Mixue Completes A-share IPO Tutoring; Juewei-Linked Funds Invest in Pinpinyun; Yoshinoya’s Hanamaru Udon to Exit China

This is an English adaptation of a FoodBud historical article originally published on September 9, 2022.

Mixue Bingcheng completes A-share IPO tutoring

The China Securities Regulatory Commission disclosed a tutoring report for Mixue Bingcheng Co., Ltd.’s proposed initial public offering and listing. After the tutoring process, GF Securities said Mixue Bingcheng had the corporate governance structure, accounting foundations and internal control systems expected of a listed company.

Mixue Bingcheng was founded in April 2008 with registered capital of RMB360 million. In September 2021, the company filed for tutoring with the Henan branch of the CSRC, aiming for an A-share IPO, with GF Securities acting as tutor.

Juewei-linked investors take 40.5% of Pinpinyun

On September 7, Pinpinyun received investment from Juele Fund and Shanghai Juepei. After the investment, Juewei-linked companies held a combined 40.5% stake in Pinpinyun.

According to Pinpinyun’s website, the company is part of White Hole Technology Group and was founded in 2017 by Wang Tao, former president of the Wuhan University Computer Association. It provides digital systems for chain restaurant brands, focused on finance and tax compliance, fund security, automated account splitting, store management, supply-chain ordering, and tax planning implementation.

Pinpinyun is headquartered in Wuhan, with a team of more than 300 people. It has six regional customer-service centers, direct offices in more than 20 cities, and a service network covering 220 cities and regions. It says it has served nearly 200 chain restaurant brands and connected more than 30,000 stores to its system.

Yoshinoya’s Hanamaru Udon to exit China

Citing Nikkei Chinese-language reporting, Yoshinoya disclosed in an extraordinary report that Hanamaru Udon would exit China. Its Shanghai operating subsidiary could be liquidated as early as 2022.

A Hanamaru Udon employee said only one store remained and that no further stores would open. The employee said it was not yet clear whether directly operated stores would fully exit China or whether stores might reopen.

Separately, a Shanghai United Assets and Equity Exchange listing showed that Shanghai Jinjiang International Catering Investment Management Co., Ltd. planned to transfer a 9.815% stake in Shanghai Yoshinoya Fast Food Co., Ltd. for RMB8.2173 million.

The same equity-transfer disclosure showed weak recent performance at Shanghai Yoshinoya. In 2021, Shanghai Yoshinoya generated revenue of RMB45.2107 million, recorded a net loss of RMB991,800, and had total liabilities of RMB19.1468 million. In the first half of 2022, revenue was RMB8.6357 million, the net loss widened to RMB5.3494 million, and liabilities rose to RMB22.8156 million.

Saudi PIF reported to lead bid for Starbucks franchise stake

According to people familiar with the matter, Saudi Arabia’s sovereign wealth fund was leading a bid for a minority stake in the Starbucks franchise rights held by Kuwait-based Alshaya Group.

The sources said the Public Investment Fund, or PIF, was leading an investor consortium bidding for the stake and could reach an agreement in the coming weeks. One source said private equity firms might invest alongside PIF in the company’s debt.

Alshaya had previously valued the business at USD15 billion, while potential buyers were expected to bid closer to about USD11 billion. No final decision had been made, and talks could still be delayed or collapse. Representatives for PIF and Alshaya declined to comment.

PIF had been investing across sectors as part of Saudi Arabia’s economic diversification push. In May 2022, the fund established Saudi Coffee Co. and said it would invest more than USD300 million over the next 10 years to increase Saudi annual coffee production from 300 tonnes to 2,500 tonnes.

If completed, the Starbucks deal would give PIF immediate exposure to about 1,700 stores across 14 markets, including Saudi Arabia and Turkey.

Note: IPO, valuation, transaction and forward-looking figures above are historical, as reported on September 9, 2022.