New Stock News | China's largest Chinese fast food brand Laoxiangji has submitted an application to the Hong Kong Stock Exchange three times and owns 1658 stores.

According to the disclosure by the Hong Kong Stock Exchange on January 8, LXJ International Holdings Limited (referred to as "Hometown Chicken") has submitted an application for listing on the main board of the Hong Kong Stock Exchange, with CICC and Haitong Int'l Capital Limited acting as its joint sponsors. The company had previously submitted listing applications to the Hong Kong Stock Exchange on January 3 and July 7, 2025. The prospectus shows that Hometown Chicken is the largest Chinese fast food ("fast food") brand in China, with 1,658 stores in 61 cities in China as of August 31, 2025. Company Overview According to the prospectus, based on trading volume, Hometown Chicken ranked first in the Chinese Chinese fast food industry with a market share of 0.9% in 2024, and ranked eighth in the Chinese fast food industry with a market share of 0.5% in 2024. After more than 20 years of development, Hometown Chicken has built a home-cooked menu centered around chicken soup and chicken dishes. Hometown Chicken started exploring the franchise model in 2020 and has continuously developed this model. The company has formed a "direct-operated + franchise" store network that balances quality and expansion. With an expanding footprint, as of August 31, 2025, Hometown Chicken has 1,658 stores in 61 cities in China, including 925 directly operated stores and 733 franchise stores, covering 9 provinces. In the eight months ending August 31, 2025, Hometown Chicken provided services to over 206 million customers, meeting dining needs in various scenarios. According to the data from Zhushi Consulting, Hometown Chicken's achievements include: The company is one of the first Chinese fast food companies to implement standardization across the full value chain. It established a series of proprietary standardized manuals before opening the first restaurant. It is the only major Chinese fast food company with a full industry chain layout. The company is the first and only Chinese fast food company to implement a comprehensive traceability system, which enables full control of the entire supply chain process. In 2024, the company released a food traceability report detailing its dishes and over 300 suppliers. As of the last practicable date, Hometown Chicken remains the first and only Chinese fast food company to take this measure, further enhancing its commitment to transparency and food safety. Among the top five Chinese fast food companies (by trading volume in 2024), the company ranked first in terms of single-store average daily sales and turnover rate. Specifically, in 2024, the company's single-store average daily sales were RMB 15,100, higher than the industry average below RMB 5,000 and the average of RMB 10,800 for the other five major Chinese fast food companies. In 2024, the company's average turnover rate was 4.4, higher than the industry average below 3 and the average of 4.0 for the other five major Chinese fast food companies. The company is one of the first Chinese fast food companies to adopt digitization across the full value chain. The company began using digital tools in the 2010s and established an internal IT center and digital growth department in 2016 and 2020, respectively. Financial Information Revenue The company's revenue for the eight months ending August 31, 2022, 2023, 2024, and 2025 was approximately RMB 4.528 billion, RMB 5.651 billion, RMB 6.288 billion, and RMB 4.578 billion, respectively. Annual/Periodic Profit The company's annual/periodic profits for the eight months ending August 31, 2022, 2023, 2024, and 2025 were approximately RMB 252 million, RMB 375 million, RMB 409 million, and RMB 371 million, respectively. Gross Profit Margin The company's gross profit margins for the eight months ending August 31, 2022, 2023, 2024, and 2025 were 20.3%, 23.3%, 22.8%, and 24.6%, respectively. Industry Overview The Chinese fast food market can be divided into three categories based on the types of dishes provided: Chinese fast food, Western fast food, and others. Chinese fast food offers staples such as rice, noodles, dumplings, and wontons, and often provides a variety of home-style dishes for consumers. Western fast food includes categories such as fried chicken, hamburgers, and pizza. The "others" category includes snacks, Japanese and Korean fast food, etc. Chinese fast food accounted for 60.9% of the Chinese fast food market and 14.5% of the Chinese catering market in 2024, with growth faster than the overall fast food market. Chinese fast food is the largest category in the Chinese fast food industry, with its market size increasing from RMB 576 billion in 2018 to RMB 616.7 billion in 2019. Due to the impact of the pandemic, the market size of Chinese fast food fluctuated from 2020 to 2022, with a strong rebound in 2023, with sales increasing from RMB 618.4 billion in 2022 to RMB 753.2 billion in 2023, a growth of 22.1% from 2019. The market size of Chinese fast food in 2024 was RMB 809.7 billion, and it is expected to reach RMB 1.2058 trillion by 2029, with a compound annual growth rate of 8.3% from 2024 to 2029. Board of Directors Information The Board of Directors will consist of seven directors, including three executive directors, one non-executive director, and three independent non-executive directors. Ownership Structure As of the last practicable date, Mr. Shu Xiaolong, Ms. Shu Wen (Mr. Shu Xiaolong's sister), and Ms. Dong Xue (Mr. Shu Xiaolong's spouse) hold 70.78%, 15.02%, and 6.22% of the company, respectively, through their respective indirectly wholly-owned investment instruments. Post-IPO, Mr. Shu Xiaolong, Ms. Dong Xue, and Ms. Shu Wen, together with their respective investment instruments in the company, will constitute a group of controlling shareholders under the listing rules. Intermediary Team Joint Sponsors: China International Finance Hong Kong Securities Limited, Haitong International Capital Limited Company Legal Advisors: Pu Hui Law Firm (Hong Kong) Limited Liability Partnership, Tong Li Law Firm, Harney Westwood & Riegels Joint Sponsors Legal Advisors: Skadden, Arps, Slate, Meagher & Flom LLP, JT&N Auditors and Reporting Accountants: Ernst & Young Certified Public Accountants Industry Consultant: Zhushi Enterprise Management Consulting (Shanghai) Co., Ltd. Compliance Advisor: Haitong International Capital Limited