On June 22, China Standard Time, Chinese flavor supplier Kunshan AsiaAroma spice Co., LTD.(AsiaAroma) went public at the Second Board of Shenzhen Stock Exchange. AsiaAroma has also established long-term and stable cooperative relations with International flavors & FragrancesInc.(IFF), Givaudan, Firmenichi, Colgate, etc.
On June 22, China Standard Time, Chinese flavor supplier AsiaAroma went public at the Second Board of Shenzhen Stock Exchange, whose sponsor is Ping An Securities Co., Ltd.
According to CHAILEEDO, the opening price of AsiaAroma shares was US $7.33, up 36.74%. This public offering of 20.2 million shares accounted for 25.00% of the total share capital after the issuance. As of 15:00 on June 22, the current price of AsiaAroma shares was $7.29, up or down 36.13%, with a total market value of $589 million.
As one of the major manufacturers of medium and high-end spices in China, it has been engaged in research and development, production and sales of spices since its establishment in 2001. After years of development, AsiaAroma has successfully developed more than 160 products in three series: natural flavor, synthetic flavor and cooling agent. The end products are widely used in food and beverage, daily chemical, pharmaceutical and other industries.
Also, It has established long-term and stable cooperative relations with IFF, Givaudan, Firmenichi, ABT and other internationally renowned companies in the essence industry, as well as companies in the consumer goods industry such as Mars Wrigley, Mondelez International and Colgate.
From 2019 to 2021, the income of AsiaAroma increased from US $76million to US $92million, and the net profit attributable to the parent increased from US $12.6134 million to US $13.6126 million, maintaining a steady growth trend. At the same time, the net operating cash flow of AsiaAroma from 2019 to 2021 was RMB 4.6872 million, USD 11.4619 million and USD 13.5215 million respectively, and the cash flow continued to improve.
Over the years, AsiaAroma has always attached importance to the investment in technology research and development, giving full play to its own R & D capabilities. According to the prospectus, from 2019 to 2021, the R & D investment of AsiaAroma shares accounted for 3.91%, 4.25% and 5.57% of the operating revenue, increasing year by year. After years of deep industry cultivation, AsiaAroma gradually mastered the core technology of coolants, eugenol vanillin and the production process of a variety of natural flavors, and expanded the product line of synthetic flavors such as daily chemical flavors.
It is learned from the prospectus that natural flavor is the largest source of revenue for AsiaAroma. Its main products are eugenol vanillin and vanillin ferulate. The company has become one of the major manufacturers of such products in the world. In 2019, the company sold about 200 tons of the above products, accounting for about 30% of the global market share of similar products. At present, the company’s revenue from natural flavor products is on the rise, with us $38 million, US $40 million and US $46 million respectively, contributing 50% of the company’s revenue.
AsiaAroma shares raised a total of US $108million, of which US $65million was invested in 6500t/a essence and food additives and 15 tons of cinnamon essential oil, 1 ton of clove light oil, and 20 tons of ramen. Zhoujunxue, chairman of AsiaAroma, said that the project will help to increase the production base, expand the production scale of AsiaAroma, solve the constraints on the company’s development caused by the capacity bottleneck of major products, meet the rapid growth demand of the global flavor essence market, and consolidate, enhance and develop the company’s existing main business.
In addition, the prospectus also predicts that the operating income of AsiaAroma shares from January to June 2022 will be about US $48 million to US $53 million, a year-on-year increase of 7.57% to 20.22%; It is estimated that the net profit attributable to the parent company will be about US $7.78 million, with a year-on-year increase of 22.94% to 51.86%.
This listing will help AsiaAroma further improve its existing product line, continuously increase R &D investment, bring products more in line with market demand to the market, improve the structure and brand influence of the company’s existing products, gain more market share, and strive to become the core natural flavor supplier of international leading flavor essence Enterprises.
