Michelle Bingcheng IPO, made 3 billion in 3 years dismantling the prospectus: selling straws and earning 300 million in one year
The tea-drinking empire of "Snow King" was finally announced to the public.
On September 22, the information on the official website of the China Securities Regulatory Commission showed that the A-share listing application of Michelle Bingcheng Co., Ltd. (hereinafter referred to as "Mixue Bingcheng") has been accepted, and the prospectus has been officially disclosed, and it is planned to be listed on the Shenzhen Stock Exchange. motherboard.
In this IPO, Michelle Bingcheng plans to publicly issue no more than 40.01 million RMB ordinary shares, and plans to raise funds of about 6.496 billion yuan.
Among them, about 2.9 billion yuan is planned to be invested in food processing, industrial parks and other production and construction projects, 1.9 billion yuan will be used to supplement working capital, about 1.1 billion yuan will be used for warehousing and logistics supporting projects, and about 550 million yuan will be used for marketing services. systems, R&D centers and other projects.
Michelle Bingcheng was founded in 1997, and by 2020, it will become the first milk tea brand in the Chinese market to open more than 10,000 stores.
In December of that year, Wandian Investment took the lead in investing, followed by Meituan Dragon Ball and Hillhouse Capital.
Many brands in the industry have also begun to imitate the expansion and operation model of Michelle Ice City, and have speculated about its size for a long time.
And with the disclosure of the prospectus, it finally showed the outside world the true operational status of the brand.
Annual revenue exceeds 10 billion, profit increases 5 times in three years
The prospectus shows that from 2019 to 2021, the operating income of Michelle Ice City will be about 2.566 billion yuan, 4.68 billion yuan, and 10.351 billion yuan, quadrupling in three years; the corresponding net profit attributable to realized is about 445 million yuan. , 632 million yuan, 1.91 billion yuan, an increase of nearly 5 times in three years.
In addition, in the first quarter of this year, Michelle Ice City achieved an operating income of 2.434 billion yuan, and the corresponding net profit attributable to about 390 million yuan.
In addition, from 2019 to 2021, the single-store sales of Michelle Ice City were 413,300 yuan, 444,000 yuan, and 587,200 yuan respectively.
Nai Xue’s Tea (02150.HK), which landed on Hong Kong stocks earlier, will achieve revenue of 4.297 billion yuan in 2021, less than half of Michelle Bingcheng’s in the same period, and its adjusted net profit loss will be 145 million yuan.
But in essence, the business of Michelle Bingcheng is different from that of Heytea and Nai Xue, who take the direct sales route.
Michelle Bingcheng introduced in the prospectus that the company's revenue mainly comes from selling all kinds of ingredients, packaging materials, equipment and facilities, operating materials and other products needed to make ready-made drinks and ready-made ice cream to franchisees, and providing franchise management services.
However, the bulk of the money is not the franchise fee, but the sale of raw materials.
The franchise management fee of Michelle Bingcheng has always accounted for only about 2% of the overall revenue, and the sales of ingredients to franchisees is the main body.
Michelle Bingcheng produces its own products including solid beverages, such as milk tea powder, coffee powder, etc.; beverage concentrates, such as passion fruit jam, mango beverage concentrates, etc.; jams, such as strawberry jam, yellow peach jam and so on.
From January to March 2022, Michelle Ice City earned 1.756 billion yuan in revenue from selling ingredients to franchisees alone, contributing 72% of its revenue.
In addition, packaging materials, equipment and facilities are directly sold by the company after purchasing finished products from external third parties. The revenue of the two accounts for about 15% and 5% respectively. For straws alone, Michelle Ice City will receive 3.06% in 2021. billion in revenue.
The speed of expanding 6,643 stores in a year far exceeds that of Ruixing
Michelle Bingcheng’s quadrupling of revenue in three years has benefited from the continuous expansion of its stores.
At the end of each period of the reporting period, the total number of company stores were 7,225, 13,126, 20,511 and 22,276 respectively, of which only 47 were directly operated.
Mixue Bingcheng is already a behemoth - as a comparison, the prospectus shows that the number of Gu Ming and Shu Yi Shao Xiancao stores, which also follow the franchise model, are currently 6,600 and 6,500 respectively.
The speed at which it opened stores was equally astonishing.
From 2019 to 2021, the average annual net increase of Michelle Bingcheng stores is 6,643, with a compound annual growth rate of 68.49%.
From January to March 2022, the number of company stores will increase by 1,765.
Luckin Coffee, known for its rapid expansion, will only open 1,221 new stores in 2021.
And since January 2021, Ruixing Coffee, which is directly operated, has announced the launch of the "New Retail Partner" program, which will be opened to third- and fourth-tier cities to join in, and will attack the sinking market on a large scale.
The prospectus shows that the main brand Michelle Bingcheng increased 2998, 6088, 7643, 1772 franchise stores during the reporting period, and decreased 380, 331, 585, 176 franchise stores. With the expansion of its store scale, franchisees 's exit rate still appears to be within a reasonable range.
On the other hand, more than 20,000 franchised stores are not easy to manage.
Since the beginning of this year, many Michelle Bingcheng stores have been punished for food problems, and have repeatedly made the hot search list.
In June of this year, the Longshan County Michelin Beverage Shop was fined 12,000 yuan by the Hunan Provincial Longshan County Market Supervision Bureau (hereinafter referred to as the "City Supervision Bureau") because consumers found worms in the take-out chilled lemonade; in April this year, According to the administrative penalty decision published on the website of the People's Government of Gongcheng Yao Autonomous County, Guilin City, Guangxi, the Michelle Bingcheng Milk Tea Shop in Gongcheng County, Gongcheng County was fined 2,000 yuan due to the expiration of multiple bags of "roasted coffee powder".
In the special risk factor reminder of the prospectus, Michelle Bingcheng also listed food safety risks in the first place. Quality issues occur."
The gross profit margin is about 30%, which is half of Nai Xue's
Compared with its peers, Michelle Bingcheng's gross profit margin is relatively low, about 30% in the first quarter of this year, significantly lower than comparable companies in the same industry, and even only about half of Nai Xue's tea and Ruixing Coffee.
The prospectus shows that since Nai Xue’s tea is a direct business model, Ruixing Coffee is mainly based on a direct business model, and its revenue is the revenue from the sales of beverages and other products in the store. The operating cost only includes the cost of materials, so its gross profit margin is higher than its own. And other comparable companies in the same industry that mainly focus on the franchise model.
But Michelle Ice City is getting harder and harder to make money.
During the reporting period, the gross profit margins of the company's main business were 35.95%, 34.08%, 31.73% and 30.89% respectively. After excluding the implementation of the new revenue standard from 2020, the transportation expenses in the sales expenses were included in the operating costs. In 2019 From January to March 2022, the gross profit margins of Michelle Bingcheng’s main business were 35.95%, 36.67%, 33.98% and 32.99%, respectively, showing a downward trend.
Since Michelle Bingcheng mainly earns money from the supply chain, fluctuations in raw material costs have a greater impact on its gross profit margin.
According to the prospectus, the market prices of various syrups, milk powder and other raw materials of its raw materials have risen to varying degrees, and the average purchase price of some fruits has risen due to market conditions; packaging materials are limited by the plastic order, and the purchase cost of paper straws and degradable straws has been changed. higher.
In any case, the growth of Michelle Ice City into a behemoth may prove the vastness of the sinking market.
Now, the expanding Snow King will take this prospectus to the scrutiny of the capital market and vote with transactions.
According to interface news