Core Viewpoint - Jiangxi Qiyunshan Food Co., Ltd. has submitted its IPO application to the Hong Kong Stock Exchange, aiming to raise funds for capacity expansion, R&D enhancement, online marketing, sales network expansion, and general operational funds [2] Group 1: Company Overview - Qiyunshan was established in 1979 and launched its flagship product, South Sour Jujube Cake, in 1992, marking the beginning of its large-scale operations [3] - The company specializes in South Sour Jujube products, with its product line including South Sour Jujube Cake, South Sour Jujube Granules, Soft Candy, Jelly, and Fruit and Vegetable Cakes [3] Group 2: Market Position and Financial Performance - In 2024, Qiyunshan ranked ninth in the Chinese market for fruit snacks with a market share of only 0.6%, but it holds a dominant position in the South Sour Jujube sector with a 32.4% market share [5] - Revenue increased from 217.3 million RMB in 2022 to 339 million RMB in 2024, with net profit for the same period showing a growth from 25.6 million RMB to 61 million RMB [6][5] Group 3: Revenue Structure and Risks - The revenue structure is highly concentrated, with South Sour Jujube Cake contributing 86.7% of total revenue in 2024 [6] - The reliance on a single product poses risks, including market fluctuations and supply chain issues, which could impact profitability [7] Group 4: Customer Dependency and Pricing Strategy - Qiyunshan's largest customer accounted for 22.9% of its revenue in 2024, indicating a growing dependency on key clients [8] - The average selling price of South Sour Jujube Cake decreased from 41.2 RMB per kg in 2022 to 39.3 RMB per kg in 2024, reflecting a strategy of lowering prices to increase sales volume [10] Group 5: Marketing and Employee Structure - The company has significantly increased its marketing expenditures, with sales and marketing expenses accounting for approximately 25% of total revenue [10] - Nearly half of Qiyunshan's 1412 employees are in sales roles, highlighting the company's focus on sales-driven growth [10]

Core Viewpoint - Jiangxi Qiyunshan Food Co., Ltd. is preparing for an IPO on the Hong Kong Stock Exchange, showcasing significant growth in revenue and net profit, driven by its flagship product, the South Jujube Cake, which has a strong market presence and a commitment to green food standards [5][11][12]. Group 1: Company Overview - Jiangxi Qiyunshan Food Co., Ltd. originated from a food factory established in 1958 and has evolved into a leading player in the South Jujube food market, holding a 32.4% market share [5][9]. - The company has achieved annual revenues exceeding 330 million yuan, with a remarkable growth trajectory over the past few years [3][11]. - The leadership of the company consists of the Liu brothers, who have been instrumental in its development since the introduction of the South Jujube Cake in 1992 [5][8]. Group 2: Financial Performance - From 2022 to 2024, the company's revenue increased from 217 million yuan to 339 million yuan, reflecting a compound annual growth rate (CAGR) of 24.92% [11]. - Net profit surged from approximately 25.6 million yuan in 2022 to 53.2 million yuan in 2024, with a CAGR of 44.06% [11]. - In 2024, the company reported a 37.2% year-on-year revenue growth and a staggering 124.4% increase in net profit [11]. Group 3: Product and Market Strategy - The South Jujube Cake remains the primary product, contributing 86.7% of total revenue in 2024, while the company has expanded its product line to include South Jujube particles and soft candies [12]. - The company has adopted a "rural encircling cities" sales strategy, focusing on traditional offline channels, with 89.3% of revenue coming from offline sales [13]. - A significant partnership with a major customer, identified as "Customer G," has been pivotal, contributing 22.9% of total revenue in 2024 [11][12]. Group 4: Future Plans and Challenges - The company plans to use IPO proceeds to enhance online sales platforms and expand its distribution network into new regions [16]. - Despite its success, the company faces challenges such as over-reliance on a single product and traditional sales channels, with the South Jujube Cake accounting for nearly 90% of revenue [15]. - The competitive landscape is characterized by a fragmented market, with the top ten snack companies holding only 10.4% of the market share, indicating intense competition [15].

