Zhitong Finance APP learned that according to the disclosure of the Hong Kong Stock Exchange on February 22, Shanghai Yangguofu Enterprise Management (Group) Co., Ltd. (referred to as Yangguofu) has submitted a listing application to the main board of the Hong Kong Stock Exchange, with CITIC Securities International as the exclusive sponsor.

Yang Guofu is a leading and well-known Chinese fast food brand. As of September 30, 2021, the company's "Yang Guofu" brand has a total of 5783 restaurants, including 3 self operated restaurants in Shanghai, 5759 franchised restaurants in 31 provinces and cities across China, and 21 overseas franchised restaurants located in Australia, Canada, South Korea, the United States, Japan, and Singapore. According to Frost&Sullivan, Yang Guofu ranks first in the Chinese fast food market based on the total amount of commodity transactions and the number of restaurants for the year ended December 31, 2020 or as of that date. In addition, Yang Guofu ranks first in China's Spicy Hot Pot market based on the revenue, total commodity transactions and the number of restaurants for the year ended December 31, 2020 or as of that date.

Yang Guofu was founded in 2003. After 19 years of development, the company has realized the layout of restaurants throughout the country and reaching overseas by investing in the innovation and improvement of Chinese food Spicy Hot Pot, and by using a unified, standardized and easy to expand franchise business model, showing the beauty of Chinese food Spicy Hot Pot to the world. In addition, since the beginning of 2021, depending on Yang Guofu's competitive advantages such as restaurant network, brand reputation and supply chain capability, the company has strategically expanded its retail business and started to provide retail products related to Spicy Hot Pot, including convenience products and compound seasonings.

At the same time, Yang Guofu also provides consumers with high-quality consumption experiences covering a wide range of consumption scenarios, creating enormous potential for its future development. With Yang Guofu's rich industry experience in the Spicy Hot Pot market over the past 19 years, he has established a restaurant network covering the whole of China and expanded to overseas markets including Australia, Canada, South Korea, the United States, Japan and Singapore. Looking ahead, Yang Guofu will continue to strategically expand its restaurant network at appropriate times to further enhance brand awareness.

In terms of financial status, Yang Guofu's income reached 1.18 billion yuan (RMB) in 2019, 1.11 billion yuan (RMB) in 2020, and 1.16 billion yuan in the nine months ended September 30, 2021, respectively. The profits for the period/year reached RMB 181 million, RMB 169 million, and RMB 202 million respectively. Due to factors such as economic scale, the company's gross profit margin has continued to grow, increasing from 27.9% in 2019 to 28.7% in 2020, and from 26.8% in the nine months ended September 30, 2020 to 30.2% in the same period of 2021.

The prospectus shows that Yang Guofu plans to use the funds raised from the Hong Kong IPO to upgrade the company's production facilities to support the company's franchise restaurant business line, enrich the company's brand portfolio, expand the company's retail product supply and seize potential market opportunities (especially in the Spicy Hot Pot value chain); Used to further strengthen the company's research and development capabilities, as well as to enhance the company's talent cultivation and maintenance in multiple fields; To allocate funds for the company's restaurant network expansion plan in domestic and international markets; Comprehensively upgrade the company's information technology system and implement the company's "Five Online" information construction blueprint; To further enhance and strengthen the brand awareness of the company in all business segments and markets in which the company operates, as well as to further develop the company's retail business; Strengthen the company's supply chain capabilities, such as enhancing its logistics and warehousing capabilities; For potential strategic expansion opportunities in the future; And general enterprise and operating capital purposes.