Banmu, which has expanded to 200 stores, is making another push for an IPO.

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On June 17, Banu International Holdings Limited (hereinafter referred to as "Banu") updated its prospectus on the Hong Kong Stock Exchange. The latest disclosed data shows that Banu achieved operating revenue of RMB 2.85 billion in the full year of 2025, a year-on-year increase of 23.4%; the adjusted net profit reached RMB 320 million, a substantial increase of 88.7% year-on-year.

Against the backdrop of split consumer flows in the current domestic restaurant market and single-store model pressure faced by some leading direct-operated hotpot brands, Banu has delivered a report card of double growth in both revenue and profit.

However, for the market, it is the structural features of its profits, store operation efficiency, and future expansion path—revealed behind the surface of the financial data—that are the core determinants of its valuation anchor.

The most notable feature in Banu's 2025 financial report is the rapid profit growth outpacing revenue growth. Revenue growth of 23.4% leveraged an adjusted net profit growth of 88.7%. This "scissors difference" directly reflects the release of the company's operating leverage.

The cost structure of restaurant enterprises generally shows rigid characteristics, with rent, labor, and supply chain depreciation/amortization accounting for a large proportion of total revenue.

The explosive increase in adjusted profit on one hand indicates that Banu most likely did not have large-scale one-off expenses or major asset impairments during the reporting period; on the other hand, after excluding potential non-recurring gains and losses, the surge in adjusted profit directly points to a substantial improvement in single-store profitability. Once store revenue passes the break-even point, the surplus revenue is converted to net profit more efficiently.

Additionally, this also indirectly confirms Banu's bargaining power in the supply chain or its internal cost control system, such as reduced raw material loss rates and improved scheduling efficiency, which achieved staged results in the past year.

As core metrics for evaluating the health of restaurant enterprises, same-store sales growth rate and table turnover rate are the focus of this prospectus.

In 2025, Banu recorded a same-store sales growth rate of 4.8%, and the table turnover rate increased from about 3.2 times/day last year to 3.6 times/day. At a time when the industry is generally facing price wars and intensified competition for foot traffic, the positive growth in these two indicators shows it has maintained strong brand stickiness among its target customer base.

It should be pointed out that for full-service hotpot restaurants focusing on high-quality experience and high per customer spend, a table turnover rate of 3.6 times/day is close to the critical point balancing experience and efficiency, and within a healthy range. Compared to mass-market fast-food restaurants that pursue extreme turnover, high-end dining with excessive turnover often means sacrificing the dining experience for customers.

Therefore, a turnover rate of 3.6 times may already be close to the optimal single-store model critical point under this brand positioning. Looking ahead, if Banu wants to continue to raise single-store revenue, rather than further squeezing turnover rate, it is more practical to increase per customer spend through new product launches or increase seating rates during non-peak hours.

In addition to endogenous growth, external expansion is currently the most direct driving force for Banu's revenue scale. The prospectus reveals that the number of new stores opened by the brand in 2023, 2024, and 2025 were 25, 35, and 44 respectively, showing a clear annual increase.

The opening of 44 new stores in 2025 is not only Banu's peak expansion in recent years, but also tests the company's cash flow and talent reserves. Generally, large-scale expansion under the direct operation model brings huge capital expenditures, and new stores often have ramp-up periods of several months, initially dragging down overall profit margins.

Nevertheless, Banu maintained a same-store growth of 4.8% and profit growth of 88.7% in the same year as its record store openings, indicating that most new stores in 2025 were accurately located, ramp-up periods were extremely short, or the profitability of existing stores was strong enough to largely offset the impact of new stores.

At the same time, the accelerated pace of expansion also brings medium- and long-term concerns. As core locations in first- and second-tier cities gradually saturate, maintaining the current scale of expansion may require penetrating into lower-tier cities or peripheral commercial districts. Can the high per customer spend model remain sustainable in these markets? Will store densification dilute traffic in existing stores? These are cyclical challenges that all chain restaurant brands entering maturity must overcome.

Overall, the updated prospectus shows Banu as a fundamentally solid, rising direct-operated restaurant candidate. Yet, in the current Hong Kong stock market where valuations for consumer assets are becoming rational, investors will examine its risk resilience more rigorously. Banu needs to prove to the capital market that its "high per customer spend + stable turnover + accelerated expansion" growth flywheel can remain unaltered throughout longer macroeconomic cycles.

Risk Warning and DisclaimerThe market is risky, and investment requires caution. This article does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their particular situation. Any investment based on this article is at your own risk. ```