With the selection of the value list of Jinqilin listed companies in Hong Kong stock market opened, thousands of companies will compete fiercely for the eight Project Awards. Who is the most leading entrepreneur, such as Zhang Yong, Yu Liang, Wang Xing, Lei Jun, Xu Jiayin and Ding Lei.
yesterday, Sina reported that Nongfu Shanquan’s $1 billion Hong Kong IPO was approved by the Hong Kong stock exchange, and IPO demand will be tested next week.
as the founder of China’s largest bottled water enterprise, Zhong Fu owns nearly 80% of the shares of Nongfu Shanquan, and he also controls the Yangshengtang, a domestic health product company.
according to frost Sullivan report, from 2012 to 2019, Nongfu mountain spring has occupied the leading position in China’s packaged drinking water market for eight consecutive years.
Zhong Jian founded Nongfu mountain spring in 1996. According to the prospectus, the company has completed the strategic layout of top 10 high-quality water sources in China.
in fact, it is not limited to the packaged drinking water we are familiar with. At the same time, Nongfu mountain spring also has a layout in terms of drinks, forming a dual engine development pattern, which is conducive to enhancing its market competitiveness and effectively reducing the risk of performance fluctuation.
in 2017, 2018 and 2019, the proportion of the income of Nongfu mountain spring beverage products in the total revenue was 40.0%, 40.1% and 38.4% respectively.
it is understood that Nongfu mountain spring will launch more new products under the original product categories in 2019, including low-temperature NFC juice, lithium containing natural mineral water and natural mineral spring soda water, etc., and it will enter the vegetable based yogurt and instant coffee market for the first time.
in terms of financial data, the income of Nongfu spring in 2017, 2018 and 2019 was 17.49 billion yuan, 20.475 billion yuan and 24.021 billion yuan respectively. From 2017 to 2018 and from 2018 to 2019, the income of Nongfu spring increased by 17.1% and 17.3% respectively.
according to frost Sullivan report, the growth rate of the above data is much higher than the growth rate of 5.0% and 6.6% of China’s soft drink industry in the same period, including the growth rate of 2.7% and 3.4% of the global soft drink industry.
in terms of profit, the net profit margins of Nongfu spring in 2017, 2018 and 2019 were 19.4%, 17.6% and 20.6%, respectively. In 2017, 2018 and 2019, the adjusted annual profit of Nongfu mountain spring reached 3.39 billion yuan, 3.977 billion yuan and 5.48 billion yuan respectively, with an annual compound growth rate of 27.1%.
according to frost Sullivan report, this profit level is far higher than the average profit levels of China’s soft drink industry of 6.9%, 7.1% and 9.6% in the same period, as well as the average profitability of the global soft drink industry of 3.9%, 7.6% and 8.5%.
However, like many other beverage enterprises, under the sudden outbreak of the epidemic, due to the limited outdoor consumption scenarios, whether Nongfu Shanquan can maintain the high growth rate of previous years this year may face new challenges.
at the beginning of April, Zhejiang provincial taxation bureau issued a message that showed that, affected by the epidemic situation, the sales volume of Nongfu mountain spring Hangzhou company decreased by 132 million yuan from January to February, a year-on-year decrease of about 28%. However, the article also said that the introduction of preferential tax policies has greatly eased the company’s financial pressure.
according to the frost Sullivan report, from 2012 to 2019, Nongfu mountain spring has maintained the leading position in the market share of China’s packaged drinking water for eight consecutive years.
of course, what can not be ignored is that the business pattern of double engine development of packaged drinking water and beverage established by Nongfu spring has brought unique competitive advantages to the company.
among them, the packaged drinking water category as a necessary consumer product meets the basic drinking demand of consumers, while the beverage category can meet the diversified and personalized drinking demands of consumers.
the distribution of packaged drinking water and beverage by the same distributor will help to improve the business scale and profitability of the dealers, thus promoting the distributors to focus on promoting the products of Nongfu mountain spring.
and the diversity of products can also enable Nongfu spring to carry out flexible product combination according to the characteristics of different markets and channels, and help the company form a differentiated advantage in channel competition; the layout of multiple products is also conducive to Nongfu spring’s expansion of shelf share in terminal retail outlets, increase the sales volume of single store, and effectively improve the efficiency of distribution channels.
Nongfu Shanquan has also shortened the label of the shelf life of its products of different brands and specifications from this year. This will not only help turnover of end products and keep them fresh, but also further optimize the consumer experience, the company said.
now that Nongfu mountain spring is attacking overseas IPO, the Hong Kong market is conducive to Nongfu spring’s internationalization of marketing and R & D, accelerating overseas distribution and introducing foreign capital.
recently, catering, tourism and other industries affected by the epidemic are gradually improving. This is no doubt good news for the water drinking enterprises as upstream suppliers who choose to go to Hong Kong for listing at this time.