The popular plum snack brand LIULIUMEI (HKG: 06658) made a spectacular debut on the Hong Kong Stock Exchange, with its share price skyrocketing on the first day of trading.
On June 15, shares of LIULIUMEI closed at HK$128, marking a staggering 193.71% surge from its offer price of HK$43.58. This rally propelled the company's total market capitalization beyond the HK$10 billion mark, briefly valuing the holdings of founders Yang Fan and Li Huimin at over HK$7.5 billion based on their 75% stake post-listing.
In a humorous twist, the company's stock ticker '06658' and its Chinese pinyin abbreviation "LLM" have led some investors to jokingly refer to it as an "AI concept stock," drawing a playful parallel to the abbreviation for Large Language Models.
However, the share price experienced a slight correction the following day, dipping 1.56% by the close of trading on June 16, which brought the market cap back below the HK$10 billion threshold.
Financial Performance and Strategic Shifts
For the full year 2025, LIULIUMEI reported revenue of RMB 1.711 billion, representing a year-on-year increase of 5.9%. The company's net profit attributable to shareholders reached RMB 182 million, growing by 23.3%.
Despite the growth in both top and bottom lines, the company's gross profit margin has shown a consistent downward trend. It declined from 40.1% in 2023 to 36% in 2024, and further to 35.6% in 2025.
The company attributes this margin compression to fluctuations in raw material costs and strategic pricing decisions aimed at increasing market penetration. Management stated that temporary price reductions are sometimes used to attract consumer attention for new products or to maintain competitive positioning.
Product Mix and Sales Channels
LIULIUMEI's core business revolves around a diversified portfolio of plum-based products, primarily segmented into dried plum snacks, prune products, and plum jelly.
In 2025, revenue contributions were RMB 830 million from dried plum snacks (48.5% of total), RMB 380 million from prune products (22.2%), and RMB 466 million from plum jelly (27.3%). While dried plum snack revenue declined by 14.8% year-on-year, prune and plum jelly sales grew strongly by 70.1% and 13.5%, respectively.
A significant strategic shift is evident in the company's sales channels. Revenue contribution from distributors plummeted from 66.7% in 2023 to just 31% in 2025. Conversely, sales through supermarkets, membership stores, and dedicated snack shops have surged, now accounting for 23.5% and 38% of total revenue, respectively.
This focus on developing key retail partnerships, however, has increased customer concentration risk. Revenue from the top five customers ballooned from 14.2% of the total in 2023 to 45.8% in 2025, with the single largest client accounting for 16.4% of revenue last year.
IPO Proceeds and Use of Funds
The Hong Kong IPO, which involved the issuance of approximately 11.46 million shares, raised net proceeds of about HK$440 million for the company.
Approximately 61% of the net proceeds (around HK$269 million) are earmarked for capacity expansion over the next three years. This includes building a new dried plum snack production facility in Fujian, expanding the existing plum jelly plant in Wuhu, Anhui, and constructing new warehouses and logistics infrastructure.
About 21% of the funds (HK$92 million) will be used for brand promotion, sales network expansion, and international market development. Another 8% (HK$35 million) is allocated for R&D personnel recruitment and projects, with the remaining 10% (HK$44 million) reserved for working capital and general corporate purposes.
Expenditure Analysis
The company's sales and distribution expenses, which cover marketing, promotions, and celebrity endorsements, were significant at RMB 309 million and RMB 310 million in 2023 and 2024, representing 23.4% and 19.2% of total revenue, respectively. This figure decreased to RMB 272 million (15.9% of revenue) in 2025.
In contrast, R&D spending was considerably lower, at RMB 34 million and RMB 19 million in 2023 and 2024, falling to 2.54% and 1.17% of revenue. R&D expenditure recovered slightly to RMB 28 million in 2025 but remained below the 2023 level.
Founder Background and Journey to Listing
The company was founded by the husband-and-wife team Yang Fan and Li Huimin, who retain a controlling 75% stake post-IPO. Yang Fan, born in 1969 in Anhui, began his entrepreneurial journey in Beijing before returning to his hometown to focus on the food industry.
The brand "LIULIUMEI" was registered in 2001, pioneering the sale of individually packaged green plum products in China. A pivotal moment came when the team noticed the product's low return rate and high customer repurchase frequency, leading to a full commitment to the plum snack business by 2006.
Aggressive marketing has been a hallmark of the brand's strategy. The company invested heavily in advertising, famously securing a loan in 2009 for a campaign on Hunan TV. In 2013, it signed popular actress Yang Mi as its brand ambassador, whose catchy slogan greatly boosted national brand recognition.
The path to a public listing was a long one, spanning seven years and involving multiple attempts across different markets. The company finally succeeded with its Hong Kong IPO on June 15, concluding a journey that included six rounds of financing, each accompanied by agreements that included clauses for share repurchase if listing timelines were not met.
Following its remarkable debut, market attention now turns to the company's ability to sustain its performance and execute its growth strategy in the competitive snack market.
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