Company Overview - Jiangxi Qiyunshan Food Co., Ltd. (referred to as "Qiyunshan Food") has recently submitted an application to the Hong Kong Stock Exchange, with Zhongtai International as the sponsor [1] - The company specializes in the research, production, and sales of fruit snacks, headquartered in Chongyi County, Ganzhou City, Jiangxi Province [1] - Qiyunshan Food's core products include nine flavors of South Jujube Cake and various other items, with a strong focus on South Jujube Cake, which accounted for over 84% of revenue during the reporting period [5][12] Financial Performance - Revenue for Qiyunshan Food during the reporting period was RMB 217.31 million, RMB 246.72 million, and RMB 339.13 million, reflecting a compound annual growth rate (CAGR) of 16.1% [12] - Gross profit margins were 47.2%, 48.8%, and 48.6% for the years 2022, 2023, and 2024, respectively [12] - Net profits were approximately RMB 26 million, RMB 24 million, and RMB 53 million, with 2023 showing a decrease in profit due to increased operational costs [12] Market Position - In 2024, Qiyunshan Food held a 32.4% market share in the South Jujube food market, ranking first in the industry [14] - The overall fruit snack market in China is projected to grow from RMB 66.3 billion in 2019 to RMB 99.5 billion in 2024, with a CAGR of 8.5% [8] - The company ranks ninth in the broader fruit snack market with a market share of 0.63%, facing competition from brands like "Liuliu Meiyuan" and "Haoxiangni" [14] Industry Insights - The Chinese snack industry value chain consists of upstream (raw material cultivation), midstream (manufacturing and logistics), and downstream (distribution and retail) segments [14] - The fruit snack market is characterized by intense competition and a highly fragmented market structure [14] - Qiyunshan Food relies heavily on third-party distributors, with 230 distributors as of 2024, of which 199 are offline and 31 are online [18]

Core Viewpoint - Jiangxi Qiyunshan Food Co., Ltd. has submitted its IPO application in Hong Kong, facing challenges such as product singularity and a limited market size for its main product, South Sour Jujube, which is projected to generate over 95% of its revenue in 2024 [1][4][8] Company Overview - Qiyunshan Food was established in 1995, evolving from the Jiangxi Chongyi Food Factory founded in 1979, and has a long-standing management team with many members having over 25 years of service [1][5] - The company specializes in South Sour Jujube products, which contributed to 95% of its revenue in 2024, with total revenue expected to reach 339 million yuan [4][5] Market Position - Qiyunshan Food holds a leading market share of 32.4% in the South Sour Jujube market, which has an overall size of 1.881 billion yuan in 2024 [4][9] - The industry size for South Sour Jujube products is projected to be less than 2 billion yuan in 2024, indicating limited growth potential compared to other fruit snack markets [8] Supply Chain Concerns - The company relies heavily on wild-harvested South Sour Jujube from local farmers, with no formal contracts in place, raising concerns about the stability of raw material supply [1][9] - Fluctuations in the price of South Sour Jujube directly impact the company's profitability, as evidenced by a slight decline in net profit in 2023 due to rising prices [9] Corporate Structure - Qiyunshan Food has a simple ownership structure, with two main shareholders: Chongyi Food Factory (75%) and Ganzhou Cloud Above Equity Investment Management Partnership (25%) [5] - The company shares management personnel and marketing channels with its affiliate, Jiangxi Qiyunshan Camellia Oil Technology Co., Ltd., which may pose risks related to brand image and market positioning [3][6] Sales and Distribution - The company’s revenue is heavily concentrated in a few provinces, with over 50% of total revenue coming from Jiangxi and Hunan in 2024 [9] - Offline distributors account for over 80% of total revenue, with a significant contribution from a newly signed distributor in 2024, which generated approximately 78 million yuan [9]

