--- title: "On its first day of listing, LIULIUMEI surged by 193.71%. Did it unexpectedly ride the AI concept?" type: "News" locale: "en" url: "https://longbridge.com/en/news/289932121.md" description: "LIULIUMEI's stock price surged 193.71% on its first day of listing, being humorously referred to as an AI concept stock due to its Pinyin abbreviation \"LLM\" coinciding with AI large models, with its market value briefly exceeding HKD 10 billion. Revenue for 2025 is projected to be 1.711 billion yuan, with a net profit of 182 million yuan, but the gross profit margin has declined to 35.6%. Subsequently, the stock price slightly fell, and the market value dropped below 10 billion" datetime: "2026-06-16T13:31:22.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/289932121.md) - [en](https://longbridge.com/en/news/289932121.md) - [zh-HK](https://longbridge.com/zh-HK/news/289932121.md) --- # On its first day of listing, LIULIUMEI surged by 193.71%. Did it unexpectedly ride the AI concept? "Are you okay? If you're fine, eat LIULIUMEI!" A catchy advertising slogan from Yang Mi in the past has made countless people remember LIULIUMEI. Now, after a seven-year journey, the latter has successfully landed on the Hong Kong Stock Exchange. On June 15, LIULIUMEI's stock price closed at HKD 128 per share on its first day of listing, an increase of 193.71% from the offering price, with a total market capitalization exceeding HKD 10 billion. Based on a rough estimate of a 75% shareholding ratio, the net worth of LIULIUMEI's founder Yang Fan and his wife may exceed HKD 7.5 billion. It is worth mentioning that due to the pinyin abbreviation "LLM" being the same as the abbreviation for Large Language Model, LIULIUMEI has been jokingly referred to as an "AI concept stock." However, as of the close on June 16, LIULIUMEI's stock price slightly decreased by 1.56%, with the latest market capitalization falling below HKD 10 billion. In terms of performance, for the full year of 2025, LIULIUMEI achieved revenue of RMB 1.711 billion, a year-on-year increase of 5.9%; it recorded a net profit attributable to the parent company of RMB 182 million, a year-on-year increase of 23.3%. While both revenue and profit have increased, LIULIUMEI's gross profit margin has declined from 40.1% in 2023 to 35.6% in 2025. Additionally, under the company's strategy of focusing more on developing membership-based stores and chain snack specialty stores, the concentration of LIULIUMEI's major customers has become increasingly evident. **Annual revenue exceeds 1.7 billion, gross profit margin continues to decline** Tianyancha shows that LIULIUMEI Co., Ltd. was registered in Wuhu, Anhui in 2009 and is a private food enterprise focused on deep processing and sales of fruit products, with a core business centered on green plum series products. According to data from Frost & Sullivan cited in the prospectus, in 2024, LIULIUMEI ranked first in the retail sales of the fruit snack industry in China, with a market share of 4.9%. During the same period, the company ranked first in the natural ingredient jelly industry in China (by retail sales), with a market share of 45.7%. In 2025, LIULIUMEI achieved annual revenue of RMB 1.711 billion, a year-on-year increase of 5.9%; it recorded a net profit attributable to the parent company of RMB 182 million, a year-on-year increase of 23.3%. Guided by a product development strategy based on plums, LIULIUMEI has created a diversified product matrix of green plum products, differentiating into three main categories: dried plum snacks, fresh plum products, and plum jelly. In 2025, the aforementioned three products achieved revenues of RMB 830 million, RMB 380 million, and RMB 466 million, with year-on-year changes of -14.8%, +70.1%, and +13.5%, respectively; accounting for 48.5%, 22.2%, and 27.3% of the company's total revenue Among them, the revenue share of dried plum snacks previously exceeded 60%, but has been declining in recent years. LIULIUMEI believes that the recent moderate decline in sales and production of dried plum snacks is a transitional effect brought about by the company's strategic repositioning, rather than a structural decline in fundamental demand. The company expects that dried plum products will still be the cornerstone of its product portfolio and a major pillar of its revenue and brand image. Although LIULIUMEI has seen continuous revenue growth in recent years, its gross profit margin has been steadily declining. In 2023, the company's overall gross profit margin reached 40.1%, but fell by more than 4 percentage points to 36% the following year, and further dropped to 35.6% in 2025. In this regard, LIULIUMEI explained that the changes in its product gross profit margin are mainly influenced by fluctuations in raw material prices and strategic pricing decisions made by the company to improve market penetration. LIULIUMEI pointed out that it may temporarily lower prices during the launch promotion of new products to attract consumer attention, and further adjust pricing in response to intensified competition to consolidate its market position. This market-driven pricing strategy allows its products to effectively penetrate target markets while maintaining sufficient profit margins. This is intuitively reflected in the company's plum jelly products, where in 2023, the company sold about 12,000 tons of plum jelly at a price of 25.7 yuan/kg. In the following two years, the company successfully sold double the quantity of plum jelly at a price of approximately "73% off" (18.8 yuan/kg), while the gross profit margin of plum jelly decreased from 49.2% in 2023 to 45.4% in 2025, a drop of 3.8 percentage points. From the perspective of sales channels, LIULIUMEI has four major channels: self-operated online stores, supermarkets and membership stores, snack specialty stores, and distributors. However, in recent years, LIULIUMEI has intended to weaken the presence of distributors. In 2023, distributors contributed 66.7% of the company's revenue, but this proportion had significantly dropped to 31% last year. The decline in revenue share from distributors has been "replenished" by supermarkets and membership stores, and snack specialty stores. Last year, the revenue from these two channels was 400 million yuan and 650 million yuan, accounting for 23.5% and 38% of the company's total revenue, respectively, increasing by 10.6 percentage points and 27.9 percentage points compared to 2023. However, LIULIUMEI's strategy of focusing on developing membership stores