China Food

Listing prospectus of deep grilled chicken

in the battle for the “first share of Chinese fast food”, the rural chicken has won the first banner.

Impact on “the first share of Chinese fast food”
The local chicken, the old aunt and the rural base officially went to war
On May 19, the CSRC disclosed on its official website the prospectus for the initial public offering of Anhui Laoxiang chicken catering Co., Ltd. (hereinafter referred to as “Laoxiang chicken”). The sponsor is Guoyuan Securities Co., Ltd. At present, it has been officially accepted.
The impact of the A-share IPO, rural chicken plans to issue 63.53 million new shares and raise 1.2 billion yuan.
Among them, 475 million yuan is used for the hometown chicken east China headquarters project, 510 million yuan is used for the construction project of new catering stores, and 215 million yuan is used for the construction project of data informatization upgrading.
The predecessor of Laoxiang chicken is called “Feixi laohen”, which was founded in 2003 and positioned as Chinese fast food. After changing its name from “Feixi old hen” to “hometown chicken” in 2012, the direct marketing model has developed rapidly. From 2017, it began to expand outside the province, settled in Nanjing and Wuhan that year, and successively entered first tier cities such as Shanghai and Beijing after 2019, opening the “hurricane route”.
The old uncle, who is also positioned as a Chinese fast food and has a high degree of overlap with the local chicken market, also publicly disclosed that he entered the listing guidance period in October 2021. CITIC Securities, as a guidance broker, plans to make an IPO in a shares.
This time, the acceptance and disclosure of hometown chicken IPO materials seems to mean that the hometown chicken has won the first banner in the battle for the “first share of Chinese fast food”.
In fact, in addition to the “battle” between the local chicken and the old aunt, in the past year, more than 10 catering enterprises in China have submitted their prospectus, including hot-pot/" 22375 rel="nofollow" target="_self">hot pot brand Laowang, fast food brand rural base, Chinese catering green tea, pizza chain damile, spicy hot chain Yang Guofu, etc.
Neishenjun sorted out the domestic catering enterprises that are currently impacting the IPO, which are mainly divided into “A-share school” and “Hong Kong stock school”.

