Leng Suanling's parent company is preparing to hit A shares after 83 years.

Leng Suanling's parent company is preparing to hit A shares after 83 years.

Leng Suanling's parent company is preparing to hit A shares after 83 years. Recently, Dengkang Dental, the parent company of domestic toothpaste, submitted a prospectus to be listed on the main board of Shenzhen Stock Exchange. The company plans to raise 660 million yuan in this listing. 83 years later, Leng Suanling's parent company is ready to attack A shares.

After 83 years, Leng Suanling's parent company is ready to attack A shares 1 "Hot, cold, sweet and sour, eat if you want." With this slogan, Lengsuanling toothpaste is well known to consumers. Recently, the parent company of the brand, Chongqing Dengkang Oral Care Products Co., Ltd. (referred to as "Dengkang Dental"), disclosed the prospectus and planned to be listed on the main board of Shenzhen Stock Exchange.

Chongqing Toothpaste Factory.

Comprehensive gross profit margin exceeds 40%

Dengkang Dental was founded in 200 1, formerly known as Chongqing Toothpaste Factory.

Dengkang Dental mainly produces oral cleaning care products such as toothpaste, toothbrush and mouthwash, electric oral care products such as electric toothbrushes and tooth flushers, oral hygiene products such as oral bacteriostatic cream and oral bacteriostatic care solution, and dental desensitizer and other oral medical devices, and owns brands such as Lengsuanling, Dengkang, Medical Research, Beilele and Germination.

As the leading brand of the company, "Lengsuanling" has a market share of about 60% in the sub-sector of anti-allergic toothpaste. According to Nielsen 202 1 offline retail statistics, the retail share of Lengsuanling toothpaste market ranks fourth in the industry and second in local brands. In addition, the retail sales share of Lengsuanling toothbrush market ranks fifth in the industry and third in local brands.

Compared with the average level in the same industry, the Mao Lijiao of Dengkang oral cavity is higher. From 20 19 to 202 1 year, the comprehensive gross profit margin of Dengkang oral cavity was 42.26%, 4 1.7 1% and 42. 1% respectively, which was higher than that of Yunnan Baiyao, Shuangzhen and Shuangjie, but lower than that of Weimeizi. Denkang Dental said that it is mainly due to the differences in product structure, business model and customer structure of each company.

It is planned to raise 660 million yuan.

More than half is used for marketing promotion.

This sprint A-share listing, Denkang Dental plans to raise 660 million yuan. Among them, 220 million yuan was used for intelligent manufacturing upgrading construction projects, 370 million yuan for omni-channel marketing network upgrading and brand promotion construction projects, 35 million yuan for oral health research center construction projects, and 35 million yuan for digital management platform construction projects.

In other words, Dengkang Dental intends to use about 56% of the raised funds for marketing network upgrade and brand promotion. Specifically: the expansion of new channels and the upgrading of existing channels. Online channel upgrade includes the expansion of e-commerce channels and new retail channels; It has a strong connection with outdoor media, new media integrated marketing, image advertising and market research.

The reason why more than half of the funds are invested in channel construction and brand promotion is related to the business strategy of Denkang Dental. In the last three years, the sales expenses of Dengkang Dental exceeded 250 million yuan, accounting for 29.24%, 25.8% and 24.45% of the revenue respectively. Far more than 3. 1 1%, 3.08% and 3.2 1% of R&D expenses (about 30 million yuan per year).

According to Denkang's oral self-report, in the oral care products industry, brand image is an important factor affecting consumers' purchase choice. In order to maintain the brand image, more resources are invested in brand building every year. If the continuous investment in brand building cannot be guaranteed in the future, or the expected effect cannot be achieved, it will adversely affect the brand influence and lead to the decline of the company's performance.

Oral care enterprises have started IPO.

The competitors of Dengkang Dental include Yunnan Baiyao, Zanthoxylum nitidum, Weimeizi, Duobeijie and Fang La Jahwa.

