Zhitong Financial APP learned that Shanghai Yang Guofu Enterprise Management (Group) Co., Ltd. (Yang Guofu) submitted an application for listing on the main board of the Hong Kong Stock Exchange, with CITIC Construction Investment International as the exclusive sponsor, according to the disclosure of the Hong Kong Stock Exchange on February 22.
Yang Guofu is a leading and well-known Chinese fast food brand. As of September 30, 2021, the company's Yang Guofu brand has a total of 5783 restaurants, including 3 self-owned restaurants in Shanghai and 5759 franchised restaurants in 31 provinces and cities in China. and 21 overseas franchised restaurants in Australia, Canada, South Korea, the United States, Japan and Singapore. According to Frost Sullivan, Yang Guofu ranks first in China's Chinese fast food market in terms of total merchandise transactions and the number of restaurants in the year ending December 31, 2020. In addition, Yang Guofu ranks first in China's Spicy Hot Pot market in terms of revenue, total merchandise transactions and the number of restaurants for the year ended December 31, 2020.
Yang Guofu was founded in 2003, after 19 years of development, the company through the innovation and improvement of Chinese food Spicy Hot Pot investment, and through the use of unified, standardized, easy to expand to join the business model to achieve throughout the country and reach overseas restaurant layout, to show the world the beauty of Chinese food Spicy Hot Pot. In addition, since the beginning of 2021, relying on Yang Guofu's competitive advantages such as restaurant network, brand reputation and supply chain capabilities, the company has strategically expanded its retail business and began to provide Spicy Hot Pot-related retail products, including convenience products and compound seasonings.
At the same time, Yang Guofu also provides consumers with high-quality consumption experience covering a wide range of consumption scenarios, creating great potential for their future development. With Yang Guofu's extensive industry experience in Spicy Hot Pot market over the past 19 years, he has established a restaurant network covering all of China and expanded to overseas markets, including Australia, Canada, South Korea, the United States, Japan and Singapore. Looking to the future, Yang Guofu will continue to strategically expand his restaurant network at an appropriate time to further enhance brand awareness.
In terms of financial position, Yang Guofu's income reached 1.18 billion yuan (in RMB, the same below), 1.11 billion yuan and 1.16 billion yuan respectively in 2019, 2020 and the nine months ended September 30, 2021. Profits for the period / year amounted to $181 million, $169 million and $202 million respectively. Affected by factors such as the size of the economy, the company's gross profit margin continued to grow, from 27.9% in 2019 to 28.7% in 2020, and from 26.8% in the nine months ended September 30, 2020 to 30.2% in the same period in 2021.
According to the prospectus, Yang Guofu plans to use the funds raised by the Hong Kong IPO to upgrade the company's production facilities to support the company's restaurant business line, enrich the company's brand portfolio, expand the company's retail product supply and seize potential market opportunities (especially in the Spicy Hot Pot value chain); to further strengthen the company's R & D capabilities, as well as to enhance the company's multi-field personnel training and maintenance Used to allocate funds for the company's restaurant network expansion plan in domestic and foreign markets; comprehensively upgrade the company's information technology system and implement the company's "five online" information construction blueprint; used to further enhance and strengthen the company's brand awareness in all business sectors of the company and all markets in which the company participates, as well as to further develop the company's retail business Strengthen the company's supply chain capabilities, such as enhancing the company's logistics and warehousing capabilities; for future potential strategic expansion opportunities; and general corporate and working capital uses.