Produced by: Sina Finance Venture Capital Plus
Author: Yishe
"the first share of high-end snacks"Recently announced that its wholly-owned subsidiary Ningbo Guangyuan Juyi Investment Co., Ltd. intends to hold Yichun Zhao.3% equity of Technology Co., Ltd. (hereinafter referred to as Zhao Yiming Snacks) was transferred to Shanghai Yihai Enterprise Management Consulting Partnership (Limited Partnership) and Xiamen Heiyi No.3 Overseas Connection Venture Capital Partnership (Limited Partnership) at a total price of about 105 million yuan (hereinafter referred to as Xiamen Heiyi No.3). Now the equity transfer transaction has been completed, and the good shop has completely disappeared from the shareholder list of Zhao Yiming Snacks.
According to the public information of Tianyancha, the executive partners of Shanghai Yihao and Xiamen Heiyi No.3, the transferees of this transaction, are all Gongqingcheng Yiyuan Investment Partnership (Limited Partnership). The major shareholders of this entity are He Yu and Zhang Peiyuan, founding partners of Black Ant Capital, a venture capital institution in the consumer field, and the actual controller Hainan Yilue Investment Co., Ltd. is also closely related to Black Ant Capital.
It is worth mentioning that the controlling shareholder of Shanghai Yihai is Suzhou Black Ant No.3 Equity Investment Partnership (Limited Partnership), which, together with Xiamen Heiyi No.3 and BA HM Hong Kong Limited, is the investment platform for Black Ant Capital to participate in Zhao Yiming Snacks Round A, holding 2.3%, 3.5% and 1.2% respectively before the transaction. Together with the 3% equity transferred this time, Black Ant Capital holds a total of 10% of the shares of Zhao Yiming Snacks through four affiliated entities, and it is also the only institutional investor at present.
Good shop: fast-forward and fast-out, IRR is over 800% fully incubating sub-brands?
For good shops, this is undoubtedly an extremely successful financial investment.
In February, 2023, Zhao Yiming Snacks, a snack collection store brand, announced the completion of the first round of financing of 150 million yuan, which was led by Black Ant Capital and followed by good shops. According to the information in the semi-annual report of Liangpin Shop in 2023, the company’s total investment in Zhao Yiming snacks is 45 million yuan.
According to the record of industrial and commercial changes, the investment of this round of financing was not officially received until May 30 and the equity change was completed. On October 18th, Liangpin Store withdrew with a consideration of 105 million yuan, and the actual investment time was less than five months. Based on the simple calculation of the above publicly disclosed information, the book investment return rate of this investment is about 133.33%, and the IRR is as high as 811.88%. Liangpin Store also stated in the announcement that the company will generate investment income of 60 million yuan at the level of consolidated statements in the current period.
Fast forward and fast out, but it is difficult to hide the loss of the main business of the good shop.
In the first half of 2023, the total revenue of good shops was 3.987 billion yuan, down 18.55% year-on-year. The net profit returned to the mother after deduction was 124 million yuan, a decrease of 3.49 percentage points compared with the same period in 2022. For the first time since 2015, both revenue and net profit fell. Among them, the sales of e-commerce business, which has contributed more than half of the total revenue for a long time, fell sharply by 32.43% and 40.92% for two consecutive quarters.
Offline performance is also not very optimistic. By the end of the reporting period, the total number of offline stores in the company was 3,299, only 73 new stores were added compared with the end of 2022, and 250 stores were closed. At the previous performance conference, Liangpin Store had expected to open 1,000 new stores in 2023, which means that there will be an average of over 28 new stores every week in the second half of the year.
Good shops with poor performance have lost the "first share" aura in the capital market.
In May and June, 2023, the company issued two reduction announcements in succession, indicating that Dayong Co., Ltd., a subsidiary of Today Capital, plans to reduce its holdings by no more than 24.06 million shares through centralized bidding or block trading within six months. Zhuhai Gaoying Tianda Investment Center (Limited Partnership), HH LPPZ(HK)Holdings Limited and Ningbo Gaoying Zhiyuan Enterprise Management Partnership (Limited Partnership) under Gaoying Capital will reduce their holdings by no more than 4.01 million shares through centralized bidding within three months. As of the date of publication, the market value of good shops has evaporated by 49.19% compared with the highest point in the year.
However, the investment of hundreds of millions of yuan in Zhao Yiming snacks is obviously only a drop in the bucket to reverse the overall situation. The move of the good shop may be intended to concentrate on incubating the sub-brand snack stubborn families in the sub-division of snack collection shops to avoid vicious competition in the future.
