Core Insights - The competition between two major snack giants, Mingming Hen Mang and Wancheng Group, for the title of "first stock in Hong Kong" is intensifying as both companies have submitted their IPO applications to the Hong Kong Stock Exchange [1][6] - Both companies aim to utilize the raised funds for store expansion and supply chain optimization, indicating a strategic focus on enhancing their "low-price advantage" in the competitive landscape [1][7] Group 1: Market Dynamics - The extreme low pricing strategy of the snack retail sector is attributed to several factors, including the use of private label bulk products and optimized supply chain operations [3][4] - The supply chain efficiency is enhanced through direct sourcing, improved transportation, and strategic inventory management, which collectively reduce costs and allow for lower retail prices [3][4] Group 2: Financial Performance - Mingming Hen Mang's revenue for 2022, 2023, and 2024 is reported at 4.286 billion, 10.295 billion, and 39.344 billion respectively, with adjusted net profits of 81 million, 235 million, and 913 million [6] - Wancheng Group, which transitioned from a mushroom company to the snack retail sector, saw its revenue surge from under 600 million in 2022 to 32.3 billion in 2024 [6][7] Group 3: Competitive Strategies - Mingming Hen Mang focuses on internal growth and supply chain optimization, while Wancheng Group employs a strategy of mergers and acquisitions to consolidate regional snack brands under a unified brand [6][7] - Both companies are investing in digital infrastructure and logistics to enhance operational efficiency and meet diverse consumer demands [7][10] Group 4: Industry Trends - The snack retail sector is experiencing a shift towards self-owned brands as a means to improve profit margins amidst intense price competition [9][10] - The average gross margin for Wancheng Group is reported at 11.49%, while Mingming Hen Mang's gross margins from 2022 to 2024 are relatively low, indicating challenges in maintaining profitability [9]