On October 15, Yihai Kerry Arawana Holdings Co., Ltd. (Yihai Kerry) floated on ChiNext Board of the Shenzhen Stock Exchange (Stock Code: 300999). China Structural Reform Fund (CSRF), as Yihai Kerry’s strategic investor, invested 400 million yuan in its IPO.

Yihai Kerry has raised funds of 13,933 million yuan in this IPO, making it the largest IPO project of ChiNext in financing and also the first one introducing external strategic investment. Together with CSRF, Silk Road Fund, Government of Singapore Investment Corp (GIC), Central SOE Poverty-Relief Fund, The People’s Daily, Wumart Stores, Inc., and Yonghui Superstores Co., Ltd. are all part of the strategic investment.

Yihai Kerry is one of the largest agri-products and food processing enterprises in China, with famous brands like “Arawana”, “Olivoila”, “Orchid”, “Wonder Farm”, “Neptune” under its management. Yihai Kerry is No. 1 in small package edible oil, packed flour and packed rice in the domestic market. In 2019, the company’s operating income reached 170,743 million yuan, ranking No. 1 on the ChiNext board.

As a state-level equity investment fund, CSRF operates as a professional platform for market-driven state capital investment and dedicates itself for improving state economic structure and state capital operation efficiency. Grain and oil products as consumer goods for the basic people’s livelihood are important to the national economy. Thus CSRF’s investment in Yihai Kerry makes a significant move to areas relating to the national economy and people’s livelihood and safeguarding of their nutrition, health and safety, which is in line with CSRF’s investment strategy on China’s core assets in consumption field, and also demonstrates its active participation in promoting the two-way mixed-ownership reform (Note: The government will not only encourage non-public capital to participate in SOE reform, but also support the development of private business together with SOE resource) for grain industry, and supply-side structural reform.

CSRF is confident with Yihai Kerry’s advantages in brands, business channels and market scale, and will support Yihai Kerry with CSRF’s resources to further expand its market share and focus on the company’s long-term development, in which way Yihai Kerry can play a better role in contributing to stablising China’s grain industry.