Core Viewpoint - The news highlights the recent exit of Zhang Liang from Zhang Liang Spicy Hot Pot, sparking speculation about the company's potential plans for globalization or an upcoming IPO [1] Industry Overview - Zhang Liang Spicy Hot Pot, alongside Yang Guofu, has rapidly expanded through a franchise model, becoming a significant player in the spicy hot pot industry, which has a market size of nearly 1500 billion yuan [2][3] - The spicy hot pot industry faces challenges such as low brand concentration and product homogeneity, leading to cautious attitudes from capital markets [3] - The industry is characterized by intense competition from similar food categories like hot pot and skewers, as well as ongoing food safety concerns [4][5] Company Development - Zhang Liang Spicy Hot Pot and Yang Guofu have established themselves as the leading brands in the spicy hot pot market, with a combined store count expected to reach 6400 and 6900 respectively by January 2025 [14] - The company has seen significant growth in store openings, with nearly 3000 new stores opened between 2021 and 2022, and 762 new stores in 2023 [21] - Zhang Liang's recent shareholding adjustment is speculated to be a preparatory move for an IPO, potentially accelerating the company's globalization efforts [21] Market Dynamics - The spicy hot pot market is projected to grow to 1488 billion yuan in 2024, with a year-on-year increase of 5.3%, and is expected to surpass 1500 billion yuan this year [23] - As of January this year, there are approximately 150,000 spicy hot pot stores nationwide, with a year-on-year growth of 8.6% [23] - The market is fragmented, with a significant number of small chains and family-run businesses, while major brands like Zhang Liang and Yang Guofu dominate the landscape [23][24] Financial Performance - Yang Guofu's revenue from franchise sales has shown a steady increase, with figures of 9.77 billion yuan, 10.00 billion yuan, and 10.58 billion yuan from 2019 to the first three quarters of 2021, representing over 90% of total revenue [17][19] - Despite challenges, Yang Guofu has maintained a strong profit margin, with net profits of 1.81 billion yuan, 1.69 billion yuan, and 2.02 billion yuan during the same period [19] Consumer Trends - The average spending per customer at Zhang Liang Spicy Hot Pot has decreased from 34.3 yuan in 2019 to 29.3 yuan in 2021, indicating a downward trend in consumer spending [19] - Food safety issues have been a significant concern, with reports of foreign objects and food spoilage affecting consumer trust in major brands [27]