Li Bang International to Buy 51% of Yufengyuan, Targeting RMB150M Revenue in 2026
Li Bang International’s subsidiary will acquire a 51% controlling interest in Suzhou Yufengyuan Food Distribution, closing by May 30 2026, subject to regulatory registration. Yufengyuan’s ongoing contracts are valued at approximately RMB90 million by June 2026 and the acquisition is projected to add RMB150 million in revenue to Li Bang’s 2026 results.
1. Acquisition Agreement
On February 25 2026 Li Bang’s wholly owned subsidiary signed a binding share purchase agreement with the controlling shareholders of Suzhou Yufengyuan Food Distribution to acquire a 51% stake. The transaction, priced based on an independent appraisal, is slated to complete by May 30 2026 following regulatory registration and customary closing conditions.
2. Projected Financial Impact
Yufengyuan’s existing contracts are projected to reach approximately RMB90 million by the end of June 2026. Li Bang expects the addition of Yufengyuan will contribute around RMB150 million in revenue to its consolidated results for the full calendar year of 2026.
3. Strategic Rationale
The acquisition advances Li Bang’s vertical integration strategy, extending its stainless-steel kitchen equipment business into high-margin catering services. Bundling equipment sales with professional chef and staffing services is intended to create cross-selling opportunities, strengthen customer retention and enhance bid competitiveness.
4. Yufengyuan Profile
Founded in 2002, Suzhou Yufengyuan operates a 4,500 m² centralized kitchen serving schools, government institutions and corporate clients, delivering 200,000 meals daily. The firm holds a 25-year zero-incident food-safety record and ongoing contracts that underline its disciplined operations and growth potential.