Layer farming enterprise Shanxi Jin Long Company Limited officially was listed on the New Three Board, and the prospect

By CnAgri2018-04-10 11:04:12 Print In recent years, the level of scale farming of layers has been increased rapidly, large-scale enterprises successively entered into capital market to broaden financial channels and increase capita sources. In late March, 2018, Shanxi Jin Long Company Limited was approved to be listed on the National Equities Exchange and Quotations. This company is larger scale farming enterprises engaging in layer rearing, and R&D, production and sales of egg products, having 6.5 million layers on hand, including 2 million birds in Wuzhu farm, 1 million birds in Junhe farm, 0.5 million birds in Jinhua farm, and 3 million birds in Xiwei farm.
 
From the perspective of shareholders, Shanxi Jinlong Group Feed Co., Ltd. is the largest shareholder, having 38.45% shares, and Ren Lifang, corporate juridical person, is the actual controller, holding 29.78% shares.
 
As for profit model, based on layer rearing, with “Jinlong” eggs as core products, the company has formed an industrial chain focusing on layer rearing and production and distribution of brand eggs and manufacturing organic fertilizers as supporting business. By virtue of years of market accumulation, it has established long-term and stable cooperation with various customers, and its market share has been increasing steadily. The company’s customers include domestic food processing enterprises and supermarkets such as OVO Dan, China Resources, Wu-Mart, Capital Airlines. In 2016, the revenue and net profits of its main business were 315 million yuan and 21.45 million yuan, increasing 86% and 28% from 2015 respectively. In 2017, affected by sharp decline in egg prices, the operating revenue of its main business dropped to 109 million yuan, suffering a loss of 5.35 million yuan during the period from January to August, 2018.
 
The company has obvious brand advantages. By virtue of key factors such as efficient production technology, diseases prevention and control, scale farming, and brand advantages, and years of rearing experience, the company targets producing high-quality eggs through integrated model of raising birds by itself.
 
As there’s no mature business model in domestic layer industry, many enterprises are in the exploring stage. At the same time, the control of IPO has been intensified in domestic, a large number of enterprise have quitted waiting. We believe that the development prospect of Shanxi Jin Long Company Limited is not optimistic without excellent development model and unlimited expansion potential even though it has been officially listed on the New Three Board.