The operator of Domino’s Pizza in China, DPC Dash, has filed for Hong Kong stock exchange listing to expand its footprint in China.
However, it was not clear how much the company was aiming to raise in its Hong Kong listing. The company is currently Domino’s Pizza master franchisee in Mainland China, operating 485 stores across 10 cities. More than half of the stores are located in Beijing and Shanghai.
DPC Dash said it plans to increase its footprint in the country with 120 new stores slated to open this year followed by 180 stores next year.
“Given the vast number of potential store locations in China, we expect we will continue to open new stores at a rapid pace in 2024 and 2025,” the company said in its online filing.
DPC Dash recorded 45.9-per-cent year-on-year growth in revenue last year, reaching US$251.5 million. Despite an 18.7 per cent increase in same-store sales, the company has experienced a net loss for each of the past three years, which according to the filing, resulted from extensive store openings, marketing, staff training and technology.
The company also said operations at some of its stores in Shanghai and Shenzhen have been adversely impacted since mid-March of this year as a result of local governments implementing temporary lockdowns and travel restrictions.
According to The Frost & Sullivan Report, China pizza market was worth $1.6 billion in 2020 and is expected to reach $9.79 billion by 2025.