After The Three Discontinuation Of The Review, Sprint A Stock "Big Chicken" Xiang Jia Livestock Winning Geometry?

The Hunan Xiang Jia animal husbandry Limited by Share Ltd, the main chicken and duck breeding and marketing, will start in December 12th.

Prospectus shows that Xiang Jia livestock owners live poultry and chicken and duck meat chilled products, live poultry products are mainly yellow feathered broilers and a small number of meat ducks, chilled products are mainly chilled chicken, chilled duck and so on. It is worth mentioning that the Yellow Feather Broiler ranks the first in Central China.

As a state-level agricultural industrialization key leading enterprise, nearly 40 million plumes of "big chicken households" have been slaughtered in recent years. This is the second time that Xiang Jia animal husbandry has struck the Shenzhen Stock Exchange after ending the new three board listing and the three suspension review of IPO.

The IPO, Xiang Jia animal husbandry intends to issue 25 million 630 thousand shares, raising 476 million yuan for 12 million 500 thousand quality chicken standardized breeding base construction project, slaughtering 30 million feather quality chicken processing plant project (phase I).

IPO road of "big chickens"

According to the prospectus updated in May 2019, there are 24 livestock farms in Xiang Jia, including 5 breeding farms and 19 standardized breeding bases. In addition, there are 4 breeding chicken farms, 1 breeding duck farms, 788 commercial ducks and ducks.

Among them, Hunan Jia animal's chilled products account for more than 50% of revenue. The sales network has covered 19 provinces and cities such as Hunan, Hubei, Chongqing, Beijing, Shanghai and Guangdong. The main customers include Yonghui supermarket, Carrefour, Auchan, big RFA, WAL-MART, Huarun 10000, China 100 warehouses, and other large supermarket groups, as well as Kun Ma Sheng Sheng and 7FRESH.

It should be noted that in March 2019, Xiang Jia animal husbandry also approved the new supplier access audit of seabed International Holdings Limited.

Despite the aura of "big chickens", the A share of Xiang Jia's animal husbandry is very bumpy.

In August 2014, Xiang Jia animal husbandry successfully launched the new three boards and entered the capital market.

However, in the 4 years of IPO, Xiang Jia animal husbandry encountered three discontinued censorship, not because of the "resignation of the signed lawyer", or "the difficulty of returning feedback within the prescribed time limit".

In retrospect, in July 2015, Xiang Jia animal husbandry submitted the IPO application for the first time. It plans to issue 25 million 630 thousand shares in Shenzhen Stock Exchange, raising about 555 million yuan, investing in 10 million quality chicken breeding base construction projects, slaughtering 30 million high-quality chicken processing plant projects, and 60 thousand tons of poultry food processing and cold chain logistics distribution project (phase I) 3 projects.

It has to be said that in 2015, it was the high light period of Xiang Jia's animal husbandry. In those days, Xiang Jia's livestock industry achieved a revenue of 1 billion 17 million yuan, and its net profit attributable to shareholders was 84 million 25 thousand and 500 yuan compared with that in 2016 and 2017, its net profit was only 52 million yuan and 60 million yuan.

However, Xiang Jia's livestock industry missed the opportunity to go public.

In April 2016, Xiang Jia animal husbandry applied for the first time to suspend the IPO examination. The reason is that the lawyer appointed by Hunan Kai Yuan law firm has changed his job and will no longer serve as a lawyer for Xiang Jia's IPO project.

A month later, Xiang Jia animal husbandry resumed censorship.

However, the Xiangjia animal husbandry, which was out of commission, once again lost its chain. In February 22, 2017, it once again applied to the SFC for a suspension of the examination. The reason is that "the SFC's on-site inspection, the supplementary application for 2016 annual report, the feedback and so on have overlapped. There are many more items to be verified, and the workload is relatively large, so it is difficult to submit" feedback reply "within the specified time limit.

Shortly after the resumption of the review, Xiang Jia animal husbandry filed the third application for suspension in September 2017. The reason is that Chen Xiao Hui, a solicitor, has changed his job and no longer acted as the solicitor of the project. Li Yongli, a certified accountant, also needs to be replaced because of the expiration of the service period.

