The hottest little bottle cap can also make a fort

2022-10-14
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Small bottle caps can also make a fortune

in daily life, we often come into contact with various bottled drinks and barreled water, but you may not know that plastic bottles and plastic caps of bottled drinks are usually produced separately by different manufacturers

Jinfu Technology Co., Ltd. is an enterprise specializing in plastic anti-theft bottle caps. Its main business is the research and development, production and sales of plastic packaging products such as plastic anti-theft bottle caps. Its products are mainly valve mouth caps for bottled purified water, mineral water, syrup, jelly, edible oil, etc

although this bottle cap is inconspicuous, it brings nearly 100 million net profits to Jinfu technology every year

from 2016 to 2018, the company's revenue was 456 million, 498 million and 568 million respectively, and the net profit attributable to the parent was 86 million, 52 million and 85 million respectively. Recently, Jinfu technology submitted the prospectus for initial public offering to the CSRC, and plans to continue to expand production capacity and further improve performance by raising funds from A-share listing

the risk of customer concentration is high

jinfuke's skill is to make small bottle caps a big business. Its "secret" is that it has formed a stable cooperative relationship with high-quality big customers

first of all, China's packaged drinking water market is characterized by high concentration and oligopoly. According to the Research Report of the China Business Research Institute, in 2018, Nongfu Shanquan and China Resources Yibao accounted for more than 40% of the domestic bottled water market share, and together with Jingtian, Master Kong, Wahaha, Coca Cola and other brands, they accounted for 80% of the domestic bottled water market share

secondly, food and beverage enterprises attach great importance to product safety, which is the key element of their survival and development. Considering the direct contact between plastic bottle caps and contents, in order to ensure the safety and reliability of products, beverage enterprises will choose safe, stable and batch suppliers when choosing plastic anti-theft bottle cap suppliers. Once the two sides form a cooperative relationship, they often have strong stability

Jinfu technology's customers are mainly concentrated in the packaged drinking water industry. The company has a stable production capacity, and producers generally believe that flexible packaging will sweep all products, and the safety of products will continue to improve. The main customers of the company are China Resources Yibao, Jingtian, Coca Cola, Danone, etc. these customers have the characteristics of better reputation and timely payment collection. Jinfu technology has cooperated with its main customers for more than ten years

has established a long-term and stable cooperative relationship with high-quality customers, which is not only the advantage of Jinfu technology, but also leads to a very high customer concentration of Jinfu technology, facing the risk of high customer concentration

from 2016 to 2018, the total sales amount of Jinfu technology to the top five customers was 414million, 459million and 51600 respectively, accounting for 90.73%, 92.13% and 90.74% of revenue respectively. Among them, the company's sales revenue to China Resources Yibao, the largest customer, was 267million, 257million and 270 million respectively, accounting for 58.45%, 51.70% and 47.47% of the company's revenue respectively

the overall operation is still good

thanks to the "binding" with high-quality customers, Jinfu technology's overall operation is good in recent years

from 2016 to 2018, the asset liability ratio of the company was 46.92%, 27.77% and 19.40% respectively, which decreased year by year, and was lower than the average value of the benchmarking enterprises in Zijiang, Zhuhai Zhongfu and Xinlian Zhitong

in the same period, the current ratio of the company was 1.06, 1.89 and 2.99 respectively, and the quick ratio was 0.70, 1.08 and 1.95 respectively, both of which showed an upward trend year by year, and were higher than the average level of comparable companies in the same industry, showing that the company has good solvency and a stable financial situation

from 2016 to 2018, the net cash flow generated by the company's operating activities was 111 million, 84 million and 119 million respectively, which also remained basically stable

in the same period, the company's comprehensive gross profit margin was 37.59%, 33.35% and 29.81% respectively, showing a downward trend. In this regard, the company explained that the rise in raw material prices led to a decline in the company's gross profit margin. However, especially in the past three years, the gross profit margin of the company has always been higher than that of the target enterprises in the same industry

the raised funds continue to expand

Jinfu technology introduced in its prospectus that consumer packaged drinking water has been accepted by the masses. According to the data of China Beverage Industry Association, 5. Balancing machine (including on-site balancing instrument);, In 2017, China's population consuming bottled (barrel) drinking water accounted for more than 30% of the total population. With the improvement of people's income and the popularity of healthy consumption concept, China's packaged drinking water market will continue to develop steadily, which will provide a broad market space for the further expansion of the bottle cap industry

based on the company's good operating conditions, the number of Enterprises above the range has exceeded 50, and the company's judgment on the future market, the company plans to use most of the funds raised by the listing and issuance for capacity expansion

Jinfu technology plans to raise 490million yuan in this listing, of which 293million yuan will be used for the expansion project of plastic bottle cap production base, which will increase production equipment and expand production capacity for a production base located in Ningxiang County, Changsha City. At present, the company's main customers are concentrated in South China, central China and East China. The realization of capacity expansion will help the company further expand its market in North China and southwest China

in addition, the company is strengthening research and development through cooperative research and development. Ongoing R & D projects include: food packaging safety risk assessment of laser bottle caps, feasibility assessment of nano materials applied to bottle caps, etc., and strive to make small plastic bottle caps have higher scientific and technological content

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