The revenue of Xiaocaiyuan is mainly in the "Xiaocaiyuan" brand stores, and the revenue of the brand accounts for about 99% of the company's total revenue in each period.
Punctuation financial researcher Xin Yi.
"Cost-effective" has gradually become an important criterion for modern young people's dining choices, and the demand for "delicious and inexpensive" makes the public convenience restaurants have great potential.
The leader of popular and convenient Chinese catering that pursues the realization of "where there are Chinese, there is a small vegetable garden" - Xiao Cai Yuan International Holdings, hereinafter referred to as Xiao Cai Yuan) officially submitted a prospectus to the Hong Kong Stock Exchange to apply for landing in Hong Kong stocks. In this IPO, the funds raised by Xiaocaiyuan are expected to be used to continue to expand the store network, enhance the ability of the first chain, and improve the digital ability.
After opening its first store in Anhui in 2013, the company's store network has expanded to Jiangsu, Shanghai, Zhejiang, Beijing and other places. The signature dishes of the small vegetable garden include the famous Anhui dish stinky mandarin fish, the farmhouse braised pork, the crockpot soup and the pot of the chicken. In addition to the brand of "small vegetable garden", the company has also created sub-brands such as Guandi, Fuxing Building, and Caishou.
Looking at the prospectus, punctuation financial researchers noticed that from 2021 to 2022 and from January to September 2023 (hereinafter referred to as the reporting period), the number of small vegetable garden stores doubled, and the scale of performance grew rapidly. At the same time, the company's debt scale remains high, and the scale of inventory and receivables has also grown rapidly. Before the listing, Jiahua Capital may have a surprise shareholding.
Net profit and liabilities expanded simultaneously
In 2013, the first store of Xiao Cai Yuan, which provides Chinese catering with the people, was opened in Anhui, and after years of development, Xiao Cai Yuan has gradually established a nationwide store network covering 119 cities. According to Frost & Sullivan, in terms of store revenue for the nine months ended September 30, 2023, Xiao Cai Yuan ranked first among all brands in China's mass convenience Chinese catering market with a unit price between 50 yuan and 100 yuan.
During the reporting period, the total number of directly operated stores of Xiaocaiyuan doubled from 278 to 548, including 542 "Xiaocaiyuan" stores and 6 other sub-brand stores. It can be seen that the company's revenue is mainly in the "small vegetable garden" store, and the brand's revenue in each period accounts for about 99% of the company's total revenue. It is expected that by the end of 2026, the number of "small vegetable garden" stores will exceed 1,100.
Behind the rapid expansion of the number of stores, the revenue and net profit of Xiaocaiyuan have also achieved rapid growth. During the reporting period, the company's operating income was 264.6 billion yuan, 321.3 billion yuan, 342.9 billion yuan, with year-on-year growth in 2022 and the first nine months of 2023, respectively. 6%；The net profit for each period was 22.7 billion yuan, 23.8 billion yuan, 43 billion yuan, a year-on-year increase of 107 in the first nine months of 20236%。
It is worth noting that with the rapid growth of performance, the debt scale of small vegetable gardens is also significantly higher. The data shows that during the reporting period, the current liabilities of the small vegetable garden were 69.8 billion yuan, 58.3 billion yuan, 60.8 billion yuan, non-current liabilities increased from 40 billion yuan increased to 6$2.9 billion. Among them, in 2021 and 2022, Xiaocaiyuan achieved net current liabilities of 46.8 billion yuan, 23.2 billion yuan.
Among the current liabilities, the outstanding bank loans and other borrowings in each period were 3,946100,000, 1$1.3 billion, $50 million, and all their bank loans must be repaid within one year or on demand, and are secured or guaranteed. During the reporting period, the current ratios of small vegetable gardens were as follows: 2. In the future, if there is no sufficient cash inflow from operating activities or sufficient external financing capacity, the company's operation will be affected.