Wild fellow chicken
These data deserve attention
If you dig into the prospectus of the local chicken, you can see that the local chicken has been “soaring” at a high speed in recent years.
1. Only in 2021 did he enter the “thousand store club”
Let’s first look at the number of stores of rural chicken. As of December 31, 2021, there are 1073 stores of rural chicken. That is to say, since 2021, rural chicken has officially entered the “thousand store club”.
The number of stores is a little less than expected: as early as after the outbreak of the epidemic in 2020, rural chickens held a popular “200 yuan strategy press conference” on the whole platform. At the meeting, Shu Congxuan, chairman of the board, said that 1000 stores should be arranged nationwide in 2020, focusing on increasing the layout of cities such as Beijing, Shanghai, Guangzhou, Shenzhen and Hangzhou.
At present, this goal has not been achieved in 2020. There are only 890 stores by the end of 2020. This “thousand stores” goal will not be completed until 2021.
2. Most of the stores are in Anhui
From the perspective of store distribution area, most of the rural chicken stores are distributed in Anhui. Among the 1073 stores, 673 are distributed in Anhui Province. However, it can be seen that in the past two years, the opening speed of stores in first tier cities such as Shanghai, Beijing and Shenzhen has been very fast.
In terms of the proportion of regional sales, the proportion of revenue from Anhui market during the reporting period has always been at a high level, accounting for 82.01%. Relatively speaking, the number of stores of the company in Shanghai, Hubei, Jiangsu, Zhejiang, Shenzhen and Beijing is relatively small, and the proportion of revenue is also lower.
Similar to the rural chicken, rural chicken is often compared in the industry because they belong to “Chinese fast food”.
In terms of the number of stores, in 2020, the number of rural Jimen stores successfully exceeded one thousand, becoming the first brand of Chinese fast food to put pressure on rural chickens. Although the local chicken stores expanded rapidly in 2021. By the end of 2021, the rural base has 1145 stores (including Mr. rice). In terms of quantity, the rural base is still better.
In terms of regional distribution, both have “base camps”. The base camp of rural chicken is in Anhui and the base camp of rural base is in Sichuan. The former has 673 stores in Anhui and the latter has 325 stores in Sichuan.
In terms of store opening strategy, the rural base has established a “direct thousand store network” and vigorously developed the second curve. The turnover rate of the sub brand “Mr. rice” has been significantly higher than that of the rural base. According to the turnover data in the first three quarters of 2021, the rural base has 2.8 rounds / day and Mr. rice has 4.2 rounds / day. The proportion of their income is also gradually close, 54.1% and 45.9% respectively. According to another data, from January 2019 to the end of September 2021, Mr. rice was the fastest-growing brand among China’s top five direct Chinese fast food groups, with a growth rate of 102.6%.
Villagers’ chickens have gradually changed the pure direct marketing mode in the past and opened up to join in one after another.
At present, the number of stores and regional coverage have not reached the whole country. Whether it is cross domain personnel management, supply chain guarantee, or the construction of operation system, it will become a challenge.
3. Last year, 297 new stores were opened, 114 fewer, and all catering companies lost money
In terms of store opening speed, from 2019 to 2021, the number of new direct stores opened by rural chickens was 182, 171 and 228 respectively. The expansion number of franchise stores is 0, 13 and 69 respectively.
In 2021, a total of 297 new stores were opened, a decrease of 114, equivalent to 183 new stores. The fastest in recent three years.
In the business system of rural chickens, an integrated whole industry chain of “hen breeding + food processing + cold chain distribution + chain operation” has been established, realizing the layout of the whole industry chain direct control, central factory production quality control and standard store enabling system.
It can be seen from the profit data of the wholly-owned subsidiary of Laoxiang chicken that the net profit of catering companies in Anhui, Hubei, Jiangsu, Shanghai, Zhejiang, Guangdong and Beijing increased negatively, except that the net profit of “agriculture and animal husbandry technology Co., Ltd.” and “Feixi old hen Food Co., Ltd.” increased positively. In other words, the upstream breeding industry, slaughtering and processing and retail industry have supported the profits of rural chickens. As the main body of the listing, the catering sector has “all losses”.
In 2021, the net profit of rural chicken was 134.62 million yuan. From the perspective of employees, the total number of employees at the end of 2021 was 14503, that is, in the whole system of rural chicken, the per capita profit was only 9200 yuan.
Unit: 10000 yuan
4. Most franchise stores are “former employees”
From the perspective of store opening strategy, rural chickens gradually accelerate the pace of opening “franchise” from “pure direct marketing”.
According to the prospectus, as early as 2020, the company started its franchise business. “Because some employees are optimistic about the market prospects of the company and the industry… The company agrees that some employees will be franchisees after leaving. At the same time, it is also open to those who have business experience in the catering industry, have certain financial strength and meet the training standards.”
Even, in order to explore franchise business, some direct stores in specific cities are turned to franchise stores.
