Core Viewpoint - The company Baile Foods is preparing for an IPO on the Beijing Stock Exchange, with projected revenues nearing 2 billion yuan annually by 2024, amidst a challenging market environment for food companies seeking to list [2][4]. Group 1: Company Overview - Baile Foods has initiated guidance for its listing on the Beijing Stock Exchange, targeting a submission for listing by June 2025 and completion by June 2026 [5][8]. - The company primarily serves Chinese chain restaurants such as Tasting and Wallace, which have driven the demand for compound seasonings [2][9]. - Revenue projections for Baile Foods are 1.261 billion yuan in 2022, 1.605 billion yuan in 2023, and 1.912 billion yuan in 2024, with net profits of 157 million yuan, 222 million yuan, and 276 million yuan respectively [2]. Group 2: Market Context - The market has seen several food companies attempt to list on the Beijing Stock Exchange but fail to complete the process, leading to a withdrawal of their applications [3][18]. - As of May 15, there were no food companies under review for listing on the Beijing Stock Exchange, indicating a challenging environment for new entrants [17]. - Baile Foods' potential success could signal a positive shift for the industry, as it may break the trend of unsuccessful listings by food companies [22]. Group 3: Sales and Profitability - Baile Foods' main revenue source comes from sauces like salad and tomato sauce, which accounted for over 70% of its income in 2023 [2]. - The company’s sales model differs from competitors, relying heavily on offline distributors, which contributed 1.09 billion yuan in revenue in 2023, making up 67.92% of total sales [12]. - Despite a higher reliance on distributors, Baile Foods maintained a competitive profit margin, with a net profit of 276 million yuan in 2024, surpassing competitors Baoli Foods and Lihai Foods [13][14]. Group 4: Challenges and Concerns - There are concerns regarding the sustainability of Baile Foods' distributor relationships, as some key distributors have ceased operations, raising questions about revenue stability [14][15]. - The company has not provided detailed explanations regarding the status of its distributors in its listing materials, which may affect investor confidence [15]. - The broader industry context shows that other companies, like Tewei Nong, have faced difficulties in progressing with their listing plans, indicating potential systemic issues within the food sector [19][21].