"Pickle King" Clears Out Ji Xiang Ju, "Takeover Tycoon" Spends 1.68 Billion for What?

Ask AI · How can Fangyuan Capital’s investment strategy empower Jixiangju’s IPO?

5 years without going public, can they realize their dream this time?

Author | Sun Mengyuan

Editor | Yu Xing

Source | Ye Ma Finance

According to Tianyancha business registration information, recently, Jixiangju Food Co., Ltd. underwent a change in business registration. Founder Ding Wenjun stepped down as legal representative, chairman, and general manager. Xu Chen and others took over as legal representatives, and Zhou Zhiyi became chairman. Meanwhile, original shareholders Ding Wenjun, Sichuan Qihui Da Technology Co., Ltd., and others exited. The company’s type has also been changed from “joint-stock company” to “limited liability company.”

Image source: Tianyancha

In January this year, the Chongqing Market Supervision Administration announced that Fangyuan Capital would acquire a 92% stake in Jixiangju through its wholly owned subsidiary “Chuanxiang Siyi” for 1.68 billion yuan. At that time, Jixiangju founder Ding Wenjun told “Cover News” that due to confidentiality agreements, details could not be disclosed, but this was good news for the pickled vegetable industry in Sichuan and Chongqing.

This business registration change also marks that the acquisition has entered the implementation stage.

Associate Professor Lin Xianping of Zhejiang University City College believes that after Fangyuan Capital takes control of Jixiangju, it may promote brand upgrading, channel expansion, and industrial chain integration, while balancing modernization with the basic market. Fangyuan Capital’s acquisition of 92% of Jixiangju for 1.68 billion yuan reflects its confidence in its leading position, channel scarcity, governance foundation, and industry potential, aiming to unlock value through operational optimization and achieve capital appreciation.

01

The grassroots “King of Kimchi” who rose from adversity

With the completion of the business registration change, founder Ding Wenjun has completely exited. This Sichuan flavor leader, specializing in pickled vegetables for over 20 years, has officially bid farewell to the founding era.

Founded in December 2000 with a registered capital of 360 million yuan, Jixiangju mainly produces and sells food products and operates online sales. Its corporate type has been changed from a joint-stock company to a limited liability company, now jointly held by Chuanxiang Siyi (Shanghai) Food Co., Ltd., Meishan Future Lane Technology Partnership (Limited Partnership), and Meishan Jirui Enterprise Management Partnership (Limited Partnership).

At 17, he rode a bicycle between Meizhou and Chengdu selling vegetables. Later, he used a tractor to transport vegetables, becoming one of the first “ten-thousand-yuan households” in his village. In the 1990s, owning a food processing factory in Guizhou, he was inspired by the difficulty farmers had selling vegetables and resolutely entered the pickled vegetable industry, investing all his savings of 1.5 million yuan to build a factory.

In 2000, Jixiangju Food Co., Ltd. was established. Amidst many local pickled vegetable factories, Ding took a different approach, using a “vegetable base + cooperative” model to ensure raw material procurement at protected prices, gradually establishing vegetable planting bases around Emei Mountain, Wawu Mountain, and other areas.

Under Ding Wenjun’s leadership, Jixiangju gradually established its industry position: in 2011, it drafted the domestic standard for pickled vegetables; in 2013, it was approved to establish a postdoctoral innovation practice base and the National Pickled Vegetable Processing Technology Research Center. Ding Wenjun was also elected president of the Sichuan Pickled Vegetable Association and participated in formulating the international standard for “Pickled Vegetables,” making the company an “invisible champion” in its niche.

After more than 20 years of development, Jixiangju has grown into a modern food enterprise integrating R&D, production, and sales, holding three core brands: “Jixiangju,” “Chuan Zhi Mei,” and “Bao Xia Fan.” Its products like pickled vegetables and chili oil beans are popular domestically and exported to over 20 countries, firmly leading in the pickled and rice accompaniment segments.

