Core Viewpoint - The article discusses the upcoming IPO of Hunan Mingming Hen Mang Commercial Chain Co., Ltd., which operates popular snack brands "Lingshi Hen Mang" and "Zhao Yiming Snacks," highlighting the competitive landscape and growth potential in the snack retail industry in China [2][3][7]. Company Overview - Mingming Hen Mang has over 14,000 stores across China, backed by prominent venture capital firms such as Sequoia China and Black Ant Capital [3][9]. - The company was formed through the merger of two leading snack brands, Lingshi Hen Mang and Zhao Yiming Snacks, which had previously engaged in fierce competition [2][7]. Business Model - The operational model of Mingming Hen Mang focuses on "downstream" market penetration and a franchise system, with approximately 58% of its stores located in county and town areas [9]. - The company generates most of its revenue (99.5%) from selling products to franchisees and direct stores, with only a small portion coming from franchise service fees [9]. Financial Performance - The revenue for Mingming Hen Mang was reported at 4.29 billion RMB in 2022, 10.30 billion RMB in 2023, and projected to reach 39.34 billion RMB in 2024, reflecting year-on-year growth rates of 140.2% and 282.2% respectively [10][12]. - The adjusted net profit for the same years was 0.81 billion RMB, 2.35 billion RMB, and 9.13 billion RMB, indicating a compound annual growth rate of 234.6% [10][12]. Market Position - Despite rapid growth, Mingming Hen Mang holds only a 1.5% market share in a highly competitive snack retail sector, facing pressure from established brands and similar business models [15]. - The company has a low gross margin, maintaining a gross margin rate of 7.5% to 7.6% from 2022 to 2024, with a net profit margin increasing from 1.7% to 2.1% [13][14]. Industry Context - The article highlights the significance of Hunan province in the snack food industry, noting that it contributes to a substantial portion of China's snack food production and has produced several successful snack brands [17][19]. - The competitive landscape includes other notable Hunan-based brands that have successfully gone public, reinforcing the region's reputation as a hub for snack food innovation and entrepreneurship [17][18].