Known as the largest IPO in the history of gem, Yihai Jiali Jinlongyu grain and oil Food Co., Ltd. (hereinafter referred to as “Jinlong fish”), which will be formally applied for tomorrow, conducted an online roadshow this afternoon. According to the announcement issued last night, it will issue more than 542.1 million new shares, accounting for 10% of the total share capital after the issuance, and the issue price is 25.70 yuan per share.
During the two-hour roadshow, investors asked questions about the strategic development plan of the golden dragon fish in the next few years, the performance during the epidemic period, and how to improve the profitability. The company’s directors, president Mu Yankui and other senior executives as well as representatives of the sponsor agency all answered one by one through the way of text reply.
It is worth noting that during the roadshow, some investors also raised questions about “the Customs has investigated 10 batches of golden dragon fish rapeseed oil without genetically modified identification” and “whether Yihai Jiali Jinlong fish is listed in A-share market to reduce the restrictions on foreign investors’ identity”.
At the beginning of the roadshow, some investors raised questions on the sensitive topic of GM: transgenic dispute is big, how to avoid the adverse impact of GM dispute on the company?
The investor also asked about the company’s response to the recent national customs investigation of 10 batches of golden dragon fish, such as rapeseed oil, which were not labeled with genetically modified genes.
According to the food information released by the General Administration of Customs last week, which is not allowed to enter the country in August 2020, 10 batches (603700 kg in total) of primary rapeseed oil and soybean oil imported from Kazakhstan by Yihai (Changji) grain and oil industry Co., Ltd. were returned or destroyed by the customs in accordance with the law.
Products of golden dragon fish
In response to the questions raised by the above investors, Tian Yuanzhi, representative of goldfish securities affairs, said that the company strictly abides by the national laws and regulations on agricultural genetically modified organisms, and established and improved a complete safety management system for agricultural genetically modified organisms processing. Some of the company’s products are processed with genetically modified organisms, so there is no major food safety hazard and will not have a significant adverse impact on the company’s production and operation.
In addition, many investors are curious about why goldfish decided to list on the A-share gem. An investor put forward to the company: it is reported that the main purpose of listing and financing of golden dragon fish is not to obtain the identity of domestic capital, but to reduce the restrictions on foreign capital status. How to explain this to the company and what restrictions exist in the development of grain and oil industry of foreign capital status.
Tian Yuanzhi explained that on the one hand, the company chose to go public in A-share market in order to continue to deepen the localization process in China, enhance the ability of business development and continuously improve the ability of product innovation. On the other hand, it is hoped that with the help of A-share listing, the public can understand a more transparent and standardized company and share the company’s operating results.
He also believes that the company can accelerate its own development through the capital market, and listing in China fully reflects the company’s confidence in China’s future and its determination to jointly develop the Chinese economy in the long term.
As for the question raised by some investors about why goldfish should be listed on the gem rather than on the main board due to its large size, Hong Meiling, Secretary of the board of directors of goldfish, said that the gem is an important part of China’s capital market. The implementation of China’s independent innovation strategy has also opened up a broad space for the growth enterprise market, which is more in line with the listing needs of YIHAI KERRY.
During the outbreak
During the roadshow, golden dragon fish also replied to investors’ questions on the latest performance of the company during the epidemic.
Lu Wenyu, director and chief financial officer of golden dragon fish, said that from January to June this year, the company took a number of measures to actively deal with the impact of the epidemic. The company’s kitchen food business developed steadily, feed raw materials and oil technology business performed well, and the overall business performance was significantly increased compared with the same period of last year. During the period, the net profit attributable to the owners of the parent company was 3.007.63 billion yuan, an increase of 88.35% over the same period of last year; after deducting the non recurring profit and loss, the net profit attributable to the owner of the parent company was 2863.26 billion yuan, an increase of 130.93% over the same period of last year.
“Combined with the current market trend and the actual operation situation of the company, after preliminary calculation, it is estimated that the company’s operating revenue from January to September 2020 will be about 131 billion yuan to 137 billion yuan, with a year-on-year growth of about 5% to 10%; it is estimated that the net profit attributable to the owners of the parent company will be about 4 billion yuan to 4.6 billion yuan, with a year-on-year growth of about 15%.” Lu Wenyu replied. However, the company also said that the relevant financial data had not been audited or reviewed by accountants, and did not constitute a profit forecast or a business commitment.