Among them, some enterprises not only produce oral care products such as toothpaste and toothbrushes, but also involve other businesses. For example, Yunnan Baiyao's main business is proprietary Chinese medicines, and Fang La Jahwa's main income comes from nursing products. In many enterprises that mainly focus on toothpaste business, there is a phenomenon that the sales expense ratio (the proportion of sales expense to revenue) is high. For example, the sales expense ratio of Weimeizi, the parent company of Shuke Toothpaste, is 20 1 44. 17%, 39.06% and 4 1.3 1% respectively.

Analysts of China Securities said that with the new oral care products such as dental floss, mouthwash and oral spray being gradually accepted by consumers, the competition in the domestic toothpaste market is actually escalating. From the perspective of sales channels, offline is basically occupied by several major brands at home and abroad, but online channels, some newly established brands are eyeing.

In order to obtain more funds, resources and brand promotion support, oral care enterprises that have not yet been listed have targeted the capital market. In addition to Denkang Dental's plan to land in A shares, Wei Meizi submitted a prospectus to the Hong Kong Stock Exchange and plans to go public in Hong Kong. In addition, around the "first share of electric toothbrushes", Sushi Technology and Usmile's parent company, Interstellar Elantra, are also competing to launch an IPO.

Leng Suanling's parent company is preparing to hit A shares after 83 years. After Shuke's parent company Weimeizi submitted its prospectus to the Hong Kong Stock Exchange, another toothpaste company plans to go public. Recently, Dengkang Dental, the parent company of domestic toothpaste Lengsuanling, submitted a prospectus to Shenzhen Stock Exchange to be listed on the main board.

Modern Express Finance Cheetah learned that although the company's revenue and net profit have increased year by year, the problems of relatively single source of income and business model relying on dealers have also plagued the company's development. From the perspective of the whole toothpaste market, Lengsuanling, which ranks fourth in the market share, has a big gap with the top three' Yunnan Baiyao (000538), Haolai and Procter & Gamble'.

The shabby spirit also needs a-share IPO

"Hot, cold, sweet and sour, eat if you want." An advertisement made Leng Suanling a household name toothpaste brand. Recently, Dengkang Dental, the parent company of domestic toothpaste, submitted a prospectus to be listed on the main board of Shenzhen Stock Exchange. According to the prospectus, the company plans to raise 660 million yuan for smart manufacturing upgrade, omni-channel marketing network upgrade, brand promotion and other projects.

Dengkang Dental was formerly Chongqing Toothpaste Factory, and 200 1 was established through shareholding system reform. At present, the company's business scope mainly includes research and development, production and sales of oral care, oral hygiene and oral medical equipment and supplies. The main products are toothpaste, as well as toothbrushes, mouthwashes and tooth flushers. The company's oral care brands include Dengkang, Lengsuanling and medical research of oral care for adults, and Bellagio and Germination of oral care for children.

On June 14, the reporter learned from interviews in some supermarkets in Nanjing that the brand prices of toothpaste of Denkang Dental ranged from 10 yuan to 40 yuan, and most of the products were cold acid toothpaste. In a large supermarket in Jiangbei New District, some cold and sour toothpaste also launched a "buy one get one free" activity.

From the company's financial point of view, adult toothpaste is the company's main source of income. From 20 19 to 20021year, Dengkang's dental business income was 944 million yuan,10.3 million yuan and14.3 million yuan respectively, and its net profit was 63 million yuan, 95 million yuan and/kloc respectively. Among them, adult toothpaste revenue accounted for 82. 1%, 8 1.9% and 78.9% respectively. Although the company has also laid out oral care products such as mouthwash and electric toothbrush in recent years, the revenue of related products accounts for less than 1%.

The prospectus shows that the company's product sales are mainly based on the distribution model. During the reporting period, the issuance income accounted for 86.63%, 85.88% and 865,438+0.665 and 438+0% of the total income respectively. The company said that with the continuous expansion of business scale and sales area, if the company's management of dealers can't match the business development, it will have a certain impact on the company's sales targets in relevant regions. At the same time, if the retail customers in some regions are impacted by online channels, they may withdraw from the markets in some regions, which will adversely affect the company's operating performance.

