Core Viewpoint - The initial public offering (IPO) of "Yujian Xiaomian" faced a significant drop on its first trading day, opening at 5.00 HKD per share, down 28.98% from the issue price of 7.04 HKD, indicating a lack of investor confidence despite prior high demand for shares [2][5][10]. Company Overview - Founded in 2014, Yujian Xiaomian operates 440 restaurants in 22 cities across mainland China and 11 in Hong Kong, making it the largest operator of Sichuan-style noodle restaurants in China and the fourth largest among all Chinese noodle restaurants [7]. - The company has experienced rapid revenue growth, with revenue increasing from 418 million CNY in 2022 to 1.154 billion CNY in 2024, representing a compound annual growth rate (CAGR) of 66.2% [7]. Financial Performance - In the first half of 2025, Yujian Xiaomian reported revenue of 703 million CNY, a year-on-year increase of 33.8%, and a net profit of 42 million CNY, up 95.8% [8]. - The average order value has declined from 36 CNY in 2022 to 31.8 CNY in 2024 due to a pricing strategy aimed at increasing customer traffic, which has not effectively improved table turnover rates [8]. Market Challenges - The company faces significant challenges, including a decline in table turnover rates, which fluctuated between 3.0 and 4.0, and a decrease in same-store turnover rates attributed to increased reliance on delivery services [8]. - Yujian Xiaomian's restaurant network is heavily concentrated in Guangdong Province, with over 50% of its locations there, exposing the company to regional economic fluctuations and competitive pressures [8]. Investment Sentiment - Despite the challenges, the company attracted notable cornerstone investors such as Haidilao and Junyi Capital, raising 22 million USD prior to the IPO, indicating some institutional confidence in its long-term prospects [10]. - The IPO was oversubscribed by approximately 426 times, but the dark market trading prior to the listing showed a decline of 14.2% to 14.8%, foreshadowing the poor performance on the first trading day [10]. Strategic Concerns - Analysts highlight a "single-dimensional" dilemma for Yujian Xiaomian, including a lack of geographic diversification, a narrow product range focused on Chongqing noodles, and a limited operational model, which could hinder its expansion efforts [11]. - The company needs to address these challenges to enhance its market valuation and investor confidence moving forward [11].
大跌27%！遇见小面，上市首日破发