Analysis of Yuanji Food's Inventory Turnover Efficiency: 12.1 Days Leading the Industry

Based on the information I found, Yuanji Food Group (applying for a Hong Kong IPO) has outstanding inventory turnover efficiency, with specific data analysis as follows:

According to Yuanji Food’s prospectus and third-party industry research data [1]:

Metric	Yuanji Food	Industry Average	Advantage
Inventory Turnover Days (2024)	12.1 days	Approx. 25 days	52% Better than Industry
Inventory Turnover Rate	Significantly Better than Industry	-	-

Yuanji Food has established an industry-leading integrated supply chain system, achieving efficient inventory management through five core factories and 24 warehouses [1]. Core raw materials are delivered to over 70% of stores on a “once every two days” schedule, ensuring the freshness and sales efficiency of short-shelf-life products.

• Front Warehouse Layout
  : As of September 30, 2025, over 86% of stores are located within 200 kilometers of a warehouse or front warehouse
• Full Cold Chain Logistics
  : One of the few Chinese fast-food brands in the industry to use a full cold chain
• Refined Inventory Management
  : Front warehouses divide daily market demand by stage and portion

With inventory turnover days of only 12.1 days, efficiency is improved by over 50% compared to the industry average of approximately 25 days for Chinese fast food. This means:

• Lower inventory holding costs
• Less capital occupation
• Lower risk of ingredient spoilage
• Higher capital utilization efficiency

For reference, the inventory turnover of other catering companies in the same industry:

• Yum China
  (parent company of KFC): Relatively stable inventory turnover
• Dashi Group
  (Domino’s China): Approx. 15-20 days
• Industry Average
  : Approx. 25 days

Yuanji Food’s inventory turnover days of 12.1 days are at the leading level in the industry, reflecting its excellent inventory management capabilities and supply chain efficiency.

Yuanji Food’s inventory management efficiency is

, mainly due to:

1. Large-scale central kitchens
   reduce production costs
2. Dense warehousing network
   shortens delivery distances
3. Standardized production processes
   improve turnover efficiency
4. Data-driven demand forecasting
   optimizes inventory levels

This efficient inventory management provides a solid operational foundation for its rapid expansion and store growth (from 1,990 stores in 2023 to 4,266 stores in 2025).

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[1] Sina Finance - “Analyzing Yuanji Food’s Prospectus: Over 4,000 Stores Launches IPO Bid” (https://finance.sina.cn/2026-01-12/detail-inhhaeyi8218016.d.html)