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 at HK$40 per share at midday.
At the commercial level, the company is responsible for operating the entire industrial chain of high-quality fruits mainly from China, Thailand and Vietnam. It is currently the largest durian distributor in China. The sales volume of durian in the first five months of 2022 is RMB 1.551 billion, accounting for 27.1% of revenue. Citrus sales volume was RMB 1.49 billion, accounting for 26% of revenue.
Hongjiu Fruit has 4 overseas subsidiaries and 16 fruit processing factories. In 2021, the share of sourcing at origin is 69.9%. The company has built 18 sub-brands forming a sales network covering more than 300 cities.
In 2020, Alibaba invested RMB 591 million in Hongjiu Fruit to subscribe for additional registered capital of RMB 12.08 million, becoming the largest external investor before the IPO, holding 8% of the shares. Zhaoken Capital Management, through CSFA, owns 6.5860% of the shares.
In the fruit industry, Pagoda achieved sales revenue of RMB 8.854 billion in 2020 and net profit of RMB 46 million; in 2021, the total revenue was RMB 10.289 billion and the net profit was RMB 226 million. At the end of 2021, Pagoda had a total of 5,249 stores, including 5,134 Pagoda franchise stores and 6 Pagoda stand-alone stores.