Weilong is a snack food firm that was founded in Luohe in Henan in 1999. The company’s main offerings include seasoned noodles, flours, vegetable and soy products. It is best known for its latiao, noodles made from gluten. Weilong pioneered a range of alternative flavourings in the early 2000s and became a favourite for its spicy taste, despite concerns that latiao is unhealthy (the snack is sometimes criticised for its ‘three-highs’ in sodium, sugar and fat).
Weilong was holding about 6% of China’s snack market sales in 2020, easily the largest share in a fragmented market. It has been primed to float on the Hong Kong stock exchange for a while but held back on an IPO last year. Earlier in the year it had completed a pre-IPO financing round of Rmb3.6 billion, which was jointly led by CPE and Hillhouse Capital. Tencent, Yunfeng and Sequoia China were some of the other participants in the fundraising, which was said to have valued Weilong at Rmb70 billion. The founding Liu brothers and their families still hold more than 90% of the company’s shares.
© ChinTell Ltd. All rights reserved.
Sponsored by HSBC.
The Week in China website and the weekly magazine publications are owned and maintained by ChinTell Limited, Hong Kong. Neither HSBC nor any member of the HSBC group of companies ("HSBC") endorses the contents and/or is involved in selecting, creating or editing the contents of the Week in China website or the Week in China magazine. The views expressed in these publications are solely the views of ChinTell Limited and do not necessarily reflect the views or investment ideas of HSBC. No responsibility will therefore be assumed by HSBC for the contents of these publications or for the errors or omissions therein.