Jiyuan Group Approved for IPO, Marking China's Push for New Consumption

Market IntelFriday, Apr 18, 2025 10:03 am ET
2min read

On April 18, the China Securities Regulatory Commission (CSRC) issued an IPO registration approval to Jiyuan Group Co., Ltd. (hereinafter referred to as Jiyuan), a company specializing in dietary nutrition. This approval marks a significant milestone for Jiyuan, as it paves the way for the company to list on the Shanghai Stock Exchange. The approval process began on April 3, when Jiyuan successfully passed the review, and on April 4, the company submitted its application.

Jiyuan is a prominent player in the food manufacturing industry, with a focus on the research, development, and industrialization of dietary nutritional supplements. The company's core technology involves the precise processing and customization of amino sugar raw materials, which has helped establish its brand as a globally recognized and highly market-accepted amino sugar brand.

Jiyuan's success in obtaining IPO registration is seen as a representative of traditional industries undergoing upgrading and transformation. The company's ability to innovate and develop its own technologies sets it apart from traditional low-end processing and manufacturing. This trend is part of a broader shift in the capital market towards supporting new forms of production and consumption, often referred to as the "new consumption" track.

The approval of Jiyuan's IPO registration is part of a broader effort by the Chinese government to boost domestic consumption and support high-quality supply chains. The Central Economic Work Conference held at the end of 2024 and the 2025 Government Work Report both emphasized the importance of revitalizing consumption and improving investment returns to expand domestic demand. In March, the General Office of the Communist Party of China and the General Office of the State Council issued the "Action Plan for Revitalizing Consumption," demonstrating a strong commitment to boosting consumption through targeted measures.

The capital market's support for consumption-oriented enterprises is crucial for expanding domestic demand and strengthening the domestic economic cycle. By providing high-quality goods and services, the capital market can help enterprises reduce costs, create effective demand, and convert potential demand into actual consumption. This support is essential for driving economic growth and innovation.

In recent months, the Shanghai Stock Exchange has been actively supporting consumption-oriented enterprises in their efforts to raise capital. Several companies, including Zhibang Home Furnishing Co., Ltd. and Jiahua Food Industry Co., Ltd., have successfully raised funds through secondary offerings. Additionally, companies such as Yunnan Shen Nong Agricultural Industry Group Co., Ltd., Changbai Mountain Tourism Co., Ltd., Shanghai Kai Kai Industry Co., Ltd., and Lanzhou Lishang National Culture Industry Group Co., Ltd. are currently under review for similar offerings. These companies span various sectors, including pork farming, tourism, retail, apparel, and sports and entertainment.

The capital market's support for these enterprises is part of a broader effort to optimize resource allocation, promote industrial upgrading, and stimulate enterprise vitality. By providing a stable and supportive environment for consumption-oriented enterprises, the capital market can play a crucial role in driving economic growth and innovation. This trend highlights the government's commitment to fostering a robust and dynamic economy through strategic investments and regulatory support.