Recently, Shanghai Securities Regulatory Bureau disclosed the IPO guidance and filing of Shanghai Ziyan food. Ziyan food, yes, is the company of the bittern chain store Ziyan Baiwei chicken. Ziyan food is positioned as a catering chain brand, and its target group is the majority of family consumers, which is very influential in the Yangtze River Delta region.
According to the official website of Ziyan food, it has now covered more than 100 cities, including Shanghai, Beijing, Guangzhou, Shenzhen, Chengdu, Chongqing, Nanjing and Wuhan, with more than 4000 stores, covering the product lines of cooked food, leisure stewed food, cold vegetarian food, Suxian, gift box, etc., and its representative products include Baiwei chicken, husband and wifes lung slices, rattan pepper chicken, Ziyan duck (goose), etc.
If Ziyan food can be successfully listed, it will become the third A-share listed halogen products enterprise. Prior to that, Juewei food was listed on the Shanghai Stock Exchange in 2017, and before that, it landed on Shenzhen SME board in 2012. In addition, Zhou Heiya was listed on the main board of Hong Kong in 2016.
Family ownership nearly 90%
10 billion after listing
Ziyan Baiwei chicken is a typical family enterprise in terms of ownership structure. Ziyan Baiwei chicken originated in Xuzhou. At first, in 1989, Zhong Chunfa and his wife improved the formula of Xuzhou marinated duck. By integrating some characteristics of Sichuan sweet skin duck, they created Zhongji oil hot duck, which quickly developed into a well-known brand of stewed duck in Xuzhou, which was the predecessor of Ziyan Baiwei chicken.
In 1996, Zhong Huaijun, the second-generation founder, inherited Zhongji and created the brand of Ziyan Baiwei chicken. Expand the product chain to chicken, pork, beef, etc., at the same time into the national market, after the headquarters in Shanghai.
According to the ownership structure disclosed in the guidance report, five members of the Zhong family are the actual controllers, holding nearly 90% of the shares. Specifically, the five are the second-generation founder Zhong Huaijun and his wife, their sons, daughters and sons-in-law.
As of July 23, the market value of Huangshanghuang was 13.7 billion, and the market value of Juewei food was 51.1 billion. If the market value of Ziyan food reached 13 billion after it was listed, the Zhong familys wealth would reach 11.5 billion based on the nearly 90% equity of Ziyan foods actual controllers family.
Tianyan inspection showed that Ziyan food had conducted two rounds of financing in 2016 and 2019. In June 2019, Ziyan food completed round B financing, with Zhilian capital as the leader, and kangxu capital, Longbai capital and Hongzhang capital were also the investment institutions.
1.6 billion husband and wife lung tablets sold a year
Number of stores exceeds weekly black duck
One of the main foods of Ziyan Baiwei chicken is husband and wife lung slices. How hot is this dish? Last year, GUI Jiuqiang, vice chairman of Ziyan food, revealed that the sales revenue of husband and wife lung tablets in 2019 could reach 1.6 billion yuan. However, the annual revenue difference of Huangshanghuang is 500 million.
It is understood that Ziyan food was released to join in 2013, adopting the mode of direct marketing + franchise, mainly to join in.
According to the official website of Ziyan Baiwei chicken, in 2020, it has a number of large production bases, and its brand Ziyan Baiwei chicken has more than 4000 chain stores in 100 cities in 20 provinces and municipalities directly under the central government.
From the perspective of several bittern enterprises that have landed in the capital market, as of the end of last year, Juewei food had 10954 stores, with a net increase of 1039 over the same period of last year; there were 3706 stores in Huangshanghuang, with a net increase of 698 over the same period of last year; while Zhou Heiya was limited by the direct marketing mode, with a total of 1301 stores by the end of 2019, a net increase of 13 on a year-on-year basis.
As for the future layout, GUI Jiuqiang once said that according to the target of 1000 stores a year, by 2025, there will be about 10000 outlets for Ziyan food.
100 billion level market of bittern industry
The bittern industry is considered to be a 100 billion level market, and there is still much room for expansion. The competition pattern in the industry has great variables. It remains to be seen who will be the absolute king in the future.
In this competitive situation, the rapid expansion, increasing the number of stores, seizing the market or seeking listing of Ziyan food is one of the reasons.
Guosheng Securities said that from the current regional bittern competition pattern, the head brand space is still large. In the medium and long term, adversity provides opportunities for leading enterprises, the epidemic situation accelerates industry reshuffle, and eliminates individual stores and small and medium-sized brand chains with poor supply chain capacity.