Yihai Kerry
| Company type | Public |
|---|---|
| Industry | Food processing |
| Predecessor | Kerry Oil and Grains, Yihai Group |
| Founded | 1988 |
| Founder | Kuok Khoon Hong (founder of Yihai Group within Kerry Oil and Grains) |
Area served | China |
| Products | Cooking oil, rice, flour, grain products |
| Parent | Wilmar International |
Yihai Kerry (also referred to as Yihai Kerry Arawana; ) is a publicly listed entity in the food processing sector and stands as China's foremost processor of cooking oil. The company functions as a subsidiary under the umbrella of Wilmar International.
History
In 1987, Kuok Khoon Hong was dispatched to China by his uncle, Robert Kuok, to investigate potential market opportunities. During this exploration, he recognized a demand for branded cooking oils that emphasized health, which led to the creation of Yihai Group within Kerry Oil and Grains in 1988, marking the launch of its inaugural cooking oil processing facility in China.
The year 1991 saw Yihai introduce the Arawana brand of bottled cooking oil, which quickly gained notable market acceptance, achieving sales volumes of 3,000 tonnes by 1999.
Towards the end of 2006, Wilmar International acquired Kerry Oil and Grains for $2.7 billion and subsequently merged it with Yihai Group, resulting in the formation of Yihai Kerry. Media outlets at the time highlighted the impact Wilmar and COFCO Group had on pricing within China's cooking oil market.
Yihai Kerry broadened its product range by adding rice in 2007, followed by flour and grain products in 2008.
Initially part of Wilmar, Yihai Kerry underwent restructuring into an independent joint-stock company in January 2019 as preparation for its public listing.
In October 2020, Yihai Kerry successfully launched its IPO on the ChiNext board of the Shenzhen Stock Exchange, raising 13.9 billion yuan (approximately $2 billion). This offering was the largest on the Shenzhen Exchange at that time and was oversubscribed by a factor of 3,499. The IPO occurred after China opened its oilseeds crushing industry to foreign investors such as Bunge Global and Cargill.
Following the IPO, Yihai Kerry experienced declines in profitability due to escalating raw material expenses connected to the Russian invasion of Ukraine, reporting a second consecutive year of reduced profits in 2023.
In January 2024, Yihai Kerry’s Guangzhou branch became involved in litigation concerning alleged participation in unprofitable palm oil transactions valued at 5.2 billion yuan ($725 million) between state-owned Anhui Whywin International Co. and private firm Yunnan Huijia Import & Export Co. Ltd. The company refuted accusations of fraudulent conduct and stated adherence to standard operational procedures.
In July 2024, reports surfaced alleging that Yihai Kerry utilized tank trucks for transporting cooking oil; the company responded by affirming that rigorous supervision protocols are implemented to ensure transportation safety.