According to the latest data, as of January 14, 2024, more than 520 domestic A-share companies are waiting to be listed. But this does not prevent the determination of apple cider vinegar producer and ** listed company Tiandi No. 1 to continue to impact the IPO.
On the evening of January 29, the ** listed company Tiandi No. 1 announced that the company signed the "Counseling Agreement between Tiandi No. 1 Beverage Co., Ltd. *** and CITIC ** Co., Ltd. on the Initial Public Offering and Listing of Tiandi No. 1" with CITIC ** on January 26. And on January 29, it submitted to the Guangdong Securities Regulatory Bureau the guidance and filing materials for the company's public offering and listing on the main board of the Shenzhen Stock Exchange, and the counseling agency is CITIC**.
According to ** reports, more than ten days ago, Tiandi No. 1 just announced the appointment of Wang Zhenxing as the company's vice president and secretary of the board of directors.
Born in 1987, he worked in the investment banking department of CITIC Co., Ltd., successively served as senior manager, vice president and senior vice president, during which he was responsible for or participated in the IPO of CP shares, the non-public offering of Yili shares, the acquisition of Shuanghui Development by Rotex and the absorption and merger of Shuanghui Group by Shuanghui Development, and other capital operation projects, and has rich experience in capital operation in the consumer industry.
According to Weibo
This is the fourth attempt by Tiandi One to apply for listing on the main board, after several previous attempts in 2012, 2016 and 2022.
In August 2012, Tiandi No.1 submitted the initial public offering** counseling registration materials, but in July 2013, it applied for the suspension of the issuance and listing counseling agreement, and then turned to *** and was officially listed on August 20, 2015;
In February 2016, Tiandi One launched its A-share listing plan again, but terminated its listing plan in December 2019 after three years of listing counseling.
In March 2022, Tiandi No. 1 once again announced that it would be listed on the main board of the Shenzhen Stock Exchange, and the company** also began to suspend trading. At the beginning of March 2023, Tiandi No. 1 suddenly announced the withdrawal of its IPO application, calling it "the adjustment of the company's operation and strategic development plan".
According to the prospectus at the time of the last listing application, Tiandi One planned to raise 1.5 billion yuan for a number of capacity building, brand marketing projects and repayment of bank loans.
Chen Sheng, the founder of Tiandi One, was born in Zhanjiang, Guangdong Province in 1962 and graduated from the School of Economics of Peking University in 1984.
In 1993, Chen Sheng, who originally worked in a real estate company, founded Zhanjiang Xinhui Real Estate Development
At that time, the process of doing real estate was very simple, and there was no cumbersome**. Chen Sheng seized the opportunity to hoard land and speculate on houses. In the end, it only took him three years to make the company the real estate boss in Zhanjiang City. According to his words: "The money earned must be more than 100 million".
In 1997, after noticing the demand for the emerging "Sprite Aged Vinegar" beverage at that time, Chen Sheng quickly organized production personnel to develop related aged vinegar drinks, and in July of the same year, Tiandi No. 1 was officially put into production and sold well. In 2007, the apple cider vinegar product developed by Tiandi No. 1 entered the market.
Under the market strategy of "sea, land and air saturation bombing", Tiandi No. 1 Company has successfully cultivated the consumer cognition of "what to eat and drink, Tiandi No. 1", "add dishes to health, the fifth dish - Tiandi No. 1". The so-called fifth course means that Tiandi No. 1 is as common and important as fish, meat, rice, and vegetables.
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On August 20, 2015, Tiandi No. 1 Beverage Co., Ltd. was officially listed in the market, and according to the valuation, the market value of Tiandi No. 1 reached 10.8 billion. In that year, the company's operating income and net profit attributable to the parent company were 157.4 billion yuan, 44.2 billion yuan, high growth, high profitability, a moment of glory.
After 2016, Tiandi No. 1 Company expanded the market to Jiangxi, Hubei and Hunan by establishing a second production base in Jiujiang, Jiangxi, and solved the bottleneck of scale growth, but its performance never returned to the peak of 2015.
