Core Viewpoint - Hu Shang Ayi (Shanghai) Industrial Co., Ltd. is launching an IPO in Hong Kong, facing challenges such as declining revenue and profit, while heavily relying on a franchise model for its business expansion [2][3][9]. Group 1: IPO Details - The company plans to issue 2.4113 million shares at a price range of HKD 95.57 to HKD 113.12, with an expected listing date of May 8 [2][3]. - Two cornerstone investors, Yingfeng Holdings and Huabao Holdings, have subscribed for shares totaling approximately USD 921.55 million (around HKD 71.49 million) [3]. Group 2: Financial Performance - In 2024, Hu Shang Ayi reported a revenue of RMB 32.85 billion, a year-on-year decline of 1.9%, and a net profit of RMB 3.29 billion, down 15.2% [9][10]. - The gross profit margin increased to 31.3% in 2024, but the net profit margin decreased by 1.6 percentage points to 10% [10]. - The company's total GMV reached RMB 107 billion in 2024, reflecting a growth of approximately 10%, although average single-store GMV fell by 12% to RMB 1.37 million [11]. Group 3: Business Model and Franchise Dependency - As of the end of 2024, 99.7% of Hu Shang Ayi's 9,176 stores were operated by franchisees, indicating a strong reliance on the franchise model [13][14]. - Revenue from franchise-related activities accounted for 96.5% of total income in 2024, highlighting the company's dependency on this model for growth [14][15]. Group 4: Cash Dividends and Founder Earnings - The company distributed significant cash dividends during its IPO period, with a total of RMB 2.19 billion in cash dividends declared, of which over 80% went to the founders, Dan Weijun and Zhou Rongrong [7][9]. Group 5: Food Safety Concerns - Recent reports have raised food safety issues, including the use of expired ingredients in products, which could impact the brand's reputation and consumer trust [16][20]. - Complaints regarding product quality and customer service have been prevalent, with numerous reports of unsatisfactory experiences from consumers [21][23].
沪上阿姨IPO突击分红，单卫钧夫妇入袋1.77亿，加盟通病难解