The company claims to be the country’s second largest hot pot condiment manufacturer, and made CNY 847 million (about $131 million) in revenues and CNY 125 million in profits last year, according to a report citing the prospectus. In 2014, the company made CNY 498.2 million in revenues.
Spun off from its parent company Sichuan Haidilao Catering Co in 2013, a hot pot chain, the firm is said to operate 142 outlets in China as of December 2015.
However, Yihai also warned prospective investors that it may not be able to sustain the growth reported if it somehow loses the right to sell to sell Haidilao sauces.
According to the prospectus, proceeds from the listing will be spent on building a production unit in China’s Hebei province, among other brand and acquisition-driven decisions.
Zhang Yong, the CEO of Haidilao, and his wife Shu Ping own a 47.76 per cent stake in Yihai through holding company ZYSP Yihai, and another six per cent is owned by Yunfeng Capital, the venture capital firm co-founded by Jack Ma, the chairman of Alibaba Group.
Other than in China, Haidilao, which was started in 1994, is also available in restaurants in US, Singapore and South Korea. Through Yihai, the company also distributes its food products to 6,000 shops in China, and to 11 markets through e-commerce websites like JD.com and Tmall.com, including Europe and the US.
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