"Harbor Business Observer" Wang Xinyi Li Lei
"If there are cats and dogs, there will be McFudi, which is directly supplied from the world's 9 major natural food origins and exported to 33 countries in Europe, America, Japan and South Korea." This is the official website of Guabao Pet Food Group Co., Ltd. (hereinafter referred to as Guabao Pet), which introduces its well-known product McFudi.
Since submitting its prospectus on December 29 last year, Guobao Pets has been working hard on the listing process. On June 21, Guobao Pets updated its prospectus and responded to the second round of review inquiry letters.
Guabao Pet was established in 2006. The company is committed to the research and development, production and sales of pet dog and cat food. Its main product categories are snacks, staple food, health care products and others.
01
The dealer model was focused on inquiry
The prospectus shows that from 2019 to 2021, Guobao Pet’s operating income was 1.403 billion yuan, 2.013 billion yuan and 2.575 billion yuan respectively, and its main business income was 1.4 billion yuan and 2.005 billion yuan respectively. Yuan and 2.560 billion yuan, the gross profit margins of the main business were 28.87%, 33.12%, and 32.79% respectively, and the net profit margins were 0.3%, 5.54%, and 5.51% respectively.
In the main business income, snacks accounted for 63.67%, and staple food accounted for 35.62%.
Guabao Pet said that from 2019 to 2021, the compound growth rate of the company’s main business income reached 35.22%, which is a rapid growth. During the reporting period, the company's overseas business income accounted for 46.07%, 48.17%, and 47.88% of its main business income respectively.
The prospectus also shows that the balances of Guabao Pet’s accounts receivable are 122 million yuan, 108 million yuan, and 190 million yuan respectively, accounting for 8.71%, 5.40%, and 7.39% of the current operating income respectively; before accounts receivable The sum of the accounts receivable balances of the five customers accounted for 51.84%, 53.52%, and 61.84% of the accounts receivable balance respectively.
In terms of sales contribution, dealers account for a large share of the market. According to Guabao Pet, the company’s top five customers are mainly overseas large-scale consumer retail enterprises, pet food brand operators, and domestic online distributors under the OEM/ODM model. The company’s largest customer is the American chain retail giant Walmart .
During the reporting period, the number of Guabao Pet dealers in each period was 1,065, 1,050 and 961 respectively. During the reporting period, the company's distribution business revenue increased year by year, and the number of dealers gradually decreased. The main reason was that the company vigorously developed online distribution channels and reduced offline distribution cooperative stores with smaller amounts. From 2019 to 2021, the number of dealers above designated size (annual sales of more than 500,000 yuan during the reporting period) were 152, 165 and 166 respectively, accounting for 92.10%, 92.54% and 94.06% of distribution revenue respectively. The proportion is high and rising.
The inquiry letter pointed out that (1) the quantity, average amount, and overall sales amount of different levels of distribution in each period are stratified by sales amount, indicating that the income of offline dealers is showing a fluctuating trend when the number of offline dealers is declining year by year. The reasons and rationality, focusing on the reasons for the trend deviation in 2020;
(2) Combined with the main differences between the consignment model and the distribution model, explain the reasons why Jiangsu Maleduo Technology Co., Ltd. converted to the consignment model; distributors converted to consignment sales Under the model, how will the original distributor's stocking inventory be accounted for? Whether there were other distributors switching to the consignment model during the reporting period? If so, explain the customer name and sales amount;
(3) Further analyze and explain the special relationship Reasons and rationality why the sales gross profit margin of dealers (who are company employees, former employees and their relatives working or holding shares) is higher than the gross profit rate of non-special relationship dealers, and whether there is any major abnormality in the monthly sales amount distribution of the above special relationship dealers;
(4) explains the reasons and rationality for dealer income to increase month by month since July 2021 and the change trend in December is significantly different from previous years. The sales amount in December 2021 has increased faster than the sales amount in December 2020. The name of the dealer and the sales amount.
Guabao Pet replied that during the reporting period, the issuer’s offline distribution was mainly dealers with annual sales between 500,000 and 3 million, and their sales accounted for 55.70% and 50.76% of the offline distribution sales respectively. % and 58.99%. In addition, because the issuer does not have a first-level dealer in Beijing, it mainly sells directly to terminal stores through Beijing Maifudi, resulting in a large number of small-scale dealers (sales amount less than 500,000 yuan). During the reporting period, due to The company's offline channel sales strategy and team personnel adjustments have gradually reduced the number of smaller and less qualified dealers in Beijing and other areas. The number of dealers with sales of less than 500,000 yuan in 2020 and 2021 dropped by 32 and 130 respectively. Therefore, the overall number of offline dealers shows a downward trend.
