The post 60s uncle does a lady business, with a market value of 4.5 billion

Mondo Finance Updated on 2024-01-29

Yanzhiwu, known as the "lady harvester", finally landed on the Hong Kong Stock Exchange after the IPO of Sichong.

On December 12, Yanzhiwu was listed on the Hong Kong Stock Exchange for the first time, and the announcement showed that the issue price per share of Yanzhiwu was 9HK$7, with a total market capitalization of HK$4.5 billion on the day. However, the price of Yanzhiwu, which was flat on the first day of listing, fell below the issue price on the second day of listing, and on December 13, Yanzhiwu once fell by more than 12% in intraday trading, and finally narrowed the decline to 722%, closing at HK$9 per share, and the total market capitalization shrank to 41HK$900 million.

Yanzhiwu is the head bird's nest brand in China, Tianyancha APP data shows that Yanzhiwu was established in Xiamen, Fujian, the full name of the company is Xiamen Yanzhiwu Bird's Nest Industry Co., Ltd. was established in 2014, with a registered capital of 86.7 million yuan, and the legal representative is Huang Jian. Prior to the IPO, Yanzhiwu received two rounds of external financing in 2016 and 2020, respectively, with investors including Yang Ming Capital, Flame Stone Capital, and Xiamen Torch Group.

From the perspective of performance, Yanzhiwu continues to make money. According to its prospectus, from 2020 to 2022, the total revenue of Yanzhiwu will be 130.1 billion yuan, 150.7 billion and 173 billion yuan, maintaining an annual growth of about 15%. The net profit attributable to the parent company increased from 1. in 20202.2 billion to 19.2 billion yuan.

In the past three years, the gross profit margin of Yanzhiwu has been climbing, and the 2022-2022 years are: 2% and 508%, and as of the end of May this year, it climbed to 519%。Compare to food companies that make snacks, such as BESTORE and Three Squirrels last year. 74% gross profit margin, much stronger.

The cash flow performance of Yanzhiwu is also relatively stable, and as of the end of 2022, Yanzhiwu has a total of cash and cash equivalents35.1 billion yuan, and the asset-liability ratio is only 57%。It can be said that it is a company that does not need financing to maintain its daily operations.

Although Yanzhiwu, whose revenue and net profit are both growing and not bad at the company level, has won the crown of "the first share of bird's nest", its market value is not high overall, which may be related to its business structure of marketing-driven growth.

In most people's minds, bird's nest is a category that only wealthy middle-aged women buy. In the early days, in order to open up market popularity, Yanzhiwu can be said to have spared no effort in inviting celebrities to endorse, Carina Lau, Lin Chiling, Zhao Liying and other female stars have been spokespersons of Yanzhiwu.

Therefore, marketing expenses are also the bulk of Swallow's expenses. According to its prospectus, from 2020 to 2022, the sales and distribution expenses of Yanzhiwu will be 31.8 billion yuan, 3$9.9 billion and $50.4 billion yuan, accounting for the total revenue of the same year. 5% and 291%。Among them, advertising and promotion expenses are 23.6 billion yuan, 2$6.9 billion and $3$2.6 billion, accounting for sales and distribution expenses respectively. 4% and 648%。

It is particularly noteworthy that among the 1,792 employees within the company, there are 622 sales employees, accounting for nearly one-third, while the number of R&D personnel is only 46, accounting for only 7%.

It is worth mentioning that before the listing, Yanzhiwu will also pay high dividends every year, and the dividend amounts in the past three years are 1200 million, 100 million, 0800 million. In March this year, Yanzhiwu once again paid dividends of 1600 million, so many industry insiders have analyzed that the eager listing of Yanzhiwu is also related to the urgent cash-out of the high-level management. According to the prospectus of Yanzhiwu, in the shareholder structure after listing, Huang Jian's personal shareholding ratio is 093%, and his son Huang Junhao jointly holds 19% of shares through Xiamen Shuangdanma Group72%。

Huang Jian is the founder of Yanzhiwu, 57 years old this year, who has been dealing with bird's nest for half his life, and is also the core figure of Yanzhiwu. When he was young, he graduated from a normal college and had an enviable iron job - a middle school teacher in a county in Fujian Province. Within a few years, he didn't want to be satisfied with the status quo, and chose to jump to a Korean-funded tent company in Xiamen as the manager of the quality management department.

Later, under the influence of the national tide of going to the sea, Huang Jian went abroad to Singapore to serve as the general manager of Far Eastern Group in China, and after a few years in Southeast Asia, Huang Jian accidentally discovered the business opportunity of bird's nest.

He found that bird's nest, which is abundant in Southeast Asia, is rarely eaten in China. "The production of bird's nest in China is very small, people can basically only buy it in Chinese medicine stores, and people do not understand the specific edible and nourishing value of bird's nest, only vaguely know that it is a good thing. ”

Based on this judgment, 31-year-old Huang Jian chose to return to China and founded the bird's nest company "Shuangdanma" with his sister and wife, thus starting the story of his bird's nest.

How to make the Chinese stomach accept the emerging species of bird's nest was a difficult problem at that time, at that time, "The Legend of Zhen Huan", which loved to eat bird's nest in the play, had not yet been released, and people's understanding of bird's nest was still relatively poor. In addition to inviting celebrities to endorse, Huang Jian also innovatively developed a variety of eating methods, such as creating a "specialty store + kitchen" model, so that bird's nest can be "ordered, stewed, eaten, and delivered".

For another example, in order to facilitate the operation of consumers, Huang Jian put forward the idea of making bird's nest "ready to eat out of the bowl", and then launched its core product "bowl bird's nest". In 2022, the income of the bowl swallow alone will be 67.2 billion yuan, accounting for 38 percent of its total revenue9%, with a gross profit margin of 606%。

In 2016, Yanzhiwu finally turned losses into profits and entered the fast lane of development, "Do business, don't take risks, don't try, how do you know if you win or lose?".He once said in an interview.

However, in last year's 20,000-word inquiry by the China Securities Regulatory Commission on Yanzhiwu, the debt problem of Chairman Huang Jian was mentioned. The SFC said that Huang Jian existed about 1With a personal debt of 500 million yuan, the borrowing interest rate is as high as 12%-18%, so it is necessary to explain the formation process and use of Huang Jian's personal debtSo far, the details of the loans, whether Huang Jian has paid for the company's costs, expenses or extracorporeal circulation of funds.

With a series of problems such as "false publicity", "transitional dividends" and "related party transactions", Yanzhiwu chose to avoid it and silently withdrew its listing application on the eve of the meeting, and Yanzhiwu's third IPO was terminated.

With the rise of the trend of pursuing health and wellness in recent years, nourishing foods such as bird's nest have gradually been favored by consumers. According to the 2020 Bird's Nest Industry, the size of China's bird's nest market has grown rapidly from 6.9 billion yuan in 2016 to 40 billion yuan in 2020. The "2022-2028 China Bird's Nest Market Status Research and Analysis and Development Prospect** Report" also shows that the size of China's bird's nest market is expected to exceed 100 billion in 2025.

Maybe one day, the bird's nest may be so hot that even the swiftlet's spit is not enough.

Author |Zhang Jikang.

Edit |Chen Fang.

Operations |Liu Shan.

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