In 2021, during the storm of “Shanzhai franchise website”, the local chicken once disclosed this information. However, “there is no plan to open the national franchise”. Until recently, its official account officially “officially announced” the release of franchising, which can be described as a “big move” on the eve of the IPO.
In the prospectus, what is the situation of the franchise stores of rural chickens?
The first is the number. By the end of last year, the company had 991 Direct stores and 82 franchise stores. Among them, there are 64 direct franchise stores and 18 new franchise stores; There are 51 former employee franchisees and 22 non former employee franchisees. The number of Direct stores and franchised stores in Anhui market is 619 and 54 respectively, accounting for more than 60% of the total number of stores.
It can be seen from this that the rural chicken has not made great efforts to develop franchise stores. At present, the business proportion of franchise stores is very low.
This is actually the space for the development of rural chickens in the future. Once the franchise stores make efforts, the number of stores will increase significantly. Theoretically, if properly managed, the number of franchise stores can definitely exceed that of Direct stores.
Classification of the company’s revenue by sales mode unit: 10000 yuan
In terms of gross profit margin, during the reporting period, the gross profit margin of direct business was 16.41%, which was lower than that of franchise business by 22.68%. It means that franchise stores make more money.
Unit: 10000 yuan
5. The next step is to expand 700 stores
In addition, the prospectus refers to future expansion plans. In addition to consolidating and strengthening the original chain sales business, it is planned to open 700 Direct stores with raised funds in key areas in Shanghai, Nanjing, Suzhou, Shenzhen, Beijing, Wuhan, Hangzhou, Hefei, Wuhu and other regions within three years.
According to the data listed in the prospectus, the expansion of rural chickens will be mainly concentrated in first tier cities in the future. According to the store planning, the number of stores in cities such as Beijing, Shanghai and Nanjing may be about 200 in the future.
At present, there are few stores of rural chicken in Shanghai and Beijing, and the advantages of supply chain cannot be brought into play, so the stores in these areas must lose money. However, the strategy of rural chicken is very clear. After opening model stores in the first tier cities, quickly adjust the store mode, and then use the power of capital to quickly open more stores. Only by densely arranging stores in the region can we reduce costs and increase efficiency.
If these stores really open as scheduled, the scale efficiency of rural chickens will be improved, and the profits may be improved in the future.
Behind the prospectus
Those “unknown” stories
With the official disclosure of the prospectus of Laoxiang chicken, many unknown information about the “unfashionable” company and the chairman of wanghong was made public for the first time.
  • The chairman of wanghong does not hold shares, but has “one vote veto”
According to the prospectus, Shu Congxuan, chairman of “wanghong” and his wife Zhang Qiong do not hold shares in the company, and 91.32% of the shares of rural chicken are jointly held by Shu Xiaolong, the son of Shu Congxuan, the daughter of Shu Wen and Dong Xue, the wife of Shu Xiaolong. These five family members constitute the actual controllers of the company.
Although the chairman did not hold one share, the family agreed to maintain a consensus during the voting of the board of directors and the general meeting of shareholders. If no consensus can be reached, Shu Congxuan’s opinion shall prevail. Shu Xiaolong, vice chairman, holds a total of 70.9% of the shares. Finally, he still has to obey his father’s decision on major decisions of the company.
  • The most popular product is rice?
More interestingly, in the official disclosure prospectus, neifanjun found that the local chicken sold 137 million bowls of rice in 2021 alone, and rice ranked first in the sales volume of the company’s main products.
It is worthy of being the overlord of Chinese rice and fast food. The dishes are solid enough to “eat”.
  • The native chicken of “silly outside and fine inside” has registered 184 trademarks at one go
Although the rural chicken “cluck” on the microblog all day, it has won the hearts of fans with a stupid and cute temperament. However, in terms of self-protection, the rural chicken with “silly outside and fine inside” is not vague at all.
Perhaps it was angered by the trademark infringement of “Huixiang chicken” in Anhui. The grounded chicken has opened the trademark protection law of “Chinese local tyrant style Shanzhai anti blocking”, and 184 trademarks have been registered at one go. Take “Laoxiang chicken”, “Laoxiang chicken”, “Laoxiang chicken” and “table milk chicken” under your command, and beware of Shanzhai.
The impact of local chicken on “the first share of Chinese fast food” is of great significance.
Catering enterprises in China’s A-share market are rare. Due to various factors, catering enterprises often choose to list in Hong Kong. In July 2020, Tongqing building was successfully listed in a shares, becoming the first listed pure catering enterprise in recent 10 years and the only catering enterprise that can log in to a shares in recent 10 years.
Over the years, it has always been the dream of catering enterprises to impact a shares. Catering brands, including jiumaojiu, have impacted a shares, but finally returned to the Hong Kong stock market.
This time, let’s pay attention to the local chicken and bless the local chicken.



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