Chinese Online Food Distributor Said to Mull $1 Billion

New York, NY, June 23, 2022 (GLOBE NEWSWIRE) — Fujian Frozen Goods Online Network Technology Co., Ltd (“FG Online” or the “Company”), a Chinese B2B online frozen food distributor, is mulling going public through a merger with a Special Purpose Acquisition Company (“SPAC”).

The Company expects it will be listed on Nasdaq around the first quarter of 2023 at the earliest, with an estimated valuation of US$1 billion (equivalent to approximately 67 billion CNY).

Founded in 2015, FG Online specializes in providing frozen food, pre-made food and supply chain services to small and medium-sized restaurants, community convenience stores, farmers’ markets and other small food business owners. The Company’s business now covers more than 10 cities in China, with approximately 1,000 upstream suppliers and 400,000+ downstream restaurants and food business owners, serving nearly 100 million consumers per month.

In addition to the distribution network to business owners, FG Online is also actively expanding into other business verticals. EasyFresh Cold Chain Logistics Co., Ltd (“YX Cold Chain”), a wholly owned subsidiary of FG Online, is a cold chain warehousing and storage management and logistics operator that provides third-party warehousing and distribution services for food and grocery delivery companies . Some of their notable customers include Meituan, Alibaba, Fresh Hema, Pupu Supermarket, Mengniu Diary and Yili Group. YX Cold Chain currently has more than 10 warehouse centers and hundreds of transporting vehicles nationwide. Moreover, Three Meals Ingredient –a brand under FG Online, is a new retail platform providing pre-prepared meals. Three Meals Ingredient’s business strategy is to expand through franchise model by setting up community convenience stores and preposition warehouse to provide consumers with both in-store pickup experience and home delivery service.

FG Online, YX Cold Chain and Three Meals Ingredient operate independently while creating a closed-loop business ecosystem – YX Cold Chain provides a strong logistics foundation for FG Online and Three Meals Ingredient, and FG Online and Three Meals Ingredient could serve both business and consumer markets and drive the growth of YX Cold Chain, forming a solid foundation for China’s domestic food logistics and pre-made meal industry.

FG Online has a gross margin of over 12% for its business segment, an increase of more than 50% in 2019. The Company has received 5 founds of financing from many well-known institutional investors in China, such as Sinovation Ventures, Shunwei Capital , VisionGain Capital and Longling Capital. FG Online raised approximately 120 million CNY (equivalent to about US$17 million) in their last found of financing. The Company plans to build more cold chain infrastructures and strengthen their supply chain operation to achieve nationwide market penetration.

Throughout 2021, over 600 SPAC IPOs have been completed and more than US$162 billion in funds have been raised which breaks all previous records. In 2020, the US stock market has completed a total of 237 SPAC IPOs, raising a record amount of US$83.3 billion.

Some well-known SPAC mergers include the fast-food brand “Burger King”, entertainment magazine “Playboy”, private aerospace company “Virgin Galactic”, and first hydrogen energy listed company “Nikola”.

SPAC is a special financial instrument in the US capital market, commonly known as “Blank-Check Companies”. SPAC is essentially a listed private equity fund. The founder first sets up a company and submits an initial public offering prospectus. Once the company goes public through IPO financing, it will find target companies to merge with within 12 to 24 months. Most SPACs will get listed on either Nasdaq or NYSE.

Contact information
Adam Liu,
Impact IR Inc.

  • Fujian Frozen Goods Online Network Technology Co.,Ltd

  • Fujian Frozen Goods Online Network Technology Co.,Ltd


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