02
The proportion of sales expenses is much higher than that of peers
. It should also be noted that the sales expenses and research and development expenses of Guobao Pets.
During the reporting period, Guabao pet sales expenses were 246 million yuan, 264 million yuan and 356 million yuan respectively, accounting for 17.53%, 13.12% and 13.82% of operating income respectively.
Compared with the industry average, Guabao Pet sales expenses appear quite high. During the reporting period, the industry average ratio of sales expenses to revenue was 8.42%, 5.79% and 5.05% respectively.
Guabao Pet introduced that compared with companies in the same industry, the company's sales expenses in each reporting period and the proportion of operating income were higher, mainly due to the company's own brand revenue accounting for a higher proportion and related sales expenses being higher. The company's and comparable companies' own brands are mainly deployed in China, and the proportion of domestic revenue reflects the proportion of self-owned brand revenue to a certain extent. For overseas business, most of the revenue comes from OEM/ODM, and sales expenses are lower compared to the domestic market.
In terms of research and development expenses, Guobao Pets’ research and development expenses were 35.5263 million yuan, 44.0505 million yuan and 59.3617 million yuan respectively during the reporting period, accounting for 2.53%, 2.19% and 2.31% of revenue respectively.
It is reported that the overall R&D expenses of Guobao Pets are the same as those of comparable companies in the industry, but the R&D expenses in 2021 will undoubtedly be lower than in 2019, and the company's operating income has increased by more than 1 billion in these three years.
03
McFoody Foods has been subject to widespread complaints this year.
Whether it is in the prospectus or on the official website, Guobao Pets attaches great importance to McFoody Foods.
The company declares on its official website that McFoody's values ​​are: not just producing pet food, but starting from love, committing to the public welfare of animal protection, and becoming an influential pet food company in China.
According to the prospectus, the company's own brand "McFudi" won the first place in the 2021-2022 Tmall TOP Brand Ranking (Pets), the first place in the MAT12021 dog and cat food brand Tmall sales list, and also became the first in the industry. MAT2021 is the most popular pet food brand among Generation Z. In addition, "McFudi" has won the "Annual China Quality Award" and " Tmall Most Popular Brand among Consumers" at the Asian Pet Expo in 2019 and 2020; the "Annual Classic Food of the Year" at the Asian Pet Expo in 2021 Brand Award" and "Annual Innovation Model Award" and many other honors.
However, it is such a well-known product that the company attaches great importance to and has a lot of contact with consumer terminals. On the Black Cat Complaints platform, there are many complaints about McFoody.
Black Cat complaints show that as of June 27, there were 130 results for searching McFoodie pet food, 45 complaints, and 23 have been completed.
Many consumers have complained that their pets experienced abnormal behavior after eating McFoody. A consumer complained on June 3 this year that after buying McFudi goat milk and meat pellet buns from Pinduoduo, the cat had blood in his stool, vomited and was diagnosed with kidney failure after eating it. The merchant did not admit that there was any problem with his food and shirked responsibility.
Some consumers complained on May 29: "Feeding started on the 27th, and by the 29th, six cats had symptoms of diarrhea and vomiting, and a large amount of sticky saliva. One cat has already died. Contact The customer service refused to deal with it and refused. During this period, the cats had not eaten any other food, and the cats had always been fed cat food and were in good health. After eating McFoodie cat food, the cats all showed symptoms of poisoning. "
Passed. According to the observation of black cat complaints, there have been many cases of abnormal symptoms after using McFoody in pets since 2022 alone. "Harbor Business Observer" tried to contact the Guabao Pet Board of Directors office many times regarding food quality and safety and listing development, but the call was answered as a fax sound.
"Consumers have a lot of affection for their pets. If the pet is sick due to food quality, it is best to find out what problems are in the food? Production and sales companies should pay great attention to it, and consumers will definitely not Hopefully the food will be defective, and if the food quality has a poor reputation, it will also affect the development of the company in the long run," a person related to the pet hospital emphasized to "Harbor Business Observer".
It is reported that Guobao Pet plans to raise 600 million yuan this time, of which 367 million yuan will be used for the expansion and construction project of the pet food production base, accounting for 61.23%. In addition, it is planned to use 71.9105 million yuan of raised funds for the smart warehousing upgrade project, 30.6048 million yuan for the R&D center upgrade project, 25.1126 million yuan for the information upgrade construction project, and 105 million yuan for supplementing working capital. (Produced by Harbor Finance)
