Ajisen China 2021 Revenue Nears RMB 2 Billion as Fund Investments Diverge

This is an English adaptation of a FoodBud historical article originally published on March 30, 2022.

On March 24, Ajisen (China) reported full-year 2021 results. Revenue reached RMB 1.996 billion, up 9.6% year on year. Store operations contributed RMB 1.88 billion in sales, up 10.5%, while net profit was RMB 20.94 million.

For context, FoodBud noted that Hefu Noodle's 2021 revenue was estimated at around RMB 1.5 billion, suggesting newer noodle chains were closing the gap.

Cost Structure and Production Base

In 2021, raw material costs accounted for 26.7% of revenue, while labor costs accounted for 27.2%.

Ajisen China also operated six production bases in Shanghai, Chengdu, Tianjin, Wuhan, Qingdao, and Dongguan.

Store Network

By the end of 2021, Ajisen China had 737 stores, with a net increase of 15 stores during the year.

Its store base was concentrated in East China, where it operated 300 locations.

LP Investments

Ajisen's financial report also disclosed that the company was a limited partner in funds managed by Cowin Capital and Hezhi Investment.

Its initial investment in a Cowin Capital fund was RMB 50 million; by the end of 2021, that holding was valued at RMB 61.566 million.

Its initial investment in Hezhi Investment was RMB 99.12 million; by 2021, that holding had declined to RMB 29.817 million.

Note: all investment values and financial figures above are historical figures from the 2021 reporting period.