On the evening of September 6, Wrigley Home Furnishings disclosed its prospectus. This issuance is all new shares, and the number of new shares planned for public issuance is approximately 96.6095 million shares, accounting for 10% of the total share capital after this issuance. This issuance does not involve a public sale of shares by the original shareholders, and the total share capital after the issuance is approximately 966 million shares. The initial inquiry time is September 9, 2022; the expected issuance date is September 16, 2022. After the subscription is completed, the listing may be completed within 8-14 natural days.
It lasted nearly a year and 10 months
The road to listing was full of twists and turns
As early as November 4, 2020, Wrigley Home Furnishings completed the guidance filing and registration with the Guangdong Securities Regulatory Bureau, with CITIC Securities serving as the sponsor and officially launching the listing process.
After more than half a year (July 1, 2021), Wrigley Home Furnishings submitted the "Initial Public Offering Prospectus (Draft)" to the main board of the Shenzhen Stock Exchange, taking one step closer to listing. The prospectus shows that the actual controllers of Wrigley Home Furnishing Group Co., Ltd. are Xie Yuerong, Huo Qiujie, Xie Anqi and Xie Wei.
However, in mid-January this year, Wrigley Home Furnishings, which submitted its IPO for half a year, encountered as many as 61 inquiries from the China Securities Regulatory Commission, making the road to listing full of uncertainty. The "Feedback Opinions on the Application Documents for the Initial Public Offering of Stocks of Wrigley Home Group Co., Ltd." published by the China Securities Regulatory Commission (hereinafter referred to as the "Opinion Letter") shows that the China Securities Regulatory Commission raised regulatory issues, information disclosure, etc. on the prospectus published by Wrigley Home Furnishings. There are as many as 61 questions, including 18 normative questions, 38 information disclosure questions, and 5 other questions.
In early February, Wrigley Home Furnishing was affected by an intermediary agency’s financial fraud case involving LeTV, and the IPO process became “suspended review.” However, soon, the IPO review status of Wrigley Home was changed to "pre-disclosure update", which means that Wrigley Home returned to the normal review stage.
In July, there was good news that Wrigley Home Furnishing Co., Ltd. had passed the initial launch. According to the official website of the China Securities Regulatory Commission, the 79th Issuance Review Committee meeting of the 18th Issuance Review Committee of the China Securities Regulatory Commission will be held in 2022It was held on July 14, 2019, and Wrigley Home Furnishing Group Co., Ltd. (IPO) was approved.
On September 1, the China Securities Regulatory Commission issued an approval for the initial public offering of shares by Wrigley Home Furnishing Group Co., Ltd., approving its public issuance of no more than 96,609,517 new shares.
On September 6, Wrigley Home Furnishings disclosed a prospectus, planning to publicly issue approximately 96.6095 million new shares, with an expected issuance date of September 16, 2022.
Revenue in 2021 is 8.373 billion yuan
Plans to raise 2.029 billion yuan to invest in 6 projects
According to data, ARROW Home Furnishing Group Co., Ltd. was established on April 7, 2013 (its brand ARROW Wrigley Home Furnishing was established in 1994) and is headquartered in Foshan, Guangdong. It is a comprehensive smart home furnishing company with strength and influence in China. The enterprise group owns three major brands: ARROW, FAENZA, and ANNWA. Its product categories cover a full range of home products such as sanitary ceramics, faucet hardware, bathroom furniture, ceramic tiles, bathtubs, and custom cabinets.
Wrigley Home's prospectus disclosed its performance data in the past three years. From 2019 to 2021, Wrigley Home's operating income was 6.658 billion yuan, 6.502 billion yuan, and 8.373 billion yuan respectively, and its net profits were 556 million yuan, 589 million yuan, and 577 million yuan respectively. Among them, the revenue from sanitary ceramics products accounts for the largest proportion of revenue. The gross profit margins of its main business during the three years were 32.09%, 31.63% and 30.56% respectively.
In addition, Wrigley Home Furnishing stated that it mainly sells externally through the distribution model. From 2019 to 2021, the proportion of revenue under the distribution model to main business revenue was 95.98%, 94.39% and 89.11% respectively. As of December 31, 2021, the company had a total of 1,854 dealers, a total of 6,609 distributors, and a total of 12,052 terminal stores.
Wrigley Home's main products include sanitary ceramics, faucet hardware, bathroom furniture, ceramic tiles, etc. Among them, the revenue from sanitary ceramics products accounts for the largest proportion of revenue. From 2019 to 2021, the operating income of the ceramic tile business was 529 million yuan, 558 million yuan and 625 million yuan respectively.
The prospectus shows that Wrigley Home Furnishing plans to raise 2.029 billionYuan is planned to be used for smart home product production capacity technological transformation projects, annual output of 10 million sets of faucets and 3 million sets of showerhead projects, smart home R&D and testing center technology transformation projects, digital intelligence upgrade technology transformation projects, and marketing based on new retail models. Service network upgrade and brand building projects, and 6 projects to supplement working capital.
Net profit increased by 51.21% in the first half
Revenue is expected to reach a maximum of 5.8 billion yuan in the third quarter of 2022
In addition, Wrigley Home Furnishings also disclosed its performance in the first half of 2022 and its performance estimates for the third quarter of 2022 in its prospectus. According to the prospectus, Wrigley Home Furnishings achieved revenue of approximately 3.307 billion yuan in the first half of 2022, a year-on-year decrease of 0.89%; net profit attributable to the parent company was 239 million yuan, a year-on-year increase of 51.21%.
Based on the current operating conditions and market environment, Wrigley Home Furnishing also predicts revenue from January to September 2022. From January to September, its operating income was approximately 5.33 billion yuan to 5.8 billion yuan, a year-on-year change of -5.11%-3.26%; the net profit attributable to shareholders of the parent company was 360 million yuan to 420 million yuan, a year-on-year increase of 11.03%-29.54 %.
Wrigley Home Furnishing stated that the company expects the overall positive year-on-year change in performance from January to September 2022, mainly because the company responded to the increase in raw materials through price policy optimization in the early stage. Due to the overall stable raw material prices during the year, the gross profit margin of product sales has remained at a relatively high level. Due to high level.
In addition, the prospectus also revealed Wrigley Home’s development plan for the next two years. It said that in the future, it plans to build new production lines for smart toilets, smart covers, smart clothes dryers, sensors, smart faucets, smart showers and other smart products, as well as faucet hardware, ceramic sanitary ware and other products, while improving the company's profitability. Further expand the company's business scale; plan to carry out technological transformation of the production base to promote the company to gradually realize "intelligent" production and comply with the national intelligent manufacturing development strategy and the development trend of industry transformation and upgrading.
In terms of marketing and promotion, Wrigley Home Furnishing plans to comprehensively strengthen the construction of marketing channels and brand promotion. On the one hand, we strongly support dealers in building new terminal stores.Expand sales coverage, improve sales and service capabilities in key areas and blank areas of the market, and further increase market share; on the other hand, increase publicity investment in outdoor advertising, online advertising and brand building to further enhance brand influence .
