In recent two years, due to the interference of epidemic situation and market environment, the operation and development of food and catering enterprises that rely on offline services have been greatly impacted, and the industry as a whole is facing iterative upgrading. Under the changeable market conditions, many outstanding enterprises are still favored by capital, actively respond to market changes, improve their management capabilities, and use the capitalization engine to consolidate their business operations from a long-term and development perspective to overcome the epidemic winter.

capital plays an important role in the life cycle of enterprise development, and proper capitalization operation provides a powerful boost for enterprise development. Why, where, how and what to do after capitalization? It is a problem that entrepreneurs must face in the process of capitalization.

11

The snow on the grand track is thick and the slope is long

Capitalization dawns

"Food is the most important thing for the people". As the foundation of the national economy, the food and catering industry is not only the basic component of people's longing for a better life, but also involves social links such as people's livelihood needs and employment services, and plays an indispensable role in economic and social development. From the perspective of economic data, since 2118, China's industries related to "eating" have contributed more than 11 trillion yuan to GDP. Although there are short-term fluctuations due to the impact of the epidemic, they still show a steady growth trend as a whole.

In the long run, food and catering related industries have strong crossing cycle and risk prevention attributes. Most companies that subdivide the track have relatively high and stable return on net assets, and are not vulnerable to technical shocks, with stable profits and abundant cash flow. On the other hand, the food and catering industry in China coincides with the changing period of diversified consumer demand and continuous expansion of scale. Although the offline business has been hit by the epidemic, it is still recognized as a "good business" with a moat compared with other racetracks.

globally, the head enterprises in the catering industry have huge market value space. In Forbes' list of the world's 111 most valuable brands in 2121, catering enterprises occupy four seats, namely McDonald's, Starbucks, KFC and Burger King, among which the market value of McDonald's and Starbucks exceeds US$ 111 billion.

The scarcity of food and catering head brands makes it easier for them to form significant competition barriers and valuation premiums. In Forbes' list of the world's 111 most valuable brands in 2121, the median PE valuation of catering enterprises in 2123 is 21.1 times, which is 1.5.7 times higher than that of all industries, and the median PEG of catering enterprises is 2.2 times, while the median PEG of all industries is only 1.4 times. The food and catering industry urgently needs more rising stars to ride the wind and compete for the sea.

therefore, both catering and food industries are suitable for capitalization.

from the perspective of industry, the food and catering industry is a basic industry with a scale of over 11 trillion GDP, which has the characteristics of good cycle performance, strong risk resistance, great capitalization potential, thick snow and long slope.

from the perspective of enterprises, industrial operation and capital operation are two inseparable business behaviors of enterprises, which help enterprises to become bigger, stronger and longer.

At present, the capitalization foundation of food and catering industry is relatively weak. Whoever can take the lead in opening up the path of industry and capital will get more capital and resources in financing, brand, business network, internal management, talent attraction and compliance development, and the probability of success will naturally be greater.

from the perspective of shareholders, the capitalization process can effectively promote entrepreneurs to gradually build a security system for enterprise development from the perspectives of "potential", "Tao" and "technology", and realize the inheritance of entrepreneurs' brands and wealth;

At the same time, capitalization is of great significance to investors. Maintaining a good relationship with investors and achieving a win-win situation for investors and entrepreneurs are of great significance to the company's subsequent development; In addition, capitalization can provide more maneuverability for the entrepreneur management team, effectively motivate the internal team and promote the sustainable development of the enterprise.

12

Capital helps to accelerate growth

The life cycle of enterprise development usually goes through the stages of start-up, growth, development, maturity and recession/re-development. At different times, the problems, challenges and key tasks faced by enterprises are different, so the demand for capital/resources, competition/brands, capabilities/elements and organizations/talents is different.

as can be seen from the above table, capital is a key factor in the development life cycle of an enterprise. As two inseparable business behaviors, industrial operation and capital operation help the enterprise to become bigger, stronger and longer.

At present, the capitalization foundation of food and catering industry is relatively weak. Whoever can take the lead in opening up the path of industry and capital will get more capital and resources in financing, brand, business network, internal management, talent attraction and compliance development, and the probability of success will naturally be greater.

in particular, compared with financial capital with stronger short-term investment attributes, industrial capital usually has profound industrial resources and enabling services behind it, which helps enterprises to avoid detours and accelerate their development.

1. Enhance the brand value and market influence of enterprises

In the private placement stage before listing, introducing external funds and industrial investors through capitalization will help enterprises to obtain sufficient funds and collaborative resources in the early stage to accelerate business expansion and income growth. This period is an excellent opportunity for enterprises to quickly accumulate their own strength and build and establish their brand image.

in the process of listing, the in-depth communication between enterprises and investors, the disclosure of various data and information, and the attention and wide coverage of researchers will help to further enhance the brand image of enterprises and rapidly expand their market influence.

after listing, enterprises make use of the advantages of capital and manpower provided by the capital market, seize market opportunities, find the second curve, and properly use tools such as industrial mergers and acquisitions, so as to not only achieve business expansion and performance development, but also significantly benefit the promotion of corporate brand value and the enhancement of market position.

