(Yicai) Nov. 3 -- Guoquan Food, a supplier of ready-to-eat ingredients seen as China’s Costco, went public on the Hong Kong Stock Exchange yesterday.

Guoquan Food [HKG: 2517] closed at HKD5.98 a share yesterday and today, unchanged from its initial public offering price.

The IPO proceeds, about HKD357 million (USD45.6 million), will be used to enhance production capacity, improve supply chain capabilities, open self-operated stores, establish research and development centers, buy equipment, and for other general purposes, Guoquan said.

Founded in 2017, Guoquan sells hotpot and barbecue ingredients, beverages, solo-dining foods, ready-to-cook meals, fresh food, Western foods, snacks, and other products. The Shanghai-based company had 10,025 stores as of Oct. 11, over 99 percent of which were franchises.

Guoquan brings hotpot and barbecue ingredients home, with more efficient operations compared with cold chain logistics and a lower store closing rate than its competitors, said Wei Zhe, chairman of Vision Knight Capital, one of its investors.

Like Costco, Guoquan sources directly from producers, with its own-brand products accounting for more than 95 percent of the goods it sells, has a membership program, and is very cost-effective, Wei added.

Founded in 2017, Guoquan sells hotpot and barbecue ingredients, beverages, solo-dining food, ready-to-cook meals, fresh food, Western food, snacks, and other products. The company had 10,025 stores as of Oct. 11, over 99 percent of which were franchise stores.

Guoquan has completed seven financing rounds, with investors also including Tian Tu Capital, Buhuo Ventures, IDG Capital, and Genbridge Capital.

Guoquan reported revenue of CNY3 billion (USD409.9 million), CNY4 billion, and CNY7.2 billion in 2020, 2021, and last year, respectively. In the first four months of this year, revenue rose 3.8 percent to CNY2.1 billion from a year earlier. Last year, Guoquan swung into the black, with a CNY241 million (USD33 million) net profit.

Editor: Futura Costaglione