HK float on the menu for Haidilao offshoot

China's largest hotpot chain Sichuan Haidilao Catering Co is planning to list its seasoning spinoff business on the Hong Kong Stock Exchange.

Even though Yihai International Holding Ltd - the spinoff - has not yet announced any details, its prospectus notes that the financing will be used to build its production base in Bazhou in Hebei province, make strategic acquisitions and promote its brand.

At present, Yihai is the exclusive supplier of Haidilao. Information released by the Hong Kong Exchanges and Clearing Ltd shows that Yihai's turnover rose from 316 million yuan ($48.75 million) to 847 million yuan between 2013 and 2015. Its net profit jumped from 22.1 million yuan to 125 million yuan during the same period. In 2015 alone, about 54 percent of Haidilao's income came from Yihai.