Xi’an’s time-honored Bingfeng Beverage originally planned to sprint for an A-share IPO on May 19, but withdrew its listing application at the door. The two companies that attended the meeting on the 19th, Highpower Technology and Zhengte, passed the meeting smoothly and will soon be listed on the Shenzhen Main Board.
Bingfeng Beverage withdraws from IPO
On May 19, the Shenzhen Main Board originally planned to welcome three companies to the meeting. Among them, the famous brand Bingfeng Beverage from Xi’an received a lot of attention.
However, on the evening of May 18, the CSRC website issued a supplementary announcement that because Xi’an Bingfeng Beverage Co., Ltd. (“Bingfeng Beverage”) applied for the withdrawal of the application materials, it decided to cancel the review of the company’s issuance application documents. This means that Bingfeng presses the pause button on the way to sprint for the IPO.
“Bingfeng” can be said to be known to everyone in Xi’an, and has a history of more than 70 years. The main business of Bingfeng Beverage is the research and development, production and sales of orange flavored soft drinks, sour plum soup and other beverages. After more than 70 years of development, its sales network is centered on the Shaanxi market, and has now covered more than 200 large and medium-sized cities across the country. The product types have also extended from carbonated drinks to plant drinks, flavored drinks and tea drinks.
From 2019 to the first half of 2021, Bingfeng Beverage achieved operating income of 302 million yuan, 333 million yuan and 219 million yuan respectively; the net profit in the same period was 77.6708 million yuan, 65.2515 million yuan and 61.5615 million yuan respectively.
From the perspective of the main income product composition, orange-flavored soda is still the main source of income for Bingfeng. According to the prospectus, in the first half of 2018-2021, the sales of Bingfeng glass bottle orange-flavored soda and canned orange-flavored soda accounted for more than 80% of the total revenue.
In July 2021, Xi’an Bingfeng Beverage Co., Ltd. formally submitted an application to the Shenzhen Stock Exchange for listing on the main board. In December 2021, the China Securities Regulatory Commission disclosed the feedback on Bingfeng Beverage’s IPO documents. Among them, the CSRC raised a total of 54 questions, mainly including the normative issues of Bingfeng Beverage’s prospectus, information disclosure issues, issues related to financial and accounting data and other issues.
Although Bingfeng has a high reputation in Shaanxi, its national coverage is insufficient. The sales revenue of Bingfeng Beverage mainly comes from Shaanxi, accounting for 87.44%, 81.73%, 80.23% and 77.79% respectively. There is a certain risk of regional concentration of sales, which restricts the company’s future business expansion in the future. In the prospectus, Bingfeng Beverage also pointed out development risks. If the company cannot effectively develop new markets outside Shaanxi Province and expand a broader product market area, it will have a certain impact on the company’s future growth.
Another lithium battery company will have a meeting
On May 19, Highpower Technology and Zhengte Co., Ltd., which successfully passed the meeting, raised 1.5 billion yuan and 447 million yuan respectively.
It is not the first time that Highpower Technology has been associated with the capital market. HIGHPOWER INTERNATIONAL INC., the parent company of Highpower Technology, was listed on the Nasdaq in the U.S. stock market as early as 2009. With the trend of many Chinese concept stocks returning to A, Highpower began to launch the return in June 2018. Work A, which announced the repurchase of listed shares at a price of $4.8 per share to achieve privatization and dismantle the original VIE structure. In June 2021, Highpower Technology disclosed its prospectus to be listed on the Shenzhen Main Board.
The main business of Highpower Technology is the research and development, design, manufacture and sales of lithium-ion batteries and nickel-metal hydride batteries. The existing products include polymer soft-pack lithium-ion batteries, cylindrical lithium-ion batteries and nickel-metal hydride batteries. Among them, lithium-ion batteries are mainly used in notebook computers, smart phones, wearable devices, smart homes, electric two-wheelers and other products; nickel-metal hydride batteries are mainly used in civilian retail, lighting and other fields.
In terms of performance, from 2018 to the first half of 2021, the operating income of Highpower Technology was 1.915 billion yuan, 2.071 billion yuan, 2.624 billion yuan and 1.642 billion yuan respectively, and the net profit was 79.5986 million yuan, 151 million yuan, 167 million yuan and 113 million yuan. In this IPO, Highpower Technology plans to raise 1.5 billion yuan for the Guangdong Highpower New Energy R&D and Production Base Construction Project (Phase I) and the Guangdong Highpower New Energy R&D Center Construction Project.
Zhengte Co., Ltd., who passed the meeting on the same day, has been engaged in the research and development, production and sales of outdoor leisure furniture and supplies. The company now has two major product series: sunshade products and outdoor leisure furniture. The sunshade products mainly include awnings and umbrellas, and the outdoor leisure furniture mainly includes pet houses, outdoor furniture and drying appliances.
In this IPO, Zhengte plans to raise 447 million yuan, which will be used for the annual output of 900,000 pieces of outdoor leisure products, research and development testing and experience center construction projects, domestic marketing experience center construction projects, replenishment of working capital and repayment of bank loans.