Written by Zhou Xiangyue of AI Finance
Editor Zhang Shuo
The high price of the stock price soaring 203.98 on the first day of listing only lasted for one day. It benchmarked against Lao Ganma and was Zhongjing Food, the "number one stock in mushroom sauce" nicknamed "Old Godfather" by investors, has seen its share price plummet.
On November 24, Zhongjing Food’s stock price fell as soon as it opened in the morning. The intraday drop reached 8.11, and the stock price dropped to 111 yuan/share. Although it rebounded later, as of the close of the day, The drop still reached 3.19, with the stock price closing at 116.95 yuan per share, and the total market value was 11.695 billion yuan, a drop of 385 million yuan from the market value of 12.08 billion yuan at the closing price on the first day of listing.
However, even based on the closing price on November 24, the personal wealth brought to Sun Yaozhi, the boss behind Zhongjing Food, by the listing is as high as 2.033 billion yuan.
According to public information, long before Zhongjing Food went public, Sun Yaozhi had already appeared on the Hurun Rich List many times with his pharmaceutical company Wanxi Pharmaceutical and another listed company he controlled, Feilong Shares. , whose net worth was once as high as 2.5 billion yuan. However, after 2018, he gradually faded out of the major rich lists and became an invisible rich man in Nanyang, Henan Province. His industries cover many business sectors such as industry, agriculture, commerce, medical care, health care and food.
(Photo source: Visual China)
8.08 million bought the "Zhongjing" sign, which turned into 2.7 billion in 6 years
Public information shows that Zhongjing Food is located in Xixia County, Nanyang City, Henan Province, which was once known as the "Hometown of Mushrooms in China". Its official website even states that "Xixia is the hometown of Nezha and Qu Yuan."
But for Zhongjing Food and the invisible rich man behind it, Sun Yaozhi, the significance of Nezha's hometown and Qu Yuan's hometown may be far less important than the seven words "Hometown of Medical Saint Zhang Zhongjing". In fact, Sun Yaozhi has made huge profits in many fields such as medicine and food by relying on the "free endorsement" of the medical sage Zhang Zhongjing.
According to previous media reports, Sun Yaozhi was born in August 1951. He is from Neixiang County, Nanyang, adjacent to Xixia County. He enlisted in the army before he was 17 years old. He retired from the army a few years later and changed his career. He worked successively in Henan Provincial Geological Team, Henan Province Xixia County Material Station, and in 1979 entered a small pharmaceutical factory, Wanxi Pharmaceutical Factory, which was founded less than a year ago, and was promoted from a political worker to a deputy factory in just 4 years long.
In August 1984, 33-year-old Sun Yaozhi was transferred to the position of chief of the Personnel Section of the Xixia County Economic and Trade Commission, becoming the youngest section-level cadre in Xixia County at that time. However, after only half a year of working in the County Economic and Trade Committee, he was transferred back to Wanxi Pharmaceutical again and took over Wanxi Pharmaceutical as party committee secretary and factory director. However, at that time, Wanxi Pharmaceutical Factory was already in crisis, with wages unable to be paid, workers unemployed, and losses of hundreds of thousands of yuan.
Therefore, according to media reports, the first thing Sun Yaozhi did after taking office was to borrow 50,000 yuan to pay workers’ wages, and then made the factory’s backlog of “Dami Pills” In order to make concentrated pills, I personally led a team of five or six people including the deputy factory director and sales section chief to go north to Shenyang, south to Guangzhou, east to Shanghai, and west to Lanzhou. In 9 months, I traveled through 23 cities in 9 provinces, running While promoting sales, they learned advanced pharmaceutical technology and sought information on new drug development. They traveled more than 10,000 kilometers and staged a "Long March of Drugs."
What really made Sun Yaozhi the "first pot of gold" was a drug that mainly relieves women's menstrual pain. At that time, driven by Sun Yaozhi, Wanxi Pharmaceutical and Jiangsu Institute of Traditional Chinese Medicine jointly developed a new product "Dongmengbao Granules" and advertised on CCTV under the brand name "Yue Yueshu" to build momentum for the product. .
Relying on the high exposure rate of CCTV, "Yue Yueshu" achieved sales of 28 million yuan that year, which rose to 60 million yuan two years later, and reached 80 million yuan in 1996, which not only made Wanxi Pharmaceuticals quickly came back to life, leading it directly into a period of rapid expansion.
Data shows that by 1998, Wanxi Pharmaceutical's total assets had expanded from hundreds of thousands of yuan to tens of millions of yuan, and its sales of over 100 million yuan also made this company a local brand in Henan. Pillar industries. In the same year, Wanxi Pharmaceutical entered a period of internal reform. It took five years to step by step transform from a state-owned enterprise to a private enterprise, and Sun Yaozhi also became the actual controller.
