Core Viewpoint - Fujian Wancheng Biotechnology Group Co., Ltd. is attempting to overcome growth bottlenecks in its bulk snack business through a series of capital operations, including a significant acquisition and plans for an IPO in Hong Kong, amidst intense industry competition and rising debt levels [2][4]. Group 1: Acquisition and Financial Moves - The company plans to acquire 49% of Nanjing Wanyou Commercial Management Co., Ltd. for 1.379 billion yuan [3]. - This acquisition is expected to further increase the company's debt ratio to approximately 90%, significantly raising short-term repayment pressures [6]. - The board has approved the plan for an IPO in Hong Kong, aiming to enhance international strategy, brand recognition, and supply chain systems [3][4]. Group 2: Industry Competition and Market Dynamics - The domestic bulk snack market is projected to exceed 100 billion yuan in 2024, with over 40,000 stores, leading to intensified competition and price wars [4]. - Competitors like Mingming Hen Mang are employing aggressive strategies, including zero franchise fees and substantial subsidies to counteract Wancheng's market presence [4]. - Wancheng's brands, such as "Hao Xiang Lai," are responding with similar tactics, indicating a highly competitive environment [4]. Group 3: Financial Performance and Challenges - Wancheng's gross margin has fluctuated significantly, dropping from 14.40% in 2022 to 9.52% in 2023, before slightly recovering to 10.86% in 2024 [5]. - The company's rapid expansion through acquisitions has led to a debt ratio of 68.95% as of mid-2025, raising concerns about its short-term liquidity [5]. - The recent leadership change, with the founder stepping down amid regulatory scrutiny, may be aimed at stabilizing governance ahead of the IPO [6].