Core Viewpoint - Qiyunshan Food is preparing for an IPO, heavily reliant on its main product, South Jujube Cake, which contributed 2.94 billion RMB in revenue for 2024, accounting for 86.7% of total revenue [1][3]. Revenue and Product Performance - The South Jujube Cake has dominated the company's revenue, contributing 88.7%, 84.7%, and 86.7% of total revenue from 2022 to 2024 respectively [1][3]. - Other products, including South Jujube Granules, South Jujube Jelly, South Jujube Soft Candy, and South Jujube Frozen, are also based on South Jujube but have significantly lower revenue contributions [2]. - Revenue from South Jujube Granules increased from 10.44 million RMB in 2022 to 31.26 million RMB in 2024, but its share remains small at 9.2% [3]. Production Capacity and Strategy - The company strategically reduced production capacity for other products from 1,100 tons to 677 tons while increasing South Jujube Cake production capacity to 9,224 tons to meet rising market demand [4]. - The focus on a single product may enhance short-term efficiency but could limit long-term market adaptability due to a lack of product diversification [4][6]. Marketing and Sales Channels - Qiyunshan Food has a high marketing expenditure, with sales and marketing costs reaching 75.84 million RMB in 2024, accounting for 23.11% of revenue [10]. - The company relies heavily on offline sales channels, with 89.3% of revenue generated through 230 distributors, of which 199 are offline [7][9]. - Online sales have been declining, with online direct sales contributing only 10.4% of total revenue in 2024, down from 12.7% in 2022 [9][10]. Customer Concentration - In 2024, a single customer contributed 22.9% of total revenue, indicating a growing reliance on a few key clients [12][13]. - The share of revenue from the top five customers has increased from 26.4% to 38.7% over the past three years, raising concerns about customer concentration risk [13]. Industry Trends - The snack industry is witnessing a shift towards volume-based sales channels, which has become a new growth driver for companies [14]. - However, this model may pressure brand owners on cost management and supply chain efficiency due to lower profit margins associated with volume sales [15]. Supply Chain Risks - Qiyunshan Food faces supply chain risks as it relies on local farmers for raw materials without formal contracts, making it vulnerable to supply shortages and price fluctuations [16].

Core Viewpoint - Qi Yun Shan Food is heavily reliant on its single product, South Sour Jujube Cake, which poses risks for its IPO ambitions as it struggles with diversification and online transformation [1][2][4][6]. Financial Performance - In 2024, South Sour Jujube Cake generated 294 million RMB, accounting for 86.7% of total revenue, while other products contributed only 13 million RMB, representing a mere 3.8% [1][2][3]. - Revenue growth for Qi Yun Shan Food was 37.25% in 2024, significantly higher than 13.82% in 2023, driven by an expanded distribution network [14]. Product and Market Strategy - The company has strategically reduced production capacity for other products, focusing resources on South Sour Jujube Cake and South Sour Jujube Granules, with the latter's production capacity dropping from 1,100 tons to 677 tons [4][5]. - Despite claims of pursuing product diversification, R&D investment has decreased from 4.7% in 2022 to 3.5% in 2024 [6]. Sales Channels - In 2024, offline sales accounted for 89.3% of total revenue, with 199 out of 230 distributors being offline [8][10]. - Online sales have been declining, with online direct sales only reaching 35.5 million RMB in 2024, down from 12.7% in 2022 and 14% in 2023 [10][11]. Customer Concentration - The top five customers contributed 38.7% of total revenue in 2024, with the largest customer alone accounting for 22.9% [15][16]. - The reliance on a few key customers raises concerns about revenue stability and potential risks associated with customer concentration [15][16]. Supply Chain Challenges - Qi Yun Shan Food faces supply chain risks due to its dependence on local farmers for raw materials, which are not secured by formal contracts, leading to potential shortages and price volatility [18].

