At 9:19 am Beijing time on December 9, 2020, Lehuo Co., Ltd. (hereinafter referred to as "Lehuo") officially launched the global IPO roadshow live broadcast, and will soon land on the U.S. Nasdaq mainboard market as the "first stock in fresh new retail", with the stock code LOHA. The roadshow live broadcast is supported by a platform jointly provided by Sina, Huashengtong and Peanut Culture.
Lehuo roadshow team is affectionately called the "three high teams" by netizens, namely, high appearance, high quality and high ability. It is composed of Mr. Zhang Yanyue, founder, chairman and CEO of Lehuo, Ms. Shan Jiahui, founder, director and chief cultural officer of Lehuo, Ms. Huang Weijun, founder, director and chief good product officer of Lehuo, and Li Lanfang, IR manager of Lehuo investor relations. Zhang Yanyue, founder of
, introduced that Lehuo plans to issue 2.5 million Class A common shares, with a public offering range of US$8 to US$10 per share. The funds raised in this IPO will be mainly used for the following purposes: 20% are used to optimize and increase the construction of agricultural information technology, supply chain traceability systems and new retail technology research and development; 45% are used to strengthen the supply chain, including the expansion of new retail business at the base and sales ends; 35% are used as general working capital to ensure efficient, fresh and rapid circulation of Lehuoliang Products. The underwriting group consists of Maxim, Huasheng, Tiger, Futu, Prime Number and Benchmark.
prospectus shows that Lehuo is committed to agricultural information technology and fresh food supply chain management, and specializes in global high-quality fresh food (Lehuo Good Products) supply chain management and community new retail through its own mobile Internet of Things platform. Lehuo is one of the earliest companies in China to enter the new retail field of fresh food. It is committed to providing customers with high-end high-quality products, mainly including imported fruits, wild seafood, high-end meat, green vegetables and eggs, and nutritional dry goods. After 16 years of deep cultivation, Lehuo has established a deep moat in the fresh food field.
base direct procurement, community direct approval, community live broadcast
Lehuo built its own IoT information system, one end connected to the base end and the other end connected to the sales end, controlling product quality from the source, shortening the circulation link of fresh food, and giving consumers a truly good quality and high-priced experience. At the same time, the circulation costs are greatly reduced, benefiting the base, consumers and merchants.
Stable fresh food supply chain management system
As of March 31, 2020, Lehuo has established 102 overseas direct procurement bases and 5 domestic direct procurement bases in 16 countries around the world, providing more than 148 fresh, green and healthy products, including fruits, seafood, vegetables and eggs, etc. The proportion of imported fresh food is as high as more than 85%. All imported products have passed the corresponding national inspection and quarantine, US FDA, EU certification, CCIC, CNAS and other certifications, and meet the "low-carbon, green, organic, environmentally friendly, and fashionable" Lehuo good product standards.
LeHuo through its own mobile Internet of Things traceability platform, it realizes visual quality control traceability in the entire industrial chain such as product planting, production, processing and transportation, customs declaration and inspection, warehousing and logistics, terminal sales, etc. From base picking to packaging, main road transportation, urban distribution, to direct batch customers and small B-end customers, smart micro-superiors, community group buying, etc., use full-process cold chain temperature control technology, with zero warehousing and low loss, providing consumers with the greenest, organic, fresh and healthy happy products.
LeHuao has more than 140 direct wholesale merchants and more than 120 retailers in 44 cities. The base products are directly supplied to direct customers such as Wangpin, Jiawo, and Chongqing Hongjiu. The traditional direct brand business has a stable growth and considerable profits.
powerful technology empowers fresh new retail
Lehuo creates online group buying and offline 24-hour "scan code to buy" through its independently developed smart micro-super and mini-programs, solving the problems of the last 100 meters of fresh food in the community and distribution, and creating a community-free new retail with local city operators. Through order collection by self-built information reservation system, inventory and losses are reduced, and new retail business is driven through mini programs and APPs to ensure accurate and efficient circulation of fresh products.
Community new retail with intelligent micro-super as the carrier has now moved into 300 communities, supporting and serving 150,000 community group buyers to carry out group purchases, providing consumers with O2O community new retail services. After the epidemic, community new retail is the main growth point of Leihuo in the future.
Lehuo brand benefits and fan economy
According to reports,Lehuo has registered trademarks in 29 countries and regions around the world, and advocates a healthy and sustainable lifestyle around the world. The Lehuo community represented by the middle class is rising, achieving low-cost customer acquisition through private domain traffic with high stickiness and strong brand awareness. Lehuo takes food safety as the entrance and good products as the carrier, and passes happiness to every Lehuo tribe, every family, every community, and every city. Taking "making the whole world happy" as the corporate mission, advocating life is happiness.
accumulates strength and makes progress in the future, and it is expected that
Fresh food is the last fertile ground in the retail industry where there are no giants yet. iResearch Consulting Report shows that the market transaction scale of China's fresh new retail industry reached 279.6 billion yuan in 2019, an increase of 36.7% over the previous year. Affected by the epidemic in 2020, consumers' demand for fresh food has increased explosively, and the scale of fresh food new retail market has increased significantly. It is expected that by 2023, the scale of fresh food e-commerce transactions will reach 800 billion yuan, and there is huge room for imagination in the future.
In terms of model, the overall cost of community group buying is low, and it has grown explosively since the second half of 2018. In 2019, the transaction scale was 47.47 billion yuan, with a growth rate of 538.4%, showing a strong development momentum.
Relying on the advantages of the supply chain and first-mover advantages, Lehuo has become a fast-growing player on the fresh fresh new retail track. The prospectus shows that Lehuo's revenue compound growth rate in the past three years from 2017 to 2019 reached 35.7%, and the net profit compound growth rate reached 30%. It achieved double growth in revenue and net profit in the fierce market competition, and its development momentum was rapid.
In the fresh new retail industry, in addition to controlling hundreds of categories, it also involves strict supply chain management, diversified marketing and customer acquisition, etc., and these capabilities require long-term accumulation. Compared with Internet giants, Lehuo has built a strong supply chain advantage through forward-looking layout and has achieved rapid development.
This IPO will become the starting point of a new journey of happiness. After listing, Lehuo further strengthened its capital strength, and by leveraging the founding team's organizational capabilities in deep cultivation of fresh food, and relying on its own supply chain capabilities, it quickly deploys and promotes offline intelligent micro-superiors and community group buying businesses, completely opening up space for future growth.
