China’s largest hotpot chain Sichuan Haidilao Catering Co is planning to list its seasoning spinoff business on the Hong Kong Stock Exchange. Even though Yihai International Holding Ltd-the spinoff-has not yet announced any details, its prospectus notes that the financing will be used to build its production base in Bazhou in Hebei province, make strategic acquisitions and promote its brand. At present, Yihai is the exclusive supplier of Haidilao. Information released by the Hong Kong Exchanges and Clearing Ltd shows that Yihai’s turnover rose from 316 million yuan ($48.75 million) to 847 million yuan between 2013 and 2015…Full Article: ENCS.cn Apr 2016

Key Points

  • At the end of 2015, Yihai International Holding produced and marketed 56 products to more than 6,000 stores in China. The company also distributes their products via the e-commerce sites of Tmall.com and JD.com.
  • In 2013, Yihai International Holding was spun off from Sichuan Haidilao Catering (parent company) and registered in the Cayman Islands. Zhang Yong (CEO of Haidilao) and his wife hold a 47.76% share in Yihai, while Yunfeng Capital (cofounded in 2010 by Alibaba’s Jack Ma) holds a 6% share.
  • Tianjin Goubuli Food (baozi and other snack products) was reportedly listed on China’s New Third Board within the past few months (i.e. late 2015/early 2016).

ChinaAg Comments

  • Founded in 1994 and headquartered in Beijing, Sichuan Haidilao Catering operates a chain of hot pot restaurants whose meals consist of beef, pork, duck, mutton, vegetables, tofu, dumplings, and other food products. The company opened its first restaurant in Jianyang (near Chengdu), Sichuan Province. In 2013, the company spun off soup sauce and seasoning business and established Yihai International Holding. In 2015, Sichuan Haidilao Catering had 142 restaurants in China.
  • Established in 2012, The New Third Board, also known as The National Equities Exchange and Quotations, is a pilot trading platform for unlisted small/medium-sized Chinese companies. As of mid-2015, approximately 2,000 small to medium sized companies were listed on the platform.

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