Gaoling and Haidilao lead cornerstone investment! Meet Xiaomian (02408) global IPO, institutional lineup highlights the value of the track.

On November 27, "Meet Xiao Mian" officially started its Hong Kong IPO listing process, planning to globally issue 97.3645 million shares, with approximately 9.7365 million H shares (10%) to be publicly issued in Hong Kong, and approximately 87.6281 million H shares (90%) to be internationally issued, with an additional 5% over-allotment option. The offering price per share is HK$5.64-7.04, with 500 shares per lot and a maximum entry fee of HK$3,520, expecting to raise approximately HK$552 million net. The company expects to be listed on the Main Board of the Hong Kong Stock Exchange on December 5, potentially becoming the first "Chinese noodle restaurant stock" in Hong Kong. A major highlight of this IPO is the introduction of a strong lineup of cornerstone investors. According to the announcement, 5 well-known investment institutions participated in the cornerstone investment, including Hillhouse Capital, HAIDILAO, Junyi Capital, Shengying Investment, Zeta Fund, etc., covering top private equity, strategic industrial capital, and well-known long-term funds. The cornerstone investors subscribed a total of US$22 million, accounting for approximately 25% of the total funds raised. As China's largest Sichuan-style noodle restaurant brand and the fourth largest Chinese noodle restaurant operator, "Meet Xiao Mian" is expected to demonstrate strong growth momentum from 2022 to 2024, with revenue increasing from RMB 4.18 billion to RMB 11.54 billion, representing a compound annual growth rate of 66.2%, significantly higher than the industry average. The funds raised through this Hong Kong IPO will mainly be used for restaurant network expansion, supply chain system construction, and digital capability enhancement. Seizing market development opportunities, rapid growth of restaurant network and performance Chinese noodle restaurants are an important part of the Chinese fast food market, accounting for 29.8% of the Chinese fast food market in 2024. According to Frost & Sullivan data, the total merchandise turnover of Chinese noodle restaurants in China increased from RMB 183.3 billion in 2020 to RMB 296.2 billion in 2024, with a compound annual growth rate of 12.7%. It is expected to further increase to RMB 510 billion by 2029, with an average annual growth rate of over 10%. The current market landscape is highly fragmented, with the top five brands accounting for less than 3% of the market share in 2024, providing room for consolidation and expansion for chain enterprises with scale advantages and brand influence. Achieving competitive strength through strategic mergers and acquisitions and organic expansion has become a key path for leading companies in the industry to enhance their competitiveness. Leading industry trends and building a highly scalable business model Currently, the Chinese fast food market is undergoing a structural transformation driven by chains. Although non-chain formats still dominate, with a chain penetration rate of only 32.5% in 2024, the growth momentum of chain brands has surpassed that of non-chain sectors. Within the chain system, self-operated and franchised operations contributed 9.3% and 23.2% of the total merchandise turnover of Chinese fast food, respectively, with the franchising model relying on light assets and high expansion efficiency becoming the core engine for national brand layout. It is predicted that by 2029, the market size of chain Chinese fast food restaurants in mainland China will reach RMB 477.8 billion, with a compound annual growth rate of about 10%, and the overall chain penetration rate will increase to 33.8%. Behind this trend is a significant enhancement in consumer demand for "predictable quality, stable taste, and efficient experience," and chain brands, with standardized product development, centralized supply chain, digital operations, and cross-regional replication capabilities, are systematically replacing individual stores and becoming the preferred choice for mainstream consumption scenarios. In this context, the competition in chain Chinese fast food is entering a stage of competition in "system capabilities," with the number of stores being an external manifestation of standardized capabilities, supply chain resilience, and innovation in operations and management. As a leader in the Chinese noodle restaurant track, "Meet Xiao Mian" is seen as an industry typical representative of the new trend in Chinese fast food development. "Meet Xiao Mian" focuses on providing consumers with a high-quality dining experience that is fast, polite, clean, and affordable, with a product line focusing on diverse Sichuan and Chongqing flavors, featuring signature dishes such as Red Bowl Mixed Noodles, Golden