The data shows that from 2019 to 2021, the revenue of Tiandi One was 258.5 billion yuan, 18$9.9 billion and $181.7 billion yuan, and the net profit in the same period was 38.2 billion yuan, 25.1 billion yuan, 25.5 billion yuan.
In 2022, Tiandi No. 1 will lose money for the first time, with a revenue of 101.3 billion yuan, a year-on-year decrease of 44%; The net loss reached 1600 million yuan, down 162 million year-on-year71%。
However, the company's performance has improved in the first half of last year. In the first half of 2023, Tiandi One achieved an operating income of 33.9 billion yuan, a year-on-year increase of 583%；Net profit was -12.9 billion yuan, a year-on-year decrease of 3072%。
But anyone with a discerning eye knows that the narrowing of the loss of Tiandi No. 1 comes more from the reduction of expenses, especially the sales expenses decreased by 26% year-on-year, to 2200 million yuan.
The fundamental reason is that Tiandi No. 1, a catering material that came out of southern Guangdong, is deeply bound to the banquet scene, and the product and market are relatively simple, and because of packaging reasons, it is subject to the sales radius and is unable to break through.
As early as 2016, Tiandi No. 1 had started the "North Expansion Plan", but the final effect of years of hard work has never been satisfactory, and about 70% of the company's revenue in the past few years has come from Guangdong Province.
At the same time, looking at the whole drink**, apple cider vinegar can only be regarded as a niche drink. According to the previous report disclosed by relevant institutions, the amount of vinegar in domestic vinegar-flavored beverages is only 2% of the total vinegar output, and the proportion in developed countries such as Europe and the United States is basically more than 10%.
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In order to get rid of the restrictions of a single category and continue to increase the company's revenue, Tiandi No. 1 has also sold beer across borders and launched the craft beer brand "No. 1 Roast Beer", new hawthorn vinegar drinks, and even launched coconut water to the hinterland of coconut palms, but the actual performance was not satisfactory.
The experience of Tiandi No. 1's four IPOs also shows us the determination and difficulties of enterprises chasing the capital market.
In the past 2023, both the secondary market and the primary market are far lower than market expectations, and investors have already felt the "cold winter" of capital under the changes: it is difficult to list and return in the secondary market, and it is difficult to raise, invest and exit in the primary market.
At a press conference held on January 12, Yan Bojin, director of the Issuance Department of the China Securities Regulatory Commission, said that since the end of August 2023, the China Securities Regulatory Commission has strengthened counter-cyclical adjustment, tightened IPOs in stages, and reasonably grasped the rhythm of new share issuance.
The market can feel that from September to December last year, the average number of approvals issued and the number of issuances launched per month decreased significantly. In the next step, the China Securities Regulatory Commission and the stock exchange will continue to control the entry gate of IPOs, improve the quality of listed companies from the source, do a good job in counter-cyclical adjustment, and better promote the coordinated and balanced development of the primary and secondary markets. Yan Bojin said.
According to a person familiar with the matter, whenever the IPO is tightened, the net profit of enterprises often becomes a "hard indicator" for listing, and the requirements for the bottom line of net profit in all sectors have been improved.
However, judging from past cases, after the termination of the IPO, some companies may re-apply for materials in a timely manner, and may also transfer to other sectors for listing. Some investment bankers pointed out that for enterprises, listing is a long process, and choosing a more suitable listing time will be of greater help to the company's development under the condition of ensuring business stability.
At the same time, in the view of First Food Information, IPO is not the ultimate goal of a company. Whether it is fundraising in the primary market or listing in the secondary market, it is to use sufficient funds and attract excellent teams to come in, so as to bring impetus to product research and development, production capacity upgrading, network expansion, marketing, etc., to ensure that enterprises have a stronger sense of independent operation and innovative research and development, and have more advantages in market competitiveness.