On September 30, 2024, Shanghai Newman's Healthy Food Holdings Limited (hereinafter referred to as "Newman") submitted a prospectus to the Hong Kong Stock Exchange, intending to list on the main board of Hong Kong. Prior to this, it had submitted documents on April 8, 2019, October 28, 2019, July 27, 2020, February 8, 2021, and December 29, 2023, respectively.
Newman's prospectus link:
Main Business
Newman's main business in China is the marketing, sales, and distribution of finished nutritional products under the exclusive brands Newman's and Nemans (English: Nemans). The products can be roughly categorized into five main types, including algae oil DHA, probiotics, vitamins, multivitamins, and algae calcium products. In addition, since the 2022 fiscal year, the company has also generated some revenue from the sale of five milk powder products under the license of the Ausnutria Group.
Newman's positions its nutritional products for pregnancy, postpartum women, infants, children, and other consumers as high-end and high-quality products. Particularly, the main raw materials for the company's algae oil DHA products are supplied by algae oil raw material suppliers (a world-leading overseas supplier), with a suggested retail price of at least RMB 4.0 per DHA capsule. According to Frost & Sullivan, in terms of the source of raw materials, retail price, and brand positioning of Newman's products, they can be classified as high-end nutritional products.
According to Frost & Sullivan, in 2022, based on the retail value of algae oil DHA products made from imported raw materials, Newman's is the largest domestic brand with a market share of approximately 20.5%.
Shareholder Structure
The prospectus shows that in the pre-listing shareholder structure of Newman, the controlling shareholders Mr. Wang Ping and Ms. Cui Juan, respectively hold 91% and 9% of the shares, with a total holding of 100%.
Management Team
Newman's board of directors consists of 6 directors, including:
2 executive directors: Mr. Wang Ping (Chairman of the Board, CEO) and Ms. Cui Juan;
1 non-executive director: Mr. Chen Xueliang;
3 independent non-executive directors: Ms. Yan Yongyi, Mr. Liu Guohui, Mr. Yu Ziao.
In addition to executive directors, the management team includes General Manager Mr. An Yong, Assistant General Manager Ms. Song Xufang, Finance Manager Ms. Sun Mei, Foreign Trade Manager Mr. Wang Kan, Customer Service Manager Ms. Gu Ying, Finance Director and Company Secretary Mr. Deng Zijun, and Legal Department Manager Ms. Meng Yao.
Corporate Performance
According to the prospectus, Newman's revenue in the first six months of 2021, 2022, 2023, and the first half of 2024 were RMB 0.338 billion, 0.367 billion, 0.427 billion, and 1.46 billion respectively, with corresponding net profits of RMB 0.12 billion, 0.088 billion, 0.159 billion, and 0.45 billion.
Intermediary Team
The intermediaries for Newman's IPO include CICC International Financing as its exclusive sponsor, Forvis Mazars (formerly known as Crowe China) as its auditor, Tongshang and Winson as its legal advisors for China and Hong Kong, Guohao and Kirkland & Ellis as its legal advisors for brokerage in China and Hong Kong, and Frost & Sullivan as its industry consultant.
