Qian大妈’s IPO Journey: Billion-Dollar GMV Can't Mask Performance Concerns, How to Balance Scale and Risk?

Author | Duo Ke

Source | Beiduo Business & Beiduo Finance

Recently, Qian大妈 International Holdings Limited (hereinafter referred to as 'Qian大妈') submitted a listing application to the Hong Kong Stock Exchange. CICC and ABC International are its joint sponsors.

From an ordinary community store to becoming a fresh food chain giant with billions in GMV and making a push into the capital markets, Qian大妈's success confirms the feasibility of the 'discount daily clearance' model in community commerce, while also establishing strong brand recognition centered around 'freshness' among consumers.

However, behind the title of 'China’s largest community fresh food chain,' lies financial data showing that Qian大妈 recorded losses exceeding 200 million yuan in the first three quarters of 2025 and has a persistently high asset-to-debt ratio. Additionally, the fact that 98.6% of its stores are franchises poses potential risks in quality control, service, and franchisee reputation.

Under the spotlight of the capital market, Qian大妈 needs to address not only external doubts about the sustainability of its performance growth but also how to balance commercial returns with market reputation.

I. ‘Daily Clearance’ Commitment Boosts Scale Expansion

China’s densely populated community settings have given rise to a highly promising community fresh retail market. According to a report by灼识咨询, offline businesses accounted for 80% of this niche market in 2024, with a chain rate in offline community fresh product retail at 44.7%, expected to increase to 56.7% by 2029.

The so-called community fresh chain refers to a new retail business model that centers on offline stores located near residential communities, supplemented by online sales channels. Its main customer base consists of nearby residents, with over 50% of its retail revenue coming from fresh products. The business operates more than 10 stores, each with an area under 500 square meters.

This retail model leverages the natural traffic advantage of communities, featuring a stable customer base, strong path dependency, and high repurchase rates. According to 灼识咨询, China's community fresh chain industry had a market size of 616.2 billion yuan in 2024 and is projected to grow at a compound annual growth rate of 15.5%, reaching 1.27 trillion yuan by 2029.

Qian大妈, which has been deeply involved in community fresh chain operations for many years, stands out as a leader in this sector. Since opening its first community store in 2013, Qian大妈 has adhered to the operational standard of 'No Overnight Meat,' aiming to provide high-quality fresh products to consumers. By the end of September 2025, it offered a total of 775 SPUs.

Under the 'discount clearance' model pioneered by Qianmadam, its stores offer a 10% discount starting at 7 PM daily, with an additional 10% off every 30 minutes thereafter. Remaining products are given away for free at 11:30 PM. This same-day clearance operation model has disrupted traditional market practices and gained consumer approval.

In 2024, Qianmadam’s total GMV reached 14.8 billion yuan, ranking among the top in the fresh retail market in South China, with a fresh product GMV of 9.8 billion yuan, which is 2.8 times that of the second-largest market participant. Calculated by fresh product GMV, the company has ranked first among China's community fresh chain enterprises for five consecutive years.

As of the end of September 2025, Qianmadam's store network has expanded to 2,938 community stores across 14 provinces, municipalities, and special administrative regions in China. Through its own platforms (such as WeChat Mini Programs and Apps) and third-party food delivery platforms, the company has also established online sales channels.

II. Core Growth Engine Stalls

The establishment of Qianmadam’s community fresh store network primarily relies on the support of the franchise model. As of the end of September 2025, Qianmadam operates only 40 self-owned stores, while the number of franchise stores has reached 2,898. The aim is to leverage local resources and understanding of the community by franchisees to ensure products better meet the preferences of different consumers.

Qianmadam has built 16 integrated warehouses and an efficient cold chain network nationwide, enabling fresh products to reach stores within 24 hours. Most fresh products spend less than 12 hours in turnover at integrated warehouses, significantly lower than the industry average of 2 to 4 days, ensuring all products sold in franchise stores are supplied by the company.

As such, sales-related activities from franchising—such as product sales, franchise fees, and royalty fees based on sales—are Qianmadam’s primary revenue sources. In 2023, 2024, and the first three quarters of 2025 (the 'reporting period'), income from franchisee-related sales accounted for over 94% of the company’s revenue.

