Core Viewpoint LXJ International Holdings Limited, known as "Laoxiangji," has submitted a listing application to the Hong Kong Stock Exchange, aiming to capitalize on its position as the largest Chinese fast-food brand with a significant store network across China [1][3]. Company Overview - Laoxiangji is the largest Chinese fast-food brand, holding a 0.9% market share in the Chinese Chinese fast-food industry as of 2024, and ranks eighth in the overall fast-food market with a 0.5% share [3]. - The company operates a "direct + franchise" store network, with 1,658 stores across 61 cities in China as of August 31, 2025, including 925 direct-operated stores and 733 franchise stores [3][4]. - Laoxiangji has served over 206 million customers in the eight months ending August 31, 2025, catering to various dining needs [3]. Achievements - Laoxiangji is one of the first Chinese fast-food companies to implement standardization across its entire value chain, establishing proprietary standardization manuals before opening its first restaurant [4]. - It is the only Chinese fast-food company to have a comprehensive traceability system for its supply chain, enhancing transparency and food safety [4]. - The company leads in average daily sales per store and turnover rate among the top five Chinese fast-food companies, with an average daily sales of RMB 15,100 and a turnover rate of 4.4 in 2024 [4]. Digital Transformation - Laoxiangji began utilizing digital tools in the 2010s and established an internal IT center and a digital growth department in 2016 and 2020, respectively [5]. Financial Performance - The company's revenue for the years ending August 31 for 2022, 2023, 2024, and 2025 was approximately RMB 4.53 billion, RMB 5.65 billion, RMB 6.29 billion, and RMB 4.58 billion, respectively [7]. - The net profit for the same periods was approximately RMB 252 million, RMB 375 million, RMB 409 million, and RMB 371 million [8]. - The gross profit margins for these years were 20.3%, 23.3%, 22.8%, and 24.6%, respectively [10]. Industry Overview - The Chinese fast-food market is divided into three categories: Chinese fast food, Western fast food, and others. Chinese fast food accounted for 60.9% of the fast-food market and 14.5% of the overall dining market in 2024, growing faster than the overall fast-food market [11]. - The market size of Chinese fast food increased from RMB 618.4 billion in 2022 to RMB 753.2 billion in 2023, with a projected growth to RMB 1,205.8 billion by 2029, reflecting a compound annual growth rate of 8.3% from 2024 to 2029 [14].

Core Viewpoint LXJ International Holdings Limited, known as "Laoxiangji," has submitted a listing application to the Hong Kong Stock Exchange, aiming to expand its presence as the largest Chinese fast-food brand with a significant store network across China [1][3]. Company Overview - Laoxiangji is the largest Chinese fast-food brand with a market share of 0.9% in the Chinese Chinese fast-food industry as of 2024, ranking first in terms of transaction volume [3]. - The company operates a network of 1,658 stores across 61 cities in China, including 925 direct-operated stores and 733 franchised stores, as of August 31, 2025 [1][3]. - Laoxiangji has developed a home-style menu centered around chicken dishes and has been exploring a franchise model since 2020, balancing quality and expansion through a "direct + franchise" store network [3]. Achievements and Innovations - Laoxiangji is one of the first Chinese fast-food companies to implement standardization across its entire value chain, establishing proprietary standardization manuals before opening its first restaurant [3][4]. - The company is the only Chinese fast-food brand to have a comprehensive traceability system, ensuring full control over its supply chain, and published a dish traceability report in 2024 detailing its products and over 300 suppliers [4]. - In 2024, Laoxiangji achieved the highest average daily sales per store at RMB 15,100, surpassing the industry average of RMB 10,800, and had an average table turnover rate of 4.4, higher than the industry average of 3 [4]. Financial Performance - Laoxiangji's revenue for the fiscal years ending August 31 for 2022, 2023, 2024, and 2025 was approximately RMB 4.53 billion, RMB 5.65 billion, RMB 6.29 billion, and RMB 4.58 billion, respectively [6]. - The company's net profit for the same periods was approximately RMB 252 million, RMB 375 million, RMB 409 million, and RMB 371 million [7]. - The gross profit margin for the fiscal years ending August 31 was 20.3%, 23.3%, 22.8%, and 24.6%, respectively [9]. Industry Overview - The Chinese fast-food market is divided into three categories: Chinese fast food, Western fast food, and others, with Chinese fast food accounting for 60.9% of the fast-food market and 14.5% of the overall dining market in 2024 [9][12]. - The market size of Chinese fast food grew from RMB 618.4 billion in 2022 to RMB 753.2 billion in 2023, with a projected compound annual growth rate of 8.3% from 2024 to 2029, reaching RMB 1.2058 trillion by 2029 [12].

Group 1 - LXJ International Holdings Limited, known as "Laoxiangji," is the largest Chinese fast-food brand, focusing on chicken soup and chicken dishes in its home-style menu [2] - The company holds a 0.9% market share in the Chinese Chinese fast-food industry, ranking first by total transaction value in 2024 [2] - 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 9 provinces [2] Group 2 - The company's initial public offering (IPO) application was submitted on July 7, 2025, and will expire on January 7, 2026, with CICC and Haitong International as joint sponsors [1]

Group 1 - LXJ International Holdings Limited, known as Lao Xiang Ji, submitted its Hong Kong IPO application on July 7, 2025, which will expire on January 7, 2026, with CICC and Haitong International as joint sponsors [1] - Lao Xiang Ji is the largest Chinese quick-service restaurant (QSR) brand, focusing on home-style menus centered around chicken soup and chicken dishes, which are popular among customers [2] - According to Zhi Shi Consulting, Lao Xiang Ji held a 0.9% market share in the Chinese QSR industry in 2024, ranking first by total transaction value, and ranked eighth in the overall Chinese fast-food industry with a 0.5% market share [2] - As of April 30, 2025, Lao Xiang Ji operated 1,564 stores across 58 cities in China, including 911 directly operated stores and 653 franchised stores, covering nine provinces [2]