Data shows that Jixiangju leads in the pickled vegetable segment. According to third-party agency “Ma Shang Ying Intelligence,” by Q3 2025, its sales volume in the pickled vegetable category ranked second in the industry, just behind Fuling Zhacai. Additionally, a November 2024 market position certification by iiMedia Research shows that Jixiangju was awarded “Nationwide Top Seller of Rice-Complementing Pickled Vegetables,” and its brand “Bao Xia Fan” was recognized as “Top Online Sales of Rice-Seasoning Paste for 5 Consecutive Years.”

02

Who is the acquirer?

If Jixiangju is a grassroots “King of Kimchi,” then Fangyuan Capital, which took over it, is one of the top players in the consumer sector known for “buying, restructuring, elevating, and selling.”

Its official website states that Fangyuan Capital is a leading independent private equity investment firm in Asia, specializing in investments benefiting from the region’s growing middle class, expanding domestic consumption, and more professional industrialization trends. With cycle-crossing investment experience, deep industry knowledge, and operational expertise, it helps companies transform and realize their maximum potential.

In the investment market, Fangyuan Capital is known for its “precise capturing” style. Managed by former Temasek executives from Singapore’s sovereign wealth fund, it boasts top-tier capital strength, investment vision, and industry resources.

Public information shows that Fangyuan Capital mainly invests in consumer, media and technology, healthcare, industrial, and financial services sectors, with a particularly deep footprint in consumer internet. Its portfolio includes leading companies such as CFB Group, Focus Media, Meituan-Dianping, Zhaopin, Maoyan Entertainment, Baixin Medicine, and Landi Pharmaceuticals.

Image source: company website

Fangyuan Capital’s most renowned investment case is its acquisition and strategic restructuring of the outdoor high-end brand, Arc’teryx (owned by Amer Sports, listed as AS.US). In 2019, Fangyuan Capital, together with Anta Sports, Tencent, and Lululemon founder Chip Wilson, formed a consortium to acquire the company for about 36 billion RMB (4.6 billion euros). Fangyuan Capital contributed about 21.40%, roughly 980 million USD (around 7 billion RMB at the time).

Post-acquisition, Fangyuan actively participated in governance and strategic reorganization, driving global expansion. In 2024, Amer Sports successfully listed on the New York Stock Exchange. Shortly after, Fangyuan began to reduce its stake, cashing out three times (about 6.6 billion RMB in 2021, 1.88 billion RMB in 2023 IPO, and about 9.34 billion RMB in 2025). Over several years, Fangyuan Capital has realized a total cash return of approximately 17.82 billion RMB, more than 2.5 times its initial investment.

This image may be AI-generated

Image source: Canned图库

It’s worth noting that even after reducing its holdings, Fangyuan still owns about 6.2% of Amer Sports. Based on the March 18, 2026 closing price of $33.66 per share, this remaining stake is worth approximately $1.34 billion (about 9.3 billion RMB).

Another notable domestic investment is its acquisition of CFB (China Food & Beverage Group), which holds franchise rights for two major international brands, DQ and Papa John’s, in Greater China. It also involves Western-fusion restaurants like Brut Eatery and Chinese noodle shops like Jinya Ju.

In 2022, Fangyuan Capital took over CFB from Swedish private equity giant EQT AB for about 160 million USD (roughly 1 billion RMB). By the end of 2025, the number of DQ stores in China (mainly in the southern region operated by CFB) exceeded 1,800, making it the “Ice Queen” of China’s frozen dessert market. In early 2026, Fangyuan was reported to plan to sell CFB at a valuation of about 500 million USD (around 3.5 billion RMB), earning at least 2.5 billion RMB profit from this buy-sell operation.

03

Can the “IPO perennial” realize its dream of going public?

Jixiangju has deep ties with Qianhe Weiye (603027.SH), and the two are considered “born of the same root.”

According to Qianhe Weiye’s prospectus, when Jixiangju was founded in 2000, Ding Wenjun and Li Wenxue held 30% and 20%, respectively. Qianhe Weiye’s actual controllers Wu Chaogun, Wu Xueming, and Wu Chaoguan held 17%, 17%, and 16%.

In 2011, the Wu brothers transferred all their shares in Jixiangju, with Wu Chaoguan transferring 16% to Ding Wenjun, and Li Wenxue transferring 5% to Ding. The combined 49% stake held by Wu Chaogun, Wu Xueming, and Li Wenxue was sold to Korea’s CJ CheilJedang (CJ First), for about 31.89 million RMB, ending the relationship between Qianhe Weiye and Jixiangju.

