IPO | Hai Tin Flavour 3288 Launches IPO, First Subscription of HKD3667

Futu Information June 11, $ Foshan Haitian Flavouring and Food (03288.HK)$ Announcement that the Company intends to offer approximately 0.263 billion shares worldwide at the IPO on June 11-June 16, which is expected to be listed in Hong Kong on June 19.

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Haitian Flavour Company Profile

Hai Tin Flavour Company entered into a public private joint venture in 1955 to form Haitian Soy Sauce Factory. It was one of the first “Chinese Old Name” enterprises announced by the Ministry of Commerce of the People's Republic of China. Currently produced products cover more than 1000 SKU's of soy sauce, oyster sauce, sauce, vinegar, etc., with an annual production value of more than $2 billion.

In 2014, $Foshan Haitian Flavouring and Food(603288.SH)$ Listed on the Shanghai Stock Exchange. Hai Tianrong ranks 4th in China's Fast Consumer Product Market Report, Kaidu Consumer Index “Global Brand Footprint Report 2024”. In 2024, the China Brand Strength Index 2024C-BPI list was released, Hai Tian won the “Four Crowns” in the field of condiments, earning the first honor of 2024C-BPI Soy Sauce, Oyster Sauce, Sauce, Vinegar Industry Brand Ranking, among which soy sauce has been ranked first in the list of 14.

According to a report by Frost Sullivan, the seafood industry is the leader in China's condiments industry, ranking first in the Chinese condiments market by revenue in 2024. In 2024, China's condiments market was RMB498.1 billion, and the market share of seafood was 4.8%, more than twice that of its biggest competitor. By revenue in 2024, the seafood industry ranks fifth in the world. In 2024, the global condiments market was RMB2143.8 billion and the market share of seafood was 1.1%. By sales volume, Hai Tian has been ranked as the largest condiment company in China for 28 consecutive years. For many years, the number of soy sauce and oyster sauce products in the sea food industry ranked first in China, while sauces, vinegar and wine also ranked first in the Chinese market.

Financial profile of the sea food industry

According to the 2024 Annual Report disclosed by the Hai Tin Industry, the company's operating revenue in 2024 was $26.901 billion, up 9.53% year-on-year; net profit attributable to shareholders of listed companies was $6.344 billion, up 12.75% year-on-year; net assets attributable to listed company shareholders of 30.895 billion yuan, up 8.29% year-on-year; overall net interest rate 23.63%, An increase of 0.65%.

In 2024, the company achieved revenues of $13.758 billion, $2.669 billion, $4.615 billion, $4.086 billion, and USD 4.086 billion, with year-over-year growth of 8.87%, 9.97%, 8.56% and 16.75%, respectively.

Seasoning Industry Overview

The global market for condiments is huge.Based on the information of Frost SullivanIn terms of revenue, the global condiments market in 2024 was RMB2143.8 billion and a compound year growth rate of 3.2% in 2019-2024. Due to the recovery after the pandemic, steady growth in consumer demand, and increasing assortment of condiments, the global condiments market size is expected to grow to RMB2891.7 billion in 2029, with a compound year growth rate of 6.2% from 2024 to 2029.

The United States, Europe, and China are the three largest countries/regions in the global condiments market, with a market size of RMB534.1 billion, RMB519.4 billion and RMB498.1 billion in 2024, respectively. Between 2024 and 2029, Southeast Asian and Ramey markets are expected to grow fastest in the major global markets, with compound year growth of 9.1% and 7.8%, respectively.

IPO Cornerstone Investors

Cornerstone investors have agreed to subscribe or induce their designated entity to subscribe for the relevant number of shares available for purchase at the offering price, subject to certain conditions, for a total amount of approximately $0.595 billion. Cornerstone investors include: HHLRA, GIC, RBC, Yufeng Fund, UBS AM, Boyu, HSG Growth, Foshan Development.

Based on the offering price of HK$35.65 per H share (the median of the indicative offer price range), the total number of shares offered for subscription will be 0.131 billion shares offered by cornerstone investors.

comesSource: Hai Tin Flavour Company Procurement Book

IPO Funding Purposes

In terms of financing purposes, the marine food industry expects net proceeds from global sales of HK$9.271 billion (based on the median sales range of HK$35.65). Under the terms of the offering, Sea Sky intends to use the global IPO for the following purposes:

Approximately 20.0% will be used for product development and R&D and process upgrades for cutting-edge technologies; approximately 30.0% will be spent on capacity expansion, adoption of new technologies and digital upgrades of the supply chain; approximately 20.0% will be used to enhance the Group by building the Group's global brand image, expanding sales channels and enhancing overseas supply chain capabilities Global impact; approximately 20.0% will be used to strengthen the Group's sales network and increase its penetration; approximately 10.0% will be used as working capital and general corporate purposes.

Read more:Procurement Book for Sea & Sea Flavour Industry

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