Century Old "Time Honored Brand" Wufangzhai Rushes For A Share: Change Three Tutoring Securities Companies Within 18 Months

In the expressway service area of the Yangtze River Delta, we can often see the figure of wufangzhai, the "king of zongzi". Since the beginning of 2000, we have set up zongzi stores in Shanghai Hangzhou Expressway Service area, and there are more than 50 chain stores.

It is worth mentioning that Shanghai Huning Expressway (Shanghai section) Development Co., Ltd. is the second largest shareholder of wufangzhai.

After the sales volume of zongzi exceeded 400 million, wufangzhai, which accounts for half of the domestic zongzi market, has opened the way to sprint for a shares.

On September 30, Zhejiang Securities Regulatory Bureau disclosed the guidance and filing public documents of Zhejiang Wufangzhai Industrial Co., Ltd. (hereinafter referred to as "wufangzhai industry"), a "China time honored brand" enterprise founded in 1921, has signed a listing guidance agreement with Zhejiang securities and intends to apply for A-share listing.

It is worth mentioning that in less than 18 months, wufangzhai industry changed three listing guidance institutions.

In April 2019, Guangfang became the first securities company to be listed. However, on September 20, 2019, GF Securities announced the termination of the counseling, saying that "in view of the strategic development needs of wufangzhai, both sides agreed to terminate the listing guidance agreement by consensus". Later, CICC took over.

However, on June 19, 2020, CICC disclosed the third phase of the guidance work progress report, and there was no update until Zheshang securities took over the guidance work of wufangzhai industry.

Workers of wufangzhai workshop in Jiaxing, Zhejiang Province are busy producing zongzi. Visual China

Sales exceeded 400 million

According to the latest guidance filing public documents, the registered capital of wufangzhai industry is RMB 7555725, and its main business is divided into two parts, including food manufacturing business and catering service business.

In terms of food manufacturing business, wufangzhai industry has production bases in Jiaxing and Chengdu, mainly producing zongzi, moon cakes, cakes, eggs, bittern and other products; in addition, in terms of catering services, the catering stores of wufangzhai industry mainly provide Chinese fast food services.

Wufangzhai, a century old brand, originated in Jiaxing, the hometown of zongzi.

According to the official website of Wufangzhai Group Co., Ltd. (hereinafter referred to as "wufangzhai group"), the controlling shareholder of wufangzhai industry, the "wufangzhai" originated from the "Rongji wufangzhai" zongzi store opened by Zhang Jinquan, a Lanxi businessman, in zhangjianongkou, Jiaxing in 1921. Since then, zhangjianongkou has opened "total" and "Qingji" two Wufang Zhai. The competition among the three wufangzhai is fierce. In 1956, the public-private joint venture wufangzhai zongzi shop was established, and the three "wufangzhai" eventually merged into one.

In 1985, wufangzhai zongzi store boldly carried out reform and innovation, and the daily output of zongzi exceeded 20000.

In 1992, Jiaxing wufangzhai zongzi company was established. The next year, "wufangzhai" was named "China time honored brand" by the Ministry of trade. In 1995, wufangzhai invested tens of millions of yuan to build Jiaxing wufangzhai zongzi factory, the first professional zongzi factory in China. It said goodbye to the traditional business model of "front shop and back square", and realized industrialization and standardized production.

Now, wufangzhai industry, the main body to be listed, was restructured from Jiaxing wufangzhai zongzi company in 1998.

In 2008, Chengdu Wufangzhai Food Industrial Park was completed and put into production, becoming the largest professional zongzi production base in Southwest China; in 2010, the Shanghai headquarters of wufangzhai group was established.

In 2014, wufangzhai Chinese fast food chain stores entered Zhejiang expressway service area. In the same year, Zhejiang wufangzhai took over Wuhan wufangzhai through capital operation.

In 2018, wufangzhai comprehensively promoted the strategy of "light, fast and Internet". By 2019, wufangzhai industry fully launched the "waxy + strategy".

From the guidance filing documents, we can not know the performance of wufangzhai industry.

However, according to media reports and official website data, wufangzhai currently has the highest daily output of 2 million zongzi. In 2018, the sales volume of zongzi products was 407 million. In 2018, the total sales revenue of wufangzhai group was 4.743 billion yuan, and the total profits and taxes were 405 million yuan.

In addition, in 2018, Wu Daxing, executive director of wufangzhai, said in a public speech that "wufangzhai has 457 offline catering chain stores, more than 1000 national distributors and distributor customers, more than 50000 terminals, 160 online stores and more than 3 million members."

Different from most "time-honored brands", the actual controller of wufangzhai industry is not state-owned assets.

According to the guidance filing documents, Li Jianping and Li Haojia hold 50.06% of the shares of wufangzhai industry and are the actual controllers of the company.