According to the public information disclosed by Tianyancha, the trademark of Snack Wanjia is registered under the name of Hubei Qianbaiwei Food Co., Ltd. (hereinafter referred to as Qianbaiwei Food), and its largest shareholder is Ningbo Guangyuan Juyi Investment Co., Ltd., which has invested in Zhao Yiming snacks. In September 2023, Qianbaiwei Food completed two rounds of capital increase, and the registered capital increased from 2.92 million yuan to 4.3512 million yuan. According to public reports, good shops plan to help stubborn snacks open 500 stores this year.
Zhao Yiming Snacks: The number of stores has surged and the valuation has risen, but franchisees have difficulty making money.
According to the White Paper on Retail Industry of Domestic Discount Snacks released by Euromonitor Consulting, the retail sales of domestic discount snacks in 2022 was about 41.9 billion yuan, and the total number of stores exceeded 13,000.The research report also shows that the number of stores in the national snack collection stores will increase by over 100% from 2021 to 2022. According to incomplete public statistics, in 2022 alone, 11 related enterprises obtained financing, with the total amount of financing exceeding 1.3 billion yuan.
Hot money surged under the tuyere, and Zhao Yiming snacks took off.
Founded in 2019, Zhao Yiming Snacks will be fully open to join in 2020. By December 2022, there were over 700 stores nationwide. After obtaining 150 million yuan financing at the beginning of the year, the company raced around the sinking market with great fanfare, adding 1,000 stores in six months. According to public reports, 108 new snack shops were opened in Zhao Yiming during the National Day this year. Of the 1638 stores included in the data of Narrow Door Dining Eye, over 76% are new stores opened in 2023.
With the joining mode to seize the market quickly, the performance of Zhao Yiming snacks is also rising. During the National Day, the total sales of more than 2,300 offline stores exceeded 413 million yuan, and 10.75 million consumers were received. According to the announcement of the stock transfer transaction of Liangpin Shop, the total revenue of snacks in Zhao Yiming in 2022 was about 1.215 billion yuan, and the net profit was 38.44 million yuan. In the first half of 2023, the company’s total revenue reached 2.786 billion yuan, and its net profit was about 76.31 million yuan, which directly caught up with established players.
Or because of this, its post-investment valuation has soared. On the completion of the A round of financing in February this year, Black Ant Capital and Liangpin Shop acquired 10% equity of Zhao Yiming Snacks for 150 million yuan, and the company’s valuation was about 1.5 billion yuan. In October, when Liangpin Store sold its 3% stake for 105 million yuan, the post-investment valuation of Zhao Yiming snacks had risen to 3.5 billion yuan, which was 2.3 times in just eight months.
However, there are hidden worries behind the capital carnival.
According to Zhao Yiming Snack official website, eligible franchisees need to invest 38,000 yuan in initial joining fee, 20,000 yuan in deposit and 800 yuan’s brand management fee every month. In addition, the cost of equipment, decoration and initial purchase is 330,000-470,000 yuan, and the comprehensive cost of a 150-square-meter store is 550,000-600,000 yuan.
And according toThe recently released report "Industry Research of Discount Snack Shop" reveals that snack collection shops bypass traditional distributors and directly purchase from manufacturers in batches, and the commodity prices are generally lower than those of supermarkets, convenience stores and other formats by more than 20%. At the same time, the area of offline stores usually exceeds 100 square meters, and there are about 1,600-2,000 SKUs, which is extremely fast. To a certain extent, this means that the unit price of snack shop customers is not high, but it is difficult to compress the fixed expenses such as rent, water and electricity and manual operation. It is a business with small profits but quick turnover.
Based on the single store model, the average daily sales of the store is 12,000 yuan, the gross profit margin is about 18%-22%, the net interest rate is about 5%-7%, and the monthly net income of the single store can reach 18-25,000 yuan. The franchisees of Zhao Yiming snacks want to recover the input cost of 550,000-600,000 yuan, ranging from 2 years to over 33 months.
As brands such as Box Horse and Yonghui join the war, the density of stores in the same business district is increasing, and the homogenization of goods is becoming more and more serious, it is difficult for consumers to maintain high repurchase behavior after the heat fades, and it is even more difficult for franchisees to keep the already low net interest rate. Contradictions between franchisees who don’t make money and the headquarters that guarantee the harvest in drought and flood may eventually be difficult to avoid.