On Monday, September 5, 2022, Hong Jiu Fruit was listed on the Hong Kong Stock Exchange, and the company raised a net amount of approximately HK$497 million. The issue price is HK$40 per share, with a market value of HK$18.707 billion. It closed flat at HK$40 per share at noon.
At the business level, the company is responsible for the operation of the whole industry chain of high-quality fruits mainly originating in China, Thailand and Vietnam. It is currently the largest durian distributor in China. The sales volume from durian in the first five months of 2022 is 1.551 billion RMB, accounting for 27.1% of revenue. The sales volume from citrus was 1.49 billion RMB, accounting for 26% of revenue.
Hongjiu Fruit has 4 overseas subsidiaries and 16 fruit processing plants. In 2021, the proportion of sourcing from the origin is 69.9%. The company has built 18 sub-brands forming a sales network covering more than 300 cities.
In 2020, Alibaba invested 591 million RMB in Hongjiu Fruit to subscribe for an additionally registered capital of 12.08 million RMB, becoming the largest external investor before the IPO, holding 8% of the shares. Zhaoken Capital Management, through CSFA, holds 6.5860% of the shares.
In the fruit industry, Pagoda achieved a revenue of 8.854 billion RMB in 2020 and a net profit of 46 million RMB; in 2021, the total revenue was 10.289 billion RMB and the net profit was 226 million RMB. By the end of 2021, Pagoda has a total of 5,249 stores, including 5,134 Pagoda franchised stores and 6 Pagoda self-operated stores.
Source: Baidu-Parity