Core Viewpoint - The snack retail industry is entering a new competitive phase, with leading companies like Wanchen Group and Mingming Hen Mang focusing on store expansion and brand consolidation, while facing challenges related to market saturation and operational efficiency [2][8]. Group 1: Company Expansion and Strategy - Wanchen Group submitted its IPO application to the Hong Kong Stock Exchange in September 2023, aiming to enhance its global strategy and competitive edge through capital operations and store network expansion [2]. - As of mid-2023, Wanchen Group operated 15,365 stores, having opened 1,177 new stores in the first half of the year, which is less than 60% of the previous year's growth rate [2][3]. - The company has integrated its brands into "Haoxianglai" and is expanding its snack retail segment through acquisitions, such as the purchase of Nanjing Wanyou, which will increase its store count but also raise its debt levels [2][7]. Group 2: Financial Performance and Challenges - Wanchen Group's revenue growth has been heavily reliant on store expansion, with projected revenue reaching 32.329 billion yuan in 2024, driven by a net increase of 9,470 stores [3][4]. - The company has reduced its subsidy expenses for new store openings, leading to a slowdown in the opening of new stores, with only 1,177 new stores opened in the first half of 2023 compared to 2,105 in the same period last year [5][6]. - Following the acquisition of Nanjing Wanyou, Wanchen Group's debt-to-asset ratio is expected to rise significantly, impacting its net profit due to increased financial costs [7]. Group 3: Industry Trends and Competitive Landscape - The snack retail sector is transitioning from rapid store expansion to a focus on operational efficiency and brand differentiation, as market saturation poses challenges to growth [8][9]. - Competitors like Mingming Hen Mang are also expanding aggressively, with over 20,000 stores announced in September 2023, highlighting the competitive pressure in the industry [6][9]. - The industry is witnessing a shift towards private label products, with companies like Wanchen Group launching new brands to enhance product differentiation and meet consumer demands [8][9].