Core Viewpoint - COMMUNE, a restaurant and bar brand under JI WU SI WEI Co., has officially submitted its prospectus for an IPO on the Hong Kong Stock Exchange, aiming to capitalize on the growing restaurant and bar market in China, which is valued at over 100 billion yuan [1]. Company Overview - JI WU SI WEI was established in 2016 and is headquartered in Zhuhai, Guangdong, with its first restaurant in Wuhan. The company plans to expand to 112 locations by September 2025 [1]. - The brand has achieved significant revenue growth, surpassing 1 billion yuan in 2024, and holds a market share of approximately 7.8%, which is double that of its closest competitors [1]. Financial Performance - For the fiscal year 2023-2024, JI WU SI WEI's revenue increased from 845 million yuan to 1.074 billion yuan, a year-on-year growth of 27.1%. Net profit also rose from 50.5 million yuan to 53.98 million yuan, marking a 6.8% increase [4]. - In contrast, competitor HAILUNSI saw a decline in revenue from 1.209 billion yuan to 752 million yuan during the same period, with net profit dropping from 181 million yuan to a loss of 77.97 million yuan [4]. Market Positioning - JI WU SI WEI operates a direct management model with all its restaurants being company-owned, while HAILUNSI relies heavily on franchising [4]. - The company emphasizes a diverse operational model, offering services across various meal times, which is seen as a competitive advantage over HAILUNSI's focus on budget-friendly offerings [5]. Expansion Plans - The IPO proceeds will be used to expand the COMMUNE network, with plans to open 150 to 190 new locations from 2026 to 2029 [5]. - The company aims to enhance its market presence in first and second-tier cities, where it currently operates nearly 90% of its locations [6]. Challenges and Risks - Despite revenue growth, JI WU SI WEI has faced challenges in profitability, with adjusted net profit declining from 73.45 million yuan to 66.19 million yuan in 2024, indicating a "growth without profit" scenario [9]. - Rising costs in raw materials and employee benefits have contributed to this trend, with raw material costs increasing by 39% and employee costs by 38% in 2024 [9]. Competitive Landscape - The only publicly listed competitor in the same sector is HAILUNSI, which has seen a significant decline in market value, dropping from a peak of 30.295 billion HKD to 1.152 billion HKD [3][6]. - Analysts suggest that JI WU SI WEI's differentiated business model and strong brand positioning may lead to a successful IPO, although market sentiment may affect its valuation [6].
高瓴押注，COMMUNE幻师要上市：当海伦司市值缩水九成，酒馆生意还吃香吗？