Core Insights - The main focus of the articles is on the rapid expansion and challenges faced by Wanchen Group, the parent company of the snack retail brand "Haoxianglai," as it prepares for its IPO in Hong Kong. The company has seen significant growth in the number of franchise stores but is facing increasing competition and market saturation [1][4][10]. Company Overview - Wanchen Group was established in 2011, initially focusing on the cultivation of edible mushrooms. It later shifted its primary business to snack retail, with "Haoxianglai" being its most recognized brand [2]. - As of June 30, 2023, Wanchen Group operates over 15,000 franchise stores, with a target to increase this number significantly by mid-2025 [1][4]. Financial Performance - In the first half of 2023, Wanchen Group generated revenue of 218 billion yuan from sales to franchisees, marking a year-on-year increase of 112.56%, which accounted for 96.6% of total revenue [4]. - The company's total revenue is projected to grow from 93 billion yuan in 2023 to 323.3 billion yuan in 2024, representing a year-on-year growth of 247.9% [7][8]. Market Dynamics - The snack retail market is becoming increasingly competitive, with Wanchen Group and its competitor, Mingming Hen Mang, dominating the landscape. The saturation of prime locations is leading to longer payback periods for franchisees, which can extend to three years in some cases [4][10]. - The entry of private label snacks from supermarkets and online platforms is diverting consumer spending away from traditional snack retailers, although the impact has not yet been reflected in financial reports [7]. Challenges and Strategic Directions - Franchisees are experiencing pressure on profit margins due to increased competition and rising operational costs. Initial investment costs for new franchisees have reportedly risen to around 1 million yuan [5]. - Wanchen Group plans to use funds from its IPO to expand and upgrade its store network, enhance product offerings, improve logistics efficiency, and upgrade digital infrastructure [10].