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
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.
According to the financial report, yum Chinas revenue in the first quarter of 2020 is 1.75 billion US dollars, down 24% year on year; the adjusted net profit is 63 million US dollars, down 68% year on year. KFC achieved revenue of $1.27 billion in the first quarter, down 20% year on year; Pizza Hut achieved revenue of $324 million in the first quarter, down 40% year on year.
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
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.