Leading Chinese seafood snack maker seeks IPO
The parent company of China’s leading producer of dry seafood snacks is seeking a stock market listing to expand its distribution.
Sheng Hai Foodstuffs is applying for a listing on the Hong Kong Stock Exchange, according to Dongxing Securities, a leading Chinese stockbroking firm. The company owns Wo Feng Hai Xian, which produces the well-known ‘Wo Feng’ brand of dried seafood snacks.
The company, which claims to be China’s leading player in dried seafood products, wants to raise funds to build a logistics center and a quality control center. Cash will also be spent on increasing the company’s distribution through supermarkets and convenience stores across China. Dry, packaged seafood snacks such as strips of squid are top sellers in Chinese snack stores.
The company claimed revenues of CNY 205 million (USD 29.7 million, EUR 27.1 million) in 2014, CNY 367 million (USD 53.2 million, EUR 48.5 million) in 2015, and CNY 468 million (USD 67.9 million, EUR 61.8 million) in 2016. Gross profit margins in those years were at 23.4 percent, 25.6 percent and 25.3 percent, respectively.