WASHINGTON, DC, US — YanGuFang International Group, which produces oat and grain products in China, on Aug. 5 filed with the US Securities and Exchange Commission (SEC) to raise up to $23 million in an initial public offering with a goal of meeting current consumer demand challenges and expanding its domestic and overseas market shares.
The company, founded in 2012 and based in Shanghai, China, primarily engages in the production, research and development, and sales of oat and grain products through its direct salesforce and distribution network throughout various regions in China.
Its product portfolio includes oatmeal, oat flour, oat bran, and oat nutrient and health series products (oat peptide series, dietary fiber powder, and oat toothpaste), among others. YanGuFang has operations in Beijing, Shanghai, Jiangsu, Zhejiang, Fujian, Guangdong, Inner Mongolia, Anhui, and Chongqing, with plans for international sales expansion to the United States in the second half of 2022.
“To increase our sales to more provinces and cities in China and expand our international presence, we would need a significant amount of capital to support our marketing initiatives, ramp up production capacities as well as continue to invest in our research and development efforts,” the company said in its SEC filing. “Any shift in consumer preferences in the markets in which we operate could have a material adverse effect on our business. Our competitiveness therefore depends on our ability to predict and quickly adapt to consumer preferences.”
With the additional financing, the company’s goals include:
- Upgrade and expand product offerings through technology innovation;
- Expand its own sales team and distribution network;
- Enhance brand recognition and awareness;
- Uphold its commitment to product quality;
- Enhance its ability to attract, incentivize and retain talented professionals.