Core Viewpoint - The company "Yujian Xiaomian" has submitted its IPO application to the Hong Kong Stock Exchange, marking a significant step in its expansion plans after previous media reports indicated intentions for an IPO as early as January of the previous year [1]. Financial Performance - Revenue for Yujian Xiaomian from 2022 to 2024 is projected to grow from RMB 418 million to RMB 1.154 billion, reflecting a compound annual growth rate (CAGR) of 66.2% [3][4]. - The net profit is expected to shift from a loss of RMB 35.973 million in 2022 to a profit of RMB 60.7 million in 2024 [3][4]. Expansion Strategy - The company plans to use the funds raised from the IPO for expanding its restaurant network, enhancing technology and digital systems, brand building, strategic investments in upstream food processing companies, and general corporate purposes [1]. - Yujian Xiaomian has significantly increased its store openings, with a target of 120 new stores in 2024, following a net increase of 82 stores in 2023 [7][8]. Market Position - Yujian Xiaomian has established itself as the largest operator of Sichuan-Chongqing style noodle restaurants in China, with a notable presence in first-tier cities and transportation hubs [5][11]. - The company has adopted a dual strategy of self-operated and franchised stores, although it remains primarily self-operated, with franchise revenue showing only a 16.35% increase [9][10]. Competitive Landscape - The company faces intense competition in the restaurant sector, particularly in Hong Kong, where it aims to open 100 stores, despite challenges such as high rental and labor costs [13][17]. - Yujian Xiaomian's pricing strategy in Hong Kong is positioned as affordable compared to local tea restaurants, but it still competes in a saturated market [15][18]. Future Outlook - The company aims to leverage its supply chain advantages from mainland China to reduce operational costs in Hong Kong and attract price-sensitive consumers [18]. - The expansion into Hong Kong is seen as a way to enhance brand visibility and revenue, although the profitability of this move remains uncertain [15][18].