Core Viewpoint - Guangzhou Yujian Xiaomian Catering Co., Ltd. has submitted its prospectus to the Hong Kong Stock Exchange for the second time, indicating a focus on expanding its market presence despite declining average order values and same-store turnover rates [1][4]. Financial Performance - The company reported revenues of approximately RMB 418 million, RMB 800 million, RMB 1.15 billion, and RMB 703 million for the years 2022, 2023, 2024, and the first half of 2025, respectively [4][6]. - Net profits for the same periods were approximately RMB -35.97 million, RMB 45.91 million, RMB 60.7 million, and RMB 41.83 million [4][6]. Market Position - Yujian Xiaomian is the fourth largest operator of modern Chinese noodle restaurants in China, with a market share of 0.5% based on total gross merchandise value for 2024 [3]. - The overall Chinese fast food market is highly fragmented, with the top five players accounting for about 3.0% of the market share [3]. Consumer Behavior - The average order value for direct-operated and franchised restaurants has decreased from RMB 36.2 and RMB 36 in 2022 to RMB 34.2 and RMB 33.5 in 2023, and is projected to further decline in subsequent years [1][8]. - The decrease in average order value is attributed to the company's strategy of lowering menu prices to provide a more affordable dining experience [1][8]. Operational Challenges - The same-store turnover rate has decreased in the first half of 2025 compared to the same period in 2024, primarily due to increased promotional activities on food delivery platforms, leading customers to shift from dine-in to takeout [1][8]. - The company has a diverse customer base, with the top five customers (franchisees) contributing 8.5%, 6.8%, 4.9%, and 4.2% of total revenue from 2022 to the first half of 2025 [10]. Supplier Relationships - The company collaborates with approximately 460 suppliers, with the top five suppliers accounting for 28.7%, 30.1%, 30.5%, and 33.1% of total procurement from 2022 to the first half of 2025 [10].