(Picture source: Wanxi Pharmaceutical’s official WeChat account)
Wanxi Pharmaceutical’s second leap forward occurred in 1999. In this year, Sun Yaozhi defeated those from Henan and Shenzhen. A number of competitors from Hong Kong, Hong Kong and other places purchased the Nanyang Zhongjing Pharmaceutical Factory, which was on the verge of bankruptcy, at a cost of 8.08 million yuan and 150 workers, thereby acquiring the golden brand name "Zhongjing".
The following year, Sun Yaozhi named all Wanxi Pharmaceutical's products "Zhongjing" and followed suit on CCTV, advertising Zhongjing brand Liuwei Dihuang Pills with the slogan "Good medicinal materials, good medicine" , made Zhongjing Liuwei Dihuang Pills, a product that "treats kidney deficiency", into another flagship product of Wanxi Pharmaceutical.
In 2005, the "Zhongjing" trademark was rated as a well-known trademark in China. According to data, the trademark's valuation that year was as high as 2.7 billion yuan, equivalent to an increase of more than 300 times in six years. Another trademark of Wanxi Pharmaceutical, "Yue Yueshu", was recognized as a well-known trademark in China as early as 2002.
10 million yuan in exchange for a net worth of 2.5 billion,
The invisible rich in Nanyang compete in the capital market
Sun Yaozhi’s ambitions are obviously not just in the medical field.
As early as September 2001, Sun Yaozhi extended his tentacles to the auto parts industry. Through Wanxi Pharmaceutical, he spent 10 million yuan in exchange for a troubled automobile water pump supplier, Xipump Co., Ltd. 74 of shares.
It was with this company that Sun Yaozhi made his capital market debut. On January 11, 2011, Xipump Co., Ltd. was listed on the Small and Medium Enterprises Board of the Shenzhen Stock Exchange with the aura of “the largest automobile water pump and exhaust manifold manufacturer in China”, becoming the third listed company in Nanyang City and the first listed company in Xixia County. The stock price closed at 38.58 yuan per share on that day, an increase of 7.17%.
However, in the following years, Xipump's share price showed a "U-shaped" change, falling to about 12 yuan in 2012 and then rebounding against the trend to a maximum of 86.16 yuan per share at the end of 2015. Also this year, Sun Yaozhi broke into the 2015 Hurun Rich List with a net worth of 2.5 billion yuan, ranking 1,496th on the list.
Since then, Xipump’s share price has fallen again, but Sun Yaozhi’s net worth has remained between 2 billion yuan and 2.5 billion yuan. In 2018, he last appeared on Hurun List with a net worth of 2.3 billion yuan. On the rich list.
According to the latest data, as of the close of trading on November 24, the share price of Xipump Co., Ltd., which has been renamed Feilong Co., Ltd., closed at 6.37 yuan per share, with a total market value of 3.19 billion yuan. Only Sun Yaozhi’s personal holding of 16.38 Calculated based on the share ratio, the value of its stock holdings is approximately 523 million yuan. In addition, it also cashed out approximately 440 million yuan by reducing its holdings at the high stock price around 2016.
(Photo source: Wanxi Pharmaceutical’s official WeChat account)
Simply entering the auto parts industry obviously does not satisfy Sun Yaozhi. In 2002, he registered and established Zhongjing Kitchen (the predecessor of Zhongjing Food), which is mainly engaged in the research and development, production and sales of pepper oil and other seasoning ingredients. In 2008, he was the first to launch Zhongjing mushroom sauce, which is known as the domestic mushroom sauce. The pioneer of sauce category.
Sun Yaozhi and Wanxi Pharmaceutical obviously benefited from the listing of In the field of investment, "Wanxi Holdings" focuses on the investment direction, including Zhongjing Food Equity, Xipump Equity, real estate, tourism and other related assets.
In September 2015, Zhongjing Kitchen disclosed its prospectus for the first time, starting a five-year IPO race. In 2016, Wanxi Pharmaceutical also provided registration guidance with the Henan Securities Regulatory Bureau. Once Zhongjing Kitchen and Wanxi Pharmaceutical successfully IPO, Sun Yaozhi will gather the Wanxi Group's "troika" in the capital market.
In 2015, IPO was launched for the first time, but after waiting for 17 months, it failed due to reasons such as rapid inventory growth and the high proportion of third-party payment in revenue. In April 2017, Zhongjing Kitchen regrouped and rushed for an IPO again. However, it was rejected due to violations of the controlling shareholder's disclosure letter, production license violations, and the company's increase in revenue without increasing profits. It was shut out of the capital market for the second time. In June 2019, Zhongjing Kitchen made three IPO attempts under the new name of "Zhongjing Food" and replaced all the guidance institutions, sponsor institutions and audit institutions, but still failed.
