Cold acid Ling parent company Dengkang Oral Crossing IPO is too half -half fundraising to be used for marketing and promotion

A TV slogan "hot and cold, sweet and sour, eat" made people remember cold acid toothpaste. Recently, Chongqing Dengkang Care Products Co., Ltd. (hereinafter referred to as Dengkang's cavity) of Chongqing Dengkang Cast Clear Care Products Co., Ltd. began to sprint with the main board of the Shenzhen Stock Exchange, and it was planned to raise 660 million yuan.

Dengkang's oral cavity is mainly engaged in the research and development, production and sales of oral care products, and the products cover toothpaste, toothbrush, mouthwash, etc.

"Daily Economic News" reporter noticed that adult toothpaste is the main source of income from Dengkang's mouth. From 2019 to 2021, the corresponding product revenue amount is 773 million yuan, 842 million yuan, and 900 million yuan, which continues to rise, accounting for the Lord The proportion of operating income was 82.14%, 81.92%, and 78.90%, respectively.

However, in 2020 and 2021, the overall sales growth rate of toothpaste products slowed down, and the Nielsen retail research data quoted by the prospectus (declaration draft) showed that the overall sales scale of the toothpaste market in 2021 was 33.98 billion yuan, an increase of 0.86% compared to 2020 increased by 0.86% compared to 2020 Essence With the slowdown of the overall sales growth rate of the toothpaste market, in the face of increasingly fierce market competition, it is still unknown whether Dengkang's mouth can rely on cold acid toothpaste to continue to maintain performance growth.

Toothpaste offline market growth slows down

According to Nielsen retail research data, in the offline sales channels of Dengkang, the retail sales market share of toothpaste products accounted for 6.83%, and the sales market share accounted for 9.95%. The industry ranking ranked fourth and local brands. For Dengkang's mouth, cold acid spirit is its core brand, mainly focusing on anti -sensitive functions. In the past 3 years, "cold acid" toothpaste has a market share of about 60%in the anti -dental sensitivity market.

From 2019 to 2021, Dengkang's oral cavity achieved operating income of 944 million yuan, 1.030 billion yuan (about 9%year -on -year), 1.143 billion yuan (about 11%year -on -year), and realized net profit of 63.163 million yuan, 95.2403 million yuan, and 95.24 million yuan, respectively. 119 million yuan, the overall performance showed an upward trend.

Among them, adult toothpaste is its main source of revenue. The revenue in 2019 ~ 2021 was 773 million yuan, 842 million yuan (about 9%year -on -year), 900 million yuan (about 7%year -on -year), accounting for the main business income, which accounted for the main business income. The ratio is 82.14%, 81.92%, and 78.90%. With the steady growth of the main business income, the proportion of adult toothpaste income is declining, and the growth rate of income is slightly behind the company's overall revenue growth rate in 2021.

It is not just a single brand. In recent years, the growth rate of the offline market for toothpaste has slowed down. The prospectus (declaration draft) disclosed in 2017 ~ 2021 anti-sensitive toothpaste offline market growth change trend chart shows that the overall offline market growth rate of toothpaste fell from 6.50%in 2017 to -2.26%in 2021, of which anti-sensitive toothpaste lines The next market growth fell from 14.00%in 2017 to 2.35%in 2021.

At present, there are many toothpaste brands and categories in the market, and the market -oriented competition is high. Therefore, Dengkang's mouth has prompted "market competition risk" in the first article of risk factors: if the company cannot continue to meet market demand in terms of brand building, core technology breakthroughs, product power improvement, marketing model innovation, and customer high -level services. It may face risks such as market share loss and decline in profitability.

At present, in terms of toothpaste segment market share, from 2019 to 2021, the offline markets of cold acids in the anti -sensitive segment account for 60.08%, 61.00%, and 59.61%, respectively, and the market share is relatively stable.

It is worth noting that from 2019 to 2021, the unit cost of the company's adult toothpaste is 15,300 yuan/ton, 14,700 yuan/ton, 15,500 yuan/ton, and the cost is steadily reduced. 25,400 yuan/ton, 25,500 yuan/ton, 26,200 yuan/ton, the price continued to rise.

