Jiahe Foods(SH:605300) Zhong Guo Jing Ji Wang·2025-02-11 23:09Core Viewpoint - Jiahe Food Industry Co., Ltd. plans to raise up to 725 million yuan through a private placement of A-shares to fund coffee production expansion and supplement working capital, capitalizing on the rapid growth of the coffee market in China [1][2]. Company Strategy - The company aims to optimize its product structure and enhance production efficiency through the application of new technologies and processes, thereby increasing market competitiveness [1][5]. - Jiahe Food has been actively developing its coffee business since 2017, which has now become its second-largest business segment [3][4]. Production Capacity Expansion - The coffee production expansion project will utilize 550 million yuan of the raised funds, aiming to achieve an annual production capacity of 16,000 tons of roasted coffee beans, 3,000 tons of ground coffee, 8,000 tons of hot and cold brewed coffee, 10,000 tons of ready-to-drink coffee, and 610 tons of freeze-dried and mixed flavor coffee [5]. - The company plans to build production lines that align with the quality consumption era, enhancing its coffee production capacity and expanding profit growth points [5]. Financial Structure and Market Demand - An additional 175 million yuan will be allocated to supplement working capital, which will help optimize the company's financial structure and improve operational efficiency [5][7]. - The coffee market in China is experiencing significant growth, with the market size reaching 623.5 billion yuan in 2023 and expected to exceed 1 trillion yuan by 2025 [7]. Industry Trends - The coffee market is characterized by increasing consumer demand, driven by economic growth, rising consumption levels, and the rapid development of e-commerce and new retail [7]. - Current trends in the coffee market include product innovation focusing on specialization, localization, health, and convenience, with brands striving to meet diverse consumer needs amid intensifying competition [8].