Yizhi Konjac to list on Beijing Stock Exchange

By Chen Zai, Yichang International Communication Studio

After a successful review by the Beijing Stock Exchange December 8, Hubei Yizhi Konjac Biotechnology (Yizhi Konjac) will issue an IPO and is set to become the first Yichang firm to list on the Beijing Stock Exchange.
 

The move will bring the total number of listed companies in the city to 15 (12 A shares, 3 H shares).

Yizhi Konjac, located in Changyang Tujia Autonomous County, processes and commercializes konjac and konjac-derived products. Each year it produces 10,000 tons of konjac food, 7,000 tons of konjac gum, and 10 million units of konjac sponges - highly appreciated by those with sensitive skin.

Konjac food

Konjac gum


Konjac sponge
 

Grown mainly in mountainous areas such as China's Wuling Mountains, Taiba Mountains and on the Yunnan-Guizhou Plateau, at altitudes from 200 to 2500 meters, konjac is sometimes described as a super food. It is credited with lowering blood sugar, reducing lipids and preventing constipation, and is used in detox treatments and beauty treatments, for example in facial massage accessories.

Konjac in bloom

Konjac corm used for preparing food

Yizhi Konjac has established a solid brand reputation as well as long-term relationships with both domestic and foreign customers, including Cargill from the US, Nuscience Group from Belgium, TER Group from Germany, and Three Squirrels from China.

In 2021, Yizhi Konjac's operating income reached 501 million yuan ($72.1 million), with profit jumping to 51.09 million yuan ($7.35 million).

For its IPO, Yizhi Konjac plans to issue about 17 million A shares, and expects to raise around 263 million yuan. The funds raised will be used to rebuild and expand the company's production line, construct an R&D center, and supplement its working capital.