Billionaires Enter Xibei One After Another, How Does the Dining Giant Attract Capital "Going Against the Tide" in the Cold Winter?

The Chinese catering industry has recently welcomed a major development: Inner Mongolia-born mineral entrepreneur Lin Lairong officially invested in Xibei Catering Group with a net worth of 9.5 billion yuan. The actual controller of the A-share listed company, Dazhong Mining, completed a business registration change on Valentine’s Day, February 14th, becoming the third cross-industry heavyweight to inject capital into Xibei within two months, after founder Zhang Yong of Xinrongji and former Ant Group CEO Hu Xiaoming.

According to the National Enterprise Credit Information Publicity System, Xibei Catering Group’s registered capital increased from 89.9029 million yuan to 102 million yuan, with a lineup of new shareholders considered luxurious. Among them, Taizhou Xinrongtai Investment is wholly owned by Zhang Yong, founder of the high-end restaurant brand Xinrongji, which has 10 stores that have received a total of 15 Michelin stars. Hangzhou Zhouxuan Equity Investment is held 97% by Hu Xiaoming, a former Alibaba partner who now serves as chairman of the agricultural brand “One Meter Eight,” which is believed to have connections to Jack Ma.

Behind this capital feast is the darkest period Xibei is experiencing. Founder Jia Guolong publicly admitted that from September 2025 to early January 2026, the group’s store revenue declined by 40%-60% year-on-year, with a sharp 50% drop in January 2026 alone. As of January 15th, 102 out of 349 stores nationwide had closed, leaving 247 stores with uncertain prospects. The controversy with Luo Yonghao over pre-made dishes in September last year further pushed the company into the spotlight.

The counterintuitive moves by major capital players have sparked industry discussion. Analysts point out that Xibei still holds two core assets: first, nearly 250 high-quality stores located in key commercial districts of first- and second-tier cities across the country, with these prime locations accumulated over more than a decade being irreplaceable; second, its self-built mutton processing base in Inner Mongolia and a nationwide food procurement network have established deep barriers in the beef and mutton supply chain. Zhang Yong’s investment in Xinrongji is seen as a strategic move to leverage the complementary supply chain resources, potentially opening new markets through resource sharing.

Brand value and team resilience form another layer of security. As a pioneer in Northwest cuisine chain operations, Xibei has created memorable marketing cases such as “I ❤ Lo” and “25-minute dish delivery.” Even amid crises, its brand as the “first choice for family gatherings” remains deeply rooted. What investors find even more compelling is the company’s cultural cohesion—despite salary cuts and delayed payments, the core team maintains high morale. Such organizational resilience is rare in the catering industry.

Rational valuation has become a key factor. According to an audit report disclosed during the acquisition of Xiaochao Media by Focus Media, Xibei’s 1% equity value plummeted from a peak of 100 million yuan to 25 million yuan, with the overall valuation shrinking to 2.5 billion yuan. This valuation adjustment offers a bottom-fishing opportunity for capital. If the company can divest loss-making stores and activate remaining assets, there is significant room for valuation rebound. Recent reforms, such as Jia Guolong stepping down as CEO of the main brand and downsizing sub-brands, have further boosted investor confidence.

It is worth noting that all three new shareholders have deep connections with Jia Guolong. Zhang Yong is both a representative figure in high-end and mass catering and has maintained industry forum interactions for years; Hu Xiaoming, an MBA classmate, had early collaborations with Jia on a children’s meal project; Lin Lairong, a fellow native of Inner Mongolia, has an intuitive understanding of the value of Xibei’s food ingredient bases. This network-based capital operation reflects the unique mutual aid culture of China’s business circles—when a company faces systemic risks, trust within personal networks often becomes the last safety net.