“The king of zongzi” Wufangzhai sprinted for A-share IPO on the eve of the Dragon Boat Festival. These listed companies also sell zongzi.

According to the Financial Associated Press (Shanghai, researcher Zheng Jianhong), the Dragon Boat Festival is coming soon, and A shares are also floating for a while. On June 4, the official website of the China Securities Regulatory Commission showed that Wufangzhai, located in Jiaxing, Zhejiang, had submitted a prospectus for the initial public offering of shares, and the sponsor was Zheshang Securities. Public information shows that “Wufangzhai” started in 1921 and was the first batch of “Chinese Time-honored” enterprises in the country. It was recognized as a well-known trademark by the National Trademark Office in 2004. The method of making rice dumplings originated from traditional craftsmanship passed down over a century. According to the prospectus of Wufangzhai, Zongzi is the company’s leading product. Last year, the sales volume of Zongzi exceeded 366 million, and the revenue contribution rate exceeded 70%.

It is worth noting that from 2018 to 2020, the sales of Wufangzhai Zongzi continued to decline, from 411 million in 2018 to 366 million in 2021. In this regard, the company said that due to the impact of the new crown epidemic, the company’s traditional production peak season zongzi output in the first quarter of 2020 was greatly restricted, and the output fell by more than 75% compared with the same period in 2019. In terms of overall performance, from 2018 to 2020, Wufangzhai’s revenue will be 2.423 billion yuan, 2.507 billion yuan, and 2.421 billion yuan, and net profits will be 97 million yuan, 163 million yuan, and 142 million yuan, respectively. The price of rice dumplings will increase from 2018 The year’s 2.99 yuan/kg rose to 3.68 yuan/kg in 2020, an increase of up to 23%.

Although Wufangzhai’s revenue and net profit have declined in the past two years, the company believes that there is still room for growth in the zongzi market. According to the prospectus of Wufangzhai, according to statistics, the scale of my country’s zongzi market was 4.916 billion yuan in 2015, and it will grow to 7.337 billion yuan in 2019, with a compound annual growth rate of 10.53%. In the future, with the return and promotion of traditional culture and the superimposition of the attributes of zongzi convenience food, it is estimated that by 2024, the market size of zongzi in my country will grow to 10.291 billion yuan. The compound annual growth rate from 2020 to 2024 is expected to be 7%. Maintain a good development trend.

In recent years, as well-known food brands such as Juewei Foods, Three Squirrels, Liangpin Shop, Yiming Foods, Peach and Plum Bread have been listed one after another, competition within the food industry has become increasingly fierce, and the momentum of capital-driven development has become more apparent. In the field of rice dumplings, A-share listed companies such as Taoli Bread, Sanquan Foods, Guangzhou Restaurant, and Yuanzu shares were named competitors by Wufangzhai. The prospectus of Wufangzhai shows that in the production and sales of zongzi, the company’s competitors mainly include: Beijing Daoxiangcun Food Co., Ltd., Sanquan Foods, Taoli Bread, Zhengzhou Missing Foods Co., Ltd., etc.

Judging from the current competitive landscape, there are two legions in the zongzi industry. They are traditional time-honored enterprises represented by Wufangzhai and Guangzhou Restaurant, and national food giants represented by Sanquan and Si Nian. Taking the 2019 Dragon Boat Festival as an example, the top three brands of Zongzi sales in the supermarket channels are Wufangzhai, Sanquan and Si Nian. The sales amount in the supermarket channels accounted for 30.2%, 21.4% and 16.5% respectively, totaling more than 65%.

Among them, Huangshanghuang stated on the interactive platform in the early stage that the annual output of its Zhenzhen Lao Zongzi is 150 million, the mid-autumn production of Soviet-style mooncakes is 3 million tubes, and other Cantonese-style mooncake products are mainly processed by external OEM; another in Jiaxing Zongzi The time-honored brand Zhenzhen Lao was acquired by Huang Shanghuang in 2015. In 2020, its revenue and net profit will be 456 million yuan and 100.71 million yuan respectively; Taoli Bread said that the annual production cycle of zongzi is about 35-45 days, mainly in the Dragon Boat Festival. 1 month to 45 days before the holiday. In 2019, Taoli Bread Zongzi business revenue was 10.56 million yuan.