200,000 yuan and 9.6 million yuan, accounting for less than 2% of total revenue.
In 2022, the China Securities Regulatory Commission (CSRC) asked Yanzhiwu to explain the composition of sales expenses, the amount and proportion of advertising expenses, and the proportion of advertising expenses in the operating income of the same period during the reporting period.
As a consumer goods company, Yanzhiwu has a strong focus on marketing, increasing brand awareness and product sales through a large number of advertising and marketing activities. Yanzhiwu once "threw a lot of money" and invited Carina Lau, Lin Chiling, Zhao Liying, Jin Chen and other artists as spokespersons.
It is understandable to rely on sales expenses to support performance growth, but has the increase in sales expenses brought enough revenue growth?In 2021 and 2022, the revenue growth rate of Yanzhiwu will be respectively. 8%, much lower than the same period. 3% sales expense growth.
In May 2021, Yanzhiwu put out advertising slogans such as "I heard that it is better to eat bird's nest when pregnant", which aroused doubts from the outside world.
Bird's nest claims that bird's nest is rich in protein, collagen and other nutrients, and can beautify the skin and delay aging. According to authoritative research, bird's nest contains a certain amount of protein and collagen, but it does not go beyond the scope of other foods, and there is still a lack of consistent scientific evidence for the effect of beauty and anti-aging. The market believes that Yanzhiwu is suspected of excessive publicity.