Core Viewpoint - Company "Encounter Small Noodles" (02408) is a leading brand in the Sichuan-Chongqing style noodle restaurant sector, focusing on cost-effectiveness and flexible expansion through a combination of direct operation and franchising [1][2] Group 1: Company Overview - The company primarily features Chongqing noodle series and has expanded its menu to include various spicy and non-spicy dishes, covering noodles, rice, snacks, and beverages [2] - The first store was opened in Guangzhou in 2014, followed by multiple rounds of financing and the opening of stores in cities like Shenzhen and Beijing from 2017 to 2020 [2] - The total number of stores exceeded 100 in 2021, and the company plans to grow from 133 stores in 2021 to 360 stores by 2024 [2] Group 2: Market Potential - The Chinese noodle restaurant market is expected to reach a total transaction value of 510 billion yuan by 2029, with a compound annual growth rate (CAGR) of 10.9% from 2025 to 2029 [3] - The market is highly fragmented, with the top five companies accounting for only 2.9% of the total transaction value by 2024 [3] - "Encounter Small Noodles" is the fastest-growing company among the top ten Chinese noodle restaurants, with the highest CAGR in total transaction value from 2022 to 2024 [3] Group 3: Product and Operational Efficiency - The company offers a diverse menu primarily focused on Sichuan-Chongqing flavors, with each restaurant providing 30 to 40 SKUs, and main dish prices ranging from 12 to 34 yuan [4] - The majority of the stores are located in the southeastern region, with over 60% in Guangdong, and about 80% of the stores operate under a direct model [4] - The standardization and replicability of the stores are high, with a break-even point of approximately 2 months and an investment payback period of around 14.9 months for direct restaurants [4] Group 4: Fundraising and Expansion Plans - The company plans to use the funds raised for store expansion, digital upgrades, brand building, and strategic investments in the upstream supply chain [5] - The company aims to open approximately 520 to 610 new stores from 2026 to 2028, with plans to open 150 to 180 stores in 2026, 170 to 200 in 2027, and 200 to 230 in 2028 [5]