The company abruptly delisted from Beijing just a year after selling shares there, and now aims to become Hong Kong’s first publicly traded caviar producer
image credit: Bamboo Works
Key Takeaways:
- Xunlong Sci-Tech has applied to list in Hong Kong, after its applications to list in Shenzhen were rejected three times
- The caviar maker previously drew scrutiny over suspicious related-party transactions and accounting
When you think of caviar, you inevitably think of Russia and assume someone there is king of the sturgeon world. Yet the world’s top producer is neither Russian nor even European. Instead, that distinction goes to China’s Hangzhou Qiandaohu Xunlong Sci-Tech Co. Ltd.
Just a year after delisting from the thinly traded National Equities Exchange and Quotations (NEEQ) market in Beijing, Xunlong has wasted no time in filing to relist on the more global Hong Kong Stock Exchange, filing its IPO application last week. The company produces caviar at its aquaculture farms through artificial breeding of sturgeon, using a standardized processing pipeline. Beyond supplying its products to overseas boutiques and fine food companies, it also boasts its own caviar brand, Kaluga Queen.
Caviar leader
Despite its relatively short history of just 23 years, Xunlong has managed to dethrone rivals from caviar powerhouse Russia, a feat linked to founder Wang Bin. An aquaculture graduate of Dalian Ocean University, Wang began scientific research on sturgeon breeding in Beijing as early as 1998. His previous jobs included general manager of the Sturgeon Breeding Technology Engineering Center under the Chinese Academy of Fishery Sciences. When Wang founded his company in 2003, the Fishery Sciences Academy provided substantial support and even held a 30% stake in the venture.
Xunlong flourished under Wang, reaching the pinnacle of the global market just 12 years after its founding. According to third-party market data in its prospectus, Xunlong has ranked first globally in caviar sales for 11 consecutive years since 2015. Its market share has consistently exceeded 30% over the past five years, hitting 36.1% …
This post was originally published here
