With the strong support of countless foodies, the "Three Big Braised Foods" Juewei Food, Zhou Hei Ya, and Huang Shang Huang have been successfully launched one after another. Now "Ziyan Baiwei Chicken" is also preparing to be launched on the market and has entered the market guidance period.
The official website of the Shanghai Bureau of the China Securities Regulatory Commission recently disclosed the listing counseling filing materials of Shanghai Ziyan Food Co., Ltd. (hereinafter referred to as "Ziyan Food"). GF Securities signed a listing counseling agreement, and the counseling period will be no less than three years. months.
Ziyan Food receives listing guidance
Originating from Leshan, Sichuan, focusing on the Yangtze River Delta market
According to the official website of Ziyan Food, "Ziyan Baiwei Chicken" is A braised food chain brand originated in Leshan, Sichuan in the late 1980s. It developed in Jiangsu and has grown nationwide. Its specialty stores have covered major large and medium-sized cities across the country.
The original flagship product of Ziyan Food was not "chicken", but "duck". The first generation founders were Zhong Chunfa and his wife from Qianwei, Leshan, Sichuan. According to the official website, as early as 1989, Zhong Chunfa and his wife left Leshan to start a business in Xuzhou, Jiangsu, and accidentally discovered that the locals liked to eat duck. But the taste of the braised duck sold on the street is far from comparable to the famous hometown delicacy "Leshan sweet-skinned duck".
Zhong Chunfa and his wife, who once opened a small restaurant in their hometown of Qianwei, Leshan, decided to introduce "Leshan Sweet Duck" to Xuzhou. On the basis of maintaining the original taste of Leshan sweet-skinned duck, the two improved the Xuzhou braised duck. Once the product was launched, it was very popular in the market, and there were long queues in front of the store every day. Zhong Chunfa and his wife founded "Zhongji Oil Hot Duck", which has developed rapidly. In just a few years, it has developed into more than a dozen chain stores in Xuzhou and has become a well-known local braised food brand.
By 1996, Zhong Chunfa and his wife handed over "Zhong Ji Oil-scalded Duck" to their son Zhong Huaijun. This is a key person who connects the past and the future. The first thing he did after taking over was to boldly expand the categories. In addition to the original focus on duck scalded in oil, he added Baiwei chicken and the classic Sichuan dish "Couple's Feather Slices".
In order to develop a larger market, Zhong Huaijun led a key team from Xuzhou to enter the Nanjing market in 1997 and established Nanjing Ziyan Food Co., Ltd. The reason why the company was renamed "Purple Swallow" is because swallows come to build nests at home every year, which is considered a good omen. Soon "Baiwei Chicken" came from behind and replaced "Boiled Duck" as the company's signature dish.
In 2000, Ziyan's stores had opened in Shanghai. The following year, the number of stores exceeded 500 and covered the Jiangsu and Zhejiang regions. At this time, the company also established a strategy of using Shanghai as its headquarters and developing into the Jiangsu and Zhejiang regions. , so far, "Ziyan Baiwei Chicken" still focuses on the Yangtze River Delta region.
By 2003, Ziyan began to expand into the Central China market and successively opened production factories and directly-operated stores in Wuhan and Wuhu. In 2008, the company's number of stores exceeded 1,000, and comprehensive cold chain distribution of products was achieved. Ziyan has also become a leading brand of cooked food in China. After years of hard work, Ziyan Baiwei Chicken has finally become a legend of a cooked food empire.
With more than 4,000 stores, "Husband and Wife Fei Pian" can sell 1.6 billion a year
How strong is the "Ziyan Baiwei Chicken" that can be seen everywhere in the streets? Since it is still in the listing guidance period, the company has not disclosed detailed financial data. However, Red Star News found a set of data on the official website, showing that it is no small matter: Ziyan Baiwei Chicken has now entered more than 100 cities across the country and opened more than 4,000 chain stores.
Although the number of such stores is less than that of Juewei Food, it far exceeds that of Zhou Hei Ya and Huang Shang Huang. And what is commendable is that these more than 4,000 stores were obtained before they were launched on the market.
With Juewei Food, Zhou Hei Ya, Huang Shang Huang, Jiujiu Ya, etc. all focusing on "duck", the market has become a red sea. Ziyan Food has a different focus, focusing on "chicken", so there is less competition pressure. Taking the Chengdu market as an example, the competitors of Ziyan Baiwei Chicken are not Juewei Food, Zhou Hei Ya, Jiujiu Ya, etc., but another local Sichuan style cooked food brand in Chengdu, "Liao Ji Bangbang Chicken".
