Walron Food IPO: How long can I walk on a single leg?

Produced/company research room IPO group

Wen/Chushan

In recent years, in popular film and television dramas such as "Little Happy", "Sweeping the Storm" and "Happiness to Wanjia", you can often see Nut foods of the "Volon" brand. Recently, the operating entity behind the brand, Qingdao Wolong Food Co., Ltd. (hereinafter referred to as "Wallon Food"), disclosed the prospectus and intends to be listed on the main board of the Shanghai Stock Exchange.

However, the competition in the food industry is fierce. Since Volon took the lead in launching the "Daily Nuts" products in China in 2015, casual food brands such as Baicao, Laidi, Liangpin Shop, and Qiaqia Food have successively entered the game and launched their own daily daily daily. Nut series products. Public information shows that there are more than 300 "daily nuts" in a certain e -commerce platform. Therefore, whether Yang Guoqing, the first "daily nut", can lead the company to adhere to and highlight the siege in the middle of the melee. It remains to be proved by time.

01. From the partnership of 3 people to Yang Guoqing's independence

Unlike many people's grass -roots, Yang Guoqing is a professional manager's transformation and entrepreneurship.

The seemingly elegant food merchant, graduated from Hubei University of Technology for food majors. At the age of 28, he served as the director of the factory factory of the Qingdao Dairy Corporation (Qinpai Dairy), and worked as a professional manager in Yantai Xin. From entering the nut industry in 2007, and starting a business in 2012, Yang Guoqing mainly made import and export food.

In May 2016, Yang Guoqing, Huang Xufeng, and Zhang Liye signed the "Articles of Association of Qingdao Wolong Food Co., Ltd.", which stipulated that the company's registered capital was 5 million yuan, and Yang Guoqing, Huang Xufeng, and Zhang Liye subscribed to 3.25 million, 1 million, and 750,000 respectively.

After a few years, the company's equity was derived several times, and only three partners left Yang Guoqing. Before this IPO, the Structure of Volon Food has become a unique share of Yang Guoqing. His personal shareholding ratio is as high as 89%. platform. The previous partners withdrew from the company's management early. In short, regardless of the reason, Volon Food finally turned from the initial partnership to the Yang family business. This is also the final fate of most partnerships in China.

The company's research office noticed that before the public offering, Volon's food equity has changed again. Due to the issuer's implementation of equity incentives, Volona's internal capital contribution transfer, the transfer price department refers to The audit net assets are priced at 5.11 yuan/1 yuan registered capital (equivalent to Voltida assets 1.95 yuan/1 yuan contribution): At the same time, Longya's investment in internal investment shares also registered for 5.11 yuan/1 yuan ( Trusting Longbaida's investment of 1.00 yuan/1 yuan) is transferred.

The prospectus shows that before the issuance, the company's total shares were 75 million shares. The number of shares intended to publicly issue publicly to the society this time does not exceed 25 million shares, accounting for no less than 25%of the total share capital after the issuance. After the prospectus, Yang Guoqing's shareholding ratio dropped to 67.1%. Considering that the employee holding platform Long Yida Investment is still directly controlled, and the shares in the hands of the brothers and sisters of the Yang family, Yang Guoqing is actually a unique in the company in the company. Essence

02. After 4 years of red fire, the market share fell to second

It has been immersed in the food industry for many years. Nut trade has made Yang Guoqing deeply recognize the seasonal characteristics of such products.

Yang Guoqing discovered that after the Spring Festival season, in the off -season, nuts are facing slow sales. One day in 2014, Yang Guoqing talked with a foreign friend. The friend said that foreigners did not eat shell nuts, and the nuts they bought were peeled. This inspired Yang Guoqing. He had an idea to make a nut product that is convenient for opening the bag.

In April 2015, this new category called "Daily Nuts" was listed, which was very popular in the market. In April of the following year, Volon Tmall flagship store launched. The sales of only 6 days will exceed 850,000 yuan, becoming the industry's "dark horse". In December of that year, Walron also settled in e -commerce platforms such as JD.com, No. 1 store, and Suning Tesco. The daily number of nuts sold more than 200 million bags for daily nuts.

The best -selling of Volon's daily nuts has naturally attracted the attention of the food giants.

Since 2017, Qiaqia Food (002557.SZ) officially launched the small yellow bag "Daily Nuts", three squirrels (300783.SZ), Baicao flavor, good product shop (603719.SH) and other food giants. Therefore, the market began a melee. Although until the end of 2019, Volon is still the boss of the Nuts market, the pressure of competition is increasing. Among them, one of the very important reasons is that these giants are either listed directly or acquired by listed companies. With the power of the capital market, its advertising offensive and channel construction are not comparable to Volo Foods that mainly rely on their own funds to rolling and developing. Essence

In any case, in the fierce market competition, Volon Food eventually lost its position as the boss of the Nut Market. In 2020, the three squirrels became the first in the industry with a market share of 10.2 %. In 2021, Qiaqia Food replaced three squirrels with a market share of 9.7 %. At that time, Volon's food sales were second, with a market share of 9.3%.