The prospectus also disclosed that in 2010, before the transfer, Jixiangju’s revenue was 123 million RMB, with a net profit of 24.52 million RMB.

As revenue grew, in 2016, CJ First increased its stake to 60%, paying about 38.5 billion KRW (roughly 182 million RMB).

Seven years later, in July 2023, South Korea’s “Asia Daily” reported that CJ First sold all its shares in Jixiangju for about 3 trillion KRW (roughly 168 million RMB), with buyers including Sequoia Capital, Tencent Investment, and the Jixiangju management team. After the transaction, founder Ding Wenjun regained control, holding about 31.24%. Sequoia Capital via HSG held 23%, making it the second-largest shareholder, and Tencent held about 8.43%. CJ First stated that proceeds would be used to focus on Korean food brands like Bippin Gak in China.

Despite sales of Jixiangju being substantial, the capital market has overlooked it. When exiting, CJ First disclosed that in 2022, Jixiangju’s sales reached about 2,091 billion KRW (roughly 9.89 billion RMB).

This image may be AI-generated

Image source: Canned图库

According to the previous controlling shareholder CJ First, in 2022, Jixiangju’s sales were about 2,091 billion KRW (~9.89 billion RMB). However, compared to competitors in Sichuan flavor condiments, its capitalization process has lagged.

On March 7, 2016, Qianhe Weiye (603027.SH) successfully listed on the Shanghai Stock Exchange; on April 16, 2019, Tianwei Food (603317.SH) followed suit, also listed on the SSE, and plans to list on HKEX by 2025. In contrast, the IPO journey of Jixiangju, one of the “Three Giants of Sichuan Flavor,” has been more arduous.

Jixiangju’s IPO pursuit began in October 2020, with a signing of a counseling agreement for the Growth Enterprise Market, and in February 2021, the sponsor changed to Minsheng Securities. However, over five years and 19 submission attempts, it has yet to go public. According to the latest progress report disclosed by Minsheng Securities in January 2026, issues remain such as shareholder changes, executive adjustments, unconfirmed fundraising projects, and internal controls, leaving its IPO prospects uncertain.

Meanwhile, Jixiangju faces significant challenges.

According to the “2025 Food Category Trend Report” by third-party agency “Ma Shang Ying Intelligence,” the growth of the condiment market has slowed significantly, with overall sales growth near zero in 2025. Among subcategories, pickled vegetables and Chinese-style sauces saw the most decline, with sales dropping by nearly or over 5%. The report attributes this mainly to the “Three Reductions and Three Health” health trend, leading consumers to prefer low-salt, low-sodium products, directly impacting traditional high-salt pickled vegetables.

Industry competition is intensifying. In 2024, competitor Tianwei Food issued a notice banning its distributors from selling similar products of “Haorenjia” recipes, a move interpreted as a “one-in, one-out” channel strategy.

At that time, Jinya Ju’s founder Zhan Junhao analyzed in an interview with “Blue Whale News” that Jixiangju’s product lines overlap with Tianwei Food, especially in recipe-style condiments, leading to direct competition. Tianwei’s ban aims to focus distributor resources on its own products and prevent potential market share erosion by Jixiangju.

Lawyer Fu Jian of Henan Zejin Law Firm analyzed that in the future, Jixiangju might focus more on high-end branding, product innovation, and channel optimization, accelerating national and even international expansion. But the condiment industry is highly competitive, and Jixiangju needs to balance tradition with innovation.

He further pointed out that as a niche leader, Jixiangju could leverage capital injection to quickly consolidate resources and increase market share. The dominant shareholding structure formed after Fangyuan Capital’s involvement could significantly reduce internal decision-making friction and clear regulatory hurdles for its IPO.

Do you remember tasting Jixiangju’s “National Favorite Rice Dish”? Do you think Fangyuan Capital’s takeover can help Jixiangju realize its IPO dream? Leave your comments below!

Author’s note: Personal opinions are for reference only.