Yum! Chinas second listing in Hong Kong

category:Finance
 Yum! Chinas second listing in Hong Kong


On June 19, it was reported that Yum China had secretly submitted an application for listing to the Hong Kong Stock Exchange in recent weeks, raising up to US $2 billion.

The reporter of China Times asked Yum China for confirmation of the above news. Yum China did not respond positively, only said: according to the companys policy, there is no comment on such market rumors and conjectures.

Once again transferred to Hong Kong for secondary listing

This is not the first time Yum China has been sent to Hong Kong for secondary listing. Just two days ago, it was reported that Yum China was working with CICC and Goldman Sachs to prepare for its proposed secondary listing in Hong Kong. As early as January this year, there are also market rumors that Yum China plans to go public again in Hong Kong, aiming to land on the Hong Kong stock exchange this year. However, in the face of such rumors, yum China did not give a yes or no evaluation.

If Yum Chinas listing in Hong Kong is successful, it will be the latest Chinese company to return to Hong Kong stock market. Since this year, with the influence of Ruixing coffees financial fraud scandal and the tightening of US regulatory policies, market participants generally believe that Chinese enterprises listed in the US may face restrictions on financing, and more and more Chinese enterprises are seeking to turn to other markets for funds.

Both Jingdong and NetEase have been listed twice in Hong Kong this month, of which Jingdong raised about 30 billion Hong Kong dollars and Netease raised about 21 billion Hong Kong dollars. In May this year, Robin Li, chairman of Baidu Inc, said in an interview with the media that he was concerned about the fact that the United States had tightened its control over Chinas stock taking companies from the government level. There were also discussions on Baidus two listing in Hongkong and other places.

Chinese mainland Chinas Yum Brands Brands has been granted the franchise in Chinese mainland, and has three exclusive brands, including KFC, Pizza Hut and Taco Bell. By the end of March 2020, yum! China has 9295 restaurants in more than 1400 cities, with a total of more than 400000 employees.

The epidemic is hard to stop the expansion of the company

In 2016, yum China was separated from Yum catering group, which was listed independently on the NYSE in November of the same year. As of June 18, U.S. shares closed at $50.39, with a total market value of about $19 billion.

Since this year, yums performance in China has been seriously affected by the epidemic. At the peak of the outbreak in mid February, about 35% of the restaurants were closed.

In the first quarter of 2020, yums system sales in China decreased by 20% year-on-year and same store sales by 15% year-on-year; among them, KFCs same store sales decreased by 11% and Pizza Huts same store sales decreased by 31%.

However, despite the severe impact of the epidemic, yum China has not suspended its expansion in China. At the beginning of April 2020, yum China announced that it had completed the acquisition of the controlling right of Huang Jihuang, a Chinese style leisure catering company, and set up a Chinese food business department, which also includes Xiaofeiyang and dongfangjiebai. On April 29, yum China also announced the establishment of a joint venture with the Italian family run coffee brand Lavazza to jointly operate Lavazza coffee shops in China. Yum China also said in the first quarter that it will continue to invest in new store opening and store renovation, maintaining the annual target of 800-850 stores. In the first quarter, KFC has added 165 stores with a total number of 6661; pizza hut has added 11 stores with a total number of 2271. Yum Chinas management had previously said that in the two and three quarters of this year, Chinas catering industry is still full of challenges. 2020 will be a very difficult year, but Yum China is focused on long-term development. Source: Zhang Mei, editor in charge of Huaxia times_ NF2100

However, despite the severe impact of the epidemic, yum China has not suspended its expansion in China. At the beginning of April 2020, yum China announced that it had completed the acquisition of the controlling right of Huang Jihuang, a Chinese style leisure catering company, and set up a Chinese food business department, which also includes Xiaofeiyang and dongfangjiebai. On April 29, yum China also announced the establishment of a joint venture with the Italian family run coffee brand Lavazza to jointly operate Lavazza coffee shops in China.

Yum China also said in the first quarter that it will continue to invest in new store opening and store renovation, maintaining the annual target of 800-850 stores. In the first quarter, KFC has added 165 stores with a total number of 6661; pizza hut has added 11 stores with a total number of 2271.

Yum Chinas management had previously said that in the two and three quarters of this year, Chinas catering industry is still full of challenges. 2020 will be a very difficult year, but Yum China is focused on long-term development.