We are the leading and a rapidly growing home meal products brand in China. We offer a variety of ready-to-eat, ready-to-heat, ready-to-cook and prepared ingredients, with a focus on at-home hotpot and barbecue products. With a carefully curated product portfolio and an extensive network of community-based stores, we enable consumers to enjoy meals at home with convenience, affordability and tastiness. Leveraging our robust supply chain and production capabilities, we offer a wide variety of home meal products under the Guoquan Shihui (鍋圈食匯) brand through a nationwide network of 9,844 retail stores in China as of April 30, 2023, serving diverse dining scenarios.
We are the leading one-stop home meal products brand in China, ranking first among all retailers in China in 2022 in terms of retail sales value of home meal products, with a market share of 3.0% in China, according to Frost & Sullivan. Home meal products include ready-to-eat, ready-to-heat, ready-to-cook foods and prepared ingredients. We strategically entered into China’s home meal products market specializing in at-home hotpot and barbecue products and were the largest at-home hotpot and barbecue brand in China in 2022 in terms of retail sales value, according to Frost & Sullivan.
We established the largest one-stop home meal products retail store network in China as of December 31, 2022 in terms of number of retail stores, according to Frost & Sullivan. Leveraging on such store network, we offer both online and offline shopping experience and amassed over 100 million orders in 2022 alone. Our network of retail stores across China further increased from 9,221 as of December 31, 2022 to 9,844 as of April 30, 2023.
We are also devoted to developing products under our proprietary brand name carrying the Guoquan Shihui logo. As the leading one-stop home meal products brand in China, we are well positioned to capture the significant growth potential in China’s home meal products market. We offer tasty, convenient and value-for-money home meal products underpinned by high quality food ingredients that have an immense potential for creating new and diverse products, to cater to different dining scenarios. Our product portfolio comprises eight categories including hotpot products, barbecue products, beverages, solo-dining meals, ready-to-cook meal kits, fresh produce, western cuisines and snacks, totaling 710 SKUs as of April 30, 2023, with approximately 95% of our nationally available SKUs under our proprietary brand carrying the Guoquan Shihui logo.
We have established a store network primarily comprising franchised stores. Under our franchise business model, we derive substantially all of our revenue from the sale of our products to franchisees, who open and operate franchised stores under our brand and sell our products to consumers. We enter into franchise agreements with franchisees granting them the right to operate franchised stores carrying our brand and trademarks. We do not charge or rely on franchise fees. In selecting our franchisees, we take into account their industry experience, financial circumstances, recognition of our value and management philosophy and their passion and long-term commitment towards operating our franchised stores. In addition, as of April 30, 2023, we had six self-operated stores for the purpose of providing a model for franchised stores as well as acting as pilot programs for innovative store operation and management strategies and tools, marketing activities, digital tools and new decoration styles, among others, before introducing them to our franchised stores. As of April 30, 2023, we established a network of 9,844 stores under our Guoquan Shihui brand in China, covering 29 provinces, autonomous regions and municipalities in China.
We have also been developing online sales channels including our Guoquan APP, WeChat mini-program as well as on popular social commerce platforms such as Douyin. In addition, we partner with third-party food delivery platforms, such as Meituan and Ele.me to deliver our products to consumers. Leveraging the highly efficient management and operation of our supply chain and our digitalized management system, we are able to ensure product quality and safety, as well as achieve high operational efficiency from food production to retail sales.
We experienced significant growth during the Track Record Period. Our total revenue increased by 33.5% from RMB2,964.7 million in 2020 to RMB3,957.8 million in 2021 and further by 81.2% to RMB7,173.5 million in 2022. For the four months ended April 30, 2023, we achieved a total revenue of RMB2,078.2 million. Our gross profit increased by 7.9% from RMB329.3 million in 2020 to RMB355.3 million in 2021, and further by 251.5% to RMB1,249.0 million in 2022, and increased by 47.7% from RMB297.5 million for the four months ended April 30, 2022 to RMB439.3 million for the same period in 2023. Our gross profit margin was 11.1%, 9.0%, 17.4%, 13.8% and 21.1% in 2020, 2021 and 2022 and for the four months ended April 30, 2022 and 2023, respectively. Our significant growth has enabled us to capitalize on the advantages of economies of scale. This has been accomplished through our rapid expansion of store network, our focus on cost optimization, elevated brand recognition and our efforts to further advance our digitalization initiatives and improved operating efficiency from food production to retail sales. As a result of these efforts, we broke even in 2022 with a net profit of RMB241.0 million and continued to record a net profit of RMB119.6 million for the four months ended April 30, 2023.
Source: Guoquan Food (02517) Prospectus (IPO Date : 2023/10/20) |