New Stock News | Red Star Cold Chain Successfully Convenes Hearing at Hong Kong Stock Exchange, Becoming the Largest Cold Storage Service Provider for Frozen Foods in Central China Region

According to the disclosure on December 24th by the Hong Kong Stock Exchange, Red Star Cold Chain (Hunan) Co., Ltd. (referred to as Red Star Cold Chain) has conducted a listing hearing on the main board of the Hong Kong Stock Exchange, with China International Capital Corporation and Bank of Agriculture International as joint sponsors. The prospectus shows that Red Star Cold Chain is a provider of frozen food warehousing services and frozen food store leasing services, headquartered in Changsha, Hunan Province. It mainly provides frozen food warehousing services. Since its establishment in 2006, the company has developed a business model that combines food freezer warehouses with frozen food store leasing, allowing the company to connect wholesalers and retailers in the frozen food supply chain. In terms of the company's frozen food warehousing services, Red Star Cold Chain provides frozen food storage capacity and related warehouse management services to frozen food wholesalers and retailers (such as goods sorting, classification and packaging, inventory counting and tracking, inbound and outbound records), as well as fire safety and environmental risk management. These clients pay the company for the frozen food warehousing services. In terms of the company's frozen food store leasing services, Red Star Cold Chain mainly leases stores to frozen food wholesalers and retailers for conducting frozen food trading business. The company charges store leasing fees to store leasing customers, including monthly rent and a premium each month, primarily depending on the specific location of the store. Red Star Cold Chain's self-operated food freezer warehouses in Changsha provide two bases for frozen food wholesalers and retailers, with a total design capacity of over one million cubic meters (equivalent to a usable capacity of over 230,000 tons). During the past reporting period, the utilization rate exceeded 88.0%, and by June 30, 2025, the company had served over 700 clients. In terms of the company's frozen food store leasing services, Red Star Cold Chain mainly utilizes a site of over 36,000 square meters as stores for leasing to frozen food wholesalers and retailers, with a leasing rate of over 94.0% during the past reporting period, making it the core hub of the frozen food industry in Hunan Province. According to a research report, the Chinese frozen food cold chain service market includes the frozen food logistics service market, frozen food processing service market, and frozen food store leasing service market, accounting for 34.1%, 65.3%, and 0.6% of the overall frozen food cold chain service market revenue by 2024, respectively. Meanwhile, the frozen food logistics, processing, and store leasing service markets in Hunan Province account for 37.1%, 62.5%, and 0.4% of the frozen food cold chain service market in Hunan Province. The frozen food logistics service market consists of the frozen food warehousing service market and frozen food transportation service market, accounting for 20.8% and 79.2% of the frozen food logistics service market revenue by 2024, respectively. According to the same data source, in the frozen food warehousing service market, Red Star Cold Chain is the largest provider in the central region of China and Hunan Province based on revenue in 2024, with market shares of 2.6% and 13.6% respectively in the central region of China and Hunan Province, and a market share of 0.7% in China. According to the same data source, in the frozen food store leasing service market, the company is the second largest provider in the central region of China (with a market share of 8.8%) and the largest provider in Hunan Province (with a market share of 54.7%) by revenue in 2024, with a market share of 1.9% in China. In terms of performance, in the six months ending June 30, 2022, 2023, 2024, and 2025, the company achieved revenues of approximately 237 million yuan, 202 million yuan, 234 million yuan, and 118 million yuan, respectively. Meanwhile, the profits for the same period/year were 79.11 million yuan, 75.31 million yuan, 82.88 million yuan, and 39.68 million yuan, respectively.