Core Viewpoint - Mingming Hen Mang has submitted an application for listing on the Hong Kong Stock Exchange, highlighting its success as a regional snack brand that has thrived in a challenging market environment, showcasing a sustainable chain model that has achieved significant growth despite the overall cooling of the snack consumption market [2][13]. Group 1: Business Expansion and Model - The company has opened 14,000 stores nationwide by the end of 2024, with a fiscal year revenue of 39.3 billion yuan, demonstrating its ability to expand effectively even without substantial capital backing [2]. - From 2021 to 2023, the net growth rate of stores has consistently exceeded 30%, with 4,683 new stores added in 2023 alone, averaging over 390 new openings per month and a closure rate below 5% [3][9]. - Over 70% of the stores are located in lower-tier cities such as Hunan, Jiangxi, Hubei, and Guizhou, which have been largely overlooked by major brands, allowing Mingming Hen Mang to capitalize on structural opportunities in these markets [6]. Group 2: Market Trends and Consumer Insights - The Chinese snack market reached a scale of 1.28 trillion yuan in 2023, growing by 6.4% year-on-year, although at a slower pace, with increasing consumer demand for quality and value [7]. - The brand has effectively tapped into the needs of young consumers for convenience and affordability, creating a shopping experience that emphasizes immediate satisfaction [7][9]. - Store design averages between 35-60 square meters, achieving a sales efficiency of over 7,000 yuan per square meter, with a product structure that maintains around 200 SKUs to ensure quick turnover and high repurchase rates [9]. Group 3: Financial Performance and Investment Appeal - The average investment per store is approximately 250,000 to 350,000 yuan, with a payback period of 9 to 12 months, and a reinvestment rate among franchisees exceeding 70% [9]. - The company reported a gross margin of 37.2% and a net margin of 7.0% in 2023, significantly higher than many peers, indicating a robust and resilient business model [9][12]. - The shift from expansion-driven growth to quality-driven growth is evident, with revenue growth of 22.9% and net profit growth of 31.6% in 2023, reflecting an improvement in profitability [12].