Core Viewpoint - Guangzhou Yujian Xiaomian Catering Co., Ltd. (referred to as "Yujian Xiaomian") has submitted a prospectus for an IPO in Hong Kong after turning a profit in 2023, despite facing significant debt pressure and maintaining a high debt-to-asset ratio above 89% [2][5]. Financial Performance - Yujian Xiaomian reported revenues of RMB 41,809.6 million, RMB 80,051.4 million, and RMB 115,443.4 million for the years 2022, 2023, and 2024, respectively, with profits of RMB -3,597.3 million, RMB 4,591.4 million, and RMB 6,070 million during the same periods, indicating continuous growth [2]. - The company distributed cash dividends of RMB 1,950 million in 2023 and announced a dividend of RMB 1,470 million for the year ending December 2024, totaling 32.07% of the combined profits for 2023 and 2024 [2]. Debt and Asset Structure - As of the end of each reporting period, Yujian Xiaomian's total current assets were RMB 102,525 million, RMB 156,519 million, and RMB 247,636 million, while total current liabilities were RMB 251,090 million, RMB 343,275 million, and RMB 489,861 million, indicating a persistent short-term debt repayment pressure [4][5]. - The company's debt-to-asset ratios were 95.77%, 93.62%, and 89.86% for the years 2022, 2023, and 2024, respectively, remaining at a high level [5]. Expansion and Workforce Management - Yujian Xiaomian has aggressively expanded its restaurant count from 170 in 2022 to 360 in 2024, averaging one new restaurant every three days [6]. - However, the company has significantly reduced its full-time workforce from 2,121 employees in 2022 to 1,443 in 2024, resulting in a turnover rate of 44.92% in 2024 [6]. - To address labor needs, Yujian Xiaomian has increasingly relied on outsourced personnel, employing 3,678 outsourced workers by the end of 2024 [6][7]. Employee Cost Structure - The cost of outsourced employees has risen sharply, from RMB 0 in 2022 to RMB 10,622.9 million in 2024, while the average annual salary for full-time employees in 2024 was RMB 108,000 compared to RMB 28,900 for outsourced workers [7][8].