Yunfeng-Backed Condiment Firm Yihai Plans Hong Kong IPO

Chinese condiment maker Yihai International Holding, in which Yunfeng Capital owns a 6% interest, is looking to list in Hong Kong, according to a prospectus the company filed with the stock exchange.

In 2013, Yihai span off from its parent company, a popular Sichuan hot pot chain Haidilao Group, to become Haidilao’s sole supplier of hot pot soup sauce.

According to the filing, Yihai is China’s second largest hot pot condiment maker, with revenues of RMB847 million and net profit of RMB125 million in 2015.

Aside from supplying hot pot condiment to Haidilao, which contributed 54% to its overall revenues, Yihao also retails its various products in 6,000 supermarkets in China and via e-commerce channels to 11 countries and regions.

Haidilao is one of China’s largest hot pot restaurant chains, operating 142 outlets in the country at the end of 2015.

It’s unclear when and how Yunfeng Capital, which is co-founded by Alibaba Group Holding Ltd’s chairman Jack Ma, invested in Yihao.

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