On November 19, it was reported that Weilong food planned to IPO in Hong Kong next year, raising $1 billion. The company is working with CICC, Morgan Stanley and UBS to discuss listing in the second half of next year. In this regard, the Beijing Business Daily reporter contacted and interviewed Weilong food, but as of press release, no response has been received.
It is worth mentioning that Weilong foods previous equity changes were regarded as paving the way for listing in the industry. It is reported that the production and distributor of Weilong food is Luohe Pingping Food Co., Ltd. (hereinafter referred to as Pingping food), which is 100% controlled by Luohe Weilong Trading Co., Ltd. (hereinafter referred to as Weilong trade). According to the industrial and commercial information, before the equity change in September 2017, the founders of Weilong food, Liu Weiping and Liu Fuping respectively held 60% and 40% shares of Pingping food.
Beijing Business Daily reporter noted that from 2017 to now, Weilong commerce, the holding Party of Weilong food, has made several equity changes. In July 2017, Liu Weiping and Liu Fuping withdrew from Weilong trade and added Shanghai Jiafeng Industrial Co., Ltd. and Horgos Lius equity investment partnership (both of which are Liu Weiping holding company); in August 2018, Shanghai Jiafengs equity changed to 90%, Horgoss Lius equity changed to 9%, and new Yifeng Investment Development Co., Ltd. accounted for 1%. In addition, Weilong business has made many industrial and commercial changes from investors to company types and registered capital.
Now, after several equity changes, the equity structure of Weilong business has changed to 99% of the shares of luohehe Food Technology Co., Ltd. (Liu Weiping is the only director), and Yifeng Investment Development Co., Ltd. is 1%. Both of them are registered in the British Virgin Islands.
In the view of Shen Meng, director of Xiangsong capital, Weilong foods frequent change of equity is to pave the way for listing in Hong Kong. From the ownership structure, we can see that the equity structure of Weilong food has changed from pure domestic capital to pure foreign capital. This kind of equity structure will not need to be reviewed by the mainland Securities Regulatory Commission in the process of listing, thus speeding up the pace of Weilong foods listing in Hong Kong.
Song Qinghui, a famous economist, believes that the listing of Weilong food can bring a large amount of capital needed for its development and facilitate the layout of various categories in the future.
According to the public data, Weilong food produces 340 million packets of chili sticks every day, accounting for 10% of the national spicy bar industry. Weilongs konjac products alone achieved an annual sales revenue of 83.06 million yuan, an increase of 170.03% year-on-year.
Make a circle by marketing
Breaking through the 50 cent hot strip, Weilong foods rapid popularity cannot do without brand marketing, and even once became another light of domestic products after Lao Ganma.
On the way to throw off the local flavor, Wei long food first moved from the packaging to the knife. On September 7, 2016, the day before the launch of iPhone 7, Weilong food changed the style of tmalls flagship store into a proper Apple style. At the same time, it also launched hotstrip 7.0 (spicy strip 7). The copywriting on it was also changing the food world, and every item is the way. The design success in packaging and copywriting attracted peoples attention.
Before that, Weilong food used transparent packaging bags, you can see full of oil stains. After upgrading, pure white opaque packaging has taken the tall and high line. In addition, catchwords such as about, calm, startled and willful have attracted young consumers of fashion, and they are also the main consumer groups of spicy noodles.
After the packaging was finalized, Weilong food opened the fancy cross-border marketing. In 2016, Weilong food and runaway cartoon cross-border cooperation, launched a customized Weilong food hot strip; in June 2017, Weilong food made a cross-border mobile game Weilong food overlord; on the eve of double 12 in 2017, two models of Weilong food flagship store held hot strips in their hands, and in 2018, Weilong food took the hot snake skin bag as its spirit In 2019, Weilong food launched a number of peripheral products.
In addition to cross-border marketing, Weilong food has been labeled hot spots by netizens. Some netizens said, where there are hot spots, there will be the shadow of Weilong food..
There is China on the tip of the tongue and there is spicy strip on the tip of the tongue by Weilong food. On the day of the iPhone 7 conference, a new hot strip 7 was launched to cater to the light gray color of apple. When the new red rice mobile phone came into market, Weilong food changed itself into millet style, from light gray color to bright red; Xiaomis slogan was born for fever, and Weilong food was the product of fever Its spicy food instead.
In the view of strategic positioning expert Xu Xiongjun, Weilong food is really smart in marketing. Every marketing activity of Weilong food is full of topics, which makes netizens spread themselves. It not only has outstanding effect, but also saves a lot of marketing expenses. In recent years, the high sales of water dragon have also benefited.
According to relevant data, in 2019, the overall revenue of Weilong food is 4.909 billion yuan, including 2.55 billion yuan from direct terminal sales, 1.8 billion yuan from circulation channels, and 559 million yuan from e-commerce channels. Compared with the revenue of 3.5 billion yuan in 2018, the growth rate is nearly 43%. Liu Weiping, chairman of Weilong food, once said that the revenue target of Weilong food in 2020 is 7.2 billion yuan, that is, it will increase by nearly 47% on the basis of 2019.
Hard to tear junk food label
As a childhood memory of several generations, spicy strip has always been regarded as junk food produced by small workshops. It is reported that spicy strips are made of flour and soy protein by frying or soaking in oil. It also contains a large number of preservatives, additives, food, pigments, peppers, sugar and cooking oil. The heat content of every 100 grams of hot strip is as high as 357 kilocalories.
Although people who like it cant stop eating it, because there is no national standard before the end of 2019, there has been a long-term non-standard production phenomenon in the industry, which has been labeled as junk food.
At the end of 2005, CCTV reported that a food factory in Pingjiang County used the illegal additive dimethyl fumarate (commonly known as mycoxime), which put a brake on the spicy strip industry. In 2007, the General Administration of quality supervision, inspection and Quarantine of the peoples Republic of China listed Pingjiang as a key rectification County for food safety, and carried out a major rectification of the spicy strip industry. In 2019, CCTVs 3.15 evening party also exposed such phenomena as dirty and poor spicy strip production workshop.
In 2018, the food and Drug Administration of Hubei Province released the food safety supervision and random inspection information announcement, which pushed the hot strip industry to the forefront of the storm. According to the announcement of Hubei food and drug administration, among 643 batches of 11 kinds of food, 622 batches of qualified samples and 21 batches of unqualified samples were sampled. Among them, including Weilong food (Pingping food), a number of spicy products. In response, Weilong food said that its products were produced in accordance with the standards of Henan Province where it was produced, and the products were completely qualified.
In December 2019, the State Administration of Market Supervision issued a notice on the quality and safety supervision of seasoned flour products (including the commonly known spicy noodles) products, requiring the local market supervision departments to uniformly manage the hot strip food according to the production license category of convenient food (seasoned noodle products), and unified the classification of spicy noodles and the standards for the use of additives for the first time. This means that the spicy bar industry also has a national standard.
With a unified national standard, the market for spicy noodles will attract more competition from food enterprises, and in addition to the hot strip enterprises, other leisure snack enterprises are also competitors. Shen Meng said. Beijing Business Daily reporter saw that laiyifen, saliva baby, three squirrels and other enterprises have spicy products.
Song Qinghui suggested that in the future, Weilong food should attach great importance to quality problems and strictly control quality, rather than continue to invest heavily in marketing publicity, otherwise it may be gradually abandoned by consumers.
Source: Beijing business daily Author: Qian Yu, Bai Yang, Wang Xiao, editor in charge: Wang Xiaowu_ NF