Mu Yankui, director and President of golden dragon fish, further explained that since grain and oil are necessities, the epidemic has a certain impact on circulation during the period of control, but has no impact on consumption. “We have reserved sufficient raw materials in the raw material link, and have made full preparations to ensure the supply. So far, there has been no out of gear and off sale.”
It is understood that the main business income of golden dragon fish is mainly the sales revenue of kitchen food, feed raw materials and oil technology products, accounting for more than 99% from 2017 to 2019. At present, the company’s customers include supermarket chains, hotel groups, catering groups, food processing enterprises and daily chemical enterprises. Many of them are well-known enterprise groups at home and abroad, including Wal Mart, yum, McDonald’s, Master Kang, Nestle, Yizi and P & G.
However, some investors also raised the issue of whether the market share of golden dragon fish edible oil has been relatively high, whether it has approached the ceiling, and whether it will expand other categories in the future. Mr. Mu said the company was moving towards kitchen food. From the specific category, kitchen food includes retail, catering, food industry, baked cooking oil, rice, flour, noodles, condiments, etc.
According to the data, from 2017 to 2019, kitchen food accounted for 60.09%, 59.59% and 63.90% of the company’s main business income.
Perhaps inspired by the fact that seasoning enterprises have become the “dark horse” in the capital market in recent years, many investors are concerned about whether the golden dragon fish has more plans for condiments.
For the above-mentioned questions, the goldfish side gave a positive answer.
Mu Yankui responded that at present, the company’s oil flavoring has already had a certain scale, but soy sauce and vinegar flavoring have just started. As for the company’s future profitability improvement points, he said that the main lies in improving product quality, reducing production costs and expanding sales channels.
Lu Wenyu pointed out that the company’s investment in seasoning will gradually increase, and seasoning is expected to maintain a good growth trend in the next three years, and its proportion in the operating revenue will also gradually increase.
According to the prospectus of golden dragon fish, the seasonings in its catering products mainly include sesame oil, zanthoxylum oil, rattan pepper oil and other seasonings, as well as seasonings such as steamed fish, stewed soy sauce and Douxian sweet. Small package condiments include sesame oil products, zanthoxylum oil products, rattan pepper oil products and sesame sauce products.
In addition, mu Yankui also shared the company’s development plan and goals in the next three years, including: continue to enrich the product portfolio; continue to build and expand the comprehensive production base; further enhance the brand awareness; build an omni channel network to explore new retail mode; continue to strengthen the control of product quality and food safety; create a more professional warehousing and logistics system, and continue to improve the quality of products Build the ability of profit growth.
As a matter of fact, as the main business entity of Fengyi international in the Chinese market, whether there is overlap between the former and the latter is also a common concern of investors.
For example, some investors asked about the main business focus of the two companies.
In response to the above questions, the representative of the recommendation of CSCI said that in the past three years, more than 96% of the business income of golden dragon fish came from within China, while over 96% of the business income of Fengyi International (after excluding the golden dragon fish) came from outside China in the same period. They focus on China and overseas respectively, and their main business areas are different.
Although Fengyi International’s products sold to third parties in China coincide with the related business of goldfish, the sales amount is small, accounting for no more than 3% of the domestic sales revenue of the latter in the current year, and only 0.14% in 2019.
When asked about the differences in core products, main customers and sales channels between Fengyi international and Jinlong fish, the sponsor representative further explained that the core products of golden dragon fish company are edible vegetable oil, rice, flour and other kitchen foods. In addition to golden dragon fish, the main products of Fengyi international and its subordinate enterprises are palm, lauric acid oil, sugar, etc., and the core products of both sides exist There is a significant difference.
In addition, goldfish has a marketing department, which is responsible for market research, promotion and marketing, and is independent of the sales team of Fengyi international. The sales channels of golden dragon fish are mainly various dealers and direct customers, and the channels are scattered. It is independent of Fengyi international in terms of customer development, contract signing and maintenance.
Xiaoshidai noted that the golden dragon fish prospectus revealed that in order to avoid the problem of horizontal competition with the parent company, it had taken relevant measures.
It mainly includes: since January 1, 2019, the company has no longer directly sold palm, lauric acid oil and sugar related products to domestic customers in China. In terms of palm, lauric acid oil and sugar business, there is no horizontal competition with significant adverse effects between Fengyi international and golden dragon fish; the company related business in China under the control of Fengyi international has been injected into golden dragon fish, and The latter will operate independently; golden dragon fish signed the agreement on avoidance of horizontal competition with its shareholders bathos and Fengyi international to clarify the relevant arrangement for avoiding horizontal competition.