On Monday's parent company is waiting in line for listing.

While Leng Suanling sprinted A shares, Shu Ke's parent company Weimeizi queued up in Hong Kong stocks. In February this year, Wei Meizi submitted a prospectus to the Hong Kong Stock Exchange, intending to sprint the "first share of domestic toothpaste". The company has oral care brand "Shuk Saky" and children's oral care brand "Shuk Baby SakyKids". The reporter learned that in the capital market, there are also listed companies that produce toothpaste, such as Zanthoxylum nitidum (600249), Yunnan Baiyao and Pien Tze Huang (600436).

Nielsen retail research data shows that the toothpaste category market in China is relatively concentrated. 202 1 omni-channel retail sales, the market share of the top ten manufacturers reached 75%, and the market share of the top five manufacturers such as Yunnan Baiyao, Haolai, Procter & Gamble, Dengkang Dental (cold acid spirit) and Colgate reached 59.50%. Specifically, the offline market share of the top three brands of head toothpaste is 23.9%, 20. 1% and 8.8% respectively, while the fourth brand of Dengkang Dental is only 6.83%.

Speaking of toothpaste listed companies, we have to mention that the listing of the main board in 2004 was a double needle. After the company entered the capital market with the title of "the first share of toothpaste", it continued to expand its development territory. In addition to its main business, it also entered the fields of papermaking, medicine, hotels, real estate and so on. However, the diversified development strategy has not brought high profits to the company, and the company has been in a state of loss for a long time.

From 2006 to 20 19, the non-net profit deducted by the company 14 was negative. In 2020, the company finally turned losses into profits, and the net profit of 202 1 was 8.658 million yuan, down 85.08% year-on-year. In the first quarter of this year, the company fell into a loss again with a net loss of 29.55 million yuan. In this regard, the company explained that it was because the stock price of CITIC Securities held by the company fell, which led to changes in fair value.

Two-faced needles lost money in stock trading, as did Yunnan Baiyao, which had been on the hot search because of stock trading losses. In 20021year, the net profit of Yunnan Baiyao decreased by 49. 17% year-on-year, which was the first year-on-year decrease of the company's net profit. According to the company, the accumulated fair value change of investment during the reporting period was a loss of 65,438+0.981100 million yuan. The share prices of Xiaomi Group, Yili (600887) and Tencent Holdings, which held heavy positions last year, fell, which also brought many losses to the company's performance.

After 83 years, Leng Suanling's parent company is going to hit A shares 3 "Hot, cold, sweet and sour, eat if you want." With this well-known advertising word, Lengsuanling has always been one of the "national toothpastes" in many people's minds.

A few days ago, Chongqing Dengkang Oral Care Products Co., Ltd. (referred to as "Dengkang Oral"), the parent company of Lengsuanling Toothpaste, pre-disclosed the prospectus, and planned to publicly issue no more than 43,043,500 shares, raising 660 million yuan for listing on the main board of Shenzhen Stock Exchange.

According to the prospectus, Dengkang Dental sells more than 30,000 tons of adult toothpaste a year. Regarding the use of IPO raised funds, Denkang Dental said that the raised funds are planned to invest 370 million yuan for omni-channel marketing network upgrade and brand promotion construction projects; It is planned to invest 220 million yuan for intelligent manufacturing upgrade construction projects; It is planned to invest 35 million yuan for the construction of oral health research center and digital management platform.

The annual revenue is 930 million yuan.

Sales of more than 30,000 tons of toothpaste a year.

According to the prospectus, Dengkang Dental was founded in 200 1, formerly known as Chongqing Toothpaste Factory. The main products include oral cleaning care products such as toothpaste, toothbrush and mouthwash, electric oral care products such as electric toothbrushes and tooth flushers, oral hygiene products such as oral bacteriostatic cream and oral bacteriostatic care solution, and dental medical devices such as tooth desensitizer.

