--- title: "Country Chicken's fifth attempt to list in Hong Kong: Can the 'top dog' of Chinese fast food succeed this time?" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/31563313.md" description: "On July 7, LXJ International Holdings Limited (Lao Xiang Ji) submitted its fifth listing application to the Hong Kong Stock Exchange, with CICC and Haitong International remaining as joint sponsors. This marks its fifth submission since 2022 and the second attempt to list on the Hong Kong market under the leadership of the second-generation successor Shu Xiaolong—the previous submission (January 3, 2025) expired due to the six-month validity period. Known as the "Chinese version of KFC," this leading Chinese fast-food chain is knocking on the capital market's door with greater urgency. So..." datetime: "2025-07-08T07:15:35.000Z" locales: - [en](https://longbridge.com/en/topics/31563313.md) - [zh-CN](https://longbridge.com/zh-CN/topics/31563313.md) - [zh-HK](https://longbridge.com/zh-HK/topics/31563313.md) author: "[港股研究社](https://longbridge.com/en/profiles/3199113.md)" --- # Country Chicken's fifth attempt to list in Hong Kong: Can the 'top dog' of Chinese fast food succeed this time? On July 7, LXJ International Holdings Limited (Lao Xiang Ji) submitted its fifth listing application to the Hong Kong Stock Exchange, with CICC and Haitong International remaining as joint sponsors. This marks its fifth application since 2022 and the second attempt to list in Hong Kong under the leadership of the second-generation successor, Shu Xiaolong—the previous application (submitted on January 3, 2025) lapsed after the six-month validity period expired. Dubbed the "Chinese version of KFC," this leading Chinese fast-food chain is knocking on the capital market's door with increasing urgency. So, can Lao Xiang Ji break the "fifth-time" curse this IPO? Can its ambition of becoming the "Chinese KFC" become a reality? **From "Regional Leader" to "National Dominator": The Moat Built by a Full Industrial Chain** Lao Xiang Ji's story began in 2003 with its first "Feixi Old Hen" fast-food restaurant on the streets of Hefei. Unlike most Chinese fast-food brands, it gradually developed a full industrial chain layout starting from chicken farming—encompassing breeding, procurement, processing, warehousing, logistics, and terminal catering services, forming a closed-loop ecosystem. This model was dubbed the "irreplicable business code" by Song Xiangqian, founder of Jiahua Capital: self-owned breeding bases ensure stable ingredient supply, central kitchens enable standardized production, cold-chain logistics support cross-regional expansion, and the store network reaches consumers, allowing Lao Xiang Ji to expand and replicate nationwide with agility. This model not only gives Lao Xiang Ji pricing power in raw materials but also builds competitive barriers that other brands find hard to replicate through its "from farm to table" control. The advantages of the full industrial chain are evident in the data: As of April 2025, Lao Xiang Ji operates 1,564 stores (911 self-owned + 653 franchised) in 58 Chinese cities, covering nine provinces, forming a "self-owned + franchised" store network that balances quality and expansion. In terms of total transaction volume, it ranked first in the Chinese fast-food industry with a 0.9% market share in 2024 and eighth in China's overall fast-food industry with a 0.5% share. More importantly, its gross margin has remained stable at 20%-23%, with a net profit of RMB 409 million in 2024, up 9.1% year-on-year, demonstrating profitability stronger than the industry average. The value of the full industrial chain model was recognized by Jiahua Capital as early as 2018. It invested RMB 200 million at a valuation of approximately RMB 4 billion, becoming the "key player" in Lao Xiang Ji's first external financing. After this, Lao Xiang Ji expanded beyond Anhui, entering Hubei, Jiangsu, Shanghai, Zhejiang, Guangdong, and Beijing, gradually gaining national visibility. Later, Maison Capital and GF Xianhe further invested in the Pre-IPO round, pushing Lao Xiang Ji's valuation past RMB 18 billion. With capital support, Lao Xiang Ji accelerated its national expansion: it tested franchising in 2020, and by April 2025, it had 1,564 stores across nine provinces, including Anhui, Hubei, and Jiangsu, completing its transformation from a regional brand to a national leader. The company has grown into a leading player in China's Chinese fast-food market and is one of the first Chinese fast-food companies to implement standardization across core operational segments. On the supply chain side, Lao Xiang Ji is also the only major Chinese fast-food company with a full industrial chain (covering chicken farming, central kitchens, and catering services). **Confidence in the Hong Kong IPO: Record Revenue and Profits, a New Chapter Under Second-Generation