Click the image for details Text | Zhang Zhiwei For the dairy industry, the capital market is like a walled city: some are eager to get in, while others, feeling overwhelmed, have already exited. In this issue, Shiwu Media, a professional dairy media outlet, will interpret the behind-the-scenes stories of dairy companies going public and delisting. The bell-ringing moment is truly aspirational! Let's start with New Hope Dairy. On the 25th of this month, Liu Yonghao, Xi Gang, and the New Hope team will ring the bell at the Shenzhen Stock Exchange. Many media outlets, including Shiwu, have already received invitations, and the entire dairy and financial industries are about to witness this important moment. The bell-ringing lasts only a few seconds, but Liu Yonghao spent a full eighteen years to bring this "child" to the capital market. New Hope Dairy was established on June 30, 2006, funded by New Hope Liuhe. However, New Hope's involvement in dairy dates back to 2001, when it entered the dairy industry through the Sichuan local dairy company "Yangping Dairy." From 2002, Liu Yonghao began building a "fresh milk joint fleet," successively acquiring Anhui Baidi, Sichuan Huaxi, Hangzhou Shuangfeng, Hebei Tianxiang, Qingdao Qinpai, Dengchuan Diequan, and Kunming Xuelan. These companies were all incorporated into New Hope within two years. From 2005 to 2014, New Hope focused on factory upgrades and pasture construction. It wasn't until 2015 that New Hope Dairy resumed its acquisition model, successively acquiring Hunan Nanshan, Suzhou Shuangxi, Xichang Sanmu, and Shandong Asahi Green Source Dairy. According to New Hope Dairy's prospectus, from 2015 to 2017, its revenue was 3.915 billion yuan, 4.053 billion yuan, and 4.422 billion yuan, respectively; net profit was 297 million yuan, 146 million yuan, and 216 million yuan; and gross margins were 32.22%, 32.48%, and 34.72%. Liu Yonghao likely understands Mao Zedong's famous saying: "A single spark can start a prairie fire." Indeed, each dairy company under New Hope Dairy is a local dairy in a province or city, focusing on fresh milk with a transportation radius within 200 kilometers. They are small in scale and brand, but when Liu Yonghao integrated them all, the joint fleet could compete with regional leaders and even national giants. Therefore, for capital investors, the future development space for New Hope Dairy mainly lies in two aspects: one is to deepen the local market, and the other is to continue acquiring quality regional dairy companies nationwide to become stronger and better. After listing, New Hope Dairy's financing and brand capabilities will be further enhanced. Regional dairy companies that are currently or will face pressure from national dairy giants and cannot survive will flock to New Hope. The inspiration from New Hope Dairy's listing is that the dairy industry pattern is becoming more defined, and the threshold is rising. Only those with strong capital, patience, and persistence are qualified to create dairy myths. Another dairy company about to go public is Feihe. In 2003, Feihe went public in the U.S., and in 2013, it was privatized and delisted. After another five years of hard work, Feihe surpassed 10 billion yuan in revenue and will go public in Hong Kong as the champion of domestic milk powder. It will then compete with foreign brands for the industry championship, which will give the capital market considerable growth expectations. Feihe's listing, delisting, and re-listing teaches the industry that once you choose this path, you must persevere through wind and rain. When the time, place, and people are right, success is inevitable. Since capital is so good, why did they all delist? In November 2016, Synutra completed its privatization. This was 11 years after Synutra went public in the U.S. in 2005. To this day, Zhang Liang believes that their U.S. listing back then was a remarkable achievement in the industry. But why did they delist? There are multiple speculations in the industry. Shiwu believes that the reason Synutra delisted is mainly because Zhang Liang had foreseen that the new infant formula policy would cause Synutra's performance to decline, so they had to return to China in time, regroup, and then restart the listing process. According to Shiwu's in-depth understanding, it is unlikely that Synutra will restart its listing in the short term. The lesson from Synutra's delisting is that strategy must be