Recently, the major canteen food supplier called Shanghai Pangpangxiang Subsidiary Agricultural Products Logistics Service Co. Ltd applied to be listed on the Hong Kong Stock Exchange.
Founded in 2012, Pangpangxiang (乓乓响) is a canteen food supply chain integrated service provider that supplies a wide and comprehensive range of produce and other food products to corporate and institutional customers in Shanghai.
In addition, the company also provides value-added supply chain services, including consistent and high-quality sourcing and supply of produce and other food products, primary processing of standardized or customized produce, food safety and quality control, door-to-door and on-time delivery to ensure supply chain efficiency and customer service.
This company's current portfolio of produce and other food products includes more than 4,100 products that fall into four main categories, ranging from animal foods, plant foods, processed foods, grains, edible oils to spices.
According to the Frost & Sullivan report, based on 2020 sales revenue, Pangpangxiang is the largest supplier of integrated cafeteria food supply chain services in Shanghai. At present, China's canteen food supply chain integrated services industry is growing at a rapid pace, but competition is fierce.
There are over 500 canteen food supply chain integrated service providers in Shanghai alone, and the industry concentration is low. In total, the top 5 companies in the Shanghai canteen food supply chain integrated service industry will only have a 3.6% share by sales revenue in 2020.
The company's IPO will not only raise funds for strategic acquisitions, infrastructure improvements, operational efficiency and supply capabilities, but will also further expand the scale of the business. In addition to expanding sales coverage, seven new regional distribution centers will be established outside of Shanghai to increase its market share.