2. Improve the level of internal control management and compliance operation of enterprises

To play the important role of listed companies as the cornerstone of the capital market, it is necessary to strengthen the awareness of compliance operation of enterprises and build listed companies with effective governance, outstanding performance and obvious advantages. Capitalization helps enterprises to constantly improve their compliance construction, and gives full play to the advantages of market capital to cultivate enterprises as peer benchmarks.

Capitalization can promote the compliance operation and efficient governance of enterprises at all stages: private placement before listing, sponsorship during listing, introduction of professional investment institutions, and continuous supervision after listing, which will guide the company to continuously improve its governance level and help the company to continuously standardize its operation, thus achieving "high quality" development of the company.

specifically, the capitalization process before listing can bring in professional investors for the company, conduct due diligence in finance and legal affairs, and send directors to play a role in standardizing corporate governance and enhancing the company's strength.

in the process of listing, enterprises are faced with a variety of securities market supervision regulations, which require enterprises to have no history of major violations, and only those enterprises that meet the listing conditions can successfully go public and carry out subsequent capital operation. During the process of listing and refinancing after listing, the company carried out daily operation, business transformation, development and growth under the guidance of "industrial policy", so as to seek further development in major areas related to the national economy and people's livelihood.

3. Credit endorsement ability of listed companies

For catering enterprises, listing is not only a channel to expand financing scale and obtain funds, but also an opportunity to expand their influence and enhance their credit endorsement ability. Compared with non-listed enterprises, listed enterprises have more financing channels and can enjoy lower financing costs by relying on credit endorsement, which provides a guarantee for enterprises to raise funds, develop business, transform and upgrade.

equity financing

in the initial public offering, the capital market can raise abundant cash for the company at one time and provide financial support for its daily operation and business development.

For example, in the A-share market, Yangyuan Beverage (613156.SH) was listed on February 2, 2118, with a total initial raised capital of 4.236 billion yuan; Qiaqia Food (112557.SZ) was listed on March 2, 2111, and the total amount of initial raised funds was 2 billion yuan. In the Hong Kong stock market, wan chau international (1288.HK) was listed on August 5, 2114, with a total initial fundraising of RMB 18.316 billion.

The issuance of listed new shares has provided ample capital inflow for food and catering enterprises, and provided impetus for enterprise scale expansion, brand upgrading and digital transformation.

debt financing

in bond issuance, listed companies can use more ways and have wider choices. General corporate bonds, general medium-term notes, general short-term financing bonds, ultra-short-term financing bonds, convertible bonds, etc. can all raise funds for enterprises and help them develop.

For example, qiaqia Food once issued qiaqia Convertible Bond (128135.SZ) as a convertible bond, with a maturity of 6 years and an issue scale of 1.34 billion yuan, with coupon rate accounting for 1.61%. Juewei Convertible Bond (113529.SH) issued by Juewei Food is also a convertible bond, with a maturity of 6 years and an issuance scale of 1 billion yuan, with coupon rate accounting for 1.51%.

Zhou Heiya's 1% CB 21251115 (41461.HK) is a five-year overseas debt issued by Zhou Heiya, with an issuance scale of 1.55 billion yuan and coupon rate's 1.11%.

The credit endorsement of listed companies reduces the cost of corporate debt financing. Compared with non-listed companies, capitalization helps listed companies to raise funds and put into operation in a shorter time and at a more reasonable cost.

4. Overcome the impact of the epidemic and seize the potential opportunities

The outbreak of the epidemic in COVID-19 has brought unprecedented impact to various industries, such as retail catering, accommodation and tourism, and fresh food logistics, and has had a profound impact on the macro-economy. The food and catering industry has encountered great challenges due to the limited flow of people and logistics. In the process of coping with the impact of the epidemic and grasping the opportunities of the times, listed companies can often make use of the advantages of the capital market to achieve faster and more efficient development and rebirth, turn crises into opportunities and develop against the trend.

first, listed companies have strong ability to resist risks.

For catering enterprises, the epidemic has greatly affected their cash flow and restricted their operation and development. With the help of the platform provided by the capital market, listed enterprises have diversified financing channels, thus improving their capital structure and significantly enhancing their ability to cope with risk challenges.

in addition to enhancing the ability of enterprises to resist risks, the state has also issued a number of preferential policies to support enterprises to be listed and listed, providing a booster for the listing and development of enterprises.

for example, in order to support epidemic prevention and control and serve the real economy, all parties in the capital market have made concerted efforts and taken active actions. Since the beginning of this year, the first-line supervision and service institutions, including the three Shanghai and Shenzhen stock exchanges and China Securities Depository and Clearing Co., Ltd., have successively issued service measures such as fee reduction and exemption to help the real economy tide over the difficulties; And successively launched a series of regulatory services with temperature and flexibility to provide platform support services for listed companies free of charge.

second, capitalization provides economic basis and material conditions for food and catering enterprises to seize market opportunities and achieve contrarian growth.

As an industry with a high concentration of people, the catering industry has been greatly impacted by the COVID-19 epidemic, which has accelerated the reshuffle of the industry. This is also the window period for excellent enterprises to integrate the track, innovate and upgrade, and realize iteration.

listed companies can give full play to their advantages in capital, manpower and channels, grasp market trends, achieve contrarian growth and seek high-quality development.

Of course, capitalization is not the end, but a new starting point for enterprises to start a new journey. The most important thing for enterprises is to consolidate their internal development with brand and market, organization and talents, global layout and digital construction as the starting points.