Mooncake maker mulls IPO to fund expansion

PUBLISHED : Monday, 12 August, 2013, 12:00am
UPDATED : Monday, 12 August, 2013, 4:24am

China Angel Food, a Shenzhen-based mooncake maker and catering service provider, is considering an initial public offering either in Hong Kong or on the mainland to raise funds for its expansion.

Chairman Patrick Liang Qiusheng said the company planned to float its entire business, which includes mooncake and leisure food production, a bakery chain and a catering service.

There was no definite timetable yet, Liang said.

China Angel Food was listed on the Singapore Exchange in July 2007, and raised more than 100 million yuan (HK$126 million) before being privatised in 2011. Liang refused to comment on the possible size of the second public offering.

"We have not decided on the IPO destination. But we will take our shareholders' opinions seriously," he said.

China Angel Food's three major shareholders are US asset management company Franklin Templeton Investments, private equity firm SEAVI Advent and Hong Kong-listed CK Life Sciences International.

Liang did not disclose the company's latest financial figures. But Singaporean media had reported that the annual revenue of the company was 106.2 million yuan in 2006 and net profit was 37.7 million yuan for that year.

Founded in 1994, China Angel Food is the parent of Shenzhen Angel Food, which produces Canton-style mooncakes, biscuits, candies and other traditional Chinese snacks.

The subsidiary remains the largest revenue contributor for the group.

The group also has a bakery chain that runs 22 shops in Shenzhen.

Two years ago, China Angel Food started to tap the catering industry by setting up Shenzhen Cihao Catering and Technology, offering meals to schools, government departments and office buildings.

Liang said part of the funds raised from the initial share sale being considered would be used to build central kitchens in first and second-tier cities on the mainland and expand catering services to other parts of the country.

By 2023, he added, the company was expected to be able to provide meals to as many as 10 million people every day, compared with 10,000 now.