Tustin and Wallace supplier races toward IPO, lifted by Chinese-style burgers; Baili Foods plans to raise funds for expansion amid questions - 36Kr

Baili Food has filed for registration at the Beijing Stock Exchange IPO, seeking about 1.142 billion yuan to expand capacity and build its headquarters.

The company grew by supplying sauces to restaurant brands such as Tastien and Wallace, but its revenue is highly dependent on a few large customers.

As it pushes into consumer and online channels, large online order patterns have drawn scrutiny over possible order-padding and channel authenticity.

That has raised questions about whether the planned expansion is really needed, whether the fundraising is justified, and whether overcapacity could become a risk.