Original source: Babi Food

On October 12, 2020, Harvest Capital portfolio company Babi Food Co., Ltd. successfully listed on the Shanghai Stock Exchange Main Board. The opening bell was rung by Babi Food Chairman Liu Huiping, alongside the company’s first employee and representatives of long-standing franchisees.

For many people, the day begins with a Babi bun and a cup of soy milk. Store by store, these small outlets have built Babi’s pastry empire. At just 2 yuan per bun, a meal can be had for about 5 yuan. Within this seemingly modest business, Babi has built something substantial.

In 1998, 21-year-old Liu Huiping arrived in Shanghai alone to start his entrepreneurial journey. Today, Babi celebrates 17 years since its establishment. As of the end of December 2019, the company operated 16 directly-owned stores and 2,915 franchised locations, achieving revenue of over 1 billion yuan with a net profit margin approaching 15%.

While continuing to cultivate the East China market with Shanghai at its core, Babi—as a national leader in the breakfast segment—plans to focus next on developing markets in North and South China, gradually expanding its presence nationwide.

In addition to its direct and franchise models, Babi Food has in recent years vigorously expanded its group meal sales channel, now serving hundreds of enterprises, institutions, schools, hospitals, and chain restaurants.

Furthermore, through the construction of a transparent Chinese pastry production center and an efficient logistics system, Babi has established a comprehensive, store-proximate supply chain that enables unified management, rapid distribution, and optimal freshness. This has positioned the company as a pioneer in standardized, large-scale production and sales within the pastry sector.

Liu Huiping, who hails from Jiangzhen Town in Anhui Province—known as the hometown of Chinese pasta—has truly become the “King of Buns,” transforming from a neighborhood bun shop owner into the Chairman of the “First Chinese Bun Stock.”

“Building a brand with integrity, crafting quality with dedication” is the entrepreneurial spirit of Babi.
“Investing with capital, crossing paths with sincerity” reflects the investment ethos that Harvest Capital, Babi’s sole external institutional investor, has upheld for over 13 years.

From investing in Babi in 2012 to its official listing in 2020, the eight years Harvest Capital has accompanied Babi have also been eight years of continuous growth in Chinese consumer power and significant shifts in consumption structure and mindset.

Harvest Capital, deeply rooted in the major consumption and modern services sectors, operates with a low profile as the strategic partner behind many industry champions. Locking onto promising sectors, identifying winners, providing systematic empowerment, and committing to long-term partnership constitute the unique investment philosophy of Harvest Capital—with value being the ultimate testament to it all.

As Alan Song, Founding Partner of Harvest Capital, stated:
“The super wave of Chinese consumption has arrived. Only investors who seek truth and create value can share this feast alongside industry champions.”