Company Overview - The company, known as "小菜园," is a leader in the Chinese casual dining sector, focusing on providing a "delicious and affordable" dining experience, aligning with consumer demand for value [1] - As of June 2025, the company operates 672 "小菜园" stores and ranks first in market share (0.2%) among brands in the casual dining segment with an average price range of 50-100 RMB [1] Expansion Strategy - The company has entered a rapid expansion phase, planning to open over 100 new stores annually, with a target of approximately 1,000 stores by the end of 2026 [2] - New stores demonstrate strong cash flow performance, achieving break-even within 1-2 months, with an average investment recovery period of about 13.8 months for stores that have recouped their investment by August 2024 [2] - The operating profit margin (OPM) for stores has shown positive trends, with figures of 15.9%, 14.2%, 19.7%, and 17.8% for the first eight months of 2021, 2022, 2023, and 2024 respectively, and is projected to exceed 20% [2] Supply Chain Efficiency - The company has established a comprehensive supply chain system that includes centralized procurement, a central kitchen, full cold chain logistics, and digital management, enhancing operational efficiency and profitability [3] - A central kitchen in Anhui allows for quicker meal preparation and improved standardization, while a cold chain logistics system ensures fresh ingredient delivery to all stores [3] - The company has achieved significant cost reductions in raw materials, with the percentage of raw materials and consumables to revenue decreasing from 34.5% in 2021 to 29.5% in the first half of 2025 [3] Standardized Operations - The company is continuously improving its standardized management and operational models, covering aspects such as dish standardization, service standardization, integrated supply chain, regular training, and food safety and quality control [4] - This standardization supports rapid expansion and cost reduction efforts [4]