Core Viewpoint - Jiangxi Qiyunshan Food Co., Ltd. has submitted its IPO application for the Hong Kong stock market, facing challenges such as product singularity and raw material supply stability [1][5][15]. Company Overview - Qiyunshan Food, established in 1979, primarily produces products made from the local specialty fruit, South Jujube, which accounted for over 95% of its revenue in 2024 [1][5]. - The company generated revenue of 339 million yuan in 2024, with a market share of 32.4% in the South Jujube food market, which has a total market size of 1.881 billion yuan [5][15]. Management and Governance - The company has a stable management team, with six executive directors having over 25 years of tenure [6][9]. - The ownership structure is simple, with two main shareholders: Chongyi Food Factory holding 75% and Ganzhou Yunzhi Investment Management Partnership holding 25% [9]. Industry Challenges - The South Jujube food industry is projected to have a market size of less than 2 billion yuan in 2024, indicating limited growth potential [1][15]. - Qiyunshan Food's reliance on wild-harvested South Jujube from local farmers raises concerns about the stability of raw material supply [1][20]. Related Party Transactions - Qiyunshan Oil Tea Technology Co., Ltd., an affiliate of Qiyunshan Food, shares management personnel and marketing channels, which may pose risks to brand image and market positioning [1][10][14]. - The two companies have a service agreement where Qiyunshan Food provides brand planning and marketing services to Qiyunshan Oil Tea, which could lead to potential conflicts in business focus [14]. Sales and Market Dynamics - The company’s sales are concentrated in a few provinces, with over 50% of revenue coming from Jiangxi and Hunan [20]. - A new offline distributor contributed approximately 78 million yuan to the company's revenue in 2024, accounting for 23% of total revenue [21].

Core Viewpoint - Jiangxi's time-honored food company Qiyunshan plans to list on the Hong Kong Stock Exchange, primarily focusing on its core product, sour jujube cake, which accounts for nearly 90% of its revenue. The company has attempted to diversify its product line but has seen limited market success, raising questions about its growth potential in a highly segmented snack market [2][3]. Business Overview - Qiyunshan's business revolves around sour jujube products, having launched its first sour jujube cake in 1992. As of 2024, the company holds a 32.4% market share in the sour jujube food market [3]. - The sour jujube cake has been the largest revenue contributor, generating RMB 193 million, RMB 209 million, and RMB 294 million in 2022, 2023, and 2024 respectively, accounting for 88.7%, 84.7%, and 86.7% of total revenue during those years [3][4]. Financial Performance - Qiyunshan's revenue for the fiscal years 2022, 2023, and 2024 was RMB 217 million, RMB 247 million, and RMB 339 million, respectively, with net profits of RMB 26 million, RMB 24 million, and RMB 53 million [8]. - The company experienced significant growth in 2024, with revenue and profit increasing by 37.25% and 120.83%, attributed to market demand expansion and an increase in its distribution network [9]. Product Dependency - Qiyunshan heavily relies on its sour jujube cake, with the second-largest product, sour jujube granules, contributing only RMB 31.26 million, or 9.2% of total revenue in 2024. Other products like sour jujube jelly and soft candy have underperformed, with their combined revenue dropping from 6.1% in 2022 to 3.8% in 2024 [5][6]. - The company has acknowledged the risks associated with its reliance on a single product and plans to use funds from its IPO to explore product innovation and potential value in other categories [8][9]. Market Position - In the broader snack market, Qiyunshan ranks ninth among the top ten companies in the fruit snack segment, with a market share of only 0.63%. The overall snack market in China is projected to reach RMB 1.34 trillion by 2024 [8]. - The company’s sales are primarily driven by third-party distributors, with offline distributors contributing over 85% of revenue from 2022 to 2024. The number of distributors increased from 140 to 199 during this period [9][10]. Strategic Initiatives - To mitigate the risks of dependency on offline distributors, Qiyunshan plans to enhance its online sales channels and invest in live-streaming sales and network expansion following its IPO [11].

