"Wandian Expansion Plan" Is Hard To Succeed, People Wish Capital Boost Baiguoyuan'S Overseas IPO To Win "The First Share Of Fruit Retail"

On September 10, Yu Huiyong, chairman of Baiguoyuan, a fruit retail chain, said in a speech at the 4th Shanghai entrepreneur principal's day that "Baiguoyuan was founded in 2001, and has been losing money from 2001 to 2008. From 2009 to 2013, the company has exceeded 100 million yuan (Sales), 2013 has exceeded 1 billion yuan (Sales), and 2019 is 12.4 billion yuan of sales". He frankly said, "this process seems to be growing all the way In fact, it has experienced a lot of ups and downs.

It is worth mentioning that the listing of all kinds of shares (hereinafter referred to as "shares of Baiyuan group") was officially approved by the SFC (Shenzhen) Co., Ltd. (hereinafter referred to as "Baiyuan") for the first time to be listed on the stock exchange (hereinafter referred to as "Baiyuan") in Shenzhen.

According to the official website, as of the first half of 2019, "fruit king" orchard has more than 4000 stores, has settled in more than 80 cities in China, and has developed more than 50 million members.

On the fruit track, Xianfeng fruit, which is also a fruit retailer, started A-share listing in December 2019, and completed the first phase of counseling in March 2020, which will last until June 2021. So, who can win the first share of China's fruit retail?

How far away from WanDian

According to the official website, Baiguoyuan, which is committed to making better fruits, was established in Shenzhen in 2001. It is a chain enterprise integrating fruit purchasing, planting support, postharvest preservation, logistics and warehousing, standard grading, marketing development, brand operation, store retail, information technology, financial capital, scientific research and education.

The road to the expansion of the orchard is full of twists and turns.

According to media reports, Yu Huiyong, founder of Baiguoyuan, started his business at the end of 2001. In 2002, the first fruit store in Fuhua Road, Shenzhen opened.

From the establishment of the company in 2001 to 2008, Baiguoyuan mainly expanded through the franchise mode, losing money for 7 years in a row and opening up 100 stores by accident; from 2008 to 2015, Baiguoyuan bought back all the franchise stores and transformed it into a fully independent self-supporting store. According to the official website, in May 2015, the number of Baiguoyuan stores exceeded 1000, that is, in September 2015, it obtained a round of financing of RMB 400 million.

Due to the intervention of capital, Baiguoyuan began to expand vigorously. According to the official website, by may 2018, there were more than 3000 stores.

In January 2018, after obtaining 1.5 billion RMB round B financing, Baiguoyuan restarted the social franchise to further accelerate the expansion speed.

It is worth mentioning that in this process, Yu Huiyong, chairman of Baiguoyuan, has set the goal of 10000 stores and the annual sales volume will reach 40 billion yuan by 2020.

At present, there are more than 4000 Baiguoyuan stores, which is far from the goal of 10000 stores.

However, under the influence of this year's epidemic, Yu Huiyong admitted in an interview with the media that "the WanDian plan has not changed, and it is difficult to predict how long the impact of the epidemic on entities will last."

In this regard, on September 14, the reporter of 21st century economic report sent an interview outline to Baiguoyuan, but as of the time of publication, no reply has been received.

Zhu danpeng, an analyst of China's food industry, told reporters, "the increase in the number of stores has great requirements for the supply chain, food safety and management and operation of 100 orchards.".

According to media reports, Baiguoyuan has launched a system similar to that of store managers and partners, "no franchise fee will be charged, and profits will be distributed every year. Baiguoyuan will charge 30% and the remaining 70% will be distributed according to the equity structure of the store. There are three parties involved in the store investment: regional managers, regional franchisees and store managers. Among them, 80% are store managers, 17% are regional managers and 3% are regional franchisees. "

It is worth mentioning that Baiguoyuan emphasizes that if the store loses money, the loss in the first three years will be borne by Baiguoyuan. If there is a loss after three years, the closure will be assessed.

