Hicon Secures Hundreds of Millions in Pre-IPO Funding, Vision Knight Capital Leads

Consumer Staples Author: Muriel Meng Editor: Yiru Qian Jan 22, 2024 06:43 PM (GMT+8)

The market scale of refrigeration equipment continues to expand, and subdivided industries are constantly emerging


Ningbo Hicon Industrial Technology Co., Ltd. (referred to as "Hicon Technology"), a manufacturer specializing in the research, development, and production of refrigeration equipment and related products, recently completed a pre-IPO financing round exceeding CNY 100 million, according to sources familiar with the matter. The round was led by Vision Knight Capital (Chinese: 嘉御资本), with participation from several well-known investment institutions.

Established in 2001, Hicon Technology is primarily engaged in the R&D, production, and sales of refrigeration equipment. Its main products include ice makers, compact refrigerators, freezers, wine coolers, beverage coolers, ice cream machines, draught beer machines, and sparkling water dispensers. The company has become one of China's largest manufacturing bases for refrigeration equipment exports and is a leading player in the global household ice maker sector. Its independent brands, such as "HICON Hicon" and "WATOOR," also enjoy a significant market share in the domestic ice maker sales market.

In terms of technological innovation, Hicon Technology holds more than 100 patented technologies. Its products have obtained certifications such as CCC, ROHS, International CB, EU CE, US UL, US ETL, and Germany GS, and some products have been awarded the US Energy Star and US NSF certifications. Additionally, as a participating unit in the formulation of industry standards, Hicon Technology has been involved in drafting and setting national and group standards for refrigeration equipment.

In terms of distribution channels, Hicon Technology's products are sold in major overseas retail chains such as Walmart, Home Depot, Costco, and Sam's Club. Its sales network covers 70 countries and regions, including the United States, Canada, and Europe.

In recent years, the global refrigeration equipment market has continued to expand. According to a recent report by QYResearch titled "Global Commercial Refrigeration Equipment Market Report 2023-2029," the global market for commercial refrigeration equipment is projected to reach USD 25.85 billion by 2029, with a compound annual growth rate (CAGR) of 3.2%. The rapid iteration of new technologies will further accelerate the development of new products and new market segments. On the other hand, driven by the trend of "home economy" in China, new consumption patterns are developing rapidly, leading to increased demand for refrigeration equipment among residents. The rapid popularization of the "ice usage culture" and the proliferation of milk tea and coffee chain stores in China have contributed to accelerated growth in both the household and commercial refrigeration markets.

Wei Zhe, Chairman and Founding Partner of Vision Knight Capital, stated, "Vision Knight Capital has long been focused on the field of brand globalization and is committed to finding niche champion companies that stand out in the balanced development of trade, industry, and technology. Hicon Technology has been deeply involved in the refrigeration equipment industry for many years, possesses a profound understanding and forward-looking insights into market demand worldwide, and has accumulated significant technological innovation and product development advantages. We have great confidence in the team led by founder Chen Yuepeng, who has extensive experience, continuous improvement, and strong cohesion. They can maintain a leading position in the global refrigeration industry and bring a refreshing experience to consumers worldwide."