Beihai, China-based seafood processor and convenience seafood distributor Xianmei Lai Food Co. booked profits of CNY 89.7 million (USD 14.3 million, EUR 12.5 million) in 2019, CNY 90.2 million (USD 14.4 million, EUR 12.6 million) in 2020, and CNY 81.1 million (USD 12.9 million, EUR 11.3 million) in 2021, according to a prospectus released in advance of its IPO.
The company, which also does contract processing for third parties, has engaged Everbright Securities as its main underwriter for the planned listing on the Shanghai Stock Exchange.
Established in 2006, Xianmei Lai has been selling packaged breaded cod and shrimp in Chinese supermarkets for over a decade. The privately owned company is seeking to raise CNY 600 million (USD 96 million, EUR 84 million) to expand its distribution and logistics network as it bets big on growing Chinese demand for convenience meals.
Xianmei Lai’s income dropped from CNY 911 million (USD 145 million, EUR 127.5 million) in 2019 to CNY 849 million (USD 135.8 million, EUR 118.8 million) in 2020 before rebounding to CNY 915 million (USD 146.4 million, EUR 128 million) in 2021, according to the prospectus.
Other Chinese seafood firms like Guolian Aquatic have invested heavily in the ready-meal space in recent years as urbanization and demographic changes open up new opportunities in the Chinese seafood market. In a recent report shared with SeafoodSource, market research group Mintel projected a 9.9 percent annual growth in Chinese demand for ready meals up to 2026, when the market is set to be worth CNY 346.5 billion (USD 55.4 billion, EUR 48.5 billion) in retail market value. The market grew by 9.6 percent in 2021 to a total retail value of CNY 216.4 billion (USD 34.6 billion, EUR 30.2 billion).
Guolian and Xianmei Lai will face off against more-established convenience-food players like Sanquan Foods and Zhengzhou Synear Food Co., both of which have been widening their product portfolios from pork to seafood to cater to changing tastes in China. Other players include Fujian Anjoy Food Co., a firm based on the southeast coast and a major buyer of seafood for its ready-meal offerings.
Photo courtesy of Xianmei Lai Food Co.
