Assault Bonus Doubt, Jiamei Packaging Sprint IPO

The iron tank supplier, Jiamei food packaging (Chuzhou) Limited by Share Ltd (hereinafter referred to as "Jiamei package") will be accepted by the trial Commission in October 17th.

The IPO, Jiamei packaging, intends to issue no more than 95 million 263 thousand and 100 shares of common stock, raising 814 million yuan for the construction of two and three canned production lines and replenish liquidity.

It is worth mentioning that, behind Origen (002701.SZ), there are Wang Laoji similar to red bull and COFCO packaging (0906.HK). Jiamei packaging is also deep "bundled" with the "most expensive new stock" of Shanghai stock market in 2018 (603156.SH), which has long been the first major customer in Jiamei packaging.

In addition, there is still a certain equity relationship between the two sides: Yao Kuizhang, the real controller of Yangyuan drink, indirectly owns 7.06% of Jiamei packaging through his holding company.

So, is this rush IPO, Jiamei packaging is fully prepared, with the Yuan Yuan drinks to join hands to become a good partner in the capital market?

Yuan Yuan drinks contribute 60% revenue

In November 2004, Jiamei packaging was formally established in Hebei Jiamei, mainly engaged in the production of three cans.

The cooperation between Jiamei packaging and Yuan Yuan drinks began in 2004, and has been in existence for 15 years.

At present, the main products of Jiamei packaging include three cans, two cans, aseptic paper packaging and PET bottles, which are mainly used for milk drinks and vegetable protein drinks, namely tea and other beverages, as well as bottled water packaging and filling.

The prospectus disclosed in December 2018 showed that in the 2015-2018 years and 1-6 months, the revenue of Jiamei packaging was 2 billion 920 million yuan, 2 billion 942 million yuan, 2 billion 740 million yuan and 1 billion 320 million yuan respectively. The net profit after deduction was 64 million 146 thousand and 200 yuan, 241 million yuan, 140 million yuan and 48 million 438 thousand and 300 yuan respectively.

The top five customers of Jiamei packaging include Yangyuan drinks, Wang Laoji, Yin Lu Group, Dali group, Xi Dadu, unified industry, etc. in 2015-2018 years and 1-6 months, the total sales revenue accounted for 84.74%, 76.99%, 72.45% and 80.32% respectively.

During the reporting period, the main beverage of "six walnuts" and 21 yuan of walnut drink has been the first largest customer in Jiamei packaging.

In June 2015-2018, the sales revenue of Jiamei packaging to Yuan Yuan drinks was 1 billion 777 million yuan, 1 billion 684 million yuan, 1 billion 506 million yuan and 7 billion 873 million yuan respectively, accounting for 60.83%, 57.25%, 54.84% and 59.49% respectively, and contributed more than 60% of the total revenue.

In addition, the prospectus shows that on the price, Jiamei packaging has given the Yuan Yuan drinks a lot of concessions. In 2018 1-6, for example, the average selling price of Jiamei packaging for three cans of Yuan Yuan drinks is 0.555 yuan, which is lower than the 0.583 yuan / cans of the silver heron group and the 0.601 yuan / cans of Daly group.

Correspondingly, Yuan Yuan drinks were shortened and Jiamei packed the cycle of repayment. The average account period of Yuan Yuan drinks was 10 days, much lower than the average 45 days of the heron group and the average period of 45 to 60 days of Daly food.

However, due to the deep dependence on a single customer, the performance of Jiamei packaging has been greatly fluctuated by the single product market, which has led to the fact that both sides are "one glory and one glory".

Prospectus shows that in 2017, the revenue of Jiamei packaging dropped 6.63% from 2016, from 2 billion 942 million yuan to 2 billion 747 million yuan, while the net profit after deducting Non Profits dropped from 241 million yuan to 140 million yuan, a decrease of 41.91%.

In this regard, Jiamei packaging explained that the main reason for 2017 is the cyclical weakening of downstream customer demand, including the maintenance of Yuan drinks, the shortened sales peak season, the rising purchasing cost of tinplate and accessories, and the failure to promptly transfer downstream customers.

In fact, the relationship between Jiamei packaging and Yuan Yuan drinks is not only simple for suppliers and customers.

Because of the deep binding with Yuan Yuan drinks, the SFC also asked for the history of cooperation between Jiamei packaging and Yuan Yuan drinks, indicating whether there was any relationship between the two sides.

In this regard, Jiamei packaging explained that "the company and the Yuan Yuan drinks are not related, but there is a certain equity relationship."

Specifically, in May 2014, Yao Kuizhang, a real person in charge of Yuan Yuan drink, signed a subscription agreement through his holding of Ya Chi Shun and cappman Cayman, subscribed 12 million shares for 150 million yuan and indirectly held 7.06% of Jiamei packaging.

This equity relationship was formed in 2014 when Jiamei packaging was planned for Hongkong listing.

In addition, the two sides are also closely related to the use of funds.

The prospectus shows that in May 2017, Jiamei packaging made a total of 80 million yuan to the company, and the loan purpose was mainly supplementary liquidity, but the loans were repaid in June 28, 2017 and July 7, 2017 respectively.

It is worth mentioning that Jiamei packing another big client, Xu Qingchun, a shareholder of the company, holds 40% of the company's 0.91% stake.

In this regard, a Hushang food industry told the twenty-first Century economic news reporter, "because of the particularity of the metal packaging industry, the relationship between suppliers and customers will be deeply bound, and will not easily replace suppliers, the behavior of shares is also more common."

IPO on the eve of the generous dividend 404 million yuan

From the perspective of capital market experience, Jiamei packaging predecessor, Jiamei limited controlling shareholder, was listed on the Korean market in Hongkong in March 2009. In 2013, 10 months later, Hongkong completed the Korean stock market retreat and completed its privatization in May 2014.

In addition, Jiamei packaging had planned to sell on H-share, but after its privatization in 2014, it planned to go public in A shares and complete the share reform in 2017.

In June 29, 2018, Jiamei packaging disclosed its prospectus on the official website of the securities and Futures Commission, and updated the prospectus in advance in December 20, 2018.

It is worth mentioning that Jiamei packaging has paid 404 million yuan in 2017, which is the eve of its decision to submit the listing application to the Securities Regulatory Commission. It is inevitable that the market will question the assault bonus on its eve of IPO.

Prospectus shows that during the reporting period, the predecessor of the issuer Jiamei Limited made five profit distribution.

From 2015 to 2017, Jiamei packaging paid cash dividends every year.

In November 2015, the Camry Limited board of directors deliberated and passed the profit distribution plan, distributing dividends 3 million yuan.

In January 8, 2016 and January 29th, Jiamei Limited issued a dividend of 2 million yuan and 5 million yuan, amounting to 7 million yuan.

A year later, in February 8, 2017, Jiamei limited posted a dividend of 30 million yuan. By August 9, 2017, Jiamei limited had a dividend of 374 million yuan.

That is to say, in the year of 2017, the cumulative dividends amounted to 404 million yuan, 40.4 times that of the previous two years.

For the question of assault bonus on the eve of IPO, the twenty-first Century economic news reporter sent an outline of the interview to Jiamei packaging, but as of press release, no reply was received.

In the prospectus, Jiamei packaging said that the dividend return plan for the next three years after the listing is that the accumulated profit is not positive at the end of the year, and the cash flow satisfies the normal operation and long-term development of the company. The profit accumulated in cash in the past three years is no less than 30% of the annual profit that has been realized in the last three years.