Based on the impairment loss recognized by Xinchao Media, Xibei's overall valuation is estimated at approximately 2.5 billion yuan. Are the new shareholders betting on a bottom rebound for the chain?
At a time of intense public scrutiny and dismal operating figures, Xibei managed to secure funding. Notably, the investors include Zhang Yong, founder of Xin Rong Ji, and Hu Xiaoming, former Alibaba partner.
Business registration information reveals that on January 20, Inner Mongolia Xibei Catering Group Co., Ltd. completed a shareholder structure adjustment. New shareholders including Taizhou Xinrongtai Investment Co., Ltd., Hohhot Collective Co-creation Enterprise Management Center (limited partnership), and Hangzhou Zhouxuan Equity Investment Management Partnership (limited partnership) entered the fray. The company's registered capital increased from 89.903 million yuan to 102 million yuan, a rise of about 13%.
What is truly intriguing, however, is not the financing itself, but another unexpectedly disclosed audit report.
In April last year, Focus Media disclosed plans to acquire 100% of Chengdu Xinchao Media for 8.3 billion yuan. On January 9 this year, audit materials accompanying the transaction revealed that Xinchao Media had recognized a fair value change loss of 74.8 million yuan on its 1% stake in Xibei. This implies that, under the assessment of the independent auditor, Xibei's overall valuation was marked down to around 2.5 billion yuan.
On one side, there's the fervent entry of business tycoons; on the other, a cold valuation from the audit report. The critical question remains: are these astute investors wagering on a future rebound from the bottom, or are they merely footing the bill upfront for what is destined to be a challenging recovery?
"Friends Circle" to the Rescue Among the investors in this funding round, Taizhou Xinrongtai Investment Co., Ltd. stands out as one of the most notable. Xinrongtai subscribed to a capital contribution of 4.4951 million yuan, currently holding a 4.42% stake in Xibei, making it one of the largest investors in this round.
The ultimate controller behind it is Zhang Yong, founder of Xin Rong Ji, often regarded as the pinnacle of quality in China's domestic dining scene. In previous reports, Jia Guolong has frequently mentioned his close friendship with Xin Rong Ji's Zhang Yong. As early as 2022, Jia Guolong humorously described their division of labor in a public interview: "You focus on reaching the pinnacle, I focus on blanketing the market."
Established in 1995, Xin Rong Ji has long occupied the top tier of China's high-end dining pyramid. Its flagship brand, Xin Rong Ji, has an average per-person spending of 600-1000 yuan; Rong Fu Yan in Shanghai's Sinan Mansions exceeds 1,100 yuan per person; even its secondary brand "Rong Xiao Guan" averages around 150 yuan per person; and its specialized product line, Uncle Rong's Yellow Croaker Noodles, sells for over 100 yuan per bowl.
Beyond catering, Zhang Yong's ambitions are substantial. Records show Zhang Yong holds interests in 34 companies spanning sectors including catering, food, agriculture, tea, commerce, real estate, investment, and mining.
For Zhang Yong, investing in Xibei appears more like a low-cost strategic experiment, testing the possibility of leveraging his high-end dining resources to penetrate and replicate models in the mass market chain segment.
Another key figure among the new shareholders is former Alibaba partner and ex-CEO of Ant Group, Hu Xiaoming. The Hangzhou Zhouxuan Equity Investment Management Partnership enterprise, which he effectively controls, currently holds a 2.21% stake in Xibei.
Hu Xiaoming's current role is Chairman of the agritech company "Yi Mi Ba" (1.8 Meters), whose shareholder structure notably includes Jack Ma as a natural person shareholder.
According to reports, Jia Guolong was once a student in an MBA course taught by Hu Xiaoming, leading to subsequent cooperation. The large yellow croaker used in Xibei's children's meals is supplied by Yi Mi Ba.
Previously, Hu Xiaoming had already ventured into the restaurant sector as an independent non-executive director at Banu Hotpot, demonstrating a long-term focus on the integration of catering and supply chains. Analysis suggests that Hu Xiaoming's internet resources and industry experience precisely address Xibei's shortcomings in traffic acquisition and its need for supply chain upgrades.
Additionally, another new entrant is the Hohhot Collective Co-creation Enterprise Management Center, representing local capital deeply intertwined with regional industry and employment, serving as Xibei's "home turf foundation."
Chengdu Xunda Optoelectronics is a wholly-owned subsidiary of Chengdu Jinghua Optoelectronics, a renowned optical component manufacturer. Jinghua Optoelectronics' investment in Xibei, coming just nine months after its own IPO plans were terminated, seems to hint at the company seeking new narratives and growth avenues at the capital level.
With the influx of new capital, Jia Guolong's direct shareholding was diluted from 29.59% to 26.16%, yet he retains firm control over the company. This indicates a consensus reached during negotiations: the capital seeks resource synergy and long-term returns, while the founder prioritizes decision-making stability and execution efficiency.
Qing Yong, founder of Tomato Capital, pointed out that Xibei's decades of沉淀 (accumulated experience) and deep supply chain are precisely the core reasons these influential figures dare to buy at the perceived bottom.
How Far Has the Valuation Fallen? A more pressing question than "who invested in Xibei" is this: What is Xibei actually worth?
