China: Yihai International Holding seeks IPO in Hong Kong

Image of Kowloon in Hong Kong. Credit:Flickr/Barbara Willi

China-based food seasoning manufacturer Yihai International Holding has announced its intent to list on the Hong Kong Stock Exchange (SEHK) through a prospectus filed with the bourse.

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.

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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.

Also Read: 

Hong Kong: Chinese hotpot chain Haidilao considering HK IPO
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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.