The top five customers of Baoli Foods contributed 40% of the revenue and the debt ratio was 41%, far exceeding the 175 million supplementary flow proposed by the peers

As more and more chain catering business suppliers come to the front, compound condiment supplier Baoli Foods also submitted a prospectus, intending to further increase its scale with the help of the capital market

A few days ago, Shanghai Baoli Food Technology Co.

It is understood that Baoli Foods mainly provides compound seasoning products such as dusting powder and seasoning sauce for chain catering enterprises such as KFC, McDonald's and Dicos, and the company's income is therefore more dependent on major customers

In addition, due to the single financing channel, the asset-liability ratio of Baoli Foods is much higher than that of peer listed companies

Declining profitability of main business

According to the data, Baoli Foods is a food seasoning supplier.

According to the prospectus, from 2018 to 2020, Baoli Foods’ operating income was 711 million yuan, 742 million yuan and 905 million yuan respectively, and its net profit was 92.

Affected by the business model, Baoli Foods is more dependent on major customers

During the period, Yum China has always been the largest customer of Baoli Foods, with annual sales revenue of 233 million yuan, 227 million yuan, and 222 million yuan, accounting for 32.

The high proportion of major customers in catering chains also limits the bargaining power of Baoli Foods

Among them, as the company's core products, the cost of sales and the unit sales price of compound seasonings will both decline to varying degrees in 2020, but the unit sales price has dropped significantly, resulting in a decline in the company's gross profit margin in 2020

The data shows that in 2020, the average sales unit price of Baoli Foods compound seasoning is 12,600 yuan/ton, a year-on-year decrease of 7.

　　In this regard, Baoli Foods explained in the prospectus that the change in gross profit margin in 2020 is mainly affected by the increase in revenue from products with lower unit prices such as pulp powder, black pepper sauce, and tomato sauce

　　38% of the funds raised are used for replenishment

　　According to the prospectus, in this IPO, Baoli Foods plans to raise 460 million yuan, of which 253 million yuan will be used for capacity expansion, accounting for about 55.

　　Baoli Foods believes that after using fundraising to supplement the flow, the financial structure can be optimized and financial risks can be reduced

　　According to the prospectus, from 2018 to 2020, the net cash flow generated by Baoli Foods' operating activities was 109 million yuan, 119 million yuan and 131 million yuan respectively, with steady growth during the period

　　From 2018 to 2020, the asset-liability ratio of Baoli Foods was 51.

　　In this regard, Baoli Foods stated that the company's asset-liability ratio is higher than its peers, mainly due to the company's business development adding short-term loans to supplement working capital, and the company's new special long-term loans for the construction of the first phase of the Zhejiang Baoli production base project
.
As of 2020, Baoli Food's short-term loans and long-term loans were 62.
1758 million yuan and 80.
7111 million yuan respectively, accounting for 18.
21% and 23.
64% of the company's total liabilities, respectively
.

　　In this context, Baoli Foods' short-term solvency is also weaker than its peers, and its current ratio and quick ratio are still lower than those of its peers
.
The data shows that from 2018 to 2020, the current ratios of Baoli Foods were 0.
96%, 1.
27, and 1.
64, respectively, and the average values ​​of the three companies in the same industry were 5.
77, 8.
78, and 7.
58; during the period, the quick-freezing ratios of Baoli Foods were 0.
69 and 0.
92, respectively.
and 1.
20, the averages of the above three companies in the same industry are 5.
25, 8.
29 and 7.
07 respectively
.

(Cao Xuejiao)