After Losses Exceeded 600 Million, Jia Guolong's Fellow Townsman Lin Lairong Injects Capital into Xibei

“Sing Tao” Reporter Zhou Hao, Intern Reporter Hu Xinlan, Shenzhen Report

On March 16, Tianyancha business information shows that Inner Mongolia Xibei Catering Group Co., Ltd. recently underwent a change in business registration, adding Lin Lairong as a shareholder. The company’s registered capital increased from approximately 102 million RMB to about 104 million RMB. Lin Lairong completed a capital contribution of 2.247572 million RMB on February 14, acquiring over 2.16% of Xibei Catering Group. His first shareholding date was March 10.

▲Image source: Tianyancha

Public information indicates that Lin Lairong is the founder of Zhongxing Group and the actual controller of the A-share listed company Dazhong Mining (001203.SZ). Lin Lairong’s Zhongxing Group started in the coal industry and gradually shifted focus to core iron ore mining and processing, making Dazhong Mining a leading enterprise in China’s iron ore industry. The company successfully listed on the A-share market in 2021 and is now expanding into lithium and other new energy mineral sectors.

In the first three quarters of 2025, Dazhong Mining achieved revenue of 3.025 billion RMB, a year-on-year increase of 1.60%.

In 2025, Lin Lairong ranked among Hurun’s Global Rich List with a net worth of 9.5 billion RMB. Notably, Lin Lairong has deep regional ties with Jia Guolong, founder and chairman of Xibei, as both are from Bayannur, Inner Mongolia. After this capital increase, Jia Guolong’s direct shareholding in Xibei decreased from about 26.16% to approximately 25.60%, but he remains the company’s actual controller.

The investment from Lin Lairong marks the second round of capital operations for Xibei Catering Group within just two months.

On January 20, Xibei completed Series A financing and business registration changes, with registered capital rising from about 8.993 million RMB to approximately 102 million RMB, an increase of about 13%. The new shareholders announced in January attracted much attention, including Taizhou Xinrongtai Investment Co., Ltd., wholly owned by Zhang Yong, founder of the high-end restaurant brand Xinrongji; Hangzhou Zhouxuan Equity Investment Management Partnership (backed by former Ant Group CEO Hu Xiaoming); Hohhot Collective Co-creation Enterprise Management Center, and other institutional and individual investors. This round of funding is seen as strategic support from industry peers and related capital.

Behind Xibei’s intensive capital operations are serious operational challenges. Since the “pre-made dishes incident,” the company’s nationwide store foot traffic has declined. Coupled with industry-wide weak consumer spending, high labor and rent costs, operating pressures have sharply increased. Jia Guolong revealed in a media interview that from September 2025 to March 2026, Xibei is expected to incur cumulative losses exceeding 600 million RMB. In early 2026, Jia Guolong confirmed that Xibei would close 102 stores nationwide, about 30% of its total, affecting approximately 4,000 employees.

On the management side, Jia Guolong has recently stepped back from the front lines, with veteran Dong Junyi, who rose from the grassroots, taking over as CEO of the main brand to oversee daily operations. In addition, Zhang Zhongqi, another veteran who advanced from head chef to regional leader, has returned to headquarters to assist Dong Junyi in pushing reforms. Xibei has also implemented a series of cost-cutting measures. In early February, the headquarters notified stores of delayed salary payments; additionally, store managers and head chefs faced a 30% salary reduction. If the store’s monthly losses decrease compared to the previous month, this salary cut will be compensated later as a bonus.

Meanwhile, Xibei continues to promote menu innovation, hoping to boost customer flow through new dishes. In March, Xibei will launch new items such as fragrant pine cone oat noodles to further reduce losses and achieve profitability. As of now, Xibei has not disclosed the specific amount of funds raised in this round of financing or their use. Future operational developments and strategic adjustments remain a key focus in the restaurant industry.