"At present, Baiguoyuan is still mainly engaged in fruit sales, and its product layout idea is that half of the products reflect the differentiation, and the other half of the products reflect the cost performance. However, from the long-term development point of view, Baiguoyuan should strictly control the quality and quantity of new stores to join, rather than blindly seeking fast. " On September 14, a retail industry personage pointed out.

Investors' expectation of listing

The WanDian expansion of Baiguoyuan may be due to capital support.

According to the official website, Baiguoyuan has completed two times of financing, with a total amount of about 1.9 billion yuan.

In September 2015, Baiguoyuan obtained a round of financing of RMB 400 million, led by Tiantu capital, followed by Guangfa Xinde and Qianhai master fund; in January 2018, Baiguoyuan announced the completion of round B financing of RMB 1.5 billion, with investors including Zhongjin Zhide, Zhongzhi capital, CICC Huirong, cornerstone capital, source capital, Yuexiu industrial fund, Shenzhen Venture Capital, etc.

In this regard, Feng Weidong, chief investment officer of Tiantu capital, said that the investment in Baiguoyuan is "because Tiantu judges that the main venue for future fruit sales is offline. Baiguoyuan has two major advantages: one is the offline physical store layout system; the other is its mature business model: it penetrates into the supply chain of the upstream production of the fruit industry."

Baifang's investment signal has been released.

After a round of lead investment in 2015, Feng Weidong disclosed his requirements for Yu Huiyong in an interview with the media, "we also gave him three years to adjust to the state of being listed. It may take another three to five years to go public. "

According to this calculation, in the original plan of Tiantu capital, 2020 should be the best time for Baiguoyuan to complete the listing target.

According to the current ownership structure, the largest shareholder of Baiguoyuan is still Yu Huiyong, the founder of Baiguoyuan, with a shareholding ratio of 25.5971%. The remaining shareholders holding more than 5% include Shenzhen Hongyuan shanguo investment development enterprise (limited partnership) holding 8.6499%, Shenzhen hengyili Investment Development Center (limited partnership) holding 8.0442%, and Beijing Tiantu Xingbei Investment Center (limited partnership) holding 6.1642% 。

In terms of the fresh fruit industry ranking of "fresh fruit garden" ranked No.6 in the list of fresh fruits and vegetables (No.6 in the list of fresh fruits and fruits) published by "fresh fruit garden" in 2019, ranking No.5 in the list of fruit companies listed in the list of fresh fruits (No.6) and No.6 in the list of fresh fruit companies published by the Research Institute of fruit industry.

Among them, guoduomei is the largest fruit supermarket chain in Beijing. In November 2015, Baiguoyuan merged with guoduomei through cash acquisition and cross shareholding, so as to enter the Beijing market.

It is worth mentioning that Xianfeng fruit, ranked third, has also started the listing process, and completed the first phase of A-share listing guidance in March 2020.

Xianfeng fruit, which is also favored by capital, has obtained three rounds of financing since its establishment in 1997. Angel round financing was initiated by Jiuding investment on April 1, 2015; round a financing was completed on August 14, 2017, led by Qianhai Indus M & A fund; on January 22, 2018, it obtained round B financing led by Sequoia Capital, with the specific amount not disclosed.

According to the official website, Xianfeng fruit currently has more than 1900 stores nationwide, and has put forward the "one hundred cities and ten thousand stores" layout plan to realize 10000 stores in early 2021.

In addition to guoduomei, Xianfeng fruit and Honghui fruit and vegetable industry participants, HEMA Xiansheng, Suning, Yiguo Shengxian and daiyouxian also joined the fruit fresh track.

According to the Research Report on China's fresh e-commerce industry in 2019, iResearch said that the transaction scale of China's fresh e-commerce market exceeded 200 billion yuan in 2018. IResearch predicted that China's fresh e-commerce industry would still maintain an average annual growth rate of 35% in the past three years, far higher than the growth rate of traditional fruit market scale.

In this context, who can win the honor of "China's first fruit retail stock"?

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