Ziyan Food IPO: Family operations controversy, frequent food safety problems

In the Ziyan food dealer system, the actual controllers of the 12 are former employees of Ziyan Food, including the brothers and brother -in -law of Deng Huiling, one of the actual controller of Ziyan Food. The company's actual controller and senior management are "own people", which has attracted much attention from Ziyan food.

On July 7, Shanghai Ziyan Food Co., Ltd. (hereinafter referred to as: Ziyan Food) was successful, and the sponsor was Guangfa Securities.

Public information shows that Ziyan Food does not exceed 42 million shares this time, not less than 10%of the total share capital after the issuance. In this IPO, Ziyan Food plans to raise nearly 800 million yuan, which is used to build the second phase of Ningguo Food Production Base, the second phase of Rongchang Food Production Base, Warehouse Storage Base and R & D Inspection Center, Information Center, Brand Construction and Marketing and other projects Essence

Reading the prospectus and found that the company's dealer system, including 12 actual controllers, is the former employee of Ziyan Food, including the brothers of Deng Huiling, one of the actual controller of Ziyan Food, and the company's actual controller and senior management It is also "own people", which has also questioned Ziyan food. In addition, the food safety of Ziyan food is also frequent.

In response to the above situation, it was found that the network sent an interview letter to the Purple Food's open mailbox to the request to be interpreted. As of press time, Ziyan Food did not give a reasonable explanation.

Dealers causing controversy for former employees' family companies

Public information shows that the main business of Ziyan food is the research and development, production and sales of halogen foods. The main products include husband and wife lung slices, Baisi chicken, rattan pepper chicken, etc. The application scenarios are mainly consumption of meal consumption and supplemented by leisure consumption.

According to the latest prospectus, from 2018 to the first half of 2021, the operating income of Ziyan Food was 2.02 billion yuan, 2.435 billion yuan, 2.613 billion yuan, and 1.405 billion yuan. , 138 million yuan, 389 million yuan and 175 million yuan.

Source: Ziyan Food Prospectus

At the same time, the prospectus shows that the gross profit margin during the reporting period of Ziyan food was 25.4%, 25.46%, 30.45%, and 27.09%, respectively. %, 34.61%, 59%.

According to relevant persons in the industry, as the franchise model, the gross profit margin of Ziyan may have a low gross profit margin, which may have a dealer with franchisees. It is understood that the franchise model of Ziyan food is not directly franchise, but the indirect franchise model of "company-dealer-terminal franchise store".

Source: Ziyan Food Prospectus

It is worth noting that among more than 130 dealers of Ziyan Food, 12 are former employees of the company. Before the departure of Ziyan Food, these employees were mainly core staff of regional management teams, including relatives of the company's actual controller, as well as core employees such as the former general manager, and they became the big scriptures of Ziyan food as soon as they left. During the reporting period, the company's sales amount to employee dealers accounted for 89.23%, 86.61%, 84.44%, and 79.58%, respectively. The composition and sales of former employee dealers accounted for relatively stable.

Source: Ziyan Food Prospectus

The unit price of Ziyan Food for the sales of former employee dealers and the unit price of products selling products to non -former employees. From 2018 to the first half of 2021, Ziyan Food's sales unit price for former employee dealers selling couples with lung tablets was 83.54 yuan/kg, 94.36 yuan/kg, 106.95 yuan/kg, 106.73 yuan/kg; The sales unit price of business sales couples is 82.05 yuan/kg, 85.54 yuan/kg, 99.67 yuan/kg, 101.18 yuan/kg.

It is reported that Ziyan Food was formerly known as the "Zhong Ji Oil Boiling Duck" and was created by Zhong Chunfa couple. It is a typical couple shop. In 2000, it was restructured to become Ziyan Food Co., Ltd., and the company also handed over to Zhong Chunfa's son Zhong Huaijun. During the IPO of Ziyan Food, in fact, the controller and executives were also controversial for "own people".

The prospectus shows that Ziyan Food does not have the controlling shareholder. The actual controller of the company is Zhong Huaijun, Deng Huiling, Zhong Qinqin, Ge Wuchao, and Zhong Qinchuan. 85.98%of the company and control the company's voting rights of 88.58%. Among them, the couples of Zhong Huaijun and Deng Huiling held 20.77%and 15.90%of Ziyan Foods, and Zhong Qinchuan and Zhong Qinqin held a total of 43.08%of the equity, and Ge Wuchao held 6.23%of the equity. After the successful issuance of the stock, the proportion of the above -mentioned person's control company will still reach 79.55%.

Source: Ziyan Food Prospectus

Zhong Huaijun and Deng Huiling are the relationship between husband and wife. Zhong Qinchuan and Zhong Qinqin are Zhong Huaijun's husband and wife, and Ge Wuchao is a spouse of Zhong Qinqin. At present, Zhong Huaijun is the chairman of Ziyan Food, his son -in -law Ge Wu Chao is the general manager of the company, his son Zhong Qinchuan is the company's brand director, and his daughter Zhong Qinqin is the financial center manager. It can be seen that all high -level controller of Ziyan Foods is "themselves".

Food safety issues frequently occur actual controllers signing agreement

In addition to the former employee to become a dealer and the actual controller problem caused controversy, the actual controller of Ziyan also signed a gambling agreement.

In March 2020 and September 2020, the actual controller of Ziyan Food Zhong Huaijun and Shenzhen Julin Chengze, Shanghai Zhiqi and Jiaxing Zhijin, Fuzhou Yueying, Ningbo Kangtong, Shenzhen Shangyuan Shengda, Shenzhen River Shengda , Jiaxing Zhiyi and Gui Jiuqiang signed a gambling agreement, which agreed that investors' equity repurchase rights, anti -dilution compensation, and sales rights under the specific situation were agreed to be in specific situations. After the successful issuance of the stock, Zhong Huaijun and other unanimous actions to control the company's voting rights ratio will still reach 79.55%. The Purple Food Prospectus shows that the actual controller may have a significant impact on the company's development through the control of the control of the shares of the company, which may harm the interests of the company and a few shareholders.

Although the relevant gambling agreement has been suspended, but if the company fails to complete the issuance of this issue, it will trigger the company's actual controller's equity repurchase obligation, which may have a certain impact on the stability of the company's equity structure.

Source: Ziyan Food Prospectus

It is worth noting that as a food company, food safety is the top priority. However, the food safety problems of Ziyan Food are frequent.

According to reports, on September 15, 2021, a customer complained that the Ziyan Baiwei Chicken Shop, which is located in Shanghai Huguang Road, Shanghai, with mice in the food window. Subsequently, Ziyan Food issued an apology statement and punished the store closing. And this is not an example. The prospectus shows that from 2019 to 2021, Ziyan Food was punished by industrial and commercial, environmental protection and other departments 11 times, and the cumulative penalty amount was 215,300 yuan.

Source: Ziyan Food Prospectus

In addition, black cat complaints showed that there were 83 complaints from Ziyan food. These include problems such as eaten iron wire, hidden food safety hazards, and foreign matter in husband and wife lung tablets. On July 4, some consumers complained that "In the morning, I bought a white chopped chicken in Ziyan Baiwei Chicken Shop in Limin North Road, Jiangdu District, Yangzhou City. bad".

Source: Black Cat Complaint

In this regard, relevant persons in the industry analyzed that the problems of the food safety of Ziyan may be related to the main opening of Ziyan food. Compared to direct business, dealers' product control will become more difficult.

(Reporter Luo Xuefeng Financial Researcher Cao Xiaoyi)

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