Li Jianping, born in his 50s, was once a police officer of Ruian County Public Security Bureau, criminal police of Jiaxing Public Security Bureau, deputy director and director of suburban branch of Jiaxing Public Security Bureau, and deputy director of Jiaxing Public Security Bureau. Later, he invested and bought some shares of wufangzhai. He is now the chairman of wufangzhai group and chairman of wufangzhai industry.

Li Haojia, the son of Li Jianping, is a post-85s senior auditor of Nichia accounting firm in France, accountant / bank statement director of ICBC Paris branch, audit department manager of Ernst & young, international business development manager of Singapore Shangshi environment Holding Co., Ltd. he is now the director and chief auditor of wufangzhai industry.

It is worth mentioning that in the guidance filing documents of GF Securities, Shanghai Huning Expressway (Shanghai section) Development Co., Ltd., the second largest shareholder of wufangzhai industry, has become Shanghai Xinghe digital Investment Co., Ltd. in the latest guidance filing document, the shareholding ratio remains unchanged.

Further penetration of equity shows that both Shanghai Nanjing Expressway (Shanghai section) and Shanghai Xinghe are affiliated to Shanghai Industrial and Commercial Corporation. Among them, Shanghai Nanjing Expressway (Shanghai section) holds 45% equity of Shanghai Xinghe.

Three changes within 18 months

The official website of wufangzhai group revealed the listing plan of wufangzhai industry in many places.

As early as January 2019, at the first business meeting of wufangzhai group in 2019, Li Jianping, chairman of wufangzhai group, proposed that 2019 is the year for the listing of industrial companies. Enterprises should strengthen internal management and strictly control the excessive growth of various operating and management expenses. It is also mentioned that "the gross profit rate of products of industrial companies should be increased by 1.5% to 47%".

On July 20 this year, at the third business meeting of wufangzhai group in 2020, Li Jianping once again stressed that "reducing expenses and increasing gross profit rate are the key points of business work in the second half of the year. All departments are required to control the annual cost index according to the cost budget at the beginning of the year. In view of the new channel and special requirements of the logistics department, we should explore new ways to reduce the cost of logistics and reduce the cost of logistics.

However, the reporter has not yet learned the reason from the wufangzhai industry for many changes in listing guidance within 18 months.

"If you change the guidance of securities companies during the guidance period, either the same group of people will change the securities companies, or there will be some differences with the previous guidance team," a lawyer who participated in the IPO planning enterprise listing guidance project pointed out to the 21st century economic report reporter on October 12.

The 21st century economic report reporter found that Guangfa Securities had sent Wang MINCHEN, Tang Fu, Yang Leijie and other nine people to form the wufangzhai industrial guidance working group, of which Wang MINCHEN was the leader.

Since then, CICC sent Xie Jingxin, Zhu Hongyin, Wang Zhuyan and other six people to form a counseling working group, and then added a new member of the team, which was Wang MINCHEN. At that time, he had become a senior manager of CICC's investment banking department and a registered sponsor representative.

Since then, Zheshang securities has sent Wang Yiming, Luo Jun, pan Xun, Yang Yueyang, fan Guanghua, Zhang Chaodi, Tu Jue and Wang Chenqi to form a coaching working group.

Start 95 lawsuits to fight for reputation?

After consulting the industrial and commercial information, the reporter found that since 2019, wufangzhai industry, as the plaintiff, has sued a number of non-staple food business departments or food companies, with 95 cases involved.

Among them, there are five cases that will be heard on October 13, 2020. The defendants are Hangzhou Chunni Food Co., Ltd., Hangzhou Xiaoshan xinnongdu logistics center Xiguo non-staple food Co., Ltd., Hangzhou Xiaoshan xinnongdu logistics center Zongrong Food Co., Ltd., Hangzhou SHUNBANG Food Co., Ltd., and Hangzhou Fuyi Food Co., Ltd.

According to the first instance civil judgment on June 29, 2020, such as the dispute between wufangzhai industry and Yunhe County Laidi non-staple food store in Lishui, Yunhe County, Yunhe County, did not use the name or brand name of its individual industrial and commercial households, but highlighted the use of the word "wufangzhai", and the zongzi sold in the shop did not objectively explain its goods The source is to use the word "wufangzhai" in the sales price list displayed to the public, which makes the relevant public mistakenly believe that there is a specific commercial relationship between the defendant and the plaintiff. The court finally found that the infringement of the trademark exclusive right of Laidi food store in Yunhe County was established, and demanded that it compensate the economic losses and reasonable expenses of wufangzhai industry in a total of 7000 yuan.

In this regard, on October 12, Mao Aidong of Zhejiang Yingpu law firm pointed out to the reporter of 21st century economic report that wufangzhai intensively sued the other party for trademark infringement, "it may be to prove the popularity and commercial value of the trademark brand. After all, for the time-honored enterprises like wufangzhai, the trademark is the core asset of the company; on the other hand, if these infringements are established, relevant compensation will also be made It can increase the operating income of wufangzhai.

?