Group 1 - Three chain restaurants have gone public in Hong Kong in 2023, with notable stock performance: Dashi Holdings (01405.HK) up 116.74%, Xiaocaiyuan (00999.HK) up 25.65%, and Green Tea Group (06831.HK) up 31.57% since their IPOs [2][3] - Dashi Holdings, the operator of Domino's Pizza in Greater China, has seen its stock price rise from an IPO price of 46.00 HKD to 99.70 HKD [2][3] - Xiaocaiyuan and Green Tea Group also reported positive stock performance since their IPOs, with current prices of 10.68 HKD and 9.46 HKD respectively [2][3] Group 2 - Laoxiangji, a chain restaurant based in Anhui, has submitted an application for an IPO in Hong Kong, aiming to replicate the success of other listed chain restaurants [2][3] - Established in 2003, Laoxiangji has expanded its network to 1,564 stores across 58 cities by April 2025, with a focus on a "direct + franchise" expansion model [4][5] - The number of franchise stores has outpaced self-operated stores, with a significant increase in franchise locations from 118 to 653 between the end of 2022 and April 2025 [5] Group 3 - Laoxiangji's supply chain is a key advantage, having established an integrated supply chain covering breeding, procurement, processing, storage, and logistics [7] - In 2024, Laoxiangji reported total revenue of 6.288 billion RMB and an adjusted net profit of 439 million RMB, resulting in a net profit margin of 6.99% [7][8] - Compared to other newly listed chain restaurants, Laoxiangji's same-store sales growth rate of 2.6% is slightly higher than Dashi Holdings' 2.5%, while Green Tea and Xiaocaiyuan reported negative growth [7][8] Group 4 - Laoxiangji faces challenges, including intense competition from food delivery platforms affecting both delivery and dine-in services [9] - The company has a high dependency on the East China market, with 86% of its stores located in this region, particularly in Anhui [9] - Financially, Laoxiangji has a current ratio of 0.74, indicating potential liquidity issues, with cash reserves of approximately 572 million RMB against significant payables [9] Group 5 - The company plans to use the funds raised from the IPO to enhance its supply chain, expand its store network, improve IT capabilities, and strengthen brand marketing [9][10] - However, the recent surge in IPO activities in Hong Kong raises questions about investor interest in Laoxiangji's prospects [10]