"Caviar King" passes Hong Kong Stock Exchange hearing

``` According to the Hong Kong Stock Exchange disclosure on June 14th, Hangzhou Qiandao Lake Sturgeon Technology Co., Ltd. (“Sturgeon Technology”) has officially passed the listing hearing for the main board on the HKEx. CITIC Securities and CITIC Construction International serve as joint sponsors. Amid the current shift in consumption structure and cyclical fluctuations in high-end ingredients, this company operating at the intersection of agriculture and technology has delivered impressive data. However, from a news perspective, under the spotlight of the capital market, the fundamentals and potential risks of its business structure also require objective assessment. Specifically, the core support for Sturgeon Technology’s listing confidence lies in its irreplaceable position within the global caviar supply chain. According to data from China Insights Consultancy, since 2015 (for 11 consecutive years), Sturgeon Technology has ranked first globally in caviar sales. Between 2021 and 2025, the company’s caviar sales have continuously accounted for more than 30% of the global market share, with this number further rising to 36.1% in 2025. Its scale and size manifest a strong dominance in the global market. Such a high market share was not achieved overnight. Sturgeon Technology’s core moat lies in its heavy-asset, long-cycle industrial layout, having established a complete value chain from sturgeon breeding and farming to caviar processing, and successfully building the international brand KALUGA QUEEN. Currently, its products have penetrated the high-end catering and fine foods supply chains in dozens of countries and regions across Europe, the Americas, and Asia-Pacific, constructing substantial resource barriers and brand premium potential. This has allowed the company to maintain relatively stable revenue and profit growth over recent years despite complex macroeconomic environments. Despite the impressive business data, Sturgeon Technology’s path to capitalization has not been smooth. Before applying for HKEx listing, the company made several attempts to list in the A-share market, all unsuccessful. The general consensus in the industry is that agricultural farming enterprises face extremely stringent financial checks on the A-share market. The difficulty of counting biological assets (such as live sturgeon), the fairness of valuing underwater assets, and the performance volatility affected by natural conditions often become focal points of regulatory inquiries. In particular, the sturgeon farming cycle is extremely long, requiring 7 to 15 years from fry to spawning, which places high demands on inventory management transparency. This switch to the Hong Kong Stock Exchange is undoubtedly a pragmatic choice made between time cost, financing needs, and certainty of listing. At the same time, the market has also noted the company’s cash flow confidence prior to listing. According to public information, in the sprint stage towards its listing, the company once paid out substantial dividends to existing shareholders. On one hand, this move sent a signal of financial soundness and ample cash flow to the market. On the other hand, it also tests secondary market investors’ assessment of its long-term growth prospects—such as, with its core products already at a very high market share, where will future growth come from? As an industry observer with in-depth analysis of its revenue structure, one must guard against overly optimistic market sentiment. Despite holding over a third of the global market share, Sturgeon Technology still faces significant structural challenges. The foremost is its heavy dependence on overseas consumer circles. The company’s core clients are mostly caviar traders and high-end restaurant suppliers overseas. In today’s complex global trade environment, even slight shifts in geopolitical policy, tariff barriers, increasing global supply chain costs, or a downturn in the high-end consumption market in Europe and the US could directly impact the company’s profits. Owing to a large proportion of exports, exchange rate fluctuations also hang over the company’s net profits like a sword of Damocles. Next is the bottleneck in penetrating the domestic market. Although theoretically, the Chinese caviar consumption volume is predicted to have a considerable compound growth rate in the coming years—with the domestic market seen as the largest undeveloped territory—the fact remains that Sturgeon Technology’s revenue share from the Chinese market has not seen explosive growth and may even face phases of pressure. How to truly integrate caviar—a product steeped in Western food culture—into Chinese consumers’ daily dining scenarios, achieving the leap from “extremely niche luxury” to “high-end daily consumption,” is a pressing question for company management. Sturgeon Technology passing the hearing at the Hong Kong Stock Exchange signifies that Chinese companies have gained initial capital market recognition in the global high-end aquatic and specialty farming sectors. Eleven consecutive years at number one globally, and a projected 36.1% market share in 2025, are indisputable hard data. However, after the bell rings for listing, how the company mitigates risks from single dependence on overseas markets and truly breaks through in the domestic market will be the key to securing sustained valuation premiums on the Hong Kong stock market for this “caviar king.” Risk warning and disclaimer The market carries risks, and investment requires caution. This article does not constitute individual investment advice and does not take into account the specific investment objectives, financial situations, or needs of particular users. Users should assess whether the opinions, views, or conclusions herein are applicable to their circumstances. Any investment based on this article is at your own risk. ```