Three-year plan, step by step.

Editor’s note: This article from the micro-channel public number “FMCG” (ID: fbc180), of: Li Ke, Editor: orange.

Yesterday, Bloomberg News quoted a source as saying that the mainland non-alcoholic beverage manufacturer and the Jiaduobao Group, which owns the herbal tea brand “Jadobao”, plans to conduct an IPO in Hong Kong this year and needs to raise at least US$300 million before the IPO ( Equivalent to about 1.958 billion yuan).

The source pointed out that Jiaduobao is cooperating with advisors on pre-IPO financing and has already contacted several potential investors. Jiaduobao aims to be listed on the Hong Kong Stock Exchange as early as this year, but the timing and scale of the listing have not yet been finalized. The financing before this round of IPO is still under consideration, and the details may be adjusted.

According to information on JDB’s official website, at the end of February this year, Chairman Wang Jinchang of JDB Group and COFCO’s Party Secretary and Chairman Lu Jun exchanged views on further deepening cooperation.

At that time, Lu Jun affirmed the behavior of Jiaduobao Group and China Merchants Bank to repurchase the equity of COFCO Packaging through a syndicate, and said that in the future, Jiaduobao will further strengthen cooperation in the reorganization and listing of Jiaduobao. In addition, Zhao Ju, vice president of China Merchants Bank, said that in the future, China Merchants Bank and Jiaduobao Group will have further cooperation in debt and equity investment, which can speed up the process of Jiaduobao’s listing.

Industry analysts believe that Jiaduobao’s eagerness to go public is to solve the funding problem. After all, due to multiple losses, compensation, price wars and other factors, Jiaduobao has already lost money before and urgently needs to add fresh blood to improve its core operational capabilities, strengthen its anti-risk capabilities, and respond to the next stage of market competition.

Of course, the news that Jiaduobao wants to go public is not “news.”

As early as 2018, JDB President Li Chunlin stated to the public that the strategic goal of JDB in the future is to start a second business, increase revenue and reduce expenditure, integrate advantageous resources, and achieve the company’s successful listing within three years. According to the plan at that time, 2021 is indeed the year that Li Chunlin promised to go public.

JDB’s “three-year listing” plan can be described as step by step.

First of all, for this listing, Chen Hongdao provided an incentive for all employees to hold shares very early., From the person in charge of the office to the factory manager, will be involved.

Previously, FMCG has analyzed that in recent years, the opportunity for Jiaduobao to reorganize and go public is not getting smaller, but getting bigger. This is inseparable from President Li Chunlin. After he became the president of JDB, JDB became more pragmatic and did not compete with Wong Lao Kedah on price. Many old employees who had left returned to JDB.

In addition, Li Chunlin also invited back Chengmei Company, which helped Jiaduobao to locate in 2003-the real proponent of the advertising slogan “Afraid of getting angry and drinking Wanglaoji”. And many people who were not optimistic about Li Chunlin at first have to admit, “At the moment, he is the most suitable leader for Jiaduobao, and only his tenacity can bring Jiaduobao back to Xinglu.”

Fast Consumers believes that the return of personnel, the return of sales strategies, and the return of consulting companies will make JDB’s profit in 2019 with the cooperation of many aspects.

However, profitability does not mean the ability to go public. In fact, until last year, with the investment of a consortium led by China Merchants Bank and the assistance of distributors, Jiaduobao paid off the 1.5 billion yuan arrears of 30.58% shares of the concentrated liquid plant to COFCO Packaging and signed a new agreement. The strategic cooperation agreement cleared the biggest obstacle for listing.

And this “obstacle” was originally a “script” for COFCO Packaging to deliver charcoal in the snow.

In the later stage of the “red can battle” between Jiaduobao and Guangzhou Pharmaceutical Group, as banks and distributors were successively exposed to leave Jiaduobao, the operating pressure of Jiaduobao doubled. In 2017, COFCO Packaging, a wholly-owned subsidiary of COFCO Packaging, invested 2 billion yuan in Qingyuan Jiaduobao Beverage Co., Ltd., an absolute holding subsidiary of Jiaduobao Group, thereby holding 30.58% of the latter.

However, due to continuous factory layoffs, suspension of production, lawsuits, etc., Jiaduobao has been delayed in injecting the “3 billion yuan” Jiaduobao trademark into Qingyuan Jiaduobao Herbal in accordance with the capital increase agreement. The relationship between the two parties has become simplistic. The stalemate led to Jiaduobao’s “tanks break” and even the shutdown of the factory. It was not until the veteran of COFCO Wang Jinchang joined JDB and the two parties resumed cooperation before they began to jointly promote the listing process.

In fact, in the month when the repurchase was completed, JDB’s Chief Financial Officer Jin Jichuan revealed during CICC’s inspection and exchange that, “At present, JDB’s investment and listing work is proceeding in an orderly manner.” It is considered that the listing is nailed down. There is only time left for suspense.

However, it is undeniable that due to the internal friction among enterprises over the years, the overall decline in the herbal tea category has become a general trend. In the only remaining stock market, JDB’s competitive product Wanglaoji’s current scale is about 7 billion yuan, with a market share of nearly 70%, while JDB currently only has more than 3 billion yuan, and the channel inventory is still relatively serious. With the overall slowdown in growth, the market is still firmly in the hands of Wong Lo Kat, and it is obviously difficult for JDB to continue its expansion.

From actively withdrawing from the price war and seeking quality development, to consolidating the long-term established channel