Little Vegetable Garden: New Huizhou Cuisine Brand Impacts Hong Kong Stock IPO, Valuation Reaches 10 Billion.

Xiaocaiyuan, a new Anhui cuisine brand targeting the mass dining market, is recently making a push for an IPO on the Hong Kong stock market. Founded in 2013 by Anhui chef Wang Shugao, Xiaocaiyuan focuses on affordability, with prices that are friendly to the average consumer and an average per capita spending of about 65 yuan.

In 2023, Xiaocaiyuan completed two rounds of financing against the trend, raising a total of 5 billion yuan, with a post-investment valuation of 10 billion yuan. The investment was led by the veteran consumer PE firm Jiahua Capital. Xiaocaiyuan operates on a direct sales model and currently has 623 stores, with plans to increase to 1,100 by 2026.

Xiaocaiyuan boasts strong profitability, earning nearly 1 billion yuan from 2021 to 2023. Its gross profit margin ranges from 65.5% to 68.5%, and the average cash investment recovery period for its stores is between 7.3 and 15.2 months, far quicker than the industry average.

Xiaocaiyuan emphasizes digital management, using SAP systems, CRM membership systems, and applying cooking robots to enhance efficiency. Additionally, it implements a store partnership model, with store managers often being head chefs, forming a community of shared interests.

Song Xiangqian, founder of Jiahua Capital, believes that Xiaocaiyuan's success lies in its team's high-level wisdom and altruistic spirit. Consumption and technology are not opposed but complement each other. Xiaocaiyuan's case demonstrates this.

Currently, Xiaocaiyuan is racing with several other Chinese dining enterprises to list on the Hong Kong stock market, garnering high market attention.