Chiyu taste industry: Southwest region condiments, food additives leader.

company in 1996, continue to engage in caramel color and other food additives research and development, production and sales, is now the main domestic caramel color production enterprises. In 2001, the company began to engage in soy sauce, vinegar and other condiments research and development, production and sales. Company soy sauce, vinegar and other condiments used in the "thousand-yuan" trademark is a well-known trademark of Sichuan Province, thousand-brand brewing soy sauce, vinegar is a brand-name products in Sichuan Province. The company caramel color use of the "Hengtai" trademark is a well-known trademark in China. The ratio of the two to operating income is currently 38 per cent and 56 per cent, respectively, and gross margin is 69 per cent and 24 per cent, respectively.the condiment industry has benefited from increased industry concentration and
consumption
upgrading.according to the China Condiment Association statistics, the total annual production of condiments has exceeded 10 million tons, sales of more than 100 billion yuan. MSG, soy sauce, vinegar is currently ranked in China's condiment industry market size of the top three. With the increase of residents' income, the continuation of consumption upgrading, as well as the sinking of enterprise channels and the release of rural consumption potential, the seasoning fermentation industry is still expected to usher in sales growth and profitability. At present, the concentration of China's condiment industry is still not high, condiment industry as a whole CR5 only 10%, of which soy sauce CR5 about 30%, vinegar CR5 about 20%, there is still a lot of room for integration.natural, functional and compound food additives are the trend of future development.out of concern for health, consumers prefer natural food additives that are processed and obtained using natural plants and animals as raw materials. At the same time, functional food additives are mostly natural extracts with physiological activity and health functions, and their nutritional and health functions are also favored by consumers. The compound food additives make the role of a variety of single food additives to complement each other, so as to be more economical, more effective, and can make the effectiveness of various food additives to synerget, thereby reducing their dosing and cost, small side effects, the future domestic market potential is huge. These three types of additives are the future direction of development, but also the industry's new growth point.based in the southwest, expand the country.company's soy sauce, vinegar and other condiments are currently mainly in the southwest region, especially in Sichuan, Chongqing, the market share has entered the forefront of the industry. In 2013, the company began to explore the southwest outside the market, and constantly expand sales channels. The company has completed the East China and South China, North China, Northwest and other parts of the dealer development, at present, the company in the southwest market has a high visibility and reputation, East China and other markets also have a preliminary visibility and reputation. The company is committed to the development of condiments in the national market.company's "Hengtai" brand series caramel color 2015 output of more than 100,000 tons, is the main caramel color production enterprises. The company brews caramel-colored products have been widely recognized by well-known food enterprises, has formed a basic coverage of the country's production and sales network.In recent years, the company's overall gross margin has increased from 26.78 percent in 2011 to 37.19 percent in 2015 as a result of the transition from low-margin food additives to high-margin condiments and a focus on mid- to high-end soy sauces. The company's operating income increased from 503 million yuan to 624 million yuan, a compound annual growth rate of 5%, and net profit increased from 47.06 million yuan to 66.53 million yuan.to raise funds to invest.The proposed issue of 40 million shares, the net amount of funds to be raised 33883.41 yuan, the funds raised will be invested in an annual output of 100,000 tons of brewing soy sauce, vinegar production line projects, marketing network upgrade construction projects and supplementary working capital projects. The fund-raising investment annual output of 100,000 tons of brewing soy sauce, vinegar production line project is expected to reach production in June 2020, up to the post-parto company soy sauce and vinegar production capacity will be increased to 200,000 tons, an increase of 100% from the end of 2012 production capacity.profitability and pricing.diluted by the public offering of 40 million
new shares
, the Company expects 2016-2017 earnings per share of RMB0.52 and RMB0.60, respectively, to give the Company's 2015 results 26-28 times PE, with a reasonable value range of RMB13.52-14.56.are the main risk tips.new capacity delivery does not exceed the expected risk;market expansion did not reach the expected risk.
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