Core Viewpoint - The company, Lao Xiang Ji, is advancing its listing process on the Hong Kong Stock Exchange after previous unsuccessful attempts to list on the A-share market due to regulatory issues and other challenges [1][4]. Group 1: Company Expansion and Performance - As of April 30, 2025, Lao Xiang Ji has a total of 1,564 stores, an increase of 85 stores from 1,479 on December 31, 2024, averaging 21 new stores per month [3]. - From April 30 to June 30, 2025, the store count increased by 60, averaging 30 new stores per month, indicating an acceleration in expansion [3]. - The company achieved revenues of RMB 45.28 billion, RMB 56.51 billion, and RMB 62.88 billion for the years 2022, 2023, and 2024 respectively, with profits of RMB 2.52 billion, RMB 3.75 billion, and RMB 4.09 billion during the same period [6]. - In the first four months of 2025, revenues reached RMB 21.2 billion, a year-on-year increase of 9.92%, with profits of RMB 1.74 billion, up 7.27% [7]. Group 2: Market Position and Strategy - Lao Xiang Ji holds a 0.9% market share in the Chinese fast-casual dining sector, ranking first in the Chinese Chinese fast food industry, and eighth in the overall fast food market with a 0.5% share [4]. - The company has seen a sixfold increase in franchise stores from 118 at the end of 2022 to 653 by April 30, 2025, with franchise revenue growing from RMB 1.74 billion to RMB 7.17 billion, reflecting a compound annual growth rate of 102.9% [9]. - The average sales per store for company-operated stores in the first four months of 2025 was RMB 1.9786 million, while franchise stores averaged RMB 1.483 million, about 75% of the company-operated stores [10]. Group 3: Supply Chain and Operational Strategy - The company’s supply chain strategy includes three standardized chicken farms, two central kitchens with automated production lines, and eight distribution centers nationwide [14]. - The integrated supply chain is viewed as a competitive barrier, although it has resulted in lower gross margins compared to competitors, with gross margins of 20.3%, 23.3%, and 22.8% from 2022 to 2024 [17]. - The company aims to use IPO proceeds to enhance supply chain integration, expand store networks, improve information technology capabilities, and strengthen brand marketing [14]. Group 4: Industry Context and Future Outlook - The Chinese fast-casual dining market is projected to grow from RMB 809.7 billion in 2024 to RMB 1,205.8 billion by 2029, with a compound annual growth rate of 8.3% [12]. - The current chain penetration in the Chinese fast-casual dining market is only 32.5%, indicating significant growth potential compared to Western fast food chains [12][13]. - The company’s future success will depend on its ability to manage franchise operations effectively while leveraging supply chain efficiencies to improve margins [18].
开店圈地，老乡鸡五闯上市关
3 6 Ke·2025-07-17 02:22