forward-looking. When faced with sudden changes in the industry environment, you must stop the bleeding in time and decisively exit. Eighteen years later, you can still be a hero! Another dairy company that delisted and privatized from overseas is Yinqiao Dairy. In 2016, Yinqiao Dairy, which had been listed for 13 years, delisted from the Singapore Exchange. With the help of the Shaanxi provincial government, in November 2003, Yinqiao Dairy listed on the capital market by backdoor listing through the acquisition of TSM Resources, a mainboard-listed company on the Singapore Exchange, raising 380 million yuan. Yinqiao Dairy attached great importance to this listing and emphasized in multiple promotional occasions that it was "the first dairy company in China to successfully list overseas." Yinqiao Dairy is the largest dairy company in Northwest China. Founded in 1978, its founder Liu Guohua started with "five iron pots, six mu of land, and ten tiled houses" to establish its predecessor, "Xiangqiao Dairy Factory." It began producing milk powder in 1982 and has now become one of the dairy companies in Northwest China with the most complete product range, covering both cow milk and goat milk. Yinqiao Dairy is also a member of the China Dairy D20. Why did it privatize and delist after 13 years of overseas listing? This is a question worth discussing. A securities professional believes that the reasons for active delisting of Chinese concept stocks are usually two: poor stock liquidity and undervalued stock valuation. Shiwu's research suggests that Yinqiao Dairy's listing back then must have had considerations of government performance, as it was a "listing project" supported by the government, listing for the sake of listing. Of course, in previous years, the title of "the first domestic dairy company to successfully list overseas" also brought Yinqiao a lot of glory. But in recent years, Hongxing Meiling has also listed on the New Third Board, and Zhuangyuan Ranch, Tianrun Dairy, and Western Animal Husbandry have all gone public. Yinqiao Dairy, which is based in Shaanxi and the western market, no longer has the value of promoting its "listed company" status. The earlier it returns, the earlier it can prepare for an A-share listing. The lesson from Yinqiao Dairy's delisting is that listing for the sake of listing wastes time and energy, and face projects are not advisable. Source: Shiwu (ID: food-gnosis) New Distribution will hold the 2019 (5th) FMCG + Internet Conference during the Chengdu Spring Sugar and Wine Fair from March 16 to March 18. This conference will focus on the topic of "Breaking the Game" and conduct in-depth discussions with numerous brand owners, supply chain service providers, distributors, retailers, and others. Compared to previous conferences, this summit will be fully upgraded. In addition to original topics such as channel innovation, city distribution logistics, and distributor transformation, it will also add multiple parallel forums on new marketing cases, IP + FMCG empowerment, community group buying, and innovative retail. Through three days of ten high-density, high-quality expert sharing and exchanges, we believe every brand owner and distributor can learn the latest business models, expert opinions, and practical methods, finding new tools and methods for breaking the game in 2019 and returning to the track of high-speed growth. Conference Time: March 16-18, 2019 Conference Venue: Longfeng Hall, Chengdu Longemont Hotel Conference Topics 2019 5th FMCG + Internet Conference Date | Time | Venue | Topic 3.16 | Morning | Main Venue | B2B Special Session Afternoon | Main Venue | Regional Market Digital Precision Cultivation Main Venue | Brand Channel Digitalization Special Session 3.17 | Morning | Parallel Forum 1 | Social E-commerce Parallel Forum 2 | New Logistics, New City Distribution Afternoon | Parallel Forum 1 | How Does Community Group Buying Reconstruct the Value Chain? Parallel Forum 2 | IP Empowerment, Boosting Brand Growth 3.18 | Morning | Sub-Venue | New Marketing Open Class Parallel Forum 2 | How Can Distributors Achieve Iterative Upgrades? Afternoon | Sub-Venue | New Marketing Open Class Registration Method Registration is now open. Long press the QR code below or click "Read Original" to register. 66% off early bird special tickets are limited to 200, grab them now...! Add the conference team staff to register Click "Read Original" for more information -END-