Another cross-border company is rushing for IPO!

For companies that have developed to a certain level, most will choose to go public to accelerate the capitalization process .

Jiyuan Group is heading for IPO

Jiyuan Group recently updated its latest listing status and the company plans to be listed on the main board of the Shanghai Stock Exchange .

In this IPO, Jiyuan Group plans to publicly issue no less than 50.01 million shares, accounting for no less than 10% of the total share capital after issuance. It plans to raise 603 million yuan to invest in the construction of Jiyuan Group's nutritional and health raw material production base, Qidong Jiyuan's nutritional and health food production line expansion project, Qidong Jiyuan's technology innovation center project, and replenishment of working capital projects.

On January 5, 2022, Jiyuan Group completed the coaching filing, with Oriental Securities as its sponsor .

On December 21, 2022 , Jiyuan Group submitted a main board IPO application to the China Securities Regulatory Commission .

On March 3, 2023, Jiyuan Group’s IPO was accepted.

On March 30, 2023, the IPO of Jiyuan Group entered the inquiry stage, and the Shanghai Stock Exchange issued the "Review Inquiry Letter on the Application Documents for the Initial Public Offering and Listing of Jiyuan Group Co., Ltd. on the Shanghai Stock Exchange Main Board" .

On January 24, 2024 , Jiyuan Group responded to the first round of inquiries from the Shanghai Stock Exchange .

In 2024, Jiyuan Group updated its prospectus several times and continued to supplement and revise the prospectus in the following period .

Currently, Jiyuan Group’s IPO is still in the inquiry and review stage .

When it comes to Jiyuan Group, many people may be unfamiliar with it.

Public information shows that Jiyuan Group Co., Ltd. was established in 2002, with its registered address in Jiangyin, Jiangsu Province and its management headquarters in Shanghai. The company has R&D centers in both China and the United States.

The company's main business is the research and development, innovation and industrialization of dietary nutritional supplement products. Specifically, it involves the research and development, production and sales of nutritional raw materials. The products include a full range of extracts of animals, plants, marine organisms, natural products and synthetic products, which are widely used in many fields such as medical and health products, food and beverages, and cosmetics.

After years of development, Jiyuan Group 's products are exported to many countries and regions such as the United States, Europe, Australia, and Southeast Asia , and it has established long-term and stable cooperative relationships with many internationally renowned companies, such as Abbott Group , By-Health, Blackmores, Nutramax, PharmaCare , etc. Among them, Abbott Group is one of its largest overseas customers , and Jiyuan Group is the preferred supplier of Abbott Group's HMB nutritional raw materials products .

At present, Jiyuan Group has developed into the world's largest supplier of HMB raw materials and a core supplier of high -quality glucosamine, preparations and other products .

In addition to selling products to the global market through cooperative brands, Jiyuan Group has also established sales companies in Manchester, UK and Sydney, Australia. These sales companies are directly responsible for sales and customer service in the local markets.

Jiyuan Group also engages in a small amount of its own terminal brand business through subsidiaries such as Shanghai Jiyuan and Nourigen, and has launched HMB own-brand product series such as AgelessLX, which are sold on Internet platforms such as Amazon.

In recent years, the proportion of overseas sales revenue of Jiyuan Group has remained at a high level and has shown an increasing trend year by year.

From 2021 to the first half of 2024, the proportion of overseas sales revenue of Jiyuan Group was 86.29%, 91.40%, 95.25% and 95.07% respectively .

From 2021 to 2023, Jiyuan Group's global market share was 69.85%, 65.80% and 52.27% respectively , demonstrating its strong competitiveness in the global market.

In recent years, Jiyuan Group has experienced rapid development and its performance has maintained steady growth.

From 2021 to 2023 , the revenue of Jiyuan Group was RMB 801 million, RMB 947 million and RMB 892 million respectively , and the net profit attributable to the parent was RMB 110 million, RMB 142 million and RMB 160 million respectively .

In the first half of 2024, Jiyuan Group 's revenue was 487 million yuan and its net profit attributable to the parent was 94 million yuan.

The fact that Jiyuan Group can gain an advantageous position in the market is inseparable from its strong product power.

Since its establishment, Jiyuan Group has been focusing on dietary nutritional supplement products. Its product line covers a variety of nutritional raw materials such as HMB, glucosamine, chondroitin sulfate, as well as customized preparations such as tablets, hard capsules, soft capsules and powders. These products are widely used in dietary nutritional supplements, bone and joint health, sports nutrition and other fields, and can meet the diverse needs of different customer groups .

The company pays great attention to the selection and quality control of raw materials to ensure the safety and effectiveness of its products , and has gained wide recognition from consumers for its high quality and high cost-effectiveness .

In addition, Jiyuan Group has a full industrial chain layout from nutrient molecule screening and evaluation, efficacy research, functional claims and patent applications, market access and promotion, raw material production to finished preparation processing.

This advantage of the entire industrial chain can help Jiyuan Group better control product quality and cost to improve its product competitiveness in the market .

Jiyuan Group still faces multiple risk factors

However, there are certain risk factors in the development of Jiyuan Group .

First, the company faces a high risk of customer concentration.

At present, the largest customer of Jiyuan Group is Abbott, and Jiyuan Group is the preferred supplier of HMB nutritional raw materials for Abbott . Jiyuan Group has signed a long-term supply agreement with Abbott , which includes an "exclusive clause" . Abbott can require Jiyuan Group not to sell HMB raw materials to certain competitors when the purchase volume agreed in the agreement is reached. This may have a certain degree of adverse impact on the expansion of new customers of Jiyuan Group . In the first round of inquiries , the Shanghai Stock Exchange asked Jiyuan Group to explain the effective measures it has taken to reduce its dependence on major customers .

The second is the debt repayment risk .

Jiyuan Group 's short-term debt repayment ability is relatively weak. Jiyuan Group's current ratio and quick ratio are lower than the average level of comparable companies in the same industry. From the end of 2019 to the end of the first half of 2022 , the company's current ratio was 0.88, 1.06, 1.38 and 1.76, and the quick ratio was 0.64, 0.80, 0.91 and 1.14 , respectively. At one point, Jiyuan Group 's debt-to-asset ratio was more than 4 times higher than the peer average . This means that Jiyuan Group has a high short-term debt repayment risk, which may affect the company's normal operations and future development .

The third aspect is that Jiyuan Group has certain shortcomings in product research and development.

In the past few years, the R&D expense ratio of Jiyuan Group has continued to be lower than the average R&D expense ratio of comparable companies in the same industry . Insufficient R&D investment may affect the company's technological innovation and the speed of new product development.

There is also the educational structure of R&D personnel . As of June 30, 2024, the company has 127 R&D personnel, of which only 44.09% have a bachelor's degree or above , which may have an adverse impact on the company's R&D capabilities and technological innovation.

Under the influence of multiple factors, whether Jiyuan Group can finally be successfully listed, Yien.com will continue to pay attention.

IPO

Tech Source Group