Blue Moon Plans to Raise HK $ 7.8 Billion Through Hong Kong Stock Exchange Hearing

Original Caption: Blue Moon Intends to Raise HK $ 7.8 Billion Through Hong Kong Stock Exchange Hearing

In the first half of the year, online networks contributed almost 60% of revenueproductThe median sales price continued to fall.

On November 18, Blue Moon Group Holdings Limitedthe company(Hereinafter “Blue Moon”) passed the listing hearing on the Hong Kong Stock Exchange, which means that it will soon be listed on the Hong Kong Stock Exchange.Main board listing。

The prospectus updated after the hearing showed that Blue Moon plans to raise US $ 1 billion (equivalent to HK $ 7.8 billion), with Bank of America, CICC and Citigroup as joint partners.Sponsor。

　　Increased share of online income

According to the data, Blue Moon, established in 1992, is one of the first national professional brands engaged in the production of household cleaners, and has established four production bases in Guangzhou, Tianjin, Kunshan and Chongqing. The current products cover three categories of laundry cleaning care (mainly laundry detergent), personal cleaning care (mainly hand sanitizer) and home cleaning care, accounting for 87.6%, 5.9% and 6 , 5% of the company’s total income, respectively.

At the end of 2019, in terms of retail sales, Blue Moon had the largest market share in the continental laundry detergent market, the concentrated laundry detergent market and the hand sanitizer market, with 24.4%, 27 , 9% and 17.4% respectively.

The prospectus shows that2017-2019, Blue MoonOperating incomeIt increased from HK $ 5.63 billion to HK $ 7.05 billion, during the same period the company returnedNet profitIt also increased from HK $ 86 million to HK $ 1,080 million. In the first half of this year, Blue Moon’s revenue was HK $ 2,436 million and net profit was HK $ 302 million.。

The 21st Century Business Herald noted that online channels contributed a significant proportion of its revenue structure. According to the data, at the end of last year, the revenue generated by Blue Moon’s online sales channel was HKD 3.3 billion, which represents 47.2% of the total revenue. In this year’s epidemic, thanks to the increase in people’s online shopping behavior, the proportion has risen even more.As of June 30 this year, the revenue generated by Blue Moon’s online sales channel was HK $ 1.4 billion, representing 58.8% of total revenue.。

It is worth noting that Blue Moon, which once pulled out of hypermarket channels, has successively rebuilt its offline channels over the past three years. Prospectus shows that in 2017, 2018, 2019 and the first half of this year. , the company added 225, 390, 315 and 247 offline stores, respectively.DistributionQuotient.

　　The median sale price keeps falling

Currently, Luo Qiuping is the CEO of Blue Moon and his wife Pan Dong is the chairman of the company’s board of directors. The shareholding structure shows that Luo Qiuping, Pan Dong and his wife, through the investment holding company in overseas ZED (with 88.7%) and Van Group Limited (with 0.22%), collectively own the sole ownership of Blue Moon.shareholder88.92% of the share capital of Aswann Company. In addition, Hillhouse Capital owns 10% of Aswann.

In June this year, Blue Moon declared a special conditional interim dividend of HK $ 2.3 billion for the sole shareholder (ie Aswann). This amount not only exceeds the total dividends paid by Blue Moon in the past, but it also exceeds the company’s total earnings in the last three years.borrowHelp this assaultDividends, Luo Qiuping and his wife had “pocketed” nearly HK $ 2.05 billion, and Hillhouse also received HK $ 230 million. In the previous eight years, Blue Moon had accumulatedDividendsLess than 400 million.

In the past ten years, Blue Moon, which has seized the two market dividends of consumer improvement and online shopping, has successfully entered the first echelon of the daily chemical industry, but the cleaning and The company’s household detergents has started to slow down in the past two years.

According to data from the National Bureau of Statistics, the main operating income of China’s detergent industry in 2018 fell from 175.8 billion yuan in 2017 to 147.4 billion yuan.profitIt also fell from 12.9 billion yuan in 2017 to 10.3 billion yuan. Throughout 2018, China’s detergent output (synthetic powder detergent, body wash and soap) was about 10.19 millions of tons.industryThe research institute estimates that China’s detergent production in 2019 will be around 10 million tons.

Statistics from the China Laundry Industry Association also support this turnaround. Data shows that China’s soap and detergent manufacturing industry is above scale in 2019companyMain business incomeFrom 151.62 billion yuan in 2018 to 108.46 billion yuan, a year-on-year decrease of 1.77%. ; The total profit was 10,578 million yuan, a year-on-year increase of 45.64%; the profit rate was 9.75%. From January to June this year, the detergent industry operating income was 47.467 million yuan, a year-on-year decrease of 4.71%; total profit was 4.052 billion yuan, a year-on-year increase of 29.70%; the profit rate was 8.54%.

2017-2019, the hair of the blue mooninterest rateHejinginterest rateSignificant growth has been achieved. The prospectus shows that Blue Moon’s gross profit margin for the three years was 53.2%, 57.4% and 64.2%;Net profitThe rates were 1.5%, 8.2%, 15.3%. In the first half of this year, Blue Moon’s gross profit margin and net profit margin were 64% and 12.39%, respectively, the gross profit margin is much higher than that of the industry. Blue Moon said it is mainly affected by raw materials.priceCaused by the decline.

The journalist noted that Blue Moon sold 574 million kilograms of products last year, an increase of 9.4% year-on-year, but the average selling price fell 4.7% to HK $ 12.3 / kg, which which resulted in annual revenue growth of just 4.2%, which was significantly higher than the 20.2% in 2018. Slow down.In the first half of this year, the average selling price of Blue Moon products fell further to HK $ 10.9 / kg.

For the drop in average selling prices, Blue Moon blamed the impact of the new coronavirus outbreak. “Due to the temporary reduction of outdoor activities by consumers to maintain social distancing during the novel coronavirus outbreak, overall consumer demand for clothing care products has weakened, which has generated greater discounts on products for the care of cleaning clothes ”. Blue Moon specifically mentioned: This has a more serious impact on Supreme brand concentrated laundry detergent, which has a higher average selling price.

According to Blue Moon, the ban on the coronavirus outbreak and reduced consumer traffic on offline channels have prevented the company from deploying sales staff to offline hypermarkets to help consumers better understand the value of these. products, leading to clean clothes. The return on care products is approximately HK $ 149.8 million.

It is understood that the funds raised by the Blue Moon IPO will be used for capacity expansion, machinery and equipment, laundry services, brand recognition, sales and sales.Distribution network, Increase product penetration, operating capital, research and development, and strengtheninformation technologyinfrastructure. If it can be listed in Hong Kong for funding, then Blue Moon’s further development can be expected.

(Author: Yebi Hua, Wu Junyao Editor: Li Qingyu)

(Source: 21st Century Business Herald)

(Responsible editor: DF398)