China News Service Client Beijing, June 5th (Zuo Yukun) Yesterday, you looked down on my two farmer springs. Today, I am busy counting money in the capital market.

　　As of the close of June 4, Wantai Bio has ushered in its 24th daily limit, becoming the largest number of new stocks in the year. Wan Tai Bio may not be familiar to everyone, but the other identity of the "super invisible rich man" Zhong Zui is the actual controller of the national brand Nongfu Spring.

　　Drinking Nongfu Mountain Spring, you and I are still moving bricks, but the man behind "Nature's Porter" is already a billionaire.

"Friends of Women" 24 boards in 24 days!

　　Who is the most bullish new stock during the year? Wan Tai Bio, holding 24 boards, smiled.

　　On April 29, Wantai Bio officially landed on the A-share main board market. Market data shows that the latest stock price of Wantai Bio is 112.89 yuan/share, with a total market value of 48.9 billion yuan. Compared with the issue price of 8.75 yuan/share, the increase is nearly 12 times.

Wantai Bio stock price chart

　　Since the main product of the vaccine is cervical cancer vaccine, Wantai Biology is also known as "Friend of Women". Affected by the epidemic, nucleic acid testing and vaccine research and development have attracted much attention. As a biopharmaceutical company that covers in vitro diagnostic reagents and vaccines, Wantai Bio has been continuously optimistic since its listing.

　　At present, the largest shareholder of Wantai Biology is Yangshengtang, which holds 56.98% of the shares; Zhong Dijing is the second largest shareholder, which holds 18.17% of the shares. However, Zhong Yisui personally held 98.38% equity of Yangshengtang. In the end, Zhong Yisui held a total of 75.15% equity of Wantai Biology and became the actual controller.

　　The "killer experience" in Zhong Di's hands is not only one of Wantai Biology, another big IP under his banner is the Nongfu Spring we are familiar with.

　　On April 29, the same day that Wantai Bio was listed, Nongfushangquan submitted a prospectus to the Hong Kong Stock Exchange and officially started its journey to Hong Kong. With "Wantai Biology + Nongfu Mountain Spring", people in the industry believe that Zhong Zui's net worth is not a dream.

Popular TOP Nongfu Spring, marketing C-Nongfu Spring

　　The submission of the Nongfu Mountain Spring Prospectus caused a thousand waves, and many people lamented: You can finally go public!

　　After all, looking at the "records" of Nongfu Mountain Spring, drinking water is firmly ranked first in the country, and tea and juice are also the top three in terms of quality. If Nongfushangquan, born in 1997, admits that it is the second, it is afraid that no peers dare to recognize the first.

Source: Nongfushangquan Co., Ltd. Hong Kong stock IPO prospectus.

　　But looking back at the drinking water market 20 years ago, it can be said that Wahaha, Coca-Cola, Master Kang, Uniform, Yibao and other brands are competing. The pattern of N points in the world is broken by a slogan.

　　-"Nongfu Spring is a bit sweet".

　　This "magic" slogan is still a classic in the marketing case even though it has gone through two decades. It also makes people want to taste the sweetness whenever they drink Nongfu Spring.

　　In the present words, it is above, very above.

　　As people pay more attention to health, Nongfushangquan began to create the concept of "natural healthy water", and another classic slogan came out-"We don't produce water, we are only natural porters", which is completely laid Its status of super first-line marketing level.

　　Nongfushangquan exploration engineer Fang Qiang, a man who appears on almost every video advertising terminal in the country, tells a story of finding the top water source after all the hardships, so that the viewers just want to fly to Changbai Mountain and drink a spring with Fang Qiang .

　　So in January of this year, when Nongfu Spring received water from Wuyi Mountain and was reported to have damaged the trees, some netizens focused on "proving that Nongfu Spring uses real materials and real springs!"

　　When the major brands have launched their marketing efforts, Nongfu Spring has taken an unusual path.

　　"Nongfushangquan reminds you that this ad can be closed for free without conditions." In 2016, Nongfushangquan launched two new advertisements with a duration of three minutes, and put forward the idea of ​​closing the ads unconditionally for free.

　　This wave of counter-productive operations has produced the best advertising effect since the birth of Chinese video sites. According to statistics, 70% of users watched this ad at that time.