Bowl Hot and Sour Noodles, and Old Spicy Wontons. Each store typically offers 30 to 40 SKUs, and regularly updates the menu to enhance the dining experience for customers. According to Frost & Sullivan data, from 2022 to 2024, its Chongqing noodles, Red Bowl Mixed noodles, and Golden Bowl Hot and Sour noodles ranked first in offline sales among all catering chain enterprises in China for three consecutive years. With a main dish price range of RMB 12 to 34, the average consumption per capita for dining in mainland China is about RMB 27, precisely meeting the needs of the mass market. As of the most recent feasible date, the company's membership system has attracted more than 22.1 million registered members, with a repeat purchase rate of 44.5% in 2024, significantly higher than the industry average. In terms of operational management, "Meet Xiao Mian" has successfully integrated the traditional charm of Chinese noodle restaurants with modern restaurant management systems. As of June 30, 2025, the company's operational network consists of 331 self-operated restaurants and 86 franchised restaurants, forming a driving pattern of "stabilizing the foundation with self-operated restaurants and expanding coverage with franchises." The company implements centralized management for all stores, building a standardized, systematic, and digital management system covering the entire chain including menu development, procurement, supply chain, site selection and store construction, operational support, personnel training, marketing, and quality control, ensuring brand consistency is not diluted during expansion, and becoming a benchmark in the industry that achieves both "scalability" and "standardization." Furthermore, "Meet Xiao Mian" is at the forefront of digital development, having independently developed a full-line store operation system covering front-end ordering, delivery fulfillment, back-end duty management, production control, procurement planning, inventory management, supply chain collaboration, human resource allocation, employee training, and performance evaluation. Functions such as contactless ordering, intelligent scheduling, precise marketing to members, and data-driven inventory optimization have evolved from "value-added services" to infrastructure that maintains high sales per square meter, low store closure rates, and high repeat customer rates, establishing operational barriers that are difficult to replicate. Accelerating global expansion through listing, becoming a new paradigm in Chinese noodle restaurant development In the next five years, chain operation and branding have become the essential questions for survival and growth in the Chinese fast food industry. With the continuous expansion of Chinese noodle restaurants and consumer preferences shifting towards standardized and predictable experiences, only brands that have built systematic operational capabilities can achieve scalability and long-term competitiveness. As the fastest and most robust mainland Chinese noodle restaurant chain brand, "Meet Xiao Mian" has established a highly scalable business model, with standardized restaurant operations verified through nearly 500 stores, demonstrating high sales per square meter, strong repeat purchases, and low operating volatility, laying a solid foundation for future expansion. Based on this, "Meet Xiao Mian" has outlined its expansion plans for the next three years: plans to open approximately 150 to 180 new restaurants in 2026, 170 to 200 new restaurants in 2027, and 200 to 230 new restaurants in 2028. According to this plan, 520 to 610 new stores will be added over the next three years, equivalent to creating a new operating network of the current scale. At the same time, the company has initiated international expansion, with Singapore as the first stop, with stores in preparation and expected to open in December 2025. The Southeast Asian market, with similar eating cultures, high urban consumption density, and strong penetration of delivery services, is poised to become its second growth curve. As the "first stock of Chinese noodle restaurants," the listing process of "Meet Xiao Mian" will not only provide more sufficient capital support and brand credibility, but will also accelerate the overflow of its standardized system and the iteration of its digital capabilities. With the continuous increase in chain penetration rate, "Meet Xiao Mian" is accelerating its transition from a Chinese local brand to the global market, and its systematic operational capabilities are becoming a key force in defining the new standards of the Chinese noodle restaurant industry. In the future, competition in Chinese fast food will ultimately return to "who has the more efficient system, who has the more robust replication." "Meet Xiao Mian" is currently at the center of this transformation.