Ziyan Baiwei Chicken Store on Luohongqiao Street, Chengdu
In addition, Ziyan Food highlights itself as a "braised food to accompany meals", which is similar to the "casual braised food" of Juewei, Zhou Hei Ya and Jiujiuya. "There is also a big difference in positioning. In layman's terms, casual braised food can be eaten as a snack while walking, while table food can only be eaten when brought to the table, and is more like a formal dish.
Of course, Ziyan Baiwei Chicken is not just about eating chicken. The signature dishes include husband and wife lung slices, fragrant pork knuckles, refreshing hoof flowers, spiced beef, purple swallow goose, pepper chicken, etc. Just listen to These names will make foodies drool. Among them, the classic Sichuan dish "Husband and Wife Fei Sian" has become a super single item, with 40 million copies sold a year. Foodies all over the country seem to be no longer afraid of spicy food. They have accidentally eaten it and become the best-selling single item. They have also invented all kinds of weird ways to eat it.
Ziyan’s “Husband and Wife Fei Pian” sold for 1.6 billion a year
At the 2nd China (Fujian) International Smart Business Conference held in October 2019, Ziyan Gui Jiuqiang, vice chairman of the food chain, revealed that Ziyanguang's "Husband and Wife Fei Slices" dish is expected to sell for 1.6 billion in 2019! This shows how awesome foodies are.
Regarding the development of Ziyan Foods, Gui Jiuqiang also publicly stated that Ziyan’s goal is to open 1,000 stores per year and about 10,000 stores by 2025. He also said that the goal of 10,000 stores is not difficult to achieve because Juewei Food has already achieved it.
The family holds nearly 90% of the shares, and its net worth may exceed 10 billion after listing.
From the perspective of ownership structure, Ziyan Food, which started as a "mom-and-pop shop", is a typical family business. According to disclosures, the actual controllers of Ziyan Food are Zhong Huaijun, Deng Huiling, Zhong Qinchuan, Zhong Qinqin, and Ge Wuchao. Zhong Huaijun and Deng Huiling are husband and wife, Zhong Qinchuan and Zhong Qinqin are their children, and Ge Wuchao is Zhong Qinqin’s husband. The five people collectively control 88.58% of the company's voting rights and thus jointly control the company.
Company Chairman Zhong Huaijun, picture according to official website
The largest shareholder of Ziyan Food is Ningguo Chuanqin Enterprise Management Consulting Service Partnership (Limited Partnership), which is also controlled by the Zhong family , Zhong Qinchuan and Zhong Qinqin hold 55 and 45 shares respectively. Other shareholders including Shanghai Chuanqin, Ning Guoyuanru, and Shanghai Huaiyan are also controlled by the Zhong family.
The highly concentrated ownership structure means that if Ziyan Foods is successfully listed, even if it is based on the lowest market value of similar companies, the Zhong family's net worth may easily exceed 10 billion yuan.
Family shareholding is highly concentrated
Zhou Heiya and Huang Shanghuang, who also started family businesses, have basically completed the "de-familyization" and gradually transformed into a modern corporate governance structure . According to information on the official website of Ziyan Food, the company has undergone multiple equity financings, and investment institutions include Kangxu Capital, Longbai Capital, Hongzhang Capital, Julin Chengze, Jiaxing Zhilu, etc. However, the proportion of external capital in the company's equity is still low.
According to data from consulting firm Frost & Sullivan, my country's leisure braised products market reached 91.1 billion yuan in 2018, achieving an average annual compound growth rate of 18.7 from 2010 to 2018. However, the growth rate has slowed down in recent years, and the industry has begun to encounter development bottlenecks, especially this year due to the new crown epidemic.
Zhu Danpeng, a Chinese food industry analyst, told Red Star News that the four years from 2014 to 2017 were the fastest growing period for China’s braised food industry; after 2018, the industry has entered a ceiling point. , the cake of the entire industry has gradually solidified. In this case, basically whoever opens more stores will have higher revenue. This is also an important reason why all companies in the industry have been expanding at a high speed in the past two years and seizing the market at a high speed.
However, the current industry competition landscape is still relatively fragmented, and the top five companies such as Juewei, Zhou Hei Ya, and Ziyan only have a market share of about 20%. Zhu Danpeng believes that this is because the threshold for the entire braised food industry is very low and there are not many technical barriers.
At present, there are two main barriers in this industry. The first is brand barrier and the second is scale barrier. The more important one is the scale barrier. Only when it reaches a certain scale, the overall effect will be apparent. He bluntly said that Ziyan entered the game a little late.
Red Star Capital Bureau Li Weiming