Zhejiang Wufangzhai Industry Co.,Ltd., known as the "first rice dumpling stock," has officially launched preparations for a Hong Kong listing. On September 26, the company announced that its board of directors had approved a proposal authorizing management to begin preliminary preparations for issuing H-shares and listing on the Hong Kong Stock Exchange.
Industry experts suggest that through the Hong Kong Stock Exchange's international platform, Zhejiang Wufangzhai Industry can better expand into overseas markets and enhance its international brand recognition and influence. Additionally, the Hong Kong listing could broaden financing channels and strengthen overseas fundraising capabilities.
However, the company's core rice dumpling business is facing significant growth pressures. The company was also embroiled in a food safety incident in May this year involving Band-Aid contamination in outsourced rice dumplings, and brand trust remains to be restored.
According to the company's 2024 financial report, rice dumpling revenue totaled 15.79 billion yuan, representing an 18.64% decline compared to the same period last year. Sales volume decreased by 11,400 tons, while inventory surged 33.82% year-over-year. The company's total annual revenue reached 22.51 billion yuan with net profit of 1.42 billion yuan, both declining 14% compared to the previous year.
Food industry analysts believe that Zhejiang Wufangzhai Industry's current move to expand into international markets may be "premature." They note that overseas markets' acceptance and understanding of traditional Chinese cuisine still need improvement, and it remains unclear whether frozen food exports can match the consumer base in international markets.
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