By LI Ye
Qingdao Walon Food Group, known for its “Daily Nuts” product line, has halted its IPO. The decision came after CITIC Securities, a Walon Food sponsor, withdrew support.
Established in 2016, the company specializes in mixed nuts and nutty. It pioneered the Daily Nuts concept in China, producing small-packaged mixed nut products.
In March, Walon applied for an IPO with plans to raise 700 million yuan (US$95 million), however, recent financial performance has been underwhelming.
From 2019 to 2021, revenue declined from 1.2 billion yuan to 890 million yuan, with net profit falling similarly.
Walon attributed its underperformance to pandemic-related issues, decreasing consumer demand, and logistics disruptions caused by lockdowns. Currency fluctuations also increased procurement costs.
The IPO termination comes as China’s IPO regulations tighten, making it more difficult for consumer goods companies to go public.
While the company mainly relies on distribution and has a presence in supermarkets, convenience stores, and hypermarkets, competitors are expanding into convenience stores.