The audit report and financial statements of Chengdu Xinchao Media provide a key reference. The financials show that from January to September 2025, Xinchao Media invested 100 million yuan in Xibei. Business registration info indicates Xinchao Media currently holds a 1% stake in Xibei. A simple back-calculation based on investment amount and equity percentage suggests a post-money valuation for Xibei of approximately 10 billion yuan for that transaction.
Using Xibei's 2023 revenue exceeding 6.2 billion yuan as a base, and referencing the Price-to-Sales (PS) ratio range of around 1.5-2x for leading listed chain restaurants at the time, its theoretical market capitalization would have been between approximately 9.3 billion and 12.4 billion yuan. This lent a degree of rationality to Xibei's 10-billion-yuan valuation during that period.
However, the sudden预制菜 (pre-made dish) controversy caused a rapid decline in Xibei's brand reputation and consumer trust in the short term, accompanied by a deceleration in operational data. Jia Guolong publicly admitted that Xibei's overall revenue plummeted to 265 million yuan in November 2025, less than half of the same period in previous years; store business in January 2026 fell 50% year-on-year. More severely, he projected cumulative losses from September 2025 to March 2026 would exceed 600 million yuan.
The direct reflection of Xibei's valuation change in the capital market was Chengdu Xinchao Media recognizing a 74.8 million yuan impairment on its Xibei investment.
As Xinchao Media is not a listed company, its audit reports and financial statements are not typically publicly disclosed. However, they were disclosed in January 2026 alongside Focus Media's proposed 8.3 billion yuan acquisition of 100% of Chengdu Xinchao Media.
The disclosure revealed that, compared to the initial investment cost of 100 million yuan, Xinchao Media recognized a fair value change loss of 74.8 million yuan, an impairment rate as high as 75%. Based on this calculation, under the independent auditor's assessment, Xibei's corresponding overall fair value had been reduced to approximately 2.52 billion yuan.
This valuation result strips away IPO prospects and fully discounts all existing risks. It reflects not only the rapid decline in Xibei's operating metrics but also incorporates into the pricing the potential long-term effects of negative publicity, uncertainties surrounding store network contraction, risks of deteriorating operating cash flow, and the significant impairment of the brand itself as a core intangible asset.
To some extent, this resembles a "risk-cleared price" that a prudent financial investor might accept as a basis for transaction after the crisis erupted.
Nevertheless, alternative valuation logics persist in the market. Several experts suggested that even after the severe setback, Xibei's nationwide store network and supply chain system remain scarce hard assets. If one reverse-calculates based on the estimated 500 million to 1 billion yuan raised in this round, Xibei's valuation might still be maintained in the range of 4 billion to 8 billion yuan.
The substantial gap between these two calculations precisely reveals the essence of Xibei's current valuation dilemma. Before the crisis, pricing power rested with the founder. Jia Guolong could craft a compelling narrative based on a clear IPO path, an ambitious plan for a thousand stores, and past profitability. But when the crisis hit, pricing power instantly shifted.
Existing Shareholders Feeling the Pinch Beyond the capital operation dubbed the "friends circle bailout," earlier investors are bearing the cost of the valuation decline and potentially obstructed exit routes.
Chengdu Xinchao Media, holding a 1% stake, is the most visibly affected by this round of valuation reassessment. Its initial intention in investing was to secure advertising budgets from a leading restaurant brand through an equity tie-in, while also providing media resource support as a shareholder. The预制菜 (pre-made dish) controversy, however, completely derailed this plan.
In contrast, the pressure on Jingheng Investment stems more from a systemic blockage of exit pathways.
Qingdao Jingheng holds a 1.75% stake in Xibei. Its ultimate controller, Xie Weishan, is the Chairman of Beihai Junzhi Consulting. Junzhi is renowned for its "competitive strategy system," having successfully helped several industry leaders, including Feihe, Bosideng, and Yadea, achieve growth in recent years.
Beijing Jingheng holds a 1.62% stake. Its ultimate controller, Liu Yongyan, also serves as a director of Xibei. A former fund manager at China Post & Capital Fund, Liu transformed into an investor and director of Xibei after founding Beijing Jingheng in 2013.
Over the past decade, the Jingheng-affiliated capital invested in Xibei twice. Analysis suggests its investment horizon was likely closely tied to Xibei's originally scheduled 2026 IPO timeline. Should the listing process be indefinitely postponed or fail, Jingheng would face not only book value impairment but also significant liquidity pressure and fund term constraints.
Industry rumors suggest Jingheng is already evaluating exit and restructuring options. However, given Jia Guolong's absolute control and Xibei's current downturn, achieving a loss-free exit through a share transfer appears nearly impossible.
More subtly, yet equally significant, are the structural risks faced by early-stage local investors. In October 2025, Inner Mongolia Xibei Catering Group Co., Ltd. was included in the "Inner Mongolia Autonomous Region 2025 List of Reserve Enterprises for Listing," categorized as a Class C enterprise for listing cultivation. This indicated its listing process had garnered attention and support from local authorities.
There's no such thing as a free lunch. The new shareholders' "bottom-fishing" is essentially being paid for by the asset impairment of the old shareholders and the dilution of the founder's equity.
For Xibei, the most urgent question may no longer be "how many billions are we still worth?" but rather how to reverse the cash flow downturn and regain the market's growth trust through strategic adjustments, operational repairs, and image rehabilitation. Only then might the power to set the price once again return to its own hands.
Comments