As the Hong Kong Stock Exchange accelerates the approval process for A-share companies to go public, market enthusiasm continues to rise.

On December 12, "Soy Sauce King" Foshan Haitian Flavouring and Food (603288.SH) announced plans to list in Hong Kong, aiming for the Main Board.

In fact, market news indicated back in October that Foshan Haitian Flavouring and Food planned to list in Hong Kong, but at that time they did not respond.

With this official announcement, Foshan Haitian Flavouring and Food has finally taken the first step towards Overseas financing.

It has been 10 years since Foshan Haitian Flavouring and Food last engaged in equity financing.

In 2014, Foshan Haitian Flavouring and Food first entered the Capital Markets, raising 1.922 billion yuan in its IPO for the expansion of products such as soy sauce and other Condiments.

This time, Foshan Haitian Flavouring and Food plans to leverage the Hong Kong listing to promote its Global Strategy.

Faced with a performance growth bottleneck, going overseas is indeed beneficial for Foshan Haitian Flavouring and Food to expand its performance space.

In 2022, affected by the pandemic, online channels became an important option for consumers to purchase Condiment, but Foshan Haitian Flavouring and Food's online layout was insufficient, resulting in missed opportunities and a decline in performance.

In 2021 and 2022, Foshan Haitian Flavouring and Food's online channels generated revenue of 0.704 billion yuan and 0.989 billion yuan respectively, accounting for less than 10% of total revenue.

In 2022, Foshan Haitian Flavouring and Food was still "increasing revenue without increasing profit", with net income attributable to the parent company declining by 7.09% year-on-year. However, after the pandemic in 2023, it fell into the dilemma of declining income and profit.

As a competitor, Qianhe Condiment And Food (603027.SH) took advantage of this opportunity to gain market share based on the "0 additives" Concept, with 2022 revenue increasing by more than a quarter year-on-year.

Since 2024, Foshan Haitian Flavouring and Food's performance has shown some recovery, but the growth rate is difficult to match that of pre-pandemic.

In response to the sluggish growth situation, Foshan Haitian Flavouring and Food has already been "testing the waters" in overseas markets.

At the end of 2023, Foshan Haitian Flavouring and Food established an overseas company, PT Haday Food Indonesia, in Indonesia, built a local factory, formed a marketing team, and developed distribution networks in Jakarta, Bandung, Surabaya, Semarang, and Bali, while also collaborating with local Restaurants.

In this view, it is possible that Foshan Haitian Flavouring and Food will leverage this Hong Kong IPO fundraising to further plan the establishment of factories in overseas markets.

However, "it's hard to please everyone," and entering overseas markets is not easy. For example, in the Indonesian market where Foshan Haitian Flavouring and Food has entered, due to specific national conditions, food products must obtain halal certification to be launched locally, which are market difference issues that Foshan Haitian Flavouring and Food needs to consider when "going overseas."

Foshan Haitian Flavouring and Food is not the only condiment company planning to go overseas; Qianhe Condiment And Food has also put this on the agenda.

At the end of September this year, Qianhe Condiment And Food responded to investors that they have started to explore some overseas markets.