03. Nuts big single product strategy is with non -wrong

According to the prospectus, Volon Food is the industry's leading casual food producer with nuts related to nuts related to nuts. It always takes the concept of "only nuts". This is actually Yang Guoqing's strategy of Nuts. In the past two years, after the status of the boss of the Nuts of Volon Food, many people accused Yang Guoqing being too conservative, staying with a nut of nuts and not engaged in diversified operations; More resources seize the online market; there are also people who accuse Volon Food from the perspective of brand management and accuse Volo Foods from getting a late collection early, failed to further occupy consumers' minds and increase the penetration rate of social population. As a result, the competition was later lived. In short, under the premise of the hero of the success or failure, Yang Guoqing himself and Volon food have been accused.

It is true that in the operation alone, in 2019, 2020, and 2021, the revenue of Volon Food fluctuated, achieving revenue of 1.165 billion yuan, 889 million yuan, and 1.108 billion yuan, respectively. In contrast, some competitive products of the Nuts Circuit in 2021, the revenue of Liangpin Shop, Three Squirrels and Liansou Foods reached 9.324 billion yuan, 9.77 billion yuan and 5.985 billion yuan.

Some people think that it is mainly because of the structure of Volon's food products and walking only with one leg. Such accusations may be biased. In fact, it is difficult to divide up and down between large and full specialty.

Specific to Walron Food, the company's research office believes that Yang Guoqing focuses on the field of nuts and adheres to independent production, but it is understandable. This is not necessarily worse than those companies that burn money crazy and attract traffic.

First of all, the business expansion must consider its own capital strength. Wallon Food is not a listed company. If Yang Guoqing desperately, debt marketing, or even fighting for a price war, maybe the company has already funded the debt, and it is difficult to say whether it can live now; Secondly, the purpose of doing business is to make money. The so -called indispensable early. If you just run the horse in the circle, the wide species is not even collected or even if it is not accepted. Such companies may not be welcomed by investors. This can be seen from the stock price of some competition in recent years.

In addition, from the gradual trend of the comprehensive gross profit margin of Walron Food, it can also be seen that the company has actually lived well in recent years.

44, 2 billion sales expenses?

Of course, as a net red food, the sales of nuts are also inseparable from advertising. In this regard, there is no difference between Wallon Food and Qiaqia Food and Liangpin Shop, but because it is not a listed company, the handwriting is not as big as a competitive product. Even so, the prospectus shows that the company's marketing costs in the past three years are close or more than 200 million.

Specifically, from 2019 to 2021, the company's sales costs were 190.3197 million yuan, 178.7917 million yuan, and 21,600,400 yuan, and the proportion of sales expenses accounted for 16.34%, 20.10%, and 19.50%of the current operating income, accounting for relatively stable proportion.

So, where did these go? The prospectus lists the details. During the reporting period, the company's sales expenses were mainly composed of publicity and promotion, e -commerce platform costs, and employee compensation.

The company said that due to the increase in competitive products in recent years, the company has gradually strengthened the construction and promotion of offline channels, and generally increased the expenditure of publicity and promotion. E -commerce platform costs are mainly the company's promotion costs on e -commerce platforms such as Tmall and Jingdong. During the reporting period, the company gradually strengthened the investment in e -commerce platforms. The cost of e -commerce platforms continued to increase. increase. Employees are mainly salary for sales staff, and the overall stability during the reporting period.

The company's research room noticed that Volon has always adhered to the entertainment marketing strategy, and a considerable part of the publicity and promotion fee has been invested in the implantation of film and television drama advertisements. In recent years, in film and television works such as "All Good", "Little Happy", "Touring Procuratorate" and "Crossing the Storm", you can see the figure of the "Volon" brand.

05. Social security defects and low R & D expenses

The competition pattern of the leisure food industry is relatively scattered, showing the characteristics of "large markets and small enterprises". Among them, some segmented tracks have been divided and concentrated by foreign -funded enterprises, while the nuts and leisure food industry is a blue ocean area with an international giant that has not yet formed an advantageous position, and has a lot of room for development.

Yang Guoqing, who is studying food in food, is precisely the empty gear. After fully discovering the potential needs of the citizens for the consumption of nuts, the explosive product of the mixed category "daily nuts" has achieved the Volon Food today. At the same time, the huge market opportunities expanded by the "Daily Nuts" series of products have also attracted many competitors to enter, and market competition has continued to intensify.

Such a market situation naturally requires the company to further strengthen product development and continuously strengthen its own characteristics and technological advantages. It cannot only stay on the original impression of "cooking". Unfortunately, so far, the main players in the domestic nut market have not high in R & D investment, and Walron Food is no exception, and even far lower than the industry average.

The company said that the research and development cost rate during the reporting period is lower than the level of the same industry. It is mainly in the initial stage of the company's R & D, and the product category is relatively small. The rate has improved. In any case, Walron Foods want to go farther, such research and development investment must be far from enough.

In addition, the company's research room noticed that there were some flaws on the issue of paying social security and housing provident funds for employees.During the reporting period, the company had no social security costs and housing provident fund costs for some employees.Yang Guoqing himself has issued a commitment: Once the relevant departments or judicial agencies make compensation rulings, he will compensate the issuer and subsidiaries of all the total expenditure, fines, late fees, compensation and expenses that the issuer and subsidiaries will be used to ensure that the issuer and subsidiaries will not receive it because of this.Any loss.The ownership of employees' social security and housing provident funds seems to have become a common problem for IPO companies. It is unclear whether these companies know whether they are criminal or really do not understand the interests, including Volon food.According to industry analysts, the common existence of this phenomenon may be related to the strict control of related issues in the listing review.

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