Xfy Holding Corporation
Xfy Holding Corporation
Business Summary
Background
XFY Holding Corporation (Code: 0968) is a hot pot restaurant management company that offer a healthy, delicious and enjoyable hot pot concept. LSXFY Ontario Inc. is the exclusive distributor for Little Sheep Mongolian Hot Pot in Canada. In 2005 Little Sheep Hot pot firstly was opened in Toronto, Canada. By right of special soup base and a new hot pot concept of without dipping the sauce, Little Sheep Hot Pot quickly was accepted by our customers. Then Little Sheep Hot Pot successfully built a new food concept in other market, such as Canada, United Sate,Japan. Nowadays more than 350 chain stores have spread all over the United States, Canada, Japan, South Korea, Indonesia and China.

Capitalizing on some years of hard work, Little Sheep Hot Pot built its food and management concept that provide enjoyable experience, excellent service and delicious food for the customers. These not only attracted the customers, but also offered a franchising opportunity to ambitious individuals. In 2008 XFY started to offer franchising Little Sheep Hot Pot restaurant, aiming to provide our delicious hot pot for more customers and make the franchises benefit. On June 12, 2008, Little Sheep was listed on Hong Kong Stock Exchange successfully. Thereafter, Little Sheep Hot Pot embarked on its global journal.

Including 293 franchise shops, the total number of branches has been increased 21% from 375 to 454 on 31 December, 2009. The main operating area is the North of China.

Product
XFY Holding Corporation has its own production chain to ensure a stable supply of raw materials. The lamb is from the ranches in Mongolia. Even the soup is also homemade. . Inner Mongolia Little Sheep Condiment Inc.(hereinafter refer to the “Little Sheep Condiment”) set up in January, 2007 in Baotou City, Inner Mongolia. It is the sole base producing the condiment of Inner Mongolia Little Sheep Catering Chain Co,. Ltd. (hereinafter refer to the “Little Sheep Group”). The most famous selling point is that customers do not need to use any source to enhance the taste because secret source is already in the soupIt attracts a lot of people who emphasize “health” of the young generation. It set up a central kitchen in shen zheng to enhance the competitiveness against its peers.

Competitors
The main competitors of XFY Holding Corporation are Ajisen (China) and Café de Carol. Although Ajisen (China) is a restaurant which sells Japanese food, its target customers are similar with XFY Holding Corporation.

Investment thesis
low gross profit ratio (control of revenue and cost): high operating cost, esp COGS
Income
As usual, most of its profit is generated from restaurant operation which takes nearly 78%. Retail sale of its products is increasingly significant in its profitability performance which takes approximately 20%. Franchise fee and management fee are less influential in bog picture.

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Little Sheep Mongolian Hot Pot And Hot Pot Restaurant Management Company. (June 9, 2021). Retrieved from https://www.freeessays.education/little-sheep-mongolian-hot-pot-and-hot-pot-restaurant-management-company-essay/