and chain snack specialty stores has also, to some extent, intensified the company's concentration risk among major customers. The prospectus shows that in 2023, revenue from the top five customers accounted for only 14.2% of the annual total revenue, but this proportion rapidly expanded to 45.8% by 2025. Among them, last year, the revenue from the largest customer accounted for 16.4% of the annual total revenue, an increase of 13 percentage points compared to 2023 (not the same customer). **Main fundraising for capacity expansion, average annual sales expenses of about 300 million** In this IPO in Hong Kong, LIULIUMEI's offering price is 43.58 HKD/share, with approximately 11.46 million shares being offered, netting approximately 440 million HKD It is reported that LIULIUMEI plans to use approximately 61% of the net proceeds (approximately HKD 269 million) over the next three years to expand production capacity. According to Frost & Sullivan, the market size of the Chinese green plum snack industry, based on retail sales, is expected to grow from RMB 10.4 billion in 2025 to RMB 17 billion in 2029, with a compound annual growth rate of 13%. To seize market opportunities, LIULIUMEI intends to complete the expansion of production capacity and the establishment of new production facilities by 2027. Specifically, of the aforementioned HKD 269 million, HKD 110 million will be used to establish a plum product production facility in Fujian Province, specifically to produce dried plum snacks on the land currently owned by the company. Approximately HKD 79 million will be used to expand the existing production base (plum jelly factory) in Wuhu, Anhui Province, to meet the growing consumer demand for plum jelly products. Approximately HKD 44 million will be used to establish new warehouse and logistics facilities; approximately HKD 35 million will be used to establish a new production plant in the Fanchang District of Wuhu, Anhui Province, to produce fruit puree and other product ingredients. Of the net proceeds of HKD 440 million, approximately 21% (HKD 92 million) will be used to enhance brand awareness, expand the company's sales network, and explore international markets; approximately 8% (HKD 35 million) will be used for recruiting R&D personnel and advancing R&D plans; the remaining approximately 10% (HKD 44 million) will be used for working capital and general corporate purposes. Further breakdown of LIULIUMEI's expenses shows that in 2023 and 2024, the company's sales and distribution expenses (including product promotion, cultural activities, festive marketing, KOL and celebrity collaborations, etc.) were HKD 309 million and HKD 310 million, accounting for 23.4% and 19.2% of the company's total revenue, respectively. During the same period, the company's R&D expenses were HKD 34 million and HKD 19 million, accounting for only 2.54% and 1.17% of the company's total revenue. In 2025, the situation improved, with the company's sales and distribution expenses decreasing to HKD 272 million, accounting for 15.9% of the company's total revenue; R&D expenses rebounded to HKD 28 million, but still did not reach the 2023 level. **Anhui couple's entrepreneurship, seven-year journey to IPO** As the founders of LIULIUMEI, Yang Fan and Li Huimin have absolute decision-making power in the company. The prospectus shows that as of the last practicable date, Yang Fan and Li Huimin directly or indirectly held approximately 59.11 million shares of the company, accounting for 87.77% of the total share capital before the IPO. After the IPO, their shareholding ratio was diluted to 75%. Public information shows that Yang Fan was born in 1969 in Wuwei County, Wuhu, Anhui Province. At the age of 19, he moved to Beijing and made his first bucket of gold through sales. In early 1996, Yang Fan started a business in Beijing, establishing Beijing Zhong'an Kang Food Co., Ltd., focusing on the puffed food sector. Three years later, Yang Fan returned to his hometown and founded Wuhu Kaixuan Food Co., Ltd., mainly engaged in cake and pastry products. However, due to intense competition in the industry at that time, Yang Fan's entrepreneurial journey was not smooth By chance, Yang Fan discovered that a product developed by his team, LIULIUMEI, was receiving a good response, so he focused his attention on the fruit and vegetable processing candied fruit market. At that time, the company mainly produced lemon-flavored plum products, supplying Air China for in-flight meals. In 2001, the team registered "LIULIUMEI," the first brand in China to independently package and sell green plum products. Initially, LIULIUMEI was not taken seriously, but during an end-of-year inventory, the team found that it had very few returns and a high customer repurchase rate, prompting Yang Fan to increase investment in this category. In 2006, Yang Fan decided to cut other products and fully bet on the green plum industry. Three years later, LIULIUMEI Orchard was officially established, focusing on plum snack products. To quickly gain recognition, Yang Fan was willing to spend heavily on marketing. Yang Fan later recalled, "I took all the profits I earned and spent them on advertising." In 2009, to market on Hunan TV, he even took out a loan from the bank. In 2013, LIULIUMEI invested tens of millions again, signing popular artist Yang Mi as the brand ambassador. The catchy advertisement slogan "Are you okay? If you're okay, eat LIULIUMEI" further helped LIULIUMEI break into new markets. After successfully opening up the consumer market, Yang Fan turned his attention to the capital market, also showing an "aggressive" style. According to Time Weekly, since 2015, LIULIUMEI has gone through six rounds of financing. During this period, LIULIUMEI and its founder couple, Yang Fan and his wife, signed "betting" agreements with investors in each round of financing, resulting in a total of six betting agreements. Most agreements stated that if LIULIUMEI failed to complete its listing within the agreed timeframe, it would need to repurchase shares from investors with both principal and interest. However, LIULIUMEI's path to listing has been bumpy, making four attempts to go public in A-shares and Hong Kong stocks within seven years. Until June 15 of this year, LIULIUMEI finally succeeded in opening the door to the Hong Kong Stock Exchange. On its first day of listing, LIULIUMEI welcomed a strong debut in the Hong Kong stock market. What kind of results will it deliver next? 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