Core Viewpoint - Jiangxi Qiyunshan Food Co., Ltd. has submitted an application for listing on the Hong Kong Stock Exchange, showcasing impressive financial metrics, particularly in gross margin and cash flow, which stand out in the snack food industry [1][2][3]. Financial Performance - The company reported gross margins of 47.2%, 48.8%, and 48.6% for the years 2022 to 2024, significantly higher than its competitor, Liuliu Guoyuan, whose gross margin is projected to drop to 36% in 2024 [1][3]. - Qiyunshan Food's operating cash flow reached 106 million yuan in 2024, exceeding its net profit and outperforming Liuliu Guoyuan, which has five times the revenue [1]. Revenue Growth - Total revenue for Qiyunshan Food increased from 217 million yuan in 2022 to 339 million yuan in 2024, with the flagship product, South Jujube Cake, contributing the most to this growth [1][2]. - The revenue from South Jujube Cake alone rose from 209 million yuan in 2023 to 294 million yuan in 2024, driven by a 52% increase in sales volume [4]. Pricing and Cost Structure - The average selling price of South Jujube Cake showed discrepancies in the prospectus, with reported prices of 39.3 yuan/kg and 34.3 yuan/kg for 2024 [1][5]. - The raw material costs for both Qiyunshan Food and Liuliu Guoyuan have shown similar trends, with slight increases in the prices of their core ingredients [3][4]. Customer Dependency - Qiyunshan Food's largest customer, a local distributor, has raised concerns about potential conflicts of interest due to its connection with the company [6][7]. - The company has denied any association with its top customers, asserting that they are independent third parties [7].