Nongfu Shanquan is listed on the Hong Kong stock exchange.
On the first day of its listing on September 8, Nongfu mountain spring (9633. HK) opened 85.12% to HK $39.8/share, with a total market value of over HK $440 billion.
On September 7, Nongfu mountain spring announced that the offering price was set at HK $21.5 per share, with a planned fund raising of HK $8.149 billion. According to the announcement, the total share capital of Nongfu Shanquan is about 11.89 billion shares, of which, 84.4% is held by Zhong Zhen, the founder and chairman of the company.
According to the issue price, the total market value of the company is about HK $255.6 billion, and the stock market value of Zhong is HK $215.7 billion. If calculated at the opening price, the value of Zhong’s stock market soared to HK $371.3 billion.
In addition, Zhong also holds 74.23% of A-share Wantai bio. Since Wantai bio landed on a shares in April this year, the company’s share price has been soaring, with an increase of more than 2152% in the year. On September 8, Wantai bio rose 1.46% to 200 yuan / share, with a total market value of 86.7 billion yuan. The market value of Wantai bio held by Zhong is as high as 64.9 billion yuan, about 73.6 billion Hong Kong dollars.
Based on the rough calculation of the opening price of Nongfu spring, Zhong’s value will soar to HK $444.9 billion, equivalent to US $57.4 billion, with the listing of Nongfu spring. According to the latest Forbes rich list, Ma Huateng ranks 18th with a fortune of 56.8 billion US dollars, and Zhong Fu will surpass Ma Huateng to become China’s new richest man.
As China’s No. 1 packaging water enterprise, Nongfu spring has been listed in recent years, but it has been denied. Until November 2019, it was revealed that Nongfu Shanquan planned to conduct a $1 billion IPO in Hong Kong, China, as early as the first half of 2020. On April 29 this year, Nongfu Shanquan disclosed the prospectus on the official website of the Hong Kong stock exchange, and the news was finally settled.
Nongfu Shanquan has also disclosed the performance of Nongfu mountain spring for the first time.
In 2017, 2018 and 2019, Nongfu mountain spring achieved 17.491 billion yuan, 20.475 billion yuan and 24.021 billion yuan respectively, with growth rates of more than 17%. In terms of net profit, the net profit rate of Nongfu spring is 19.4%, 17.6% and 20.6% for three consecutive years. In 2019, the net profit of Nongfu spring will reach 4.954 billion yuan.
According to the frost Sullivan report, this growth rate is far higher than the 5.0% and 6.6% growth rates of China’s soft drink industry and the 2.7% and 3.4% growth rates of the global soft drink industry. “We are one of the most profitable companies in China’s soft drink industry,” Nongfu Shanquan said in the prospectus
In terms of products, the main revenue of Nongfu mountain spring is its main product “Nongfu mountain spring”. It ranks first in China’s packaged drinking water product market. It will occupy 20.9% of the drinking water market share in 2019, and provide the company with 14.346 billion yuan of revenue.
In addition to the “Nongfu spring”, Nongfu mountain spring is also deeply cultivated in the three fields of tea beverage products, functional beverage products and juice beverage products, and has “Oriental leaves”, “chawu”, “scream”, “Nongfu orchard”, “17.5?” and other products. Among them, tea beverage products and functional beverage products have also broken through the scale of 3 billion yuan. Although the scale of fruit juice beverage products is only more than 2 billion yuan, it has also maintained a steady growth of about 0.5% per year in the past three years.