On May 8th, Wei Long just got the Series A strategic financing of RMB 3.56 billion jointly led by CPE and Gaoyao Capital, and was jointly invested by Tencent Investment, Yunfeng Fund, Sequoia Capital, Housheng Capital and Songhai Capital.
It is understood that this is the only round of financing before the listing of Wei Long, and it is also the first time to introduce external capital.
As early as three years ago, Wei Long Food began to change its equity frequently, from domestic capital to foreign capital, and "listing" has become an open secret.
Nowadays, as a spicy strip in the memory of the post-90s generation, Wei Long's listing is just around the corner. In the prospectus, Wei Long also stated that among its consumers, 95% are aged 35 and below, and 55% are young people aged 25 and below.
Spicy strips contribute 90% of the revenue, and the gross profit margin is as high as 38% year by year.
According to the prospectus, Wei Long is the largest spicy snack food enterprise in China, with a market share of 5.7%, 3.8 times that of the second enterprise in terms of retail sales, ranking seventh among all local snack food enterprises, and accounting for 65,438+0.2% of the total market share in terms of retail sales.
As a company famous for spicy strips, Wei Long's products are not just spicy strips. According to the prospectus, Wei Long products are mainly divided into three categories, namely seasoning noodle products, vegetable products, bean products and other products.
Among them, the proportion of seasoned noodle products (spicy strips) decreased from 78.6% in 20 18 to 65.3% in 2020; The proportion of vegetable products increased from 10.8% to 28.3%; Bean products and others decreased from 10.6% to 6.4%.
It can be seen that more than two-thirds of Wei Long's income still depends on spicy strips, and the products are relatively single, and the single product of spicy strips is also facing the challenges of "unhealthy" labels and food safety.
According to the prospectus, from 20 18 to 2020, the operating income of Wei Long was 2.752 billion yuan, 3.385 billion yuan and 4.65438+2 billion yuan respectively, and the income increased year by year, with a compound annual growth rate of 22.4%; The net profit in the same period was 476 million yuan, 658 million yuan and 865.438+09 million yuan respectively, and the net interest rate reached 654.38+09.9% in 2020.
In addition, the prospectus disclosed that Weilong's business continued to expand in the first quarter of 20021and its revenue increased significantly compared with the same period in 2020. The total sales volume of products increased by 62.8% to 6590 kg compared with 40.5 million kg in the first quarter of 2020.
Compared with the performance of other head snack enterprises in 2020, although Wei Long's revenue increased the most last year, only about half of that of three squirrels and good shops, its net profit was much higher than the sum of their net profits in 2020 and slightly lower than that of qiaqia Food in 2020.
Wei Long said in the prospectus that during the reporting period, its gross profit margin increased from 34.7% in 20 18 to 37. 1% in 20 19, and further increased to 3.80% in 2020, with a gross profit of156.5 million yuan in 2020.
At the same time, Wei Long admits that this is mainly due to the rising price of seasoning noodle products (spicy strips) and the change of product structure.
Unlike people's impression that "a listed company eats for 50 cents", sohu finance search e-commerce platform found that the unit price of a bag of classic 65g Wei Long spicy strips is about 2.5 yuan.
According to the prospectus, from 20 18 to 2020, the price of Wei Long spicy strips rose from 13.9 yuan/kg to 15 yuan/kg; The price of bean products rose from 22.4 yuan/kg to 25.8 yuan/kg.
In terms of inventory, during the reporting period, the inventory in Wei Long was 306 million yuan, 400 million yuan and 54 1 10,000 yuan respectively, and the inventory turnover days in the same period were 5 1 day, 60 days and 67 days respectively, and the inventory pressure increased year by year. Wei Long said that the company faces the risk of overstocking and product expiration.
Online channels accounted for less than 10%, and 70% of retail terminals sank in the market.
In terms of sales channels, Wei Long relies heavily on third-party distributors to sell products.
According to the prospectus, as of June 5438+February 3, 20201,Weilong's distribution and sales network in China included 1950 offline dealers and 570,000 retail terminals, about 70% of which were located in low-tier cities where the market was sinking.
In addition, Wei Long dealers' annual purchases account for most of their sales. From 20 18 to 2020, offline dealer sales accounted for 9 1.6%, 92.6% and 90.7% of the total revenue of Weilong respectively, and online dealer sales accounted for 4.5%, 4.2% and 5.6% of the total revenue respectively.
Wei Long said in the prospectus that the company's customers are mainly offline and online dealers, followed by individual consumers who shop from the company's online self-operated stores.
In terms of online channels, Weilong's online revenue in 2020 was 382 million yuan, an increase of 52.2% compared with 25 1 100 million yuan in the same period of 20 19. Wei Long said that in addition to supplementing offline channels, new products such as spicy floss, spicy hot pot and gift box were launched through online channels to test the market, which played an important guiding role in new product research and development, mass production and offline distribution.
However, according to the prospectus, compared with the huge offline sales system, Wei Long's online revenue still accounts for less than 65,438+00%. In 2020, Wei Long's online income will account for 9.3%, and more than 90% of its income will still depend on offline.
The performance impact of unbalanced channel distribution on Wei Long was reflected during the epidemic period. In 20 19, Liu Weiping, the founder of Wei Long, said that the revenue target of Wei Long in 2020 is 7.2 billion yuan, which is expected to increase by nearly 47% on the basis of 20 19.
In fact, the epidemic brought a cold in the offline consumer market, which led to a 20% increase in Weilong's income in 2020.
Founder brothers are worth nearly 401700 million, and five core executives are relatives.
According to public information, Wei Long was founded in 1999 by two brothers, Liu Weiping and Liu, and its headquarters is located in Luohe City, Henan Province. In 2004, Liu Weiping established Luohe Pingping Food Co., Ltd., which is also the first spicy strip enterprise in China.
According to the prospectus, despite the involvement of many external capitals, before the listing, the Liu brothers still held 92. 17%, and institutions such as CPE, Gaoyou and Tencent held 7.83%, with a total investment of 549 million US dollars (RMB 3.542 billion).
According to this calculation, the latest valuation of Wei Long is more than 45 billion yuan, which exceeds the sum of the current market value of good shops and three squirrels in snack enterprises. Liu Weiping and Liu Fuping, two brothers, are worth nearly 410.70 billion yuan after their successful listing.
Judging from the core management disclosed in the prospectus, Wei Long is also a "family business".
According to the prospectus, the board of directors of Wei Long is currently composed of 9 directors, including 5 executive directors, 65,438+0 non-executive directors and 3 independent non-executive directors.
It is worth noting that besides Liu Weiping, the chairman and executive director, and Liu Fuping, the executive director and president, are brothers, there are also three senior officials who are relatives of the Liu family.
Among them, Vice President Liu Zhongsi is Liu Weiping's cousin, Executive Director, Chief Financial Officer and Vice President Peng Hongzhi is Liu Zhongsi's cousin, and Executive Director and Vice President Chen Lin is Liu Zhongsi's cousin.
In other words, except for the vice president in charge of sales and marketing, the core management is all relatives of Liu.
In addition, the founder's education has also attracted a lot of attention. According to public information, before 20 17, the founders Liu Weiping and Liu Fu only had high school education on average. On July 20 17, he obtained the degree of administration from Chongqing Southwest University through online learning, and Liu Weiping also entered Lakeside University on July 20 18.