HONG KONG, Jan. 18, 2024 /PRNewswire/ -- On January 16, 2024, China's prominent consumer investment institution, Harvest Capital, invested enterprise Xiao Caiyuan (officially known as XIAOCAIYUAN INTERNATIONAL HOLDING LTD), officially submitted its prospectus to the Hong Kong Stock Exchange, with plans to list on the main board.
Currently, Xiao Caiyuan operates 548 self-owned stores. In the first three quarters of 2023, Xiao Caiyuan's revenue increased by 41.6% from the same period in 2022, rising from CNY 2.422 billion to CNY 3.429 billion. The net profit also saw a significant growth of 107.6%, increasing from CNY 207 million in the same period of 2022 to CNY 430 million. The net profit margin for the first three quarters of 2023 stands at 12.5%.
According to Frost & Sullivan's statistics, based on store revenue in the first three quarters of 2023, "Xiao Caiyuan" ranks first among all brands in the Chinese mass-market Chinese-style catering market with an average customer price ranging from CNY 50 to CNY 100.
Harvest Capital is the sole external investment institution for Xiao Caiyuan, with a cumulative investment of CNY 500 million. The funds raised from Xiao Caiyuan's IPO will be primarily used to continue expanding its store network, increasing geographical coverage, and improving market penetration; enhancing supply chain capabilities; upgrading intelligent devices and digital systems to enhance digital capabilities; as well as for operational funds and general corporate purposes.
In the past three years, which were impacted by the pandemic, Xiao Caiyuan's directly owned store total increased from 278 in 2021 to the current 548, almost doubling the number of stores in three years. In the first nine months of 2023, Xiao Caiyuan achieved a revenue of CNY 34.29 billion (a YoY growth of 41.6%) and a profit of CNY 4.30 billion (a YoY growth of 107.6%). Same-store sales saw a YoY growth of 22.3%. The daily sales per square meter for stores reached CNY 81, with an increase of 18.5%, and the same-store daily sales per square meter reached CNY 79.3, with an increase of 18.3%. According to Sullivan's report, these growth rates are leading in the industry.
In the future, Xiao Caiyuan aims to further establish itself as an international first-class chain catering group with a modern scientific management system, focusing on mass-market Chinese-style catering, and realizing the vision that "where there are Chinese people, there is Xiao Caiyuan."
Song Xiangqian（Alan Song）, Founder and Chairman of Harvest Capital, pointed out, "The future is no longer the era of businessmen but will enter an era where entrepreneurial abilities are paramount. The ceiling of a brand is people's hearts. By providing good products and services for consumers and the market in a down-to-earth manner, people will continue to pay for a long time. We highly recognize Chairman Wang Shugao and his team. We believe that under their leadership, Xiao Caiyuan will undoubtedly lead the modernization transformation of Chinese-style catering, continuously empower people's lives, create more consumer benefits, and lead more Xiao Caiyuan employees towards shared prosperity."