Core Viewpoint - Qiyunshan Food is applying for a listing on the Hong Kong Stock Exchange, leveraging its strong revenue from its main product, the South Jujube Cake, which contributes over 80% of its income [1][2]. Company Overview - Qiyunshan Food specializes in South Jujube products and is headquartered in Chongyi County, Jiangxi Province [1]. - The company has launched five types of South Jujube products, with the South Jujube Cake being the flagship product introduced in 1992 [1]. Financial Performance - Revenue for Qiyunshan Food from 2022 to 2024 is projected to be 217 million, 247 million, and 339 million yuan respectively, with net profits of 25.63 million, 23.70 million, and 53.19 million yuan [1]. - The South Jujube Cake's revenue for the same period is expected to be 193 million, 209 million, and 294 million yuan, accounting for 88.7%, 84.7%, and 86.7% of total revenue [1]. Product Strategy - The company is strategically reducing production capacity for other products to focus on South Jujube Cake and South Jujube Granules to meet increasing market demand [2]. - Future product development will emphasize functional health-oriented products, including new forms like South Jujube Chips and Drinks [2]. Sales Channels - From 2022 to 2024, revenue from offline channels is projected to be 189 million, 211 million, and 303 million yuan, representing 86.9%, 85.6%, and 89.3% of total revenue [2]. - The company relies heavily on five major offline distributors, which account for over 85% of its revenue [2]. Market Position - Qiyunshan Food holds a 32.4% market share in the South Jujube food market, ranking first in the industry [3]. - In the broader fruit snack market, it ranks ninth with a market share of 0.63% [3]. - The Chinese fruit snack market is expected to grow from 99.5 billion yuan in 2024 to 151 billion yuan by 2029, with a compound annual growth rate of 8.7% [3]. Competitive Landscape - The top ten companies in the fruit snack market hold only 10.4% of the market share, indicating a highly fragmented industry [3]. - Competitors include Liuliu Mei and Haoxiangni, which have also filed for listings and reported significant revenues [4]. Online Marketing Strategy - Qiyunshan Food plans to enhance its online presence through e-commerce infrastructure and diverse online marketing strategies, including live streaming and community group buying [5].

Core Viewpoint - Jiangxi Qiyunshan Food Co., Ltd. has submitted its listing application to the Hong Kong Stock Exchange, aiming to leverage its leading position in the southern hawthorn snack market and expand its operations [1][6]. Company Overview - Qiyunshan Food was established in 1958, making it one of the oldest food manufacturing enterprises in the Ganzhou region, with a history of 67 years [3][5]. - The company primarily focuses on the production and sales of southern hawthorn products, with its flagship product, southern hawthorn cake, launched in 1992 [4][6]. Market Position - In 2024, Qiyunshan Food held a 32.4% market share in the southern hawthorn food sector in China, solidifying its position as the market leader [6]. - The company ranks ninth in the Chinese fruit snack industry, with a market share of 0.6% [6]. Financial Performance - The company's total revenue has shown consistent growth, reaching 2.17 billion, 2.47 billion, and 3.39 billion yuan from 2022 to 2024, with a year-on-year increase of 40.8% in 2024 [6]. - Net profit for the same period was 25.63 million, 23.70 million, and 53.20 million yuan, with a remarkable year-on-year growth of 124.42% in 2024 [6]. Product Sales - Southern hawthorn cake sales accounted for 88.7%, 84.7%, and 86.7% of total sales from 2022 to 2024, indicating its status as the company's signature product [7]. Sales Channels - The company generates 89% of its revenue from offline sales, primarily through third-party distributors, with the number of distributors increasing from 140 to 199 [8]. - Online direct sales accounted for 11.9%, 12.8%, and 9.7% of total revenue from 2022 to 2024, with the company utilizing platforms like Tmall and Douyin for sales [8]. Research and Development - Qiyunshan Food invests significantly in R&D, with expenditures rising from 10.17 million to 11.95 million yuan over the report period [8]. - The R&D team consists of 17 full-time members, led by a senior engineer with extensive industry experience [8]. IPO Fund Utilization - The funds raised from the IPO will be allocated to enhancing R&D capabilities, expanding production and storage capacity, developing e-commerce infrastructure, and strengthening the distribution network [9].