Juhui Seeks HK IPO

S. and Japan In July 1999, two chemistry majors from China’s Southwest University, Gou Zhongjun and Wang Bin, started working part-time helping hot pot restaurant owners create their soup bases, which varied from chef to chef. Orders for their unique business blend quickly poured in, and they began serving as silent partner to popular local hot pot brands like Liuyishou, Chongqing Little Swan and Chengdu-based Shizilou. The pair set up their own company, Juhui Corporate Management, in 2008, and went on to serve some of China’s fastest growing national restaurant chains, from hotpot specialists Haidilao and Xiabuxiabu, to others like the well-known LXJ chicken chain.

Now, Juhui Food Technology Co. Ltd. SH) to the capital market with plans for a Hong Kong IPO. 27 billion) in its Hong Kong listing a year ago.

Whether Gou and Wang can do the same will depend on whether the market likes their more niche business supplying compound food seasonings, which makes up about a quarter of the overall domestic seasonings market. SH), which is also eyeing a Hong Kong listing, are close behind. S. and Japan.

6 billion yuan ($383 million), a tiny fraction of the roughly 200 billion yuan for the much larger Haitian, the nation’s leading soy sauce maker. Then again, Haitian is much older and more established, with more than a century of history, compared with just two decades for Juhui. 3 billion yuan, according to third-party market research in its prospectus. 8%.

The increasing demand for pre-mixed seasonings partly reflects demand from younger consumers who don’t necessarily feel a need to make everything from scratch. But Juhui sells strictly to other businesses, meaning its growth is driven by the rapid growth of catering enterprises that depend on its consistent quality and customization abilities. 3%, according to a 2026 report by the China Chain Store & Franchise Association (CCFA). Overall, chains boosted their share of China’s restaurant market from 21% in 2023 to 25% last year, according to the CCFA.

S. 2% in Japan, which Juhui says offers significant growth potential for its business, which comes mostly from chain operators. That kind of data certainly spices up Juhui’s IPO application more than the company’s actual revenue and profits, which were relatively flat between 2023 and 2025. 11 billion yuan and the latter down 18% to 125 million yuan.

7 million yuan. 3% a year earlier. Falling average selling prices for the customized compound seasonings that make up 95% of Juhui’s revenue are a factor that continues to pressure its margins. 3 yuan per kilogram in the first quarter of this year.

The company cited competition and its desire to gain market share as key factors behind the price declines. Strong customer retention While such numbers don’t look too impressive, Juhui says it’s equally important to look at its customer retention. 1% last year. Juhui’s makes its customized products at an 84,900-square-meter factory in its hometown of Chongqing, while standardized products are made at a 33,000-square-meter factory.

Actual customization takes place at a network of 30 centers across China with 100 R&D specialists and professional chefs, which Jiuhui says is the largest such network in the industry. " One place where Juhui really shines is on its balance sheet. Its net assets nearly doubled