Core Viewpoint - LXJ International Holdings Limited, known as "Laoxiangji," has submitted its second listing application to the Hong Kong Stock Exchange in 2023, with CICC and Haitong International as joint sponsors [1]. Company Overview - Laoxiangji is the largest Chinese fast-food brand, holding a 0.9% market share in the Chinese Chinese fast-food industry and ranking first in terms of transaction volume in 2024. It ranks eighth in the overall fast-food industry with a 0.5% market share [4]. - The company has developed a home-style menu centered around chicken dishes, gaining widespread recognition among customers over 20 years of innovation [4]. - As of April 30, 2025, Laoxiangji operates 1,564 stores across 58 cities in China, including 911 direct-operated stores and 653 franchised stores, covering nine provinces [4]. Business Model and Strategy - The company aims to be a "home kitchen" for customers, providing high-quality Chinese dishes in a convenient and reliable manner. It served over 92 million customers in the four months ending April 30, 2025 [5]. - Laoxiangji emphasizes a standardized operation model, having established proprietary standardization manuals before opening its first restaurant. It is one of the first Chinese fast-food companies to implement a comprehensive traceability system across its supply chain [7]. - The company has adopted a dual model of direct operation and franchising to balance quality and expansion [4]. Financial Performance - Laoxiangji's revenue for the fiscal years ending April 30 was approximately RMB 45.28 billion in 2022, RMB 56.51 billion in 2023, RMB 62.88 billion in 2024, and RMB 21.20 billion in the first four months of 2025. The net profit for the same periods was approximately RMB 2.52 billion, RMB 3.75 billion, RMB 4.09 billion, and RMB 1.74 billion respectively [8]. - The company achieved a daily average sales per store of RMB 15,100 in 2024, significantly higher than the industry average of below RMB 5,000, and a turnover rate of 4.4, exceeding the industry average of 3 [7]. Technological Integration - Laoxiangji is one of the first Chinese fast-food companies to implement digital tools across its entire value chain, establishing an internal IT center and a digital growth department in 2016 and 2020 respectively [8]. - The company has built a data-driven business intelligence system that integrates consumer interaction, product development, and restaurant operations, enhancing overall efficiency and standardization [8].