Core Viewpoint - The merger of snack brands "Snack Busy" and "Zhao Yiming Snacks" has led to the establishment of "Mingming Busy," which plans to go public in Hong Kong, positioning itself as the largest leisure food and beverage retail chain in China by 2024 GMV [1][3]. Company Overview - Mingming Busy was formed from the merger of Snack Busy, founded in 2017, and Zhao Yiming Snacks, which started in 2019, completing the merger in November 2023 [2]. - The company operates a "volume retail model" that emphasizes supply chain reconstruction, innovative product development, and a pleasant shopping experience [2]. Financial Performance - Revenue figures for Mingming Busy are projected as follows: CNY 4.286 billion in 2022, CNY 10.295 billion in 2023, and CNY 39.344 billion in 2024 [3]. - Adjusted net profits are expected to be CNY 81 million, CNY 235 million, and CNY 913 million for the same years [3]. Revenue Structure - 99.5% of Mingming Busy’s revenue comes from selling products to franchise and direct stores, with franchise fees and service income accounting for less than 0.5% [4]. - The company has a diverse product range with 3,380 SKUs, including baked goods, snacks, and beverages [3]. Market Strategy - Mingming Busy focuses on the lower-tier market, with approximately 58% of its stores located in county and township areas, covering 1,224 counties in China [8]. - The company aims to provide high-quality, cost-effective products and services across various city tiers [8]. Business Model - The "thin profit, high sales" strategy has resulted in stable gross margins of 7.5%-7.6% and an increase in net profit margin from 1.7% to 2.1% from 2022 to 2024 [9]. - The company has streamlined operations by connecting directly with manufacturers, reducing inventory turnover days to 11.6 days [9]. Franchise System - Mingming Busy has significantly increased its franchise network from 994 in 2022 to 7,241 in 2024, providing comprehensive support to franchisees [6]. - The company employs a standardized management approach while allowing for customized store layouts to meet local demands [6]. Consumer Engagement - The company has achieved over 1.6 billion transactions in 2024, with a membership base of 120 million and a repurchase rate of 75% [10]. - Mingming Busy invests heavily in digitalization, enhancing operational efficiency through advanced systems for inventory and logistics management [10]. Industry Context - The Chinese leisure food and beverage retail market is projected to grow from CNY 3.7 trillion in 2024 to CNY 4.9 trillion by 2029 [10]. - Mingming Busy plans to use IPO proceeds for store expansion, supply chain optimization, and digital infrastructure development to enhance market penetration [10].