It was not until the fourth sprint in March 2020 that Zhongjing Food finally passed the meeting in August and officially landed in the capital market on November 23.
I earn 600 million a year from selling mushroom sauce. Do you want to call me the boss?
According to the latest prospectus, Zhongjing Food’s current products mainly include Zhongjing mushroom sauce, Jindao beef sauce, Zhongjing seasoning oil, etc. From 2017 to 2019, they achieved revenue of 517 million respectively. Yuan, 530 million yuan and 628 million yuan, net profits attributable to the parent company were 79.3615 million yuan, 81.5339 million yuan, 91.6381 million yuan, showing steady growth.
In the first half of 2020, due to the booming stay-at-home economy caused by the epidemic, its revenue and net profit attributable to the parent increased by 20.94 and 45.05 year-on-year, reaching 349 million yuan and 64.4801 million yuan respectively; the expected revenue in 2020 Revenue will reach 713 million-735 million yuan, an increase of 13.47-17.02 over the same period in 2019; net profit attributable to the parent company will be 124 million-140 million yuan, an increase of 35.22-52.23 over the same period in 2019.
(Source: Zhongjing Food’s official WeChat public account)
Specifically, mushroom sauce is still its flagship product. From 2017 to the first half of 2020, 4509 were sold respectively. million bottles, 34.79 million bottles, 36.83 million bottles, and 25.75 million bottles. Among them, the 210-gram mushroom sauce accounts for about 90% and is the largest source of profit from Zhongjing Food’s main business.
Data shows that from 2017 to the first half of 2020, the revenue of mushroom sauce (210g) was 234 million yuan, 183 million yuan, 204 million yuan, and 146 million yuan respectively, and the gross profit contribution rate reached 54.66 and 146 million respectively. 42.73, 41.66, 49.87.
The reason why mushroom sauce (210g) can become the king of gross profit contribution rate of Zhongjing Food is inseparable from the ultra-high gross profit rate of this single product.
The prospectus shows that from 2017 to the first half of 2020, the ex-factory prices of mushroom sauce (210g) were 5.66 yuan/bottle, 5.99 yuan/bottle, 6.46 yuan/bottle, and 6.23 yuan/bottle, respectively. The cost is only 2.59 yuan/bottle, 2.77 yuan/bottle, 2.98 yuan/bottle, and 3.09 yuan/bottle. During the same period, the gross profit margin reached 54.34, 53.86, 53.85, and 50.41 respectively.
According to a search by AI Finance on major e-commerce platforms, the price of mushroom sauce (210g) is generally more than 10 yuan.
On the JD.com platform, the unit price of the best-selling mushroom sauce is 12.5 yuan/bottle, while in the Zhongjing Food Tmall flagship store, the top-selling mushroom sauce is priced at 29.9 yuan/2 bottles, each bottle (230g) Nearly 15 yuan.
At the same time, its seasoning products are sold to more than a thousand customers, including Jinmailang, Master Kong, Haidilao, Unilever, Givaudan, Shuanghui, Angel, Jinluo, etc. The dealer channels of multiple brands and seasoning foods cover major well-known supermarkets and other wholesale and retail channels such as Yonghui, China Resources Vanguard, Carrefour, and Hema.
This may be the reason why Zhongjing Food dares to "challenge" Lao Gan Ma. According to its prospectus, Laoganma, Haitian Flavor Industry, and Jixiangju are all listed as major competitors by Zhongjing Food, with Laoganma as the leader.
However, in the eyes of industry insiders, compared with Laoganma’s sales revenue of over 5 billion yuan in 2019, Zhongjing Food is still difficult to shake Laoganma’s market position in the short term, and with the Laoganma, Haitian Flavors, etc. have successively launched mushroom sauce products. The mushroom sauce market that Zhongjing Food was once proud of will also face greater competitive pressure.
However, from Sun Yaozhi's perspective, the listing of Zhongjing Food is obviously another milestone in his entrepreneurial career. So far, Sun Yaozhi has formed two listed companies, with industries covering auto parts, medical , commerce, real estate, food, health and other industries, the prototype of the "Wanxi system" has begun to emerge.
According to the Tianyancha App, Sun Yaozhi is currently the legal representative of 14 existing or in-service companies, and the executive of 73 existing or in-service companies, relying only on Wanxi Pharmaceutical and Wanxi Holdings. The two companies have actual control over 65 companies, including Nanyang Zhang Zhongjing Pharmaceutical Co., Ltd., Henan Shijin Building Materials Co., Ltd., Hainan Zhang Zhongjing Health Center Co., Ltd., Shanghai Zhang Zhongjing Pharmacy Co., Ltd., and Nanyang Fortune Real Estate Co., Ltd.