　　Today, as the value economy is in power, Nongfushangquan, which is closely following the trend, has also launched a high-end water series, and high-end glass bottle packaging has swept almost all important awards in the field of packaging design. After all, to do high-end, the first thing is to take pictures beautiful, it is best to let 24K pure straight men with Nokia flip phone can shoot the kind of ins style.

Nongfushangquan 2020 gold rat commemorative bottle. Source: Nongfushangquan WeChat public account

　　Along the way, the "marketing wizard delayed by the sale of water" Zhong Zuijing sold every feeling accurately.

　　——Don’t ask, no one knows advertising better than Nongfu Spring.

The price is two yuan to earn a second, a big profit behind a bottle of water

　　Not listed three words, Nongfushangquan said countless times. The reason is nothing more than three words: not bad money.

　　"The capital market pays attention to demand and demand, and Nongfushangquan has no demand now, so there is no need to go public." Zhong Zuijing once said in a public speech in 2017.

　　A small bottle of water is so profitable?

　　Among the 468-page prospectus of Nongfushangquan, the most impressive thing is its gross margin. In 2019, the gross profit margin of packaged drinking water in Nongfu Spring is as high as 60.2%. In other words, Nongfu Mountain Spring can earn 1.2 yuan for a bottle of mineral water priced at 2 yuan.

　　Bottled water has been recognized as a "profiteering" industry. The "2015-2020 China Bottled Water Market Survey and Investment Consultation Report" released by China Business Research Institute shows that the gross profit rate of bottled water in the beverage industry has been higher than the average level in recent years. From 2012 to 2014, it has been gross for three consecutive years. The interest rate is higher than 30%.

　　The cost of drinking water itself is not high, the raw materials for bottled water are simple, and there is no overly complicated production process. Most of the cost is still concentrated on packaging, transportation and manpower, so there is also a ridicule of "selling water or packaging".

People buy mineral water in supermarkets. Photo by Dou Yuewen

　　As for why the gross profit of Nongfu Mountain Spring can be so much higher than the average, in the prospectus, Nongfu Mountain Spring listed its water source resources as one of the reasons for its cost savings. "Nongfushangquan has been arranging water sources since its inception. It has the right to develop water sources earlier than its peers, and has carried out marketing efforts around water sources, opening up the gap with competitors."

　　The product form is stable and does not require much post-investment. Nongfu Spring, which is good at making explosives, is simply holding a banknote printing machine.

With the gossip on the market, Nongfushangquan is worth the money?

　　Making money like a farmer's spring can hardly resist the temptation of the capital market. Some people can't help but wonder: Sweet you, how have you lost money recently?

　　Not so in the prospectus.

　　From 2017 to 2019, Nongfushangquan's revenue was 17.491 billion yuan, 20.475 billion yuan, and 24.021 billion yuan respectively, with a compound annual growth rate of 17.2%; net profits were 3.386 billion yuan, 3.612 billion yuan, and 4.954 billion yuan, respectively. The growth rate is 21.0%.

Source: Nongfushangquan Co., Ltd. Hong Kong stock IPO prospectus.

　　Although it is an “old company”, the performance of Nongfushangquan, which has made a lot of money in the past three years, cannot be regarded as “new”. Looking at this growth rate alone, it is difficult to imagine this is a company in a mature industry.

　　You should know that the best one-year sales of Vitasoy, known as the Hong Kong stock "Little Moutai", is only 7.526 billion Hong Kong dollars, and the net profit margin is hovering at a level close to 10% all the year round.

　　It's no wonder that the IPO is just around the corner. The saying that "Chinese version of Coca-Cola" is "more profitable than Maotai" is already very popular.

　　But excellence like a farmer’s spring can’t be done once and for all.

　　The market pattern of bottled water has been unpredictable. According to data from market research company Nielsen in terms of market share, in 2011, Nongfushangquan took the position of the boss from Master Kang; 4 years later, Yibao took another Nongfushangquan spring; At the top of the list; in 2018, Baisuishan was promoted to the top three, rewriting the new pattern of bottled water.

　　"For the actual controller Zhong Sui, it is more necessary for the opportunities and wealth returns brought by liquidity after the listing." Some insiders have analyzed the "true fragrance" listing behavior of Nongfushangquan in this way.

　　Can a bottle of mineral water "sweet" over Coke and Moutai? The road to the market of Nongfushangquan is full of expectations. (Finish)