In this regard, Dengkang's mouth cavity responded to the reporter of "Daily Economic News" through mail on June 9, 2022 that consumers gradually shifted to buying more brand products and mid -to -high -end products, thereby driving the growth of the industry's consumption scale and product prices The steady movement of the center has further enhanced the layout of the mid -to -high -end adult toothpaste market in recent years.

However, the prospectus (declaration draft) did not disclose specific data for the proportion of mid -to -high -end toothpaste products. For the sustainability of adult toothpaste sales, Dengkang's mouth has not explicitly responded to reporters.

Toothbrushes are another large source of income from Dengkang's cavity. From 2019 to 2021, adult toothbrushes revenue accounts for about 11%, and the income fluctuates greatly. However, the concentration of the toothbrush industry is relatively low, and the competition is more intense. According to Nielsen retail research data, the size of the toothbrush retail market declined continuously from 2019 to 2021, from 10.881 billion yuan in 2019 to 9.63 billion yuan in 2021.

The proportion of e -commerce model income increases

At present, the product sales of Dengkang's mouth are mainly based on the distribution model. From 2019 to 2021, the company's distribution model revenue was 816 million yuan, 882 million yuan, and 930 million yuan, respectively. %And 81.61%, the proportion of revenue in the distribution model has declined, corresponding to the increase in the proportion of e -commerce model income.

In an interview with Dengkang's oral response, the company cooperated with the main dealers to cooperate and develop steadily. Dengkang's mouth also has "the risk of sales models that cannot adapt to market changes": As the company's business scale and the sales area continue to expand, if the company's management of dealers cannot match the company's business development, the company will be in related areas in related areas. The achievement of sales goals has caused a certain impact.

From 2019 to 2021, the company's e -commerce model revenue was 57.4398 million yuan, 88.471 million yuan, and 150 million yuan, respectively, accounting for 6.10%, 8.61%, and 13.17%of the main business revenue, respectively, and the growth rate of income was much higher than other channels. Essence Dengkang said that during the reporting period, the company strengthened the development of e -commerce channels to further enhance the brand awareness and better conform to the development trend of online sales.

However, the reporter of "Daily Economic News" noticed that the proportion of e -commerce channel income in Dengkang's mouth cavity does not seem to be higher than the online sales ratio of the entire toothpaste and toothbrush industry. The data cited by the prospectus (declaration draft) show that in the past three years, the sales ratio of toothpaste lines is 16.15%, 21.62%, and 24.04%, respectively, and the proportion of toothbrushes sales lines is 11.18%, 15.73%, and 17.00%, respectively.

The prospectus (declaration draft) also describes the competitive disadvantage of Dengkang's oral cavity: there is still a certain gap in the company's operating scale than the industry -leading enterprises. "The company also needs to further accelerate the development of e -commerce channels, continuously enhances the market share of e -commerce channels, and continuously expands through the scale of business, consolidate and enhance the company's market position, and enhance corporate anti -risk capabilities."

When comparing the gross profit margin of comparable companies in the same industry, Dengkang's mouth stated that the company's comprehensive gross profit margin is lower than that of Weimei Industrial (Guangdong) Co., Ltd. One is mainly based on offline distribution models, while Weimei is mainly based on online sales and sales of large customers (hypermarkets and supermarkets). There are differences in product pricing and marketing strategies under different sales channels. There are differences in gross profit margins.

In this IPO, Dengkang's mouth plans to use some raised funds to increase investment in e -commerce channels. The prospectus (declaration draft) shows that Dengkang's mouth intends to raise 660 million yuan through this listing, of which 370 million yuan is used for omni -channel marketing network upgrades and brand promotion and construction projects. The channel upgrade includes offline and online channels, increasing the investment of various e -commerce platforms to accelerate the development of online e -commerce channels, while achieving rapid breakthroughs in new retail business; brand promotion includes digital media brand exposure, star spokespersons Wait.

Previously, Dengkang's mouth was quite "generous" in advertising and promotion. From 2019 to 2021, the company's sales costs were 276 million yuan, 266 million yuan, and 279 million yuan, respectively, accounting for 29.24%, 25.80%, and 24.45%of operating income, which was much higher than other periods such as R & D expenses and management expenses.

Compared with the comparable companies in the same industry, the sales rate of Dengkang's mouth is higher than the industry average and median number. The main reason is that one of the comparison company's revenue is mainly from ODM sales. Comparable company average.

Daily Economic News

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