Less than three months after the resumption of the review, Xiang Jia animal husbandry still took the initiative to apply for withdrawal of the listing declaration materials.

In March 26, 2018, Xiang Jia animal husbandry announced that it had signed a guidance agreement with Minsheng securities to restart the IPO. Before that, its IPO "accompany run" broker was a Sino German securities.

From the latest prospectus, in 2018, Xiang Jia animal husbandry's revenue reached a new level, achieving a revenue of 1 billion 514 million yuan and a net profit of 115 million yuan.

Current liabilities account for over 60%

In twenty-first Century, the economic news reporter found that in recent three years, there existed a relatively high proportion of current liabilities in Xiang Jia's livestock industry.

From 2016 to 2018, the liabilities of Xiang Jia's livestock industry were 368 million yuan, 514 million yuan and 499 million yuan respectively, and the corresponding asset liability ratios were 45.14%, 50.90% and 45.75% respectively.

Among them, from the end of 2016 to the end of 2018, the balance of current liabilities was 235 million yuan, 337 million yuan and 365 million yuan respectively, accounting for 64.01%, 65.65% and 73.29% respectively, with a ratio of more than 60%.

In this regard, Xiang Jia animal husbandry said that the company's current liabilities mainly consist of short-term loans, accounts payable and other payments.

As for the liabilities of up to 514 million yuan in 2017 and the rising rate of asset liability ratio in 2016-2017 years, the explanation of Xiang Jia animal husbandry is mainly for the project construction of increasing bank loans for standardized breeding bases and slaughtering cold chain projects during the reporting period.

In addition, as fresh production and processing enterprises, food quality and safety is also one of the potential risks of Xiang Jia animal husbandry IPO.

According to the twenty-first Century economic report reporter, Xiang Jia animal husbandry was repeatedly reported by the market supervision and management department during the reporting period.

In November 13, 2015, the inspection report issued by the Guizhou product quality supervision and Inspection Institute showed that the project of Xiang Jia Si silky chicken (whole chicken) sarofloxacin and enrofloxacin did not meet the standard requirements of the Ministry of agriculture's Announcement No. 235th "maximum residue limits of veterinary drugs in animal derived foods", and the test conclusion was unqualified.

In November 16, 2015, the National Meat Quality Supervision and Inspection Center issued the "inspection report", which showed that the Xifa silk chicken (whole chicken) sarofloxacin and enrofloxacin did not meet the requirements of the highest residue limits of veterinary drugs in animal derived food No. 235th issued by the Ministry of agriculture of People's Republic of China.

Three years later, in July 20, 2018, the Hunan food and Drug Administration issued a notice on the 4 batch of food safety supervision and sampling of unqualified edible agricultural products (No. thirty-seventh in 2018): the Xiangjia duck duck produced by Xiangjia animal husbandry Limited by Share Ltd of Hengyang Xiangjiang general merchandise Co., Ltd., a sales Department of Hengyang industrial and Commercial Co., Ltd., detected chloramphenicol, which did not meet the requirements of food safety standards.

In September 30th of the same year, the Hunan food and Drug Administration once again issued the circular on 22 batches of unqualified foods for food safety inspection (2018 forty-eighth): Jinjiang, Metro's cash and carry Co., Ltd., Jinjiang Hunan Xiangjia animal husbandry Co., Ltd., Hunan Province, the Xiangjia chicken produced by the Xiangjia animal husbandry Limited by Share Ltd, detected the pentachlorophenol sodium project, which did not meet the requirements of food safety standards.

Moreover, the environmental protection problem of Xiang Jia's livestock industry is also a major obstacle to its IPO.

The latest prospectus shows that the 14 sewage farm permits of Xiang Jia animal husbandry can not be renewed or cannot be processed at the expiration of the sewage permit. Xiang Jia said that it is actively communicating and handling.

A focus on agricultural investment bankers to the twenty-first Century economic news reporter pointed out that "more concerned about how to deal with the industry's cyclical risk, risk of outbreak, and so on, whether the establishment of a strict emergency response system."