However, it should be noted that Qianmadam’s financial performance in recent years has been characterized as 'stable but lacking growth momentum.' Revenue in 2023 and 2024 was 11.744 billion yuan and 11.788 billion yuan respectively, reflecting a growth bottleneck. Revenue for the first three quarters of 2025 was 8.359 billion yuan, representing a 4.3% year-over-year decline.

The reason lies in the price drop and reduced sales of two key categories—pork and vegetables. Qianmadam’s product sales revenue fell by 4.4% from 8.507 billion yuan in the first three quarters of 2024 to 8.132 billion yuan in the same period of 2025, exposing the risk of significant earnings volatility due to the company’s heavy reliance on a single revenue source.

Looking at profitability, Qianmadam’s net profits in 2023 and 2024 were 169 million yuan and 288 million yuan, respectively, representing an increase of approximately 71.1%. However, entering 2025, the company’s profitability plummeted, with a net loss of 288 million yuan recorded in the first three quarters, contrasting sharply with a net profit of 227 million yuan in the same period of 2024.

If calculated according to non-Hong Kong financial reporting standards, after deducting the fair value gain of HK$481 million in convertible redeemable preferred shares and net adjustment modifications, Qian大妈's adjusted net profit for the first three quarters of 2025 was actually RMB 215 million, an increase from RMB 145 million during the same period in 2024.

III. Opportunities and Concerns Coexist in Franchise Model

It is undeniable that with its unique franchisee network, Qian大妈 has built a rapidly expanding business empire and has firmly established itself in the fresh retail sector. However, the risks hidden behind this expansion logic, which revolves around franchising and product dumping, are becoming increasingly apparent over time.

In 2021, CCTV's 'Finance at This Moment' program reported on the plight of Qian大妈 franchisees who were 'losing money despite increasing sales.' At that time, some franchisees complained that Qian大妈's aggressive discounting methods led some consumers to develop a purchasing habit of 'only buying during discount periods,' significantly compressing the profit margins of franchisees.

According to operators, Qian大妈 enforces strict operational management for its franchise stores, setting not only a minimum daily purchase requirement but also controlling the selling price of goods, allowing prices to be reduced only. If franchisees fail to comply with price management, they face penalties or even suspension of supply.

Moreover, as Qian大妈 shortened the regional protection distance in some areas from 300 meters to 250 meters, the coverage of customer traffic dropped from 2,500 households to 1,000 households. This directly resulted in excessively high store density in some regions, creating more intense competitive pressure for franchisees. According to 极海 analysis data, under these circumstances, Qian大妈's overall store closure rate is close to 23%.

In response, Qian大妈 issued a statement on its official website, asserting that its nightly discounts to attract customers are not a marketing gimmick and that the issue of 'poor franchisee operation' mentioned in the report is not a widespread phenomenon. The company pledged to quickly optimize its development process and provide franchisees with more tangible support.

Nevertheless, many franchisees still closed their stores due to being unable to bear the losses. According to the prospectus, although the company added 333 new franchise stores in 2024, 305 franchise stores ceased operations during the same period, resulting in a net increase of only 28 franchise stores within the year, indicating obstacles in store expansion.

More concerning is that Qian大妈 itself faces severe financial pressures. As of the end of September 2025, while the company’s total assets climbed to RMB 1.795 billion, its total liabilities remained as high as RMB 3.529 billion. A debt-to-asset ratio of 196.7% highlights the fragility of its cash flow and raises questions about the sustainability of its business model.

IV. Conclusion

Industry insiders noted that Qian大妈's initiation of the Hong Kong IPO process signifies that the community fresh retail sector has entered a deep competitive phase characterized by scale, standardization, and branding. The industry is set to undergo a comprehensive test of strength focused on supply chain efficiency, digital upgrades, and multi-channel integration.

This also indicates that, as industry competition intensifies, Qian大妈's (Qian DM) strategy of sacrificing profits for traffic through a loose expansion model will eventually become unsustainable. The company must explore ways to balance scale expansion with the加盟 ecosystem to build a long-term development model that is more resilient and capable of delivering active financial performance.

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