Core Viewpoint - The restaurant industry is increasingly competitive, and chain development and digital transformation are key strategies for companies to stand out. Lao Xiang Ji has submitted an IPO application to raise funds for supply chain construction, store expansion, digital upgrades, and brand promotion, demonstrating its commitment to enhancing service quality and accelerating national expansion [1]. Group 1: Franchise Model - Lao Xiang Ji adopts a cautious approach to its franchise model, initially testing it with internal staff before gradually opening it to external partners. The number of franchise stores increased from 118 on December 31, 2022, to 455 by September 30, 2024, expanding market presence [3]. - To ensure service quality and brand image, Lao Xiang Ji has established a comprehensive support system for franchisees, providing guidance on store location, design, staff training, operations management, ingredient supply, and marketing [3]. - The company has strict selection criteria for franchise partners, prioritizing those with experience in the restaurant industry, alignment with the brand culture, and strong financial and operational capabilities [5]. Group 2: Supply Chain Advantage - The development of the franchise model is supported by Lao Xiang Ji's integrated supply chain system, which is a core competitive advantage. The company maintains control over the entire industry chain, from breeding and planting to processing and distribution [6]. - Lao Xiang Ji operates three modern chicken farms and a 32,000-acre vegetable planting base, steadily increasing the self-sufficiency rate of core ingredients, ensuring product quality [6]. - The company has established two large central kitchens in Hefei and Shanghai, equipped with advanced automated production equipment and strict quality control systems, significantly enhancing ingredient processing efficiency [6]. Group 3: Digital Transformation - Under the leadership of Chairman Shu Xiaolong, digital transformation is integrated into all operational aspects of Lao Xiang Ji. The company has developed a "reverse triangle" digital architecture that provides real-time feedback on store operations to various central departments, improving management efficiency and decision-making [8]. - The introduction of smart ordering systems and self-checkout devices has improved ordering and payment efficiency while reducing labor costs. Real-time monitoring of kitchen operations ensures food safety [8]. - Through big data analysis, the company gains insights into consumer preferences, enabling precise marketing and personalized services, which enhance customer loyalty and repurchase rates [8]. Group 4: Financial Performance - Thanks to brand expansion, effective supply chain cost control, and improved digital operational efficiency, Lao Xiang Ji has shown strong financial performance. Revenue reached 4.528 billion yuan in 2022, 5.651 billion yuan in 2023, and 4.678 billion yuan in the first three quarters of 2024, with a compound annual growth rate of 13.5% [10]. - The net profit margin increased from 5.6% in 2022 to 7.8% in the first three quarters of 2024, indicating improved profitability [10]. - With the steady progress of its IPO in Hong Kong, Lao Xiang Ji is expected to leverage capital market resources to further strengthen its core competitiveness in supply chain, digitalization, and brand building, aiming for rapid growth in the Chinese fast-food sector [10].