The "Wanxiang Department" company, Ocean Family, plans to IPO, with 40% of its revenue...

Zhejiang Ocean Family Co.

Ocean Family said that the company's current level of debt is high, and listing and fundraising can not only increase production capacity, but also ease short-term debt repayment pressure

Or become the fifth listed company of the "Wanxiang Department"

On December 16, 2021, the official website of the China Securities Regulatory Commission disclosed the updated prospectus of Ocean Family.

At present, 90% of the equity of Ocean Family is held by the controlling shareholder Wanxiang Sannong, and 10% is held by Ocean Investment

In fact, Ocean Family's IPO preparations started as early as 6 years ago

From 2018 to 2020 and the first half of 2021, Ocean Family achieved net profits of 241 million yuan, 260 million yuan, 200 million yuan, and 169 million yuan, and the gross profit margin of its main business was 16.

In this IPO, Ocean Family plans to raise 1.

After the investment project with the raised funds reaches production, Ocean Family will increase the processing capacity of various marine biological products by 107,500 tons

Revenue is vulnerable to changes in foreign markets

It is worth noting that about 40% of Ocean Family's annual income comes from export

Food industry analyst Zhu Danpeng analyzed to a reporter from the Beijing News that 40% of companies whose business is abroad will have higher operating risks

In addition to the impact of the epidemic, a reporter from the Beijing News noticed that Ocean Family's operations in foreign markets will also be affected by trade policies and tariff levels

In the process of exporting, Ocean Family still has the risk of market concentration of some products

Several batches of imported products were not allowed to enter the country due to food safety issues

While performance risks exist, in the past two years, Ocean Family and its subsidiaries have been detected food safety risks many times

As far as Ocean Family itself is concerned, the General Administration of Customs’ monthly information on food and cosmetics that are not allowed to enter the country shows that in January 2021, a batch of 185 kg of red gold-eyed sea bream imported from Japan by Ocean Family was not allowed to enter the country due to methylmercury exceeding the standard.

In this prospectus, Ocean Family also mentioned that there are many uncontrollable food safety issues, “Although the company has established a quality control system for the entire industry chain, product quality is still inevitably limited by the supply of raw materials, the production capacity of suppliers, The influence of factors such as transportation process and climate environment cannot completely avoid the risk of product quality problems caused by some unforeseen factors

Zhu Danpeng believes that food companies engaged in import and export trade will face more severe food safety risks

On December 31, 2021, a reporter from the Beijing News called Dayang many times based on the information in the prospectus, focusing on the reasons for preparing for 6 years before sprinting for IPO, how to resist the risks of changes in the international market behind the export business, and how to strengthen the control of import and export food safety.
Shijia, as of press time, the call has not been connected
.