BRIEF: Hongxing Coldchain seeks $37 million in Hong Kong IPO

Frozen food storage services provider Hongxing Coldchain (Hunan) Co. Ltd. (1641.HK) launched its Hong Kong IPO on Wednesday, offering 23.26 million shares for HK$12.26 each, aiming to raise HK$285 million ($37 million). The shares are expected to make their trading debut on Jan. 13.

Founded in 2006 and based in Changsha, capital of Central China’s Hunan province, Hongxing Coldchain provides frozen food storage services and leasing services for frozen food retailers. Its business model integrates cold storage facilities with frozen food shop leasing, linking wholesalers and retailers across the frozen food supply chain.

Citing third-party market data, the company said it was the largest frozen food storage service provider in Hunan and Central China by revenue in 2024, with a nationwide market share of around 0.7%. In the frozen food shop leasing segment, Hongxing was the second-largest service provider in Central China and the largest in Hunan, with a national market share of about 1.9%.

The company recorded net profits of 79.1 million yuan in 2022, falling to 75.3 million yuan in 2023 and rising again to 82.9 million yuan last year. Its profit for the first half of this year totaled 39.7 million yuan, down 3.8% year-on-year.

The company said it will use proceeds from the listing to build a new processing plant and cold storage warehouse, and to upgrade existing equipment, IT infrastructure and software, including investments in AI technologies. It will also use the funds to pursue strategic acquisitions and partnerships to further expand its industry value chain.

By Lee Shih Ta

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