Leadership** Financially, Lao Xiang Ji has entered a phase of steady growth, but signs of slowing growth are emerging. Thanks to continuous business expansion and a growing customer base, Lao Xiang Ji's revenue and net profit have hit new highs over the past three years. Financial reports show that as of the first three quarters of 2024, its revenue and profit exceeded the full-year figures for 2022, reaching RMB 4.678 billion and RMB 367 million, respectively. For the full year, the company set a new revenue record of RMB 6.288 billion in 2024, compared to RMB 4.528 billion in 2022 and RMB 5.651 billion in 2023. Net profit also grew yearly, from RMB 252 million in 2022 to RMB 375 million in 2023 and RMB 409 million in 2024, with net profit margins of 5.6%, 6.6%, and 6.5%, respectively. Behind this is the steady improvement and release of operational quality as scale grows. From 2022 to 2024, its gross profit was RMB 919 million, RMB 1.319 billion, and RMB 1.433 billion, with gross margins of 20.3%, 23.3%, and 22.8%, respectively. The company explained in its prospectus that the significant profit growth in 2023 was largely due to strong performance in self-owned stores. With revenue from this segment surging, the turnover rate of self-owned stores increased from 3.8 in 2022 to 4.7 in 2023, improving marginal efficiency and raising the gross margin from 19.8% in 2022 to 23.5% in 2023. In contrast, growth in 2024 and the first four months of 2025 was driven more by franchised stores. Data shows that thanks to franchising expansion, revenue from franchised stores surged from RMB 159 million in the four months ending April 30, 2024, to RMB 410 million in the same period in 2025, driving total revenue from RMB 1.929 billion in the first four months of 2024 to RMB 2.12 billion in the same period in 2025. Clearly, under dual drivers, its operations continue to grow steadily. It's fair to say Lao Xiang Ji has ample confidence in its IPO application. However, as scale reaches a certain level, its growth has slowed in recent years. Notably, the number of customers at self-owned stores declined year-on-year in the first four months of 2025, which may affect growth. Additionally, Lao Xiang Ji still relies heavily on its home region, with over half its stores located in Anhui, indicating a need for stronger national penetration. To continue expanding, Lao Xiang Ji needs fresh capital. From an industry perspective, the Chinese fast-food market is in a golden growth phase, but Lao Xiang Ji must overcome multiple challenges to become the "Chinese KFC." CIC data shows that China's Chinese fast-food market will grow from RMB 753.2 billion in 2023 to RMB 1.2459 trillion in 2028, with a CAGR of 10.6%. But compared to the 64.8% chain rate of Western fast food, Chinese fast food lags at 32.0%. The fragmented market means leading brands have immense growth potential. As the top Chinese fast-food brand by transaction volume in 2024, Lao Xiang Ji is well-positioned to capture industry growth through national expansion. However, its 0.9% market share shows it hasn't shed its "regional brand" label. In recent years, local brands like Country Style Cooking Restaurant Chain and Lao Niang Jiu have accelerated national expansion, and non-fast-food brands (e.g., some full-service restaurants) have entered the Chinese fast-food space, intensifying competition. Moreover, compared to KFC, Lao Xiang Ji's scale remains significantly smaller, making its "Chinese KFC" tag more aspirational than reality. **How Likely Is a "Chinese KFC"?** Lao Xiang Ji's fifth IPO application is both a capital breakthrough and a microcosm of the Chinese fast-food industry's evolution. Its full industrial chain moat, standardized operations, and national foundation form the core confidence for its Hong Kong listing. Meanwhile, the younger second-generation team and Hong Kong's financing advantages provide flexibility for future expansion. But to truly become the "Chinese KFC," Lao Xiang Ji must overcome three hurdles: breaking regional concentration, improving single-store efficiency, and building brand recognition in global competition. As Song Xiangqian said, "Exceptional product strength is the key to weathering cycles." If Lao Xiang Ji's "delicious, affordable, and healthy" positioning holds, if its full-chain efficiency further improves, and if the second-generation leadership successfully transitions the brand from "regional leader" to "national benchmark," the battle for the "first Chinese fast-food IPO" may gain new momentum. ### Related Stocks - [601995.CN](https://longbridge.com/en/quote/601995.CN.md) - [03908.HK](https://longbridge.com/en/quote/03908.HK.md) - [HKXCY.US](https://longbridge.com/en/quote/HKXCY.US.md) - [80388.HK](https://longbridge.com/en/quote/80388.HK.md) - [00388.HK](https://longbridge.com/en/quote/00388.HK.md) ## Comments (1) - **特朗普特靠谱 · 2025-07-16T04:09:34.000Z**: Optimistic