From the perspective of the company's shareholding structure, the controlling shareholder of Dengkang Dental is Textile Group, and the actual controller is Chongqing SASAC. As of the signing date of the prospectus, it directly holds/kloc-0.03 million shares of the company, accounting for 79.77% of the total share capital before issuance. In addition, Shi Wen Investment holds 8. 1% of the shares of the company, making it the single second largest shareholder of the company.

As the core brand of Dengkang Dental, Lengsuanling Toothpaste has made great contributions to the company's brand and market influence. According to the prospectus, the market share of "Lengsuanling" in the segmentation of anti-allergic toothpaste is about 60%. It is the leading brand of anti-allergic toothpaste market in China, and won the titles of "China Famous Trademark" and "China Famous Trademark".

According to Nielsen 202 1 offline retail statistics, the retail share of Lengsuanling toothpaste market ranks fourth in the industry and second in local brands. The retail sales share of Lengsuanling toothbrush market ranks fifth in the industry and third in local brands.

In terms of performance, from 20 19 to 20021year, the revenue of Dengkang Dental Adult Toothpaste was 773 million yuan, 842 million yuan and 900 million yuan respectively, accounting for 8.2 14%, 8 1.92% and 700 million yuan respectively. Specifically, during the reporting period, the unit price of Dengkang Dental Adult Toothpaste rose from 25,400 yuan/ton in 2065,438+09 to 26,200 yuan/ton in 2026,5438+0, and the total sales weight in the last three years was 30,500 tons, 33,000 tons and 34,300 tons respectively.

It is planned to raise 660 million yuan.

More than half of them are used for channel upgrading and brand promotion.

Dengkang Dental Program raised 660 million yuan, of which 220 million yuan was used for intelligent manufacturing upgrading construction projects, 370 million yuan for omni-channel marketing network upgrading and brand promotion construction projects, 35 million yuan for oral health research center construction projects and 35 million yuan for digital management platform construction projects.

For the omni-channel marketing network upgrade and brand promotion construction project with an investment of more than 370 million yuan, Denkang Dental introduced that the project is mainly used for omni-channel marketing network upgrade and brand promotion construction.

Omni-channel marketing network upgrade includes offline and online channel upgrade, where offline channel upgrade includes the expansion of new channels and the upgrade of existing channels, and online channel upgrade includes the expansion of e-commerce channels and new retail channels. The content of brand promotion and construction is mainly the investment of strong contact with outdoor media, integrated marketing of new media, image advertising and market research.

The reason why Dengkang Dental used more than half of the raised funds for channel construction and brand promotion is closely related to the company's development strategy in recent years. Zheng noted that in the daily chemical industry, the sales expenses of Dengkang Dental account for a relatively high proportion in the company's various expenses. From 20 19 to 202 1, the company's sales expenses were 276 million yuan, 266 million yuan and 279 million yuan respectively, accounting for 29.24%, 25.80% and 24.45% of the operating income respectively.

From 20 19 to 202 1, the amount of advertising fees under Dengkang dental sales expenses was 639,455,438+0,000 yuan, 87,276,438+0.5 million yuan and 465,549,000 yuan respectively. In 2020, the company's advertising expenses will increase by 36.48% compared with 20 19. The main reason is that due to the epidemic factors, offline promotion activities will be blocked in 2020. Therefore, the company adjusted its advertising strategy in time in 2020 and increased its investment in traditional TV media channels and media network channels.

In 20021year, Dengkang Dental hired Leo, a young actor, as the image spokesperson to further tap the young consumer groups. However, due to epidemic factors, the endorsement advertisements and promotional videos originally scheduled to go online in the second half of the year were not completed in time, and the corresponding integrated communication plan was postponed, resulting in a reduction in the advertising expenses invested by 202 1.

Dengkang Dental said that in order to reduce the adverse effects caused by the delay in the investment plan of advertising expenses, the company actively strengthened the interactive experience with consumers during this period, increased the promotion of products, enriched in-store display and vivid brand promotion, and laid out interested e-commerce companies in Tik Tok, thereby increasing brand exposure.