Xibei, one of China's best‑known casual dining chains, has quietly closed a turbulent chapter and opened a new one. The group completed an A‑round capital injection that increased registered capital by about 13%, a move that comes after months of reputational damage, mass store closures and what company figures and media reports say are losses in excess of RMB 500 million.
The investors named in corporate filings include Taizhou Xinrongtai — wholly owned by Xinrongji founder Zhang Yong — and a Hangzhou vehicle controlled almost entirely by Hu Xiaoming, a former Alibaba partner who now runs agricultural tech firm Yimiba. Other participants include a Hohhot collective enterprise and a Chengdu industrial investor. The entry of Zhang and Hu is notable because both have existing personal and commercial ties to Xibei's founder, Jia Guolong.
For Xibei the timing is urgent. In September 2025 a public dispute over the chain's use of pre‑prepared ingredients ignited online controversy, catalysed by a high‑profile critic, and precipitated a collapse in customer traffic. The chain then announced the one‑time closure of roughly 100 outlets — about 30% of its network — and media reporting has put cumulative losses at more than RMB 500 million and affected some 4,000 employees.
The new capital is both a liquidity buffer and a strategic signal. Zhang Yong is the serial restaurateur behind Xinrongji, a high‑end brand credited with innovation in service and dishes; Hu Xiaoming brings agriculture and supply‑chain credentials and has already collaborated with Xibei on a co‑branded children’s meal. Industry consultants say the combination points to a two‑pronged rescue strategy: borrow capabilities in menu and service refinement from a high‑end operator while securing upstream supply‑chain control and traceability via agri‑tech partners.
Jia remains the company's primary controlling figure: corporate filings show Beijing Xibei Enterprise Management holds roughly 35.8% of shares and Jia himself about 26.2%, leaving him with decisive operational control. He has publicly oscillated on the question of an IPO: in 2023 he outlined a plan to list by 2026, but after the crisis he has described himself as neither actively pursuing nor entirely ruling out a public offering. Observers see the new financing as a step that could re‑enable any future listing ambitions by shoring up governance and capital structure.
Beyond the immediate balance‑sheet relief, the episode highlights wider fault lines in China's restaurant sector. Chains that scale quickly and standardise operations must simultaneously defend quality, traceability and public trust in an era when social media incidents can metastasise into national debates. The state media response to Xibei's troubles — including editorials urging transparency and better crisis communication — underlines how reputational problems for consumer firms can swiftly take on political salience and invite scrutiny.
The coming months will test whether strategic investors can translate cash and expertise into stable footfall and repaired brand equity. That will require demonstrable improvements in supply‑chain controls, clearer external communication, and a realistic retail footprint after the recent retrenchment. Financing buys time; it will not erase the need for cultural and operational change.