Current liabilities of the small vegetable garden as of the date shown
Data**: Small vegetable garden prospectus.
Store expansion to increase inventory scale
From the business point of view, the small vegetable garden that comprehensively serves the public strives to create a full-scene business layout with offline dine-in as the main + takeaway as the auxiliary + offline new retail as the synchronous development. The company has recently officially launched its offline new retail business, selling healthy and fresh products. During the reporting period, the gross profit margin of the small vegetable garden was not low, and the periods were. 6%。
As a member of the catering industry, the raw materials and consumables of the small vegetable garden mainly include the consumption of ingredients, beverage costs, packaging and other materials. During the reporting period, the company's raw material and consumable costs were 91.3 billion yuan, 108.8 billion yuan, 107.8 billion yuan, accounting for about 30% of the revenue of each period.
The stock of small vegetable gardens mainly includes ingredients, condiments, alcoholic beverages and others, of which the ingredients mainly include livestock and poultry products, aquatic products, rice and vegetables used in the preparation of dishes. During the reporting period, the company's inventory levels increased significantly. The data shows that the inventory of each period of the small vegetable garden is 580880,000 yuan, 847710,000 yuan, 11.7 billion yuan, with a year-on-year growth rate of 45 in 20229%, an increase of 37. at the end of September 2023 compared to the end of 20224%。
The company said in the prospectus that the expansion of its store network has led to an increase in ingredients and condiments, with the opening of 48 new stores in 2022 and 79 new stores in the first nine months of 2023, and the need to maintain inventory in these stores.
At the same time, punctuation financial researchers noticed that the inventory turnover days of small vegetable gardens increased from 189 days increased to 25 at the end of September 20232 days.
The inventory of ingredients in the catering industry is different from other easy-to-store goods, the storage cycle of ingredients is shorter, and the freshness of the ingredients determines the taste of the dishes and determines whether the food is safe. In the future, changes in consumer tastes and preferences may lead to excessive product inventory, which will increase the risk of loss of the company's obsolete inventory.
Inventory of small vegetable gardens during the reporting period
Data**: Small vegetable garden prospectus.
Jiahua Capital made a surprise stake
From the perspective of equity structure, as of the signing date of the prospectus, Wang Shugao, the founder of Xiaocaiyuan, controlled about 9299% of the voting rights of **, the actual controller of the company.
It is worth noting that before this IPO, Jiahua Capital was the only external institutional investor in Xiaocaiyuan, and on December 19, 2023, on the eve of the listing, Jiahua Capital once again made a surprise investment, investing a total of 500 million yuan in Xiaocaiyuan, holding about 7% of Xiaocaiyuan's shares.
During the reporting period, the ** and other receivables of the small vegetable garden mainly include the ** accounts receivable, other receivables and deposits, prepayments, and recoverable VAT, and the receivables in each period were 12.6 billion yuan, 18.5 billion yuan, 2$1.9 billion. Among them, the prepayment is the "lion's head" in the receivables of the small vegetable garden, and each period is 758290,000 yuan, 873560,000 yuan, 10.3 billion yuan, accounting for more than half of the receivables. Xiao Cai Yuan said that it was mainly due to the increase in the number of its stores, which led to an increase in prepayment for rent and property management expenses.
In addition, the receivables** of Xiao Cai Yuan mainly refer to the receivables from third-party payment platforms (such as Alipay and WeChat Pay) and third-party takeaway service platforms. Due to the growth of Xiaocaiyuan's takeaway business, the company's accounts receivable has also increased significantly, from 1728 in 202140,000 yuan increased to 3,026 in September 202360,000 yuan, and the number of days of accounts receivable turnover is 19 days to 23 days. If there is a default, it will affect the company's liquidity.
The threshold of the catering industry is low, the competition is fierce, and the rapid expansion of the number of stores in Xiaocaiyuan makes the capital, inventory, and receivables face greater pressure, which may affect the sustainable development of the company's future performance.