Chao Chin Launches 'Chao Chin Roast Chicken' Brand, Plans 5 Stores This Year, Aims for IPO in Q3

Chao Chin, Northern Taiwan's largest poultry supplier, has announced its entry into the food and beverage market with the launch of its new 'Chao Chin Roast Chicken' brand, aiming to establish a vertically integrated business model from production to retail. Chairman Cho Jing-lun stated that the company plans to open five stores this year, using its own distribution channels to directly engage consumers and strengthen its control over pricing power, negotiation leverage, and market influence. Additionally, Chao Chin expects to submit its IPO application in the third quarter, with a potential listing by the end of the year.

Chao Chin hosted a media event today to introduce its new restaurant brand, 'Chao Chin Roast Chicken,' and opened its first store in the Taoyuan Railway Station commercial district. The store emphasizes direct delivery from factory to store, eliminating wholesale intermediaries to differentiate itself through superior quality and freshness.

As Northern Taiwan's largest electric poultry slaughterhouse, Chao Chin can process up to 100,000 chickens per day, serving the Taipei, New Taipei, Keelung, Taoyuan, Hsinchu, and Yilan regions. The company owns brands such as 'Chao Chin Meat' and 'Luye Farm,' supplying convenience stores, supermarkets, and chain restaurants.

Regarding its expansion into the food service sector, Cho Jing-lun explained that while Chao Chin has primarily operated in B2B, launching the 'Chao Chin Roast Chicken' brand allows the company to extend from supplier to direct-to-consumer player, building its own brand and distribution network. He emphasized that manufacturing capability ensures product advantage, while owning distribution channels enables better understanding of market demand and pricing control. The company also aims to engage consumers through a membership-based economy.

Although Chao Chin's subsidiary, Yang Chin International, already operates food brands like 'Mai Wei Deng' and 'Fry Chicken Master,' Cho explained that the parent company decided to enter the roast chicken segment due to lower equipment investment and site requirements compared to fried chicken outlets. Additionally, as Yang Chin is actively expanding overseas, Chao Chin will focus on building its own domestic consumer channels.

Cho noted that Taiwan currently lacks a nationwide chain specializing in roast chicken thighs and wings, and Chao Chin aims to fill this market gap. However, potential competitors include 21 Flavors, Din Gua Gua, and Hsiang Chi Chicken City.

Operationally, Chao Chin reported cumulative revenue of NT$1.617 billion for the first five months of the year, a 0.08% year-on-year increase. Cho explained that while domestic broiler supply has increased, the market remains in a 'volume growth, price stability' phase. Despite rising chicken demand, stable prices have limited revenue growth. To address this, the company plans to enhance product value through processed foods, ready-to-eat meals, and direct channel operations.

Regarding capital market strategy, Cho stated that Chao Chin, currently listed on the GreTai Securities Market (GTSM), plans to file for a main board listing in the third quarter. If the process proceeds smoothly, the company could complete its listing by the end of the year.