00106 / v2_2e19756a64f14a47b1b4d1e2bfce10f9_img_000 “data-img-size-val =” 709,462 “> According to media reports, as early as 2009, Wilmar International had planned to spin off 30% of China’s business and apply for listing in Hong Kong. At that time, the expected listing size was about 30- 4 billion US dollars, but encountered financial market turbulence in Hong Kong, the expected issue price can not meet expectations, the listing has been put on hold.

Until May 2017, Guo Kongfeng mentioned that China’s business is undergoing internal reorganization and may be listed separately. Arowana’s listing plan is considered to be on the agenda again.

Today, Yihai Kerry has made a comeback with arowanas and launched a sprint on the GEM.

However, although it has been separated from Wilmar International, Yihai Kerry still has a close relationship with its business and there is a large amount of related procurement.

Yihai Kerry’s related parties Fengyi International and ADM have long been among its top five suppliers. “Bullet Finance” calculated based on the data disclosed in the prospectus. In 2016-2018 and the first half of 2019, Yihai Kerry’s purchases of Wilmar International and ADM were 17.334 billion yuan, 22.727 billion yuan, 19.249 billion yuan and 5.176 billion yuan respectively. Yuan (only Wilmar International) accounted for 15.71%, 17.15%, 13.67% and 8.77% of total raw material purchases (only Wilmar International).

Affiliated transactions have always been one of the focuses of the development committee. Yihai Kerry has been preparing for listing for many years, but the controlling shareholder still ranks among the top five suppliers, which has also caused some doubts outside the world and concerns about the transfer of benefits.

In response to the question, the office of Yihai Kerry’s Board of Directors responded to “Bullet Finance”: “About the related party transactions with the major shareholder Fengyi International, it is mainly the purchase of palm oil from Fengyi International. The company’s oils and fats Technology, food industry and other business areas have greater demand for palm oil, and Wilmar International is the world’s largest manufacturer and trader of palm oil products. Therefore, the company will purchase a larger number of palm oil products from Wilmar International, etc. . “

The office of the Board of Directors of Yihai Kerry further explained: “The purchase price is mainly determined by reference to the price of palm oil futures on the Malaysian Derivatives Exchange. In addition to providing us with competitive prices, Wilmar International also provides us with very Useful market information allows us to seize the right time to buy the palm oil products we need. “

The office of the Board of Directors of Yihai Kerry also stated: “We do not buy all palm oil products from Wilmar International. When other suppliers provide lower prices and better trading conditions, we will buy from them. . “

Conspiracy of foreign companies

Backed by the richest man in Malaysia and listed company in Singapore, Yihai Kerry was born with an internationalized gene.So persistent in this market?

In response, the Yihai Kerry Board of Directors Office responded to “Bullet Finance” that it chose to list on A shares. On the one hand, the company will continue to deepen the domestic localization process, strengthen business expansion capabilities, and continue to improve product innovation capabilities. On the other hand, Yihai Kerry hopes to use the A-share listing to enable the public to understand a more transparent and standardized company and share the company’s operating results. Companies can also accelerate their development through the capital market.

New retail expert Bao Yuezhong believes that the overall scale of China’s capital market has reached a certain order of magnitude and the market is active. Under such circumstances, it makes sense for Yihai Kerry, a foreign-funded company, to list in China.

In the view of Chinese food industry analyst Zhu Danpeng, “China is already the largest core market of Yihai Kerry. It supports the entire Chinese market from the industrial side, capital side and channel side, which is in the path of maximizing benefits. “

Yihai Kerry’s prospectus shows that its revenue mainly comes from the Chinese domestic market, and the amount has increased year by year.

In 2016-2018 and the first half of 2019, Yihai Kerry realized revenues of 128.087 billion yuan, 146.485 billion yuan, 161.787 billion yuan and 76.101 billion yuan in China, accounting for 95.93% of the total revenue. 97.16%, 96.78%, and 96.72%, and each period’s revenue from overseas markets in China accounted for less than 5%.

Jinlongyu wants to jump A-share (Picture / Yihai Kerry Prospectus)

In the opinion of Zhang Chi, chairman of Xinding Capital, Yihai Kerry’s sprint on A shares can get a high valuation on the one hand and avoid some discussions about genetically modified issues on the other.

Zhang Chi further analyzed “Bullet Finance”: “Yihai Kerry’s largest market is in China, then it will definitely have a high valuation when it is listed on A shares, and its valuation will be limited if it is listed overseas. Now The profits of these large companies are already very large, and listing is a supplement to it. It does not matter if they are not listed. To go public, you must choose the one that is optimal for you. No doubt the domestic capital market is the best choice. Because the valuation given here is high. “

“The other is the problem of genetic modification. A certain amount of oil used in arowana uses genetically modified soybeans and other raw materials, but it is controversial whether the genetic modification is harmful to the human body. The listing of Yihai Kerry overseas or Hong Kong stocks may address the problem of genetic modification. There will be some repulsive or negative voices, which will be discussed very lively. In China, everyone is relatively uncomfortable with GMSo sensitive. “Zhang Chi said.

Identity difficulties

With the gradual deregulation of the agricultural market after China’s entry into the WTO, foreign companies and foreign capital have poured into China and quickly occupied an important share of the domestic grain and oil market.

Cereals and oils are related to the national economy and people’s livelihood. The rapid rise and expansion of foreign-funded grain and oil companies has caused domestic public opinion to worry about food security issues.

The golden arowana scenery is infinite but in an embarrassing situation: it has long occupied China’s first brand of edible oil, but the status of foreign investment has always been an incurable pain point in its long-term development.

Yihai Kerry was once dubbed the title of “foreign grain and oil oligarch”. At the time when the supervisors were wary of foreign grain and oil companies, business development was limited.

On September 3, 2008, the supervisory authorities issued the “Guiding Opinions on Promoting the Healthy Development of the Soybean Processing Industry”, which clearly stated that it is necessary to support national soybean processing enterprises, while restricting foreign investment. In its “Notice on Doing a Good Job in Rapeseed Acquisition in 2009”, for the first time, companies were required to participate in the takeover market, and released a list of Rapeseed takeover companies, in this list of more than 100 companies , Does not include Yihai Kerry.

“We would like to participate in the acquisition, and have expressed our wishes with the people of the local food bureau, but were told that foreign investment in the market can not participate in the acquisition.” An insider of Yihai Kerry told the media.

So, the management headed by Mu Yankui, then Vice Chairman of Yihai Kerry, advised the company at a higher level to consider the operation of the company’s domestic A-share listing.

Jinlongyu wants to jump A-share In Mu Yankui’s view, Yihai Kerry was listed in China. Financing is not the main purpose. After listing, Yihai Kerry can logically become a domestic company and get rid of it. Dropping the title of “foreign investment” and restrictions are also the basis for further expansion of Yihai Kerry’s business in China.

From this point of view, the idea of ​​IPO in Yihai Kerry was to hope that by entering the Chinese capital market, it would realize the transformation from “overseas-funded enterprises” to “national brands” and obtain “China identity” recognition.

In response to “Bullet Finance”, Yihai Kerry did not hesitate to say: “Yihai Kerry has invested in China for more than 30 years and is optimistic about China’s development prospects …. Yihai Kerry is full of confidence in China’s future and the company’s determination to develop with the Chinese economy and market together for long-term development.

Zhang Chi believes that Yihai Kerry is very likely to go public successfully