Lao Xiang Ji Plans Hong Kong Listing, with CICC and Haitong International as Joint Sponsors

Deep News01-10

On January 8th, LXJ International Holdings Limited, the holding company of Anhui-based Lao Xiang Ji Catering Co., Ltd., submitted its listing application to the Hong Kong Stock Exchange for an initial public offering. This marks a renewed attempt following the lapse of its two previous applications submitted on January 3, 2025, and July 7, 2025.

Founded by Shu Congxuan in 2003, Lao Xiang Ji has grown into China's largest Chinese fast-food brand. Adhering to its core values of 'Healthy, Abundant, Clean, and Friendly,' the company is committed to becoming the 'family kitchen' for its customers, offering a safe, convenient, and delicious high-quality Chinese dining experience.

According to data from CIC, based on total transaction value for 2024, Lao Xiang Ji ranked first in China's Chinese fast-food industry with a market share of 0.9%, and eighth in the broader Chinese fast-food market with a 0.5% share.

As of April 30, 2025, Lao Xiang Ji operated 1,658 stores across 58 cities in China, comprising 925 directly-operated stores and 733 franchised locations, spanning 9 provinces. In the first eight months of 2025, the company served over 206 million customers.

Lao Xiang Ji's revenue streams include directly-operated store sales, merchandise sales (comprising sales to franchisees and other customers), and franchise management services (including upfront franchise fees, royalty fees, and income from other services).

The prospectus reveals the pre-IPO shareholder structure: Shu Xiaolong (son of Shu Congxuan) holds a 70.78% stake via Constantly Soar Ltd; his sister, Shu Wen, holds 15.02% through Jump Spark Ltd; his spouse, Dong Xue, holds 6.22% via Favourable Impression Ltd; and the equity incentive plan platform, Kandel Holding Ltd, holds a 3.00% stake through Poweroy Holding Ltd.

Financial disclosures show that for the periods of 2022, 2023, 2024, and the first eight months of 2025, Lao Xiang Ji reported revenues of RMB 4.528 billion, RMB 5.651 billion, RMB 6.288 billion, and RMB 4.578 billion, respectively. Corresponding net profits were RMB 252 million, RMB 375 million, RMB 409 million, and RMB 371 million.

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