Core Viewpoint - The company, Lao Xiang Ji, is preparing for its IPO in the Hong Kong market after withdrawing its A-share listing application, aiming for rapid expansion in the competitive fast-food industry [1][3]. Company Overview - Lao Xiang Ji is a Chinese fast-food brand focusing on chicken soup and chicken dishes, recognized for its standardized operations across the industry [2]. - The company has received investments from various institutions, with only Cahua Capital holding a 4.98% stake as of January 2025 [2]. Market Position and Strategy - The Chinese fast-food sector is the largest sub-market within the domestic fast-food industry, and Lao Xiang Ji aims to leverage its IPO for capital to support its expansion [3]. - The company has been expanding its presence in first-tier cities, although it acknowledges its brand recognition is significantly lower than Western fast-food brands [3]. Financial Performance - Lao Xiang Ji reported revenues of 45.28 billion yuan, 56.51 billion yuan, and 46.78 billion yuan for the years 2022, 2023, and the first three quarters of 2024, respectively, with adjusted net profits of 2.68 billion yuan, 4.03 billion yuan, and 3.85 billion yuan [6]. - As of September 30, 2024, the company operated 1,404 stores across 53 cities, including 949 direct-operated and 455 franchised stores [6]. Franchise Growth - The number of franchised stores increased significantly from 102 in mid-2022 to 455 by the third quarter of 2024, while the number of direct-operated stores slightly decreased [7][8]. - The performance of franchised stores has been less favorable compared to direct-operated stores, with lower turnover rates and sales per unit area [7]. Competitive Landscape - The fast-food industry is experiencing intense price competition, with local brands introducing low-cost meal options [4]. - Lao Xiang Ji has maintained a stance against engaging in price wars, although it has offered discounts through online platforms [4][5]. Operational Challenges - The company faces challenges in managing its rapid expansion, particularly in supply chain management, franchisee oversight, food safety, and talent development [1][5]. - The shift towards a franchise model has led to a reduction in direct-operated stores, attributed to factors such as decreased consumer traffic and the impact of the pandemic [8].

Group 1 - The company has a comprehensive supply chain layout, positioning itself as a "family kitchen" for Chinese fast food, with plans to have 3 chicken farms, 2 central kitchens, and 8 distribution centers by June 30, 2025 [4] - The company focuses on chicken soup and chicken dishes, primarily using a direct sales model with a combination of franchise stores, and aims for an average customer spending of around 30 yuan [4] - As of April 30, 2025, the company operates 750 stores in Anhui province and 814 stores outside the province [4] Group 2 - The Chinese fast food market is the second largest globally, with Chinese fast food accounting for 60.9% of the fast food market and 14.5% of the overall dining market by 2024, with a market size of 810 billion yuan [5] - The compound annual growth rate (CAGR) for the Chinese fast food market is expected to be 8.3% from 2024 to 2029, outpacing the overall fast food market [5] - The market remains fragmented, with over 1.7 million restaurants and the top five players accounting for only 3.6% of the market share, indicating significant consolidation opportunities [5] Group 3 - The company builds competitive advantages through an integrated supply chain, covering breeding, procurement, processing, and logistics [6] - It ensures quality through self-breeding for core ingredients and supplements with third-party suppliers for diverse materials [6] - The company has two central kitchens equipped with automated production lines for standardized processing, and eight distribution centers for efficient logistics, ensuring same-day delivery to local stores [6]

Group 1: Company Overview - Anhui Laoxiangji Catering Co., Ltd. updated its prospectus and re-submitted its application to the Hong Kong Stock Exchange on July 7, following the expiration of its previous application earlier this year [1] - As of April 30, 2025, Laoxiangji operates 1,564 stores across 58 cities, with 911 being company-owned and 653 franchised [3][7] - The company reported revenues of 4.528 billion, 5.651 billion, and 6.288 billion yuan for the years 2022 to 2024, with adjusted net profits of 268 million, 403 million, and 439 million yuan respectively [3] Group 2: Market Position and Performance - Laoxiangji holds a 0.9% market share in the Chinese fast food industry, ranking first by transaction volume in 2024 [4] - The average spending per customer in company-owned and franchised stores was 28 yuan and 29.2 yuan respectively in the first four months of 2025 [4] - The company has seen a 9.9% increase in revenue in the first four months of this year compared to the same period in 2024, reaching 2.12 billion yuan [3] Group 3: Expansion and Strategy - Laoxiangji's expansion strategy includes a mix of company-owned and franchised stores, with a significant increase in franchise locations since 2020 [3][7] - The company plans to open approximately 150 to 180 new company-owned stores annually over the next three years, supported by funds raised from the IPO [8] - The majority of Laoxiangji's stores are concentrated in the East China region, with 750 stores in Anhui province alone, accounting for 48% of total stores [7] Group 4: Competitive Landscape - The Chinese fast food market is fragmented, with a chain penetration rate of only 32.5% in 2024, indicating significant growth opportunities [8] - Competitors such as Mi Village Rice and Country Base are rapidly expanding, with Mi Village Rice surpassing 1,000 stores nationwide as of March 31 this year [8] - Maintaining expansion capabilities remains a priority for Laoxiangji as it navigates a competitive landscape with increasing pressure from other brands [8]