No matter what, spicy strips are an important field in the food industry, and the launch of Weilong spicy strips this time is also in line with common sense. Weilong submitted an application for listing on the Hong Kong Stock Exchange

On the 12th, the famous spicy bar brand Weilong submitted an application for listing. Morgan Stanley, CICC, and UBS are co-sponsors. The name of the company to be listed is Weilong. Delicious Global Holdings Limited?.

Wei Long said that China’s spicy strip snack market is relatively fragmented. Based on retail sales, the market share of the top five players will reach 10.7 by 2020. In 2020, Weilong ranked first in China's spicy snack food market with a market share of 5.7, making it the second largest player in the retail market 3.8 times, ranking first in the market share of seasoned noodle products and spicy snack vegetable products.

According to the listing application, Weilong's operating income increased year by year from 2018 to 2020, reaching 2.752 billion yuan, 3.385 billion yuan and 4.120 billion yuan respectively, with a compound annual growth rate of 22.4 from 2018 to 2020.

Specifically, the company's products include seasoned pasta products, vegetable products, soy products and other products. It is worth noting that since 2018, the revenue proportion of seasoned noodles, soy products and other products has decreased year by year, while the revenue proportion of vegetable products has increased significantly, from 10.8 in 2018 to 28.3 in 2020. However, seasoned flour products still account for the largest proportion of revenue, accounting for 65.3% in 2020.

From 2018 to 2020, the company's current liabilities and non-current liabilities continued to grow. In 2020, current liabilities and non-current liabilities were 1.168 billion yuan and 140 million yuan respectively, a significant increase from the previous year. Weilong mentioned that on May 4, 2021, the company announced a dividend of RMB 560 million to existing shareholders and plans to pay dividends in May 2021. Although the company currently has no formal dividend policy and no fixed dividend distribution ratio, the board of directors can declare dividends in the future